Investing in Natural Yellow Diamonds

for the last 35 years or so, when anybody wanted to invest in diamonds, he would naturally acquire a colourless diamond. when Rapaport first published his, now famous, yet now somewhat controvertial, he probably did not realise yet what impact his decision will have over the following 35 years. every decision has both a cause and effect. on the positive side, his list created a guideline or M.S.R.P for diamonds in various sizes, clarities, and cuts. it responded to the 2 main concerns investors always have; liquidity and valuation. in fancy color diamonds these concerns, still exist, except for mainly one color; Natural Fancy Yellow Diamonds. today they are considered the liquidity factor for Fancy Color Diamonds investors who desire to nibble at them.

 

Fancy Yellow diamonds, similar to all other colors, have the same various depths of colors available; Light Yellow, Fancy Light Yellow, Fancy Yellow, Fancy Intense yellow, Fancy Vivid Yellow and Fancy Deep yellow. due to the size of supply in fancy yellow, the investment grade spectrum of yellow is much narrower than some other, rarer, colors. according to our extensive research that spans over 20 years, investing in Fancy yellow means investing only in Fancy Vivid Yellow diamonds that are over 2 carats in weight, with a higher clarity starting at VVS2 and up. investors can also allow themselves to invest in Fancy Intense Yellow but only in Internally Flawless clarity (IF) and best to stay above 3 carats in weight due to supply size.

 

i decided to do some in depth analysis about Fancy Vivid Yellow for the last 10 years, and as predicted, valuation for this color has appreciated tremendously. over the last 10 years Fancy Vivid Yellow diamonds have appreciated over 327%, beating major stock indices as well as some prominent and public companies. i had reviewed, on behalf of a client, Fancy Vivid Yellow performance compared to asian stock markets, other commodities as well as some local companies such as Samsung, and not surprisingly, although Samsung, a very successful company, was beaten by the performance of Fancy Vivid Yellow diamonds.

 

Above graph represents overall Fancy Vivid Yellow return over a 10 year period.

 

 

 

Above graph depicts value fluctuation over the analyzed timeline.

 

The upside benefit of Fancy Vivid Yellow is the fact that it is much more liquid than some other rare colors.

 

Yaniv Marcus

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