(PRWEB) November 18, 2010
Elite Gems, a Mayfair-based coloured diamond investment specialist, announced today, the sale of a large pink diamond in Hong Kong. The stone, a magnificent 10.88 carat Marquise Cut Pink Diamond, cut from a 37 carat rough Brazilian diamond, found in 2006, was sold to a prominent Asian collector for an undisclosed amount this week. Graded Fancy Brown-Pink by the Gemological Institute of America (GIA), reports estimate the diamond to have sold for somewhere between $4 and $4.8 million. This follows the growing trend in coloured diamond investment in a continuing unstable world economy.
Globally, investors are waking up to the potential of rare coloured diamonds as an investment, and it’s not just investors, the global jewellery industry continues to offer its strong support with rapidly growing markets in the Middle East, Asia and China, where the aesthetic value of coloured diamonds is gaining popularity, as the segment of upscale consumers grows.
Diamonds are the most concentrated sources of value on the planet, and their allure now appeals to all cultures. With market trends currently favourable, analysts predict that demand will outstrip supply for the next decade, as emerging economies in the Middle East, Asia and Far East transition to serving consumer-buying interests. The growth rate of diamond sales has now outpaced that of gold jewellery.
Coloured diamond investment has a recession proof track record. History shows, coloured diamonds have been one of the best performing assets during periods of inflation and currency devaluation. Since formal records began in the 1970’s, prices for the highest grades of coloured diamonds have increased in value by an average of between 10-15% per year, with rarer colours and higher grades enjoying the greatest appreciation – even in times of economic instability. In addition, this appreciation has statistically been non-correlated to the stock and bond markets, an important consideration for investors seeking a diversified portfolio.
During the 1970s, and early 1980s, when inflation raged and the economy contracted, coloured diamond prices grew at a double digit rate.
When the NASDAQ bubble burst in 2000, they held their value. During the currency crises of the late 1990s, investors rapped in Argentina and Russia used them to protect their wealth from the plummeting Argentine Peso and Russian Ruble.
Today with the dollar and the pound so unstable, more and more investors are grabbing hold of natural coloured diamonds as the downside financial risk is minimal, but the upside is exceptional. A rare natural coloured diamond bought today could increase in value five to ten times in the next 10 years
One of the rarest and most valuable coloured diamonds, natural pink diamonds are so rare that most jewellers have never seen one, and will never own one.
The value of pink diamonds is linked directly to their rarity, with demand increasing with every high-profile purchase, such as the 6 carat diamond which Hollywood actor Ben Affleck gave to his former fiancée, singer and actress Jennifer Lopez in 2004.
In December 2009, a new world record was set for price per carat when a 5 carat pink diamond was sold in Hong Kong for $10.8 million (£6.9 million).
This week, a 24.78 carat pink diamond is up for auction at Sotheby's Magnificent Jewels auction in Geneva. The impressive emerald-cut gem, which is expected to fetch £24 million, was last sold 60 years ago.
High profile auctions such as these, serve as a barometer of stability in the market and illustrate the reliability of coloured diamonds as a store of value.
Ansar Ali, CEO of Elite Gems said; "There's more to diamonds than meets the eye. Coloured diamonds are the most concentrated form of wealth on earth. The market for natural coloured diamonds is very strong at the moment and prices have risen by 25% within the last year, if that pace continues, an investment in natural coloured diamonds today could double in value in the next 24 months. With low investor confidence in paper assets. loose coloured diamonds are a great way for investors to diverse their portfolio, as they can help during hyperinflation, international financial crisis, or in times of dire need.”
A trusted supplier to international clients and global private investors, Mayfair based Elite Gems, mission is to educate, source and supply the most exclusive and beautiful natural fancy coloured diamonds. With over 100 years combined experience in the industry, Elite Gems has been providing the world’s most portable and concentrated form of wealth with knowledge and discretion. With unparalleled resources, reputation and expertise at their fingertips, Elite Gems policy is to never deal in conflict diamonds (Blood Diamonds).
“Acquiring and collecting coloured diamonds is more than just fun. With a few simple principles, it can also be quite lucrative. Over the long term, all coloured diamonds appreciate, and like any other commodity – timing, buying right and selling right are key issues in being successful. Elite Gems simplifies the process of sourcing, buying and selling investment grade, certified loose coloured diamonds, Given the proper grading and required certification, investors can ensure that the stones they buy, not only last a lifetime, but also reap rich dividends when the time comes.“ Ali added.
The choice of world-class diamond investors and serious collectors alike, Elite Gems source the finest stones available worldwide with maximum knowledge and utmost discretion through exclusive agreements.
To find out more, visit http://www.elitegems.co.uk
For more information contact:
Shareena Ali T: +447956 145708
Notes to editors:
About Elite Gems
Elite Gems (http://www.elitegems.co.uk) based both in Mayfair, in the heart of London, and Antwerp, the World Diamond Trading Centre is a unique international boutique diamond investment company offering its clients discreet and professional services. Elite Gems mission is to educate, source and supply the most exclusive and beautiful natural fancy coloured diamonds. With over 100 years combined experience in the industry, Elite Gems has been providing the world’s most portable and concentrated form of wealth with knowledge and discretion. Unparalleled resources, reputation and expertise are why Elite Gems is a trusted supplier to international clients and global private investors. Elite Gems serves its sophisticated clientele with dedication to excellence. That is why both world-class diamond investors and serious collectors rely on our expertise. Elite Gems does not deal in Conflict Diamonds (Blood Diamonds)
For more general information, please visit: http://www.elitegems.co.uk/