Are colored diamonds an investment?

[bcavitt]

From Forbes via InStore magazine:

http://www.forbes.com/sites/kathryntully/2013/01/31/are-fancy-colored-diamonds-an-asset-class-now/

Bryan Cavitt
Images Jewelers

 

[LD]

Simple answer, for 99.5% of coloured diamonds, no.

If you're spending a few million on a one of a kind then maybe.

How can any diamond be an investment (if it's a "normal, nice" coloured diamond) if you buy at retail, have to wait until prices increase and then try to sell which is always at a lower price than retail? The maths are easy. It's the same for nearly all gemstones.

 

[JewelFreak]

Agreed. The big increases have come with a very few large, special colored diamonds, via buyers with deep pockets, like Graff. Doubt the same is true for the .13ct, give or take a few hundredths, that the "average" colored diamond buyer can afford, and as LD says, buying retail & selling wholesale is not the path to great profit. I run from investments recommended because they're "trendy." Risk written all over those!

--- Laurie

 

[chrono]

And after all that, how easy is it to find several buyers, much less one, who has the funds to spend tens of thousands or even hundreds of thousands for it?

 

[minousbijoux]

Yes, absolutely they're a fine investment if you are in the stratified contingent that can attend Sotheby's and Christies' auctions and shell out x tens of millions for a show stopping flawless colored diamond.

If not, buy them because they're pretty.