Everyone is familiar with the classic, white diamond. People generally do not look at coloured diamonds, which is a shame. This gemstone is a variation on a white diamond (which is actually colourless) and is extremely rare.
Why should I buy coloured diamonds?
15 Jul 21
“White” diamonds
The colour of a diamond has a significant effect on its value and is therefore an important factor when you buy diamonds as an investment. The colour of “white” diamonds can vary on a scale from D to Z, from colourless to yellowish. The closer the diamond is to the colourless range, the rarer and therefore more expensive it is.
“Fancy colour” diamonds
In the “fancy colour” diamonds category, the stones are so colourfull, they cannot be graded within the D-Z scheme. There are innumerable colour nuances, which makes every single diamond unique. Of the possible yellow, brown, black, orange, green, pink, blue and red varieties, red and blue are the rarest. Colour intensity is the most important factor in determining the price of the diamond. The more intense the colour, the rare stones will be and therefore… the more expensive it will be as well.
These variations in colour are caused by the presence of ‘alien’ atoms in the diamond, for example, nitrogen can cause a diamond to look yellow or a boron atom can make the diamond appear blue. Black and green diamonds can be the result of exposure to radioactivity. Distortion of the crystal structure can also cause colourisation, as is the case in brown, pink, orange and red diamonds.
Buy coloured diamonds as an investment
Coloured a diamonds are extremely desirable and are therefore much more valuable than ‘white’ diamonds. Analysts connected to GIA indicate that coloured diamonds are seen as the “new” gold by investors.
These diamonds are often a large part of many bankers’ and investors’ portfolios. Especially Chinese sometimes invest their entire capital in “fancy colour” diamonds. The increasing demand in these diamonds continuously pushes the price upwards and according to analysts worldwide the price will continue to rise.
According to GIA, the value of a pink diamond for example was 13.000 dollars per carat on average in 2002 and is now 78.000 dollars per carat on average. The Argyle-mine in Australia, the only deposit of rare pink and red diamonds, has nearly been exhausted. Moreover, worldwide fewer and fewer diamonds are discovered and more and more mines are closing. In the near future only thirty mines are expected to remain open, which is nowhere near enough to cope with the increasing demand.
If you are considering investing in coloured diamonds, let an expert of BNT Diamonds assist you.
With this article, BNT Diamonds strives to inform you thoroughly about investing in diamonds. No investment can be guaranteed to be without risk or fully according to your expectations. That is why we recommend to research the risks and aspects of investing in diamond properly to ensure that you make the right choice for your portfolio.
