Colored Diamonds' Mass Appeal a Report by Mercantile Diamond Group
(EMAILWIRE.COM, June 16, 2013 ) Ontario, Canada -- Diamonds are like a portable real estate; their demand is increasing while supply last.
Diamonds Are Like Portable Real Estate
Wealth experts show that an increasing number of investors are turning to rare diamonds, real estate and art because they are less likely to fluctuate wildly as stocks can (CNBC, 2012). There is also the emotional component of owning a rare diamond. You dont have to keep it locked away. Diamonds are like wearable real estate. No other asset is more portable or more valuable.
According Bloomberg of May 2012, "there are no new mines being found around the world right now. There is a consensus in the market, predicting a significant growth of the diamond pricing because of this imbalance between supply and demand."
Demand Is Increasing While Supply Is Constant
Natural Fancy Colored Diamonds are extremely rare - approximately one in 10,000 diamonds is a Natural Fancy Colored Diamond. According to a recent report from Bloomberg, There are no new diamond mines being found around the world right now and the average length of time to bring a new mine discovery to production takes in excess of ten years! For the foreseeable future, supply of all diamonds will remain constant or decline slightly while demand worldwide should continue to increase. That is a recipe for future stability and handsome potential asset appreciation.
In hindsight, two events brought about a dramatic shift in the popularity of affordable entry level colored diamonds: the discovery of brown diamonds at Rio Tintos Argyle mine, which was commissioned in Australia in 1985, and the creation of the Indo Argyle Diamond Council (IADC) in 1994 to market brown diamonds.
In 1994, the amount of finished jewelry some of it using the new supply of brown diamonds exported from India to North America was $300 million; by 2007, it had soared to $2.3 billion. Its success was due to three factors: outreach to fashion designers, robust supply and relative affordability, and a very creative and highly effective branding campaign by Argyle. The color grading included a C1 to C7 color scale that categorized the diamonds in shades from champagne to dark cognac to burnt orange.
Today, a huge new consumer base is enthusiastically buying brown diamonds. They are being aggressively promoted, they are relatively affordable as an asset class and designers love incorporating them into jewelry that is fashion forward.
Black and gray diamonds also have been added to the mix of affordable colored diamonds. All three have become regular fixtures at auction houses on the worlds stage regularly selling alongside expensive blue, green and pink diamonds. Brown diamonds come in a range of colors with Orange Brown being the most expensive and in demand. They are arguably among the most beautiful of all colored diamonds. A 1 carat Dark Orange Brown diamond is many times rarer in nature than the flagship 1 carat D Internally Flawless White Diamond and sells for less per carat! But for how much longer?
This report is based on information available to the public. The information and any statistical data contained herein has been obtained from sources we believe reliable, but we do not represent that they are accurate or complete and should not be relied upon as such. The material contained herein is for information purposes only.
About Mercantile Diamond Group, Inc.
The Mercantile Diamond Analyst is a quarterly report written by some of the best technical people involved in the science of Natural Colored Diamonds. It includes major auction and private sale results worldwide, as well as topics of interest to anyone contemplating an investment in Colored Diamonds.
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Mercantile Diamond Group Inc.
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