Coloured diamonds make for good alternative investment

Coloured diamonds currently represent an attractive alternative investment opportunity for individuals with private wealth looking to diversify their portfolios.

According to the New York Post, polished diamond prices were up 19 per cent last year, with some wholesalers pointing to coloured varieties, such as pink, yellow and blue diamonds, as a particularly attractive investment opportunity.

Noam Flint, a diamond expert of Peled Diamonds in Israel, told the publication: "People are calling me - small finance companies, wealth management firms - and saying: 'Hey, I have $10,000, $20,000 or $200,000 and I want to buy something.

"There are many, many diamonds we sold three or four years ago that we'd be happy to buy back at the same price we sold them."

The news provider points out that while some demand for these brilliantly coloured diamonds is coming from celebrities and high-net worth individuals, hedge funds are also looking to cash in on the trend, with diamond-focused funds recently coming onto the market.

However, not everyone is as convinced that the market is one that is ripe for alternative investments.

This lack of consensus between experts is hardly atypical when it comes to investment choices, but it does serve to highlight the importance for individuals of getting good advice before making decisions over their private wealth.

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