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What You Need to Know About Diamond Investments

The color of the diamonds can be defined by a number of characteristics. By definition, a perfect colorless diamond has no additional chemical traits, a structurally perfect form, and absolutely no color at all.
The color of the diamonds can be defined by a number of characteristics. By definition, a perfect colorless diamond has no additional chemical traits, a structurally perfect form, and absolutely no color at all.
Leibish & Co.

Value of Diamonds
Diamonds have been a hot commodity for quite some time. Although they have always been recognized as luxurious pieces amongst the most rich and famous, their popularity began to spike among the general public in the 19th and 20th centuries, thanks to a growing supply, improved polishing and cutting techniques and brilliant marketing campaigns by De Beers – which showed the world just how valuable diamonds are.

This diamond has the same atomic structure as a mined diamond, and is therefore optically, chemically and physically identical. But Apollo plans to get the cost down to $10/carat with high volume manufacturing.
Steve Jurvetson via Getty Images

These days however, many are looking into certain diamonds as alternative investment opportunities because they have proved to be so strong, even more so than other commodities such as gold and BitCoin. Now, more than ever, tangible hard assets such as Fancy Color Diamonds have become very appealing to the investment crowd. Specific colors, such as natural pink diamonds, or yellow diamonds with a high intensity, excellent clarity, weight of above 2.00 carats, are even more valuable because of their stunning physical appearance, their rarity, but most of all because of their performance over the last 20 years. Hence they have garnered a fair amount of attention among some of the largest media outlets around.

The Israel-based Leibish & Co., international specialist and online dealer of natural fancy colored diamonds and high end design jewelry, offers loads of valuable industry knowledge for potential investors looking to diversify their portfolio with these luxury items. Whether you are looking for advice on investing capital in color diamonds (yellow, pink, argyle, blue, etc.) or buying them because of their sheer beauty, Leibish is definitely a great place to start your diamond education. With over 35 years of experience in the diamond investment community and sound expertise in portfolio management and financial planning, Leibish & Co.'s team of experts are more than qualified to help you make the right investment decisions.

Leibish & Co.’s investment strategist travels around the world and often presents in different affairs such as family office and wealth management seminars, alternative investment conferences, finance and money management events, all with the purpose of increasing the exposure among those intrigued.

International Diamond Markets
The US market is gradually improving and we are expected to see continued growth of 4 to 8 percent annually for the next five years. This market improvement has also been evident in the diamond and jewelry industries. During the first two months of 2014, jewelry sales rose by more than five percent compared to late 2013 revenues. Likewise, China, the world's second largest retail diamond market (after the US) continues to see this growing trend of investment in these precious stones.

China’s emerging middle class of above an astounding 500,000,000 people is expected to soon be consuming goods and services valued at $3.4 trillion, a large percentage of which will be spent on luxury products.

Elsewhere on the global sphere, Latin America presents itself as an emerging market and Africa is destined to become a pivotal player because of its significant reserve of precious minerals. So much so, that De Beers recently moved the top of their entire operations to Botswana. Africa will surely soon be not just a producer of diamonds but also an important buyer for the likes of other countries or players already in the business.

What to Look for When Buying a Diamond
When looking to purchase a diamond, it is always important to take the 4cs into consideration: clarity, cut, carat and color. These 4 characteristics will determine the overall quality of the diamond. However, if considering a natural color diamond for investment purposes, take note that the color and intensity that it is shown is considered far more important than the other characteristics of the stone, and they use a different color chart altogether than colorless diamonds.

Aside from engraving this philosophy there are tips of exactly what you need to pay close attention to when buying diamonds for investment purposes.

These are detailed and recommended guides: your budget; since it is a passion investment, the color that interests you most; the color intensity vs the size of the stone; the historical performance in the public auction houses; secondary hues and how it affects the value; and most importantly the diamond connections and your potential to liquefy your investment when the time comes.
This list serves as a cheat sheet and is useful for getting educated on the right subjects of diamonds for investment.
Finally, the industry in itself is a billion dollar business which is segmented into groups. You have miners and producers, cutters and polishers, jewelry manufacturers and retailers.

You may think the metaphorical expression “Diamond in the Rough” is just a catch phrase from a movie you just watched, but in truth diamonds are a rarity. Why? So much happens around these naturally occurring gems beneath the earth’s surface and for a good reason. Those who know their true value are well aware they have exceptional characteristics and future potential.

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