Why Invest in diamonds

by Sidsel Dalby

“The last diamond unearthed: The countdown is on.

– The Fancy Color Research Foundation

Protect and increase your wealth

Rare diamonds have captivated the human imagination for centuries, not only for their timeless beauty but also for their potential as a unique investment asset, as well as a hedge against financial and political crisis as we experience right now with banking collapses, inflation, increased interest rates and the ongoing conflicts.

The rare diamond market has witnessed notable growth and stability over the years. The demand for exclusive, high-quality diamonds has consistently driven the market, making rare diamonds a sought-after commodity for investors. In recent years, the market has shown resilience, even in times of economic uncertainty, underlining the enduring allure and value of rare diamonds as an alternative investment.

Investment guide - Diamonds as an investment solution

The end of an era

After the closure of the Australian Argyle mine on 3 November 2020, the value and interest in particularly fancy color diamonds as investment objects has reached new heights.

The Argyle mine accounted for around 90% of the world’s production of rare colored diamonds. In line with the explosive interest in these diamonds over more than a decade and now continuing after the closure of the mine, it has resulted in the supply of colored diamonds today being quite limited. The world’s largest reserve of colored diamonds in the near future is headed for the ‘second hand’ market, which is why it is more relevant today than ever to invest in blue, pink and yellow diamonds in particular.

All diamonds are beautiful, but the colored diamonds are all their own and very unique in shades. They are beautiful both as a loose object and as jewellery, where you can have one made with us if you wish a bespoke design.

Read more about why colored diamonds are so rare:

FANCY COLOR DIAMONDS WIKI

Market trends

Diamonds are a physical asset – a commodity – of which only a very limited amount exists in investment quality. Out of the world’s total diamond reserve, only 1% of all diamonds can be classified as investment diamonds – i.e. diamonds of the highest quality. Among them, the rare pink diamonds make up a minimal fraction of approx. 0.0001% of the total diamond reserve.

A smaller percentage is used for jewelry, while the majority of diamonds mined are used for industrial work.

Seen from a macroeconomic perspective, the diamond market is facing an incipient ‘gap’ between supply and demand, where the world’s mining operations are being adjusted down with partial closure of mines over time. Here among others The Argyle Mine which was the largest producer of rare pink diamonds. That is the supply of investment diamonds is falling while demand continues to rise (see analysis by Bain & Co Inc.). This means that a new ‘second-hand’ market will emerge, where you, as the owner of rare diamonds, will be able to dispose of your assets at a profit.

You are welcome to contact us for further information about investment diamonds.

 

Invest with DALBY DIAMONDS trading platform

DALBY DIAMONDS specializes in alternative investment in colorless and fancy color diamonds and precious gemstones (rubies, sapphires and emeralds) with strategic access to the supply chain and control of off-market reservoirs. The direct access from mine to market means that DALBY DIAMONDS as provider of investment grade diamonds is capable of offering the best prices on diamonds and gemstones in the market. DALBY DIAMONDS exclusively select diamonds that are natural mined and conflict-free with GIA-certificates.

The principal of the company, Sidsel Dalby Glerup, is the founder and owner of DALBY DIAMONDS – Scandinavian Diamond Exchange – with a proven track record from the diamond industry as broker and gemologist from The Gemological Institute of America (GIA). Sidsel also has a background from commodity trading in precious metals including gold and silver.

DALBY DIAMONDS are forming a platform open to the financial community and private sector where investors are able to buy and sell diamonds.

Diamonds in Focus – ‘Hjernekassen’ P1

How are diamonds formed? Why are diamonds so highly valued? What have diamonds meant to our culture?

At the end of October 2021, the founder of Dalby Diamonds, Sidsel Dalby, was invited to DR Byen for a talk about the many facets of diamonds in the company of the host of the P1 program ‘Hjernekassens’, Peter Lund Madsen, as well as two other experts in the diamond industry.

Your trusted source for diamond investment

DALBY DIAMONDS procure the diamonds for the investor as a physical asset. At the time of liquidation, the investor may give mandate to DALBY DIAMONDS to sell the diamonds to achieve the most advantageous exit from the investment. The intent of this structure is to enable the investor to timely liquidate the asset at an attractive market price.

DALBY DIAMONDS are operating with a transparent pricing policy with no extra retail margin adding to the price and no hidden fees.

Choosing the right diamond for investment is a skilled job. It is our recommendation that clients interested in investment grade diamonds consider color, clarity, cut and carat together with a budget before they contact us for further assistance or a diamond price quote.

Investment Grade diamonds

There are two main diamond categories investors are taking note of in particular: highend diamonds and “bread and butter” white goods:

  • The first category is comprised of fancy color diamonds, mainly those with VS clarities and better, preferably with at least a “Fancy” color grading. Fancy color diamonds that have only one color without a secondary color (pink vs purplish pink, for example) are preferred. This category also includes white diamonds larger than 4.00 carats, with a DEF color and FL/IF-VVS clarity. This category is not a new venue for investment. However, with the growing understanding of the potential diamonds have as an investment venue, more people are interested in investing than ever before.
  • The second category of goods is often referred to as “standard,” “ABC” or “bread and butter” goods. Broadly defined, these goods consist of 1-5 carat, D-J color, IFSI1, round GIA certified diamonds. Some investment companies and private persons are also looking at a broader range of size, ranging from 0.50 carat.
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