The Spring in Market Sentiment
I haven’t been as verbal about investing in fancy color diamonds for the last few years as I have been beforehand. However today, I feel much more confident. I can already smell the spring in the market sentiment.
The first signs of the rebound are in Asia, specifically Hong Kong, China. Similar to how the locomotive travels on hot steam, the diamond business is moving on sentiments.
Over the last few years, the greatest appreciation was seen only with blue diamonds.
0.69 carat, Fancy Intense Blue Diamonds, Radiant Shape, IF Clarity, GIA
Argyle pink diamonds are on the way up as the Argyle mine is becoming more and more depleted. So much so, that today we get individual 0.10 carat Argyle pink diamonds from Argyle, each one with its own Argyle certificate. Back in the day, we would buy these goods in a parcel.
A pair of Argyle Pink Tender diamonds, each over a carat
A good friend of mine, Raymond Graff, once said to me that pink diamonds are the horses that pull the carriage of every (luxury) jewelry piece. The emotions Argyle and pink diamonds create for their owners are impossible to match. Still, the driving force in the future price development will be in yellow diamonds.
Looking at the latest auction results in Sotheby’s HK, I see that the yellow diamonds performed quite well. Exceptional stones will always command top prices. We always hold exceptional stones but have the ability to compete.
A 5.00-carat fancy vivid yellow VS sold at auction for $124,000 per carat. We sold a similar top quality 5.01-carat emerald for more than $90,000 per carat and our stone was a VVS with AAA color.
The 5.01ct, yellow diamond ring
Auction houses continue trying to hype up the prices. Only, the market already has its own dynamic which is difficult to influence. Investing in specific diamonds is for people who want to conserve their wealth for the next generation, or keep their money out of the turbulent markets for a long period of time.
Over the years, I have seen some excellent returns on many of my customer’s investments. I always liked high-quality stones, FL (flawless), IF (internally flawless) or at least a VS and up. These goods will never go out of fashion. They will keep their value and increase in price.
One of my favorite stones that recently came into our collection is a 5.54-carat Fancy Yellow, FL clarity, EX/EX/None. A stone of such quality is so rare that you can hardly find something similar in the market. I am convinced that yellow diamonds are madly undervalued.
5.54 carat, Fancy Yellow Diamond, Oval Shape, FL Clarity, GIA
There are various ways to invest in a color diamond. We help you choose the best one for your budget. We set it in a piece of jewelry and deliver it to you. Alternatively, you can just as well buy it and leave it with us on our website until we sell it again with profit.
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Leibish Polnauer, President and Founder of Leibish & Co. Fancy Color Diamonds