Red Fancy Colored Diamonds as an Investment

Published: 05th March 2010
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Red fancy diamonds are much more than pretty little rocks that you want to buy someone for
St Valentine's day. Fancy Red Fancy Color Diamonds are among the rarest of all natural diamonds that make them also a great investment for a hedge fund against inflation. So why would you want to purchase loose red fancy colored diamonds for an investment as opposed to purchasing them for diamond jewelry? The answers may surprise you.

The Purplish Red and Fancy Red Diamonds are considered to be the most rare diamonds in the world. A quality red fancy color diamond of a single carat can fetch an average price of one million US dollars UP per carat. The biggest ever registered red diamond is about 5.00 ct. Loose fancy color diamonds when purchased in bulk can be a much better investment than precious metals and other similar, long-term investment strategies as well. With many of the investments in precious metals, you will get nothing more than a certificate of ownership stating that the metal exists somewhere and that you are the legal owner of said precious metals. You must store the certificate of ownership somewhere that it is safe and you will have a very difficult time getting so much as your certificate back, much less getting anything that will actually help you during many emergencies or natural disasters.

Red diamonds are extremely rare and expensive and their prices have been going up and up over the years. These diamonds have been chased by the most sophisticated collectors. Unlike the forex market or the futures markets, Fancy Color Diamonds are generally used as a long term investment. Loose diamonds as a rule are more of a long term investment as the prices do not always fluctuate much on a daily basis. However, according to many industry experts, the Natural Fancy Red Diamonds are expected to nearly double in price in the near future. Historically speaking, this makes the present an excellent time to invest in loose diamonds, fancy colored diamonds. Looking at the present economical crisis in depth and from a historical perspective, we see that every time that this situation has occurred (1913 USA, 1933 USA, 1980s Japan, 1990s Ireland and currently on a global scale) a period of hyper-inflation has ensued and in many cases, has taken a vast and costly war to reinvigorate the economic outlook as it did during WWI and WWII.

Given the value of Natural Fancy Colored Diamonds and the fact that when you do purchase loose diamond, you get both a certificate and the actual diamond, there is never any difficulty in retrieving, cashing in or otherwise profiting from your investment in loose fancy colored diamonds. When you buy a fancy color diamond, make sure that the word "Natural" appears in the diamond grading report (one of them is GIA - Gemological Institute of America) or you could discover yourself investing in something that does not provide a great return at all or even worse. That's why it's very important to purchase fancy color diamonds through a certified Diamond Trader.

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