I agree that diamonds are more portable than cash or gold bars.  I also agree that credit cards are not accepted in all cases all throughout the world, but to say the same about cash ?

The fundamental issue with diamonds or jewelry as an investment (and many other goods as well), is liquidity.  Whether diamonds represent a viable investment would really depend upon the investor knowing a great deal about diamonds and also not requiring immediate liquidation of said asset/s at any time.

And let's not forget fancy colored diamonds in particular! While diamonds may not be as liquid as traditional investments, consumer demand for fancy color diamonds has gone up steadily over the years, because of their intrinsic value and rarity, and they have always shown a steady price appreciation...

Annabel       

Leibish & Co.

www.fancydiamonds.net

                                                                     &n

Consumer demand for colored diamonds has risen, as have per Carat prices, so on one hand one can make the argument in favor of investing.

On the other hand, if we ask ourselves if Joe Public has enough knowledge to confidently invest in a colored diamond, I think we can assume the answer is a resounding no.

We also need to consider that there are also diamonds that are treated to become colored and these are also a part of the increase in demand. 

I agree, the average person does not intrinsically have the knowledge to make a smart diamond investment. But as with many 'investments,' after doing their homework, it is possible to get to the point where most people can make a smart investment by knowing what is considered a good fancy colored diamond and what is not.

Regarding treated diamonds and natural fancy colored diamonds, I would not put them in the same category at all, and I would not recommend investment in a treated stone, because it's lost its rarity. With natural fancy colored diamonds, you can't ignore the fact the in the past few years, auctions of such stones have broken new records in prices per carat again and again.

In addition to this is the fact that the Argyle mine, which is the largest source for Pink diamonds, has announced that it will be out of pink diamonds around the year 2018. This will further increase the rarity of Pink and Violet diamonds, even more than they already are today.

I stand firmly behind these words (since numbers are something that are easy to stand behind). Prices are consistently going up in the rare goods arena, and when you add the facts that people mentioned here before (diamonds are easy to move from place to place, etc.) you have a very good investment. A person who buys a nice Blue or Pink diamond today, will have a very nice increase on it with time.

Annabel       

Leibish & Co.

www.fancydiamonds.net

                                                                     &n

I don't think that we'll reach agreement on whether colored diamonds are the right investment for average Joe.  I personally don't believe that colored diamonds will ever be a serious investment consideration for Joe Public and stick by my earlier post regarding Consumer knowledge.  Is it possible for average Joe to get to the point whereby he can make a sound judgement on a colored diamond as an investment?  Yes it is.  Will he do it?  No.  People utilize more 'traditional' forms of investment, and will continue to do so.

I did not recommended investing in treated diamonds, and I also did not 'ignore' price increases.  If you would go back and read your OP and my response you will see that you stated the following, "consumer demand has gone up steadily over the years, because of their intrinsic value and rarity, and they have always shown a steady price appreciation..." to which I replied "Consumer demand has risen, as have per Carat prices, so on one hand one can make the argument in favor of investing.  On the other hand, if we ask ourselves if Joe Public has enough knowledge to confidently invest in a colored diamond, I think we can assume the answer is a resounding no.  We also need to consider that there are also diamonds that are treated to become colored and these are also part of the increase in demand".

With regards to the announcement that the Argyle Diamond Mine will be out of pink diamonds by 2018, maybe they will, maybe they won't.  The aforementioned mine is the largest source of pink diamonds, but not the only source, nor is pink the only colored diamond color.  Also, did you stop to consider that this may just be clever marketing by sight-holders?  Do you believe that people should spend two months salary on an Engagement Ring just because DeBeers told them to in a hugely popular marketing campaign dating back to the 1940's?  There's always two sides to any story. 

Also, let's stop to consider the numbers.  Comparing the popular colored diamond colors with 'white' diamonds, the buy-in is higher.   Yes the potential return on a colored diamond is higher than that of a white diamond, but you have a much smaller market to sell to, which basically makes your investment even harder to liquidate should you need to at short notice. 

You sell colored diamonds so you want to talk them up, I understand that & have no problem with the same, we've all got to make a living, and this does make for an interesting debate.    BTW - I do like colored diamonds.

Hi,

I can appreciate your points. And yes, you are right, it does make for interesting debate, and I am partial to colored diamonds.

I also believe that with time, as colored diamonds get more publicity - showing up in the hands of celebrities and regular people alike - they will continue to become more popular, grabbing even more of the market share (much in the same way that a century ago, long before the DeBeers campaign, engagement and wedding rings were traditionally made with other popular gemstones and not diamonds...).

Look forward to trading thoughts with you in the future!

Annabel       

Leibish & Co.

www.fancydiamonds.net

                                                                     &n

I also look forward to additional debates with you in the future.

The great thing about forums is that you get people with opposing views.  Continued dialogue between the opposing views gives the Consumer even greater insight into the issue, which is a great thing, and what www.diamondchatforum.com is all about.

Thank you for your input so far.  We hope to see you again soon.