Investors in today’s market are looking for the right opportunities in which to invest in the hope that they will bring abundant returns. Although no one can predict the future, we all have the capability to focus on the solid facts available which are based on any asset’s past performance and current market demands.
Unfortunately, the more conservative stocks and bonds don’t produce the results today that other asset classes potentially hold. Furthermore, some of the more popular alternative investment opportunities available are not tangible and subject to many constraints which make them less attractive. The upward trajectory of fancy color diamond prices over the past few decades has been interrupted infrequently by very minor corrections. Even during the Great Financial Crisis of 2008, fancy color diamonds outperformed almost every other asset class.
However, the best way for one to objectively quantify which investment opportunities have exhibited the highest returns in comparison to all other major assets in the market is to compare them. Here we describe which points to focus on in order to present the results of our comparisons.
Since our goal was to bring relevant and accurate data to our readers, we made sure to focus on the very same topics your everyday average investment seeker may investigate. We first noted what we felt the most traditional and alternative investment options may be. After many comprehensive hours of research, we managed to collect ROI statistics and the historical price performance for bullion, precious metals, major currencies, U.S. inflation, general stocks & bonds, colorless diamonds, and of course natural fancy colored diamonds.
After assessing the information we acquired, we compared the most relevant topics to one another, and to be perfectly honest were actually pleasantly surprised with the results.
Although, Leibish & Co. has been in the trade for a long time and fully acknowledges the investment potential that colored diamonds hold, it was exciting to see how well colored diamonds performed compared to other major asset classes. As a result of their rarity, natural colored diamonds are quite different than any other asset in the market. However, in order to prove the potential we needed to come as close as possible to a comparison of apples to apples, so to say.
In order to ascertain what the most common investment trends are, as well as acquire their historical price performance, one can simply browse through the most popular financial websites. However, none of the websites we found presented a graph that compared the data between one to another.
In the following graph, Leibish & Co. presents Fancy Intense Pink Diamonds larger then 3.00cts, Fancy Intense Yellow Diamonds larger then 5.00cts, a 1.00ct colorless round diamond, US inflation, Gold, the Dow Jones Industrial Average, Platinum, and $ per Euro over a 12 year period since the very beginning of the 21st century through to 2012.
Data to be understood from the graph above includes the following:
Almost every woman you know wears a diamond ring on her finger, and most have become quite acquainted with the basic information required to asses a stone, the 4Cs. However, how many of those consumers have looked into the past price performance of these stones? Leibish & Co. therefore collected the data from the Rapaport Report, which is the jewelry industries standard for the pricing of natural colorless diamonds. We then put the numbers to the test.
The chart below compares the increase in price over the course of 5 and 10 years of Colorless stones and Fancy Color Diamonds. The stones compared were:
As one can clearly see, the difference between the two is quite drastic:
While the 0.50 carat Colorless stone had a price increase of only 10% over a ten year period, which is a respectable appreciation, the 0.50 carat Fancy Intense Pink Argyle diamond had a 375% price increase over the same period.
The 3.00 carat colorless diamond showed a 130% incresae over the 10 year period while the 3.00 carat Fancy Light Pink diamond appreciated at 318% during the same period. Even the 5.00 carat colorless stone, which showed the highest increase of colorless diamonds over a ten year period of 159% could not compare.
The charts above provide empirical proof that over a twelve year period, fancy color diamonds display much stronger performance characteristics than any of the other major alternative investments in the market.
Economists in today’s volatile market are searching for a balanced risk vs. ROI. People prefer tangible investments that help protect against inflation and alternative paper assets. Hard asset commodities such as Gold and Platinum have been a successful venture over the past several years but have also shown extreme volatility. Furthermore, as a paper commodity it is difficult to move, cannot be concealed, and directly connected to the credit markets and other paper assets like ETFs or other such funds.
Natural fancy colored diamonds are internationally recognized well established goods. They are extremely portable, and therefore easy to transport from one place to another. They have shown an impressive long-term price growth and serve a multi-function asset class as beautiful diamond jewelry and great investment pieces alike. They demonstrated excellent value retention and are an extremely private asset.
Colored diamonds are among the rarest natural gemstones on earth. Only in various different mines around the world are colored diamonds found, and even those are only produced less than 0.1% in comparison to colorless stones.
Diamonds found in Rio Tinto’s Argyle Diamond Mine, for example, are globally recognized among the world’s finest diamonds. They are so rare that it is known as one of the most valuable and investment worthy stones in the market.
In the 20th century, it was almost unheard of to source a natural colored diamond, and therefore it was only the most rich or famous individuals that purchased these products. However, with time the manufacturing process improved, the Internet opened marketing and exposure of the product, and more of the general public showed keen interest to colored diamonds. Furthermore, when the most famous celebrities began displaying their colored diamond jewelry in public, colored diamonds were quickly adapted to the most common fashion trends.
Since colored diamonds are such a private asset the only way to accurately measure the public price performance is from the realized results of the world’s largest auction houses, Sotheby’s and Christie’s.
Since 2007, over 15 price records have been broken all by fancy colored diamonds, such as “highest price per carat ever paid at auction” and “highest price paid for any diamond and any jewel sold at auction.”
Fancy color diamonds are the most concentrated and portable form of wealth on the planet. They have proven themselves over time to be the strongest asset class around. They have outperformed all other major assets including stocks, bonds, gold, silver, and platinum. Colored diamonds, simply put, offer much greater potential results than other investment opportunities.
However, as it is more difficult to liquidate than other more common investments, it is important to understand that colored diamonds should only be considered for long-term investments. Similar to an exquisite piece of art, finding the buyer may be more difficult and take more time, but the potential returns will be appreciated. Fancy Colored Diamonds exhibit characteristics that any other asset class can only dream about emulating.
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.