The investment potential of diamonds has tended to focus on the unique diamonds and prices achieved by some of the auction houses in the last few years. Competition for the very finest examples has intensified as Asian buyers, with their appreciation for jewellery and shrewd investment, have entered this rarefied domain. However, unlike in the 1980s, when diamond prices rose (and fell) in unison with gold prices, diamonds are not seen as the alternative investment that gold represents today but for how much longer will this be the case?
Concerns of diamond fungibility in comparison with gold is no longer the issue that it used to be as the auction houses are eager recipients of all quality stones and jewellery of good provenance, fine workmanship and intrinsic appeal are increasingly in demand. As well as this the wise investor who, as part of a diversified portfolio, buys gem quality diamonds appropriately priced can avail themselves of the bespoke design opportunities that are available to create fine diamond jewellery which expresses their own individuality and lifestyle as well as a store of wealth.
Over the last 30 years there have been fewer and fewer viable diamond deposits discovered. This, coupled with a reduction in the current diamond inventory means that previously forecast levels of diamond supply are unlikely to be met, hence the constantly increasing prices of both rough and consequently polished which have recovered strongly to pre-crisis levels in both the trade and retail in general.
Diamond analysts concur that diamond prices have risen not because of manipulation by mining companies but are driven by genuine demand from established markets as well as the BRICS countries, all of which have a cultural tradition of appreciation of diamond jewellery for both its adornment and investment qualities.
Diamonds are an increasingly wise investment. Value increases of 300% have been seen over the past 5 years in exceptional categories. With only 50 years of known rough diamond reserves left in the world this trend looks set to continue.
As long as diamonds are purchased with care the investment potential is assured aligned with the emotional and wearability value make them “a diamond investor’s best friend” and an investment of both the heart and the head.
To discuss exceptional investment diamonds or to view the latest examples of Icecool’s exclusive bespoke diamond designs please visit www.icecooldiamonds.com or call on 020 7831 7648 to arrange a diamond consultation or email direct at info@icecooldiamonds.com.