With the volatility of other trading markets like forex and stock markets, an increasing number of commodity investors are finding it more stable to trade in colored diamonds. With the availability of different colored diamonds in the market, it is easy to get confused about which ones are the best to invest in.
When comparing diamonds as an investment, two crucial factors to consider are rarity and demand in the market. The rarer a diamond piece is, the more in demand it is, and this makes it more expensive than common types.
Here are the most profitable color diamonds in the market today.
Common color diamonds
These include yellow, brown, and black diamonds. They are referred to as the common colors because they are compared against other rarer forms. Therefore, the word common should not be confused to mean that they are readily available. Common colored diamonds are more available in the market, and this makes them more affordable to most traders. These are more expensive alternatives to clear diamonds. They are commonly used to make fine jewelry pieces, including engagement rings.
The common category of colored diamonds can go for 4 to 5 figure price ranges per carat. The
price is determined by the size, craftsmanship, and quality of the stone.
Rare colored diamonds
These include vivid yellow and brown diamonds. This category comprises of diamonds in the mid to high price ranges. Their cost is dictated by the color intensity, the use of undertones, and modifiers. Unlike the yellow in the common category, the vivid yellow in this category is highly marketable due to its vibrant and rich color. Sometimes, these rare colored stones can go for rates higher than those of clear stones. Pure canary yellow diamonds go for a premium.
When looking to purchase the rare colored diamonds, go for darker colored ones or the ones with dark undertones. This hides inclusion in the diamond and allows you to settle for a low clarity stone that still looks great.
Very rare colored stones
This category is made up of blue, green, and pink diamond investments. These are the rarest diamond colors in the world. These types of diamonds are commonly sold in auctions for millions of dollars or are displayed in museums. These are the types of diamonds to buy for trading or as assets. They are of very high market value, which makes them perfect when one wants a high return on investment.
Light blue, line green and light pink diamond investments go for at least 5 figure rates per carat. Pure blue, intense pink, intense blue, and intense green diamond varieties start at 6 figure rates per carat.
The rarest colored diamond
This is a category that comprises only of the red diamond. There have been only a handful of these diamonds ever sold at auctions, and each sale yields hundreds of millions of dollars per carat. Pure red diamonds are very rare, which makes the most marketable and the most expensive. The quality can increase the market value exponentially. One requires a lot of money, patience, and luck to be able to acquire the red diamond.
The inclusion of red as a color modifier to any of the other categories can significantly raise the price from a 4 figure to 5 or 6 figure.