CHAT
WITH US

Coloured diamonds have consistently delivered strong long-term returns.

The interest in rare coloured investment diamonds arises from their historically sustained appreciation in value.

By Adorian Assets Team

According to FCRF, three of the most traded categories of coloured diamonds recognised for their investment appeal: yellow diamonds, blue diamonds, and pink diamonds. Since the early ’70s, natural blue diamonds have increased by approximately 100% every five years, pink diamonds have increased by 100% in price every 6-7 years, and fancy yellow diamonds have increased by 100% value every 8 to 10 years.

Below is a snapshot depicting the strong returns of these coloured diamonds relative to other traditional asset classes since 2005-2023. It is also worth noting how all categories have appreciated over this 18-year period based on saturation of Color alone, the straight Fancy Pinks generated 397.8% with an annual return of 21.2%. Blues 251.2% with an annual return of 13.4% and the yellows 59.2% producing a lower annual return of 3.2% (Source: Fancy Color Research Foundation – Total appreciation since 2005.)

CAGR – Source: Based on Eurostat/Black Rock/MSCI/Federal Reserve Data

Negative impact of cash -32.5% and inflation graph since 2005-2023

Liquid cash balances are always hurt by inflation. Europe is experiencing the highest inflation numbers it has seen in more than 40 years. More than ever, it is important to not hold cash in hand to avoid losing real purchasing power. In the chart above you can see how the inflation rate has evolved in the last decades. If we consider the last 18 years, the accumulated loss of value for cash balances is -32.5%.

Source: Based on Inflation eurozone in 2023: 2.9% according to Eurostat and Federal Reserve Data of euro zone price index. All Rights Reserved.

Share this article

Featured diamonds

See all

Source: Courtesy of The Fancy Color Research Foundation. All Rights Reserved.

Historical growth of Pink, Blue and Yellow Diamonds vs. the Dow Jones to 2023

The raw data and numbers for buying and owning fancy colour diamonds cannot be compared with other traditional investments. The Dow Jones (+221.3%) over the same period returned less than the Pinks and Blues diamonds (see graph/chart above FCRF). Additionally, funds that track European Stock Indices, such as (MSCI) exhibited a compound annual growth rate (CAGR) of only 3.85% during the same time frame. This resulted in a total appreciation of merely 90% (See the graph below, where the iShares Core MSCI Europe ETF had a 90% cumulative return).