New York: The Fancy Color Research Foundation (FCRF) has published a new article to shed light on Fancy Color Diamonds as an investment category. Written by the FCRF Research Staff, the article seeks to answer the following questions:
- What are the benefits of investing in Fancy Color Diamo kmnds in comparison to other luxury collectibles?
- Which platform enables short-term trading for these natural diamonds?
- What are the pros and cons compared to other investments?
Here are some takeaways from the article:
- Investing in Fancy Color Diamonds can be profitable, but investors need to calibrate their expectations regarding the timeline, expected margins and the platform through which they can liquidate these diamonds.
- In the last few decades, the category of rare Fancy Color Diamonds has continuously increased in price, appreciating by 241% for Blue Fancy Color Diamonds and 366% for Pink Fancy Color Diamonds since 2005. It is considered to be the least volatile among traditional and alternative asset classes.
- A new trend on the Fancy Color Diamond landscape is the proliferation of business platforms that own an inventory on behalf of private investors, in order to trade and produce short-term profits. An efficient and transparent structure is hard to find in this category.
- Individually-owned Fancy Color Diamond jewelry usually matures as an investment over a long period. However, it offers unique value-to-size advantage compared to alternative asset classes since it requires no maintenance and takes up little space. Moreover, since they are personal, wearable objects they are among the few multi-million dollar assets that can usually be passed down to loved ones without being subjected to inheritance taxes.
- Although most collectors are aware that Fancy Color Diamond can mature as an investment after a long period of time, and, if necessary, may be sold to another collector, their main motivation seems to be the pleasure of exhibiting their refined taste and celebrating their personal success.
