Demand for colored diamonds is surging and prices are rapidly following the upward trend. According to Leibish Polnauer, President of Leibish & Co, a five carat yellow diamond is currently selling in the range of  $75,000-$100,000, and notes that this is a 40 percent increase over last year’s prices. Gem Diamonds (LON:GEMD), whose Ellendale mine supplies Tiffany & Co. with yellow diamonds, announced that in the first quarter of 2011, it sold the jeweller these stones for an average of $3,379 per carat compared to $2, 545 per carat during the first quarter of 2010.

Interest in colored diamond prices and the profit potential of the stones is extending beyond producers and industry consumers to an expanding number of individual diamond investors. Leibish & Co maintains a special inventory of investment grade colored diamonds and confirms an increase of profit-focused clientele. Sean Dunn, Vice President of J.R. Dunn, reported a similar trend. Tight supply and growing demand, especially in emerging countries, are increasing prices throughout the diamond industry.

However, colored diamonds are much rarer than white stones, therefore a surge in interest is difficult to accommodate. High-end US consumers have come back to the market, said Dunn. “But demand in Asia is simply outstripping supply,” he adds. “Our inventory often sells faster to international clients. Some fly in willing to pay prices above retail. They take the diamonds overseas and sell them for even more.” Both India and Hong Kong are considered hot markets for colored diamond activity.

Before investing

Predictions for growth and longevity in the colored diamond market are highly optimistic. However, there are a number of things to consider before getting into this game. Foremost, is the forewarning that these investments are not for everyone.

Leibish says colored diamond investing is for people with liquidity and a long term view. According to Dunn, demand allows some people who bought diamonds in 2010 to sell them for decent returns now, something that hasn’t always been done. By his own account Polnauer says, Leibish sold an intense 4 carat yellow diamond about a year ago. The jeweler offered to buy it back at a 20 percent premium and the client refused. It’s all about the stone a person possesses, which is why Polnauer says an investor must study this market.

Dunn further stresses that investing in colored diamonds is a gamble. He also highlights the fact that some stones definitely offer a much higher probability of attractive returns, but, there is never a guarantee. “Generally, smaller stones (a carat or less) are harder to capitalize on. But there are exceptions.” Australian pinks are considered extremely rare and blues also tend to be placed in the rare and desirable categories. These stones may warrant investment at smaller sizes. Another thing, says Dunn, is that investors should avoid stones with undesirable characteristics.

Individuals who want to avoid venturing unguided into this market may want to consider the Novel Diamond Fund. The first of its kind, the newly launched fund specializes almost exclusively in the investment of colored stones. In an interview with Bloomberg, Alan Landau, CEO of Novel Asset Management, explained that the fund will focus on diamonds valued at $1 million or more. Investors will, therefore, be able to enjoy the historically high returns in this type of investment which have thus far been enjoyed mostly by those in the industry.

Instead of the buy and hold strategy common among funds of other types, Landau said this fund is going to exploit a spread created by buying at wholesale prices and selling at retail. Although open to new investors now, the fund is scheduled to close in October. Landau told Bloomberg he expects major institutions to catch on to the diamond investing trend and move into this market. Polnauer told Diamond Investing News, he expects colored diamonds to be like gold… experiencing drastic price increases over the span of a few years.

Sourced & published by Henry Sapiecha

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A rare 24.78 carat Fancy Intense Pink diamond that was auctioned last year. Photo: AFP Photo

Although a 10-carat purplish-pink diamond failed to meet its reserve price at an auction last week, experts say the market for the rare gems is still strong.

“Pink diamonds are red hot,” said David Young, president of Wexford Capital Management, a broker of fancy coloured diamonds.

Christie’s had expected the 10.09 carat Fancy Vivid purplish-pink diamond to fetch as much as $US15 million at a recent auction. Four other pink diamonds had sold for more than $US1 million per carat at auction in the past 15 months.

The record for a diamond sold at auction is held by a Vivid Pink five-carat diamond at $US2.1 million per carat in 2009.

Although Christie’s did not explain why the gem missed its reserve, gemologists and dealers say once you reach the realms of $US1 million-plus per carat, buyers becomes particularly scrupulous.

“When you get up to this level of stone – these Rembrandts, these Monets, these one-of-a-kind pieces- they have to be held up to a very high standard if someone’s going to put that much money on the table,” said Stephen Hofer, a New York research gemologist and diamond cutter specialising in coloured diamonds.

Experts agree that prices for coloured diamonds, pinks in particular, are on the rise, noting that a barrier was broken in recent years that thrust pinks previously selling for $US500,000 to $US600,000 a carat into the $US1 million-a-carat realm.

While the 10-plus carat pinks stun with their size, diamonds extracted from the Argyle diamond mine in Western Australia command similar sums with the intensity of their colour.

Global miner Rio Tinto’s Argyle mine is the world’s only consistent supplier of pink diamonds. While smaller, experts said the rare and exquisite Argyle gems are in a class all their own.

At Argyle, pink diamonds making it to the annual tender are literally one in a million. For every one million carats of rough diamonds produced from the mine, only one polished carat is offered for sale in the tender. In terms of global diamond production, pinks make up only 0.03 percent.

Each spring Rio Tinto displays its finest 40-55 diamonds weighing 0.50 carat or more and ranging in colour from light pink to red, and even violet, at private viewings in exclusive hotels in cities like New York, Paris, and Hong Kong.

The location of the private viewings is kept secret until the day they are shown. Once these rare stones have made their way around the world, sealed bids from diamond connoisseurs and collectors are tallied and the winners notified.

Last November London jewellery dealer Laurence Graff paid $US46 million for a 24.78-carat pink diamond at a sale in Geneva, the highest total price for a gem at auction. He renamed it the “Graff Pink.”

“The thing about the Graff diamond is that it’s a piece of art. There is not another one like that anywhere,” said Gary Roskin, gemologist and founder of The Roskin Gem News Report.

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Reuters

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]]> http://www.acbocallcentre.com/2008/06/06/have-peace-of-mind-get-it-appraised-by-experts-here/feed/ 0 http://www.acbocallcentre.com/2008/06/05/world-wide-events-fairs-registry/ http://www.acbocallcentre.com/2008/06/05/world-wide-events-fairs-registry/#comments Thu, 05 Jun 2008 13:47:37 +0000 Henry http://www.acbocallcentre.com/2008/06/05/world-wide-events-fairs-registry/ International & Local Fairs/Events World Wide

There are many world wide events and fairs that are of interest to many people

I recently went to Europe to attend a major 4 day gemstone fair in Munich Germany and gained a lot of contacts and knowledge about the industry and products as well as the people in it.
During this trip through Europe I found that many more events fairs were on the calender in various locations in Europe on just about every type of product and service one can imagine.I was also in Asia and found many major events.

These events and others are of interest to many people in all parts of the world.
Events/fairs in all parts of the world ,both small and large for various products and services are taking place and need to be presented to more people throughout the world so they have an opportunity to attend and gain from them.
If you have any knowledge of such
international or local fairs and events please let me know
A site is being worked on now by our group to present these to the web public.
www.acbocallcentre.com

www.worldfairs.org

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