Diamonds are one of those unique investments that can be purchased in one currency and sold in another, providing a hedge against inflation that devalues the purchasing currency. Like we’ve mentioned in previous articles, diamonds are tangible investments that are highly portable, easy to store, and of course wearable.
While colourless diamonds are relatively easy to come across, coloured diamonds bring a whole new meaning to the word “rare”. More specifically for every 10,000 stones that are mined, only 1 will be a coloured diamond.
Coloured diamonds are becoming harder to find and even harder to mine. Some of the longest producing mines are nearing the end of their profitable life. A good example would be the famous Argyle Mine in Western Australia. This mine has been responsible for producing 90% of the world pink diamonds, with a quality unrivaled by any other globally.
However, its closure will not only affect the diamond production industry, it will also greatly impact the investment market, and possibly history as a whole.
The exhaustion of mines is not the only issue, many companies are also greatly limited by the current mining technology. This means that even if there were hills of pink diamonds, at the levels of current technology it would not be profitable to extract them.
A Safe Haven For Investors
Fancy colour diamonds are seen as a stable asset class, and have been so for some time. Total appreciation between January 2005 and October 2015 was 347.2% for pinks, 183.3% for blues, and 52.2 percent for yellows. Truly massive numbers if one takes into account that they were documented during a great financial crisis.
Furthermore, rough diamond prices dropped 2 years ago, but it did not extend to fancy coloured diamonds. (Thankfully, the latter have yet to experience any side effects even today.)
It is therefore safe to assume that fancy coloured stones are still seen as a safe haven within the industry.
As noted, coloured diamonds are a stable asset class, and if you take into account the tactics of Joseph Lau, billionaire investor, we can see why. In the last few years, this investor has had a history of purchasing high-value stones for his daughters.
These stones, while outside the reach of most individual investors, are nonetheless part of a comprehensive wealth management system that doubtlessly includes estate planning. Stones passed as gifts or held in trust for minor children may be classed as gifts rather than as items of an estate, and taxed at a different rate; or if held as part of a living family trust, may not be taxed at all. Consult your tax experts for specific insight here.
A highly competent attorney, specializing in wills, trusts, and estates can help you plan your estate to preserve value, minimize tax hits, and circumvent the probate courts.
Whatever your reason for choosing to invest in coloured diamonds, you owe it to yourself and your family to educate yourself in your chosen investment strategy. Alternative investments have less liquidity than traditional investments and can require a longer outlook than stocks, bonds, and other instruments.
Rav's enthusiasm and passion is contagious! I have a lot of faith and belief in Rav and have no doubt that he will climb the ladder of success. My investment has had a life line of 6 months and whilst I acknowledge that this is a short time, I am more than satisfied with the way things are going.
It has been a pleasure working with Rav & his Group and I am excited about how far this company can grow over the next 5 years. A lot to look forward to.
Not much to complain about regarding this young man, I have followed his movements since 2012 and I am happy to see him pushing and progressing slowly towards his goals. Good luck to you Rav!
A gentleman in all aspects, Rav has treated me and my portfolio with the utter most respect. How many collectors can boast a rare gem portfolio that consists of a Red diamond?!! Rav has knowledge, confidence and reach, making him a very capable young man.
Happy with the way things are going, a little over 18 months in to my investment and no reason for complaints. I like the vision, the strategy and the enthusiasm that Rav brings to the table, making me feel confident about the future ahead.
Very easy going, considerate and polite. He has been very promising, hard working and supportive person. Rav's style of presenting his business portfolio and approach was never pushing. He understands both sides of the world and is keen on making sustainable stronger long term relationship with his clients. This type of qualities are very rare and unique.
I have had the pleasure of working with Rav over the past 4 years. Over this period Rav has helped shape my rare gem portfolio in to a world class profile. Rav is a man of insight, knowledge and market intuition. His services are highly recommended.
Rav is at the start of his journey, and I can see this young man building a formidable legacy over the next 20 years. His vision, understanding of the market and client requirement is a foresight that should not be underestimated.
I have been a client of Rav's since 2010, and also one of his first clients. I take great pride in watching this ambitious man grow and evolve. The fact that he is now the leading specialist in the field of rare gems, speaks volume of his contribution over the past 8 years.
Rav is the man of the moment over in the UK. His history, experience and strong performance in this sector is not to be underestimated. I would not hesitate to recommend Rav's services to anyone that may be looking to build a tangible portfolio of rare gems to place in to an investment strategy.
Rav is creative and passionate in his work and craft. I have been a client of his since 2016 & have enjoyed the journey.