Don’t Be Stupid And Invest In Fancy Color Diamonds!

I have been thinking about this for a very long time now, and was contemplating on changing the title. I was concerned that some of you would read it wrong, while others, may get a good laugh at it. So which are you? there are 2 ways to read this title. The first way would be: Don’t be stupid and invest in Fancy Color Diamonds, meaning, don’t delay it, and do invest in Fancy Color Diamonds, before you miss the ride. The other way to read it would be: Don’t be stupid, and don’t think about investing in Fancy Color Diamonds; you don’t know what to do and how to do it, so stay away.

Should I, or Shouldn’t I, that is the question!

Would I really tell you not to invest in Fancy Color Diamonds? the whole website is all about education and information about investing in Fancy Color Diamonds! am I ready to shoot myself in the foot? as an expert in investing and understanding fancy color diamonds, I am comfortable to argue on both sides of the spectrum. I can argue for it, and I can argue against it (another play of words, i’ll let you figure it it and send me a comment).

Why Investing in Fancy Color Diamonds is completely wrong, and should not be done.

If I were you, I would not do it. I would just stay away. who knows what color is better to invest in? is it all about the rarest? then Purple and violet might be it. Should I invest in the most talked about color? then blue or pink would be it. What about red and green? now it is all confusing so perhaps you should just let it go.

We are almost at the end of May, 2020 and the Global Epidemic Coronavirus is not about to go away anytime soon. In all developed countries, where a large portion of the population is not working right now, and their number one priority is surviving and feeding their families, and here we are talking about rocks! Trillions of dollars wiped out and disappeared in global stock markets, and companies are in limbo, and we have a fantasy about Fancy Color Diamonds.

Investing in Fancy Color Diamonds is a unique and specialty niche, and is not for the majority of people in the world. Don’t be confused and listen to some idiots on the internet that tell you to invest in Fancy Color Diamonds and that you can invest as little as $5000 or even $50,000 and $100,000 and you will make money. They are plainly and simply lying to you!

People from around the world contact me on a regular basis and tell me all about their horror stories about being conned into buying some Fancy Color Diamonds that are rare and to keep them for their grand children because the price will go up, or that their color is rare and soon prices will sky rocket. Oh, how about the latest story that a mine is closing down, so their diamonds value will go up, astronomically high; really? Then why not keep them, close the shop, wait for the diamonds value to rise, sell them in a few years and make even more money? Am I scaring some of you? Have you heard all this before? Well then, still want to invest in Fancy Color Diamonds? Who did not hear about the Drew Brees lawsuit? The one that he sued his Jeweler Vahid Moradi and his store C. J. Charles in La Jolla, California in 2018…and won over $10 million just a year later in 2019! (i’ll write a full story about that one soon). 

Now let’s flip the coin on its back and discuss why Investing in Fancy Color Diamonds is one of the best things that you can do!

But before I do, let me tell you a few facts:

1. Diamonds have been a source of wealth for centuries.
2. Some diamonds may have fallen in value during the latest crisis, but no where near where equity markets have fallen.
3. No diamond has ever, in history lost as  much % value in a single day like some equities.
4. Fancy Color Diamonds, on average, have outperformed some equity markets over a longer period of time.

Why Investing in Fancy Color Diamonds is the best decision you will make in your investing decision making career!

Investing in Fancy Color Diamonds decision making should be done like any other investment you will make. It is all about the potential. It is all about basic economic and fundamental rules of the market. It is all about what I like to call “educated guess”. Who did not hear about the basic rule of “market balance between Supply and Demand”? We all know that when supply is up, then that will drive prices down (in the vast majority of time), or when supply dries up, it drives the price up because of constant or increase in demand (the vast majority of time). Another element we have to take into account is liquidity. It is nice that I was able to invest in a rare diamond that is considered one of a kind, but if there is not enough people that are interested in it, or that do not have enough money to buy it, then why should I own it? Eventually any investment needs to be sold in order to materialise the gain. How do I also know if what I paid for was worth it? how can I be assured that one day, when I want to sell the diamond, that the value will go up rather than down? Is there any certainty? Well, there are only 2 things for sure and certain in life; death and taxes.

as an Expert in investments and as a person that was well educated in financial planning and portfolio management, we know that we need to balance between liquidity and valuation. These are 2 key elements in any investing decision making process. Am I buying it at the right price? And  can I sell it in the future for a potential gain? If the answers are yes, then we can proceed with further analysis, a more detailed one. In Fancy Color Diamonds, a further analysis would be into which colors. Is there a database of information where I can research the rarity of a diamond, which will help determine the size of market. What makes one diamond more desired than another? It needs to be well researched, and that is not enough.

Fancy Color Diamonds such as Pink, Blue, Red and Yellow are more of an investment type Fancy Color Diamonds, while Purple, Violet, Green and Orange are more for Collectors, where their objective is different. I have written about it extensively over the years. Right now, there is hardly any new supply of Pink and Blue diamonds that are coming out of the earth. Same thing goes for red diamonds. Investing in Fancy Color Diamonds should be considered as a way to diversify the overall investment portfolio and not be the center stage. Oh, and the fact that the Argyle mine is closing, will make pink diamonds rarer as the mine was producing almost 90% of global pink supply, so consider the demand/supply economic rules. 

Conclusion

A simple search online about rare diamonds, or diamond investments, or how to invest in Fancy Color Diamonds and you will be hit with a ton of results, which will only do one thing for sure and that is confuse you even more. I do recommend to diversify your investment portfolio and invest a portion of it in Fancy Color Diamonds. It is important to consult an expert which will guide you in terms of investment value, and not only rarity (you can buy the rarest gem in the world, but if you overpaid what it is worth, what are the odds to make an investment return, and how long will you have to wait). Buying a rare Fancy Color Diamond is not enough. There are many other factors that need to be taken into consideration when making such an investment decision. You need to work with an individual or company which has your best interest in mind, and that will cost you. Service is not free; you need a Fancy Color Diamond Doctor that knows investing as well. That individual has to be in a conflict free situation, so no inventory ownership allowed, otherwise, that individual will be inclined to sell you what he owns which does not necessarily means that it is the best for you. Work with an individual that will negotiate on your behalf. This individual should be in the same position later on and should be able to help you capitalise on your investment, and help you sell it.

Feel free to contact me with any questions.