In today’s complex and modern world there is an unlimited range of options for individuals to consider putting their hard earned money into. Stocks, bonds, futures, mutual funds, REITS, SPDRS, TIPS, ETF’S, precious metals, oil, gas, real estate, partnerships and business opportunities are just a few of the most common ones. Each of these have their own unique advantages and disadvantages, but there is one very special type of vehicle that offers a distinct set of advantages that no other can match: rare color diamonds.
One of the main advantages that set rare color diamonds apart from all other is the fact that not only do they encapsulate an incredible amount of wealth in a very small package, but that wealth is also highly portable and very easily concealed. Unlike real estate, gold or silver, rare color diamonds are small, light and easy to move around when needed. A rare color diamond owner could walk past you on the street with several million dollars of wealth stored in their pocket and you wouldn’t even know it. You can literally carry your entire wealth with you across borders, simply by putting a few small, high-value items in your pockets.
Unlike paper promises such as stocks and bonds, rare color diamonds have a very well established and long standing track record of doubling in value within a five to seven year term, which is even faster than precious metals. Paper promises are known to be very volatile and can drop dramatically in value in a single day if market conditions turn unfavorable for any number of reasons. This is especially true in the United States under the current unstable economic conditions.
What makes rare color diamonds so incredibly valuable is simply their scarcity. Out of every 10,000 carats of diamonds that are mined, only one of those will turn out to be what is called a natural fancy color diamond. Out of the 110 million total carats of diamonds that are mined each year, only about 2,000 of those will end up being cut and polished as natural fancy color diamonds. In addition, there are far fewer new fancy color diamonds available each year so they will generally command a substantially higher price per carat than the much more common and plentiful colorless diamonds.
Rare color diamonds currently range in price from $1,500 to millions of dollars each. Additionally, it is anticipated that these color diamonds will become even more valuable as supply dwindles and demand increases overtime. Several of the mines that produce rare color diamonds around the world will either be shutting down entirely or dramatically scaling back production over the next several years because their excavation is near complete. This will even further reduce the supply of a rarity that is already in very high demand. Another factor contributing to the rise in value of these rare color diamonds is the increased demand for them from individuals in India and China, twocountries with an exploding number of middle class to high net-worth individuals that are looking for ways to protect their generational net worth and store their wealth with the least amount of risk.
Rare color diamonds have a proven track record from 40 years of auction house & private dealer records that show an average appreciation of 12-15% per year.
One of the main reasons why individuals turn to hard assets such as rare color diamonds today is because, much like gold and silver, they represent a significant hedge against inflation. Back in 1979 and 1980, a time when the US was experiencing substantial inflation, the Federal Reserve raised interest rates significantly to around 20% in an effort to constrict the money supply and fight off inflation. During that two-year time frame alone, the price of rare color diamonds increased by roughly 500%.
With countless financial land mines out there on the horizon like global political instability, impending inflation and massive looming government deficits, it’s important to build a financial firewall around yourself that will allow you to maintain your wealth over the long term, regardless of what occurs. Acquiring rare color diamonds, can provide the ultimate in stored wealth because they have never gone down in value. Remember, rare color diamonds are scarce and only becoming more rare each year and paper currency is plentiful with more and more being printed each year. Which one do you trust to protect your net worth?