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Are Fancy Color Diamonds A Good Investment Vehicle? |  April 06, 2021 (0 comments)


New York, NY—Longtime members of the diamond industry remember the investment boom of the late 1970s and early 1980s. Since then, the idea of diamonds as an investment vehicle has periodically reared its head, but has never taken off. And, say most experts, for good reason. Image: the hero stones of Argyle's 2020 Pink Tender.

While diamonds do hold their value better than other luxury products—a key selling point for jewelers—there are compelling arguments against using them as an investment vehicle. 

First, even with advances in cutting and polishing, diamonds are not fungible like precious metals or even pork bellies. Second, there’s no instantaneous way to liquidate them, especially for a retail buyer, and most stones will be bought at retail and sold at wholesale. Finally, without proper regulation such as other commodity markets have, diamond investment still is essentially a speculative Wild West.

All that said, however, there are a few categories of diamonds that will bring a good return on investment, such as so-called “mega-stones” (top qualities of colorless stones over 10 carats), and certain intense fancy colors.

Related: Diamonds Or Mutual Funds? How To Have The Investment Conversation With Your Customers

The Fancy Color Research Foundation (FCRF) is betting on the latter and has published a new article addressing the potential of fancy color diamonds as an investment category. The article addresses the long-standing issues mentioned above, as well as price trends in the category, and overall benefits and risks.

Some takeaways from the article: 

Related: Shocking Pink: Argyle Stones Should Rocket In Value After Mine Closes

The full article is posted on the FCRF site. Click here to read.

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