10 Essential Reasons To Invest In Colored Diamonds

By: Steve Miller
Colored diamonds are known as one of the world’s most concentrated and portable forms of wealth. These beautiful gem stones are actually one of the world’s most unique creations, as they obtain their color shades from differing elements below the surface of the earth. There are numerous benefits of investing in rare colored diamonds. Some the benefits include the following:

1. A Long-Established Investment

One of the biggest benefits of owning colored diamonds is that these gems have been a well established and long term investment for many years. And, because these elements are recognized internationally, selling them is quite easy – even from one continent to another. Many of the world’s royal families have bought and held colored diamonds for their own portfolios.

2. Consistent Long Term Growth

Colored diamonds also tend to hold their value quite well – regardless of how the other financial markets are performing. These gems have been traded for centuries, by both rich and middle class alike, and their value increases gradually. The value of colored diamond appreciates with time, the longer you hold onto them, the more it will appreciate in value. For instance, if you buy a colored diamond today and hold onto it for 20 years, its value will have doubled or even tripled.

3. Rare Gem Stones

Colored diamonds are also considered to be much rarer than regular diamonds. For example, for every 10,000 carats of colorless diamonds that are mined, there is typically only just one carat of natural colored diamonds, and it is this rare feature that allows the value of colored diamonds to be much higher than that of the colorless diamonds. Colored diamonds are very rare; therefore, their demand is very high. The increased demand pushes its value even higher, making it an ideal investment.

4. Very Durable

As a physical asset, diamonds in general are one of the hardest known elements on earth, and it is this strength and durability that keeps colored diamonds intact for many years. Its durability makes it one of the most sought after rocks in the world. Literally all other gem stones are considered to be less durable than colored diamonds.

5. A Portable Investment

Unlike large tangible assets such as real estate, colored diamonds are quite portable. Due to their smaller size, these gems can easily be transported from one location to another. This also makes colored diamonds easier to store safely. One of the best places to store your colored diamond is in a bank safety deposit box. That way, you can rest assured that your diamonds are safe.

6. Privacy

Because colored diamonds do not require reporting for tax purposes, information regarding ownership of these investments can be kept private. In addition to the tax advantages, this privacy of ownership can also help to deter any potential thieves.

7. Multi-Functional Asset

There are many colored diamond investors who actually make use of their gems. For example, while these stones are quite valuable and are oftentimes stored safely, there are some colored diamond owners who also opt to make use of their investment by wearing these stones in jewelry such as rings, necklaces, and bracelets.

8. Globalization

Over the past several decades, the globalization of the world economy has made it easier to locate potential buyers. However, you should be very careful when looking for buyers online because there are fraudsters out there.

9. More Difficult to Locate

Over the past several years, colored diamonds are becoming more difficult to locate – resulting in a rise in their value. One reason for this rarity is that many older diamond mines are shutting down and there are fewer mines that are opening. This means that holders of these stones possess what could one day be an extremely rare asset.

10. They are Beautiful to Look At

In addition to all of their investment characteristics, colored diamonds also posses radiant beauty. Because of this, these stones are oftentimes considered to be collectible items that also feature an aesthetically pleasing look.

Taking the Next Step

While nearly all diamonds are beautiful, it is important to have a good understanding of what does, and does not, make these precious colored gems a potentially profitable investment.

One of the most important pieces of information that investors should be aware of is the type of stones they are seeking. This should include knowledge of the “4 C’s” – cut, color, clarity, and carat weight of the diamond.

Just as with any other type of investment opportunity, investors in these precious gems should also have a clear cut goal as to what they are looking for, how long they plan to hold on to the stones, and the anticipated amount of the long term profit potential.

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Steve Miller is a professional copywriter and writes about investing in diamonds and little known facts about diamonds for DiamondEnvy.com