Pink Diamonds, Liquidity and Ethics

Pink Diamonds, Liquidity and Ethics
PUBLISHED 27/09/2022

In the world of natural coloured diamonds, brokers, miners and even retailers of gemstones pay attention to what the Fancy Color Research Foundation (FCRF) has to say. Globally, the FCRF sees its role as the face and the voice of natural fancy coloured diamonds, helping raise awareness of the stones, telling their story and promoting their value in beauty, and as an investment.

The FCRF also maintains connections with diamond and gemstone industry leaders around the world. The data it gleans from these contacts helps valuations, referencing the FCRF’s own pricing index and rarity tool. The foundation also publishes material regarding the worth of fancy coloured diamonds as investments.

Demand grows as supply slows

If you’ve spent any time at all looking at the performance of fancy coloured diamonds on the investment market across the last couple of decades, you’ll have noted strong, steady growth in value. You’ve probably also spotted the fact that fancy coloured diamonds such as pink diamonds tend to stand strong during market fluctuations. So is this a trend that’s due to change any time soon? The FCRF thinks not. This year FCRF lead Miri Chen has noted that as recognition of the investment value of fancy coloured diamonds grows, demand is continuing to increase. So, mining production will simply rise to meet demand, right? Not at all. The sheer rarity of fancy coloured diamonds means that the worldwide supply is steadily dwindling. There’s a very real chance that in coming years, the fancy coloured diamonds already in circulation will become the only gems available. The supply is truly finite.

Who’s investing today?

We’ve noted that as the supply of fancy coloured diamonds slowly falls away, demand from the usual areas is increasing. But what’s expected to push the value of the gems even further is the fact that new areas of demand are now opening up as well. While the United States and Europe have long represented the heartlands of fancy coloured diamond investing, increasingly Asia is coming online as a big buyer. Today Singapore and China are also greatly stepping up demand.

How liquid are fancy coloured diamonds?

Fancy coloured diamonds such as pink diamonds are tiny but precious, perhaps the most concentrated form of wealth in the world. Like gold they’re a tangible asset, although far more precious. One of the questions most commonly asked by potential investors is just how much complication or delay can be expected at sale time. The first piece of good news is that as investments go, fancy coloured diamonds such as pink diamonds are not particularly difficult to liquidate.

There are several options when the time comes to sell. Investors looking to liquidate quickly might choose to go to an auction house or even a high-end jeweller. The biggest concern with either of these avenues is that very few auctioneers and jewellers are true diamond specialists. Even fewer, if any, specialise in rare fancy coloured diamonds such as pink diamonds.

The safest possible approach to liquidating an investment stone is via a reputable broker and fancy coloured diamond specialist such as Pink Diamond Capital. This means that your diamond will be handled by a specialist gemmologist, so its true value will be ascertained beyond doubt. Furthermore, brokerage through Pink Diamond Capital brings connection to an established and trusted international network of investors. For this reason the location of a genuine buyer is streamlined, the transaction prompt and the price an accurate reflection of the stone’s quality, as well as market trends.

Doing good, feeling good

Growing demand, spectacular investment value and easy liquidity – there are some good reasons to take a look at a fancy coloured diamond or pink diamond as an addition to any portfolio. In fact in Australia, pink diamonds are also an eligible asset that may be included in any Self-Managed Superannuation Fund, bringing some sparkle and prestige along with market-proven performance.

In a world where more people each year demand ethical behaviour and community-minded action from the businesses they deal with, the fancy coloured diamond industry holds some nice surprises. The FCRF itself partners with the Make A Wish Foundation, donating significant funds from membership to help fulfil the dreams of chronically ill children. The FCRF sees this as a move that reflects its core values. Meanwhile Eric Kariuki, Director of Pink Diamond Capital, is a foster father and member of Unashamedly Ethical, a group that shares a vision to transform society by taking a stand for ethics, values and clean living. Both of these allegiances speak of integrity, community responsibility and healthy relationships held in high esteem.

If you have been considering pink diamonds as an investment and like to work with businesses who prioritise fairness, integrity and ethics, simply contact Eric Kariuki at Pink Diamond Capital here.