Colored diamonds are considered a hard asset similar to gold and silver. The majority of investment advisers suggest a 5%-10% weighting of hard assets in most investment portfolios.
Colored diamonds are extremely rare. Argyle, one of the largest suppliers of colored diamonds state only 1 out of 10,000 diamonds found are color. We are running out of colored diamonds. Argyle, who produce 90%-95% of all pink diamonds, as well as multiple other colors, have announced closure in 2020.
Colored diamonds are very stable, with some market studies suggesting no drop in wholesale cost has occurred for over 30 years. In that same timeframe, colored diamonds have shown a consistent 12%-15% annual gain in value. Different diamonds rise in price faster than others. Talk to a Hard Carbon consultant to receive a full understanding of the best path for maximize gains.
Colored diamonds are a long term investment and Hard Carbon generally suggest a 3 to 5 year hold. We offer clients multiple exit strategies to realize capital gains. In addition, we offer a unique trading service whereas clients can trade diamonds or settings with other clients.
Colored diamonds are bought and sold through a totally private market place and as such the sale of client diamonds and jewelry take more time to sell than stock or other publically traded assets.
However, it’s also important to understand, because colored diamonds are a private market place, they can’t be shorted like stock or other market assets, so timing of the sale isn’t as much of an issue.
While clients need to take numerous items into consideration before purchasing a diamond, one of the most important is what price is paid for a high quality colored diamond because that ultimately determines gain.
Hard Carbon’s vast experience in the industry allows us to search the world market to source the very best option for each and every client.
At any point of time we have access to thousands of colored diamonds and pick the one that best fits the client’s needs with the best quality and price.