A guide to coloured diamonds compiled for London Commodity Markets, including why they are attracting the attention of investors, and how to value them. http://londoncommoditymarkets.com/coloured-diamonds.php

1. "Diamonds have emerged as a safe haven investment alongside favourites
such as gold" - Financial Times
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2. Coloured Diamonds Are
Attracting Attention
Coloured diamonds have started attracting the attention of investors around the world
recently, as the economic turmoil seen in many markets is creating a strong demand
for safe havens.
As well as their renowned aesthetic appeal, coloured diamonds also represent strong
long-term value; returns for the gems beat those of equities for much of the past 15
years.
The Financial Times reports that from 1999 to 2011, three-carat diamonds increased
by 145 per cent, while five carat diamonds rose by 171 per cent, as measured by the
Rapaport Diamond Trade Index.
"If we continue diamond mine at this rate - we are within 20 years
without" - De Beers
According to NuWire Investor,
the appreciation this commodity
has seen over the past decade is
unprecedented. Generally the
stones that fetch the highest
and most surprising sums are
those of highly rare colours,
sizes, and shapes. Vashi
Dominguez, chief executive of
diamond trading company Diamond Manufacturers, says: “Certain types of diamonds,
including coloured diamond varieties, have held their value over the past few years
better than other more volatile equity investments,”
And larger stones can certainly reap rewards for investors; the price of a typical five-
carat stone has grown by more than 150 per cent over the past ten years.
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3. "By 2016, global demand for diamonds will outstrip supply by 7 million
carats" - Bloomberg
The colour and intensity of a diamond is as important as its size or weight. A Fancy
Vivid Blue diamond less than half a carat in size could run into millions of dollars. A
Fancy Intense Pink round diamond over five carats could bring in millions of dollars as
well. On the other hand, a yellow diamond would have to be extremely large and
unusual to bring in figures anywhere near these sums.
Regardless of a coloured diamond’s colour, shape, size, or quality, the bottom line is
that due to the rarity of these stones in addition to the high demand, prices are soaring
on a yearly basis. This makes coloured diamonds ideal investment opportunities.
Though there are some coloured diamonds that are better to invest in than others, all
coloured diamonds are wise as far as investments go.
"Yellow, pink and blue diamonds are catching the eye of investors around
the world, according to dealers and industry insiders" - Reuters
Coloured Diamonds as Investments
Regardless of the purpose of
your purchase, and especially
in the event that the diamond
is used for an investment, be
sure to first speak with a
professional. The diamonds
that have demonstrated the
most impressive numbers and
are sought after by investors
are pink diamonds, top quality yellow diamonds above 2.00-carats in size, and blue
diamonds. When selecting a coloured diamond it is difficult to say without first
assessing the stone, but in general go for the highest intensity your budget will allow,
while still maintaining a decent clarity, size, and carat weight. If you cannot get a pure
coloured, go with a coloured combination that showcases the colours well. There are
so many options, but it is up to you to decide on the right colour, based on your taste,
and on your wallet.
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4. "When times are bad, diamonds can hold their value better than real-
estate and have the advantage of being portable" - Forbes
How to Value Coloured Diamonds
Unlike gold, which can be valued purely on weight, diamonds need to be valued
individually based on factors such as shape, colour and clarity.
The common perception is that diamonds are sold using the “carat” value. This may be
partially true on “jewellery” diamonds, but for “collection” diamonds the 4C’s are what
make up the value. These are:
Cut, Colour, Clarity and Carat.
The cut of the diamond is the most
important of the four Cs, as the skill of
the diamond cutter is what gives a
diamond its brilliance. A badly cut big
diamond won’t sparkle in the same way
as a well-cut smaller one.
Diamonds have a colour grading
system to show how much yellow (caused by nitrogen in the stone) is in them. The
grades D, E and F are colourless and therefore the most sought after. Avoid any colour
lower than grade H as it starts to become too yellow. Clarity is also important, with the
best grading being flawless.
Investors who decide to buy and hold diamonds also need to factor in the cost of
security and storage.
“The prices of diamonds are expected to enjoy a compound annual growth
rate of 16% until 2014” - leading diamond supplier Graff.
Content sources: http://www.ft.com
http://www.nuwireinvestor.com
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5. About London Commodity Markets
With over a century of combined experience in the alternative investments market,
the team at London Commodity Markets have a proven track history of delivering
excellent consultation as well as an unrivalled service to clients.
As a result of this unrivalled standard of service, quality advice and ethical approach to
the marketplace, London Commodity Markets have become the globe’s fastest
growing alternative investments company.
London Commodity Markets can provide information for people interested in investing
in 100% natural fancy blue diamonds at excellent prices and certified by GIA.
All diamonds supplied from London Commodity Markets come with a GIA certificate.
This is issued from the Gemological Institute of America, the world's foremost
authority in diamond grading. This certificate shows your diamond is the exact quality
your were sold.
London Commodity Markets can help you diversify your investment portfolio securely
with access to GIA certified fancy coloured diamonds.
http://londoncommoditymarkets.com/
HEAD OFFICE
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Tel: 00 44 (0) 203 514 6000 / Fax: 00 44 (0) 203 514 6001
Email: info@londoncommoditymarkets.com
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