Wednesday, February 27, 2008

Rare Fancy Colored Diamonds

A Girl's and Investor's Best Friend

As featured in CitySmart Magazine Vol VI - Issue II
By: Robin Jay

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"Diamonds are a girl's best friend" was a phrase coined in the movie Gentlemen Prefer Blondes. In today's economy, it's rare, natural, fancy-colored diamonds that are all the rage for investors, celebrities and, increasingly, the public. Just ask Jennifer Lopez, who received a rare fancy pink diamond from then boyfriend Ben Affleck, or Adriana Barraza who wore a 120-carat yellow diamond at the Oscar Awards.

Natural, fancy-colored diamonds are the most valuable gemstones. Auction house Sotheby's recently reported a rare, flawless 6-carat fancy vivid blue diamond sold for $7.98 million - that's $1.32 million per carat - a sale that shattered a 20-year auction record.

Extremely rare colored diamonds are here in South Florida, too. A very rare red diamond - the most difficult-to-find color - was sold last June for $1.5 million by diamond dealer Harold Seigel of www.rarecoloreddiamonds.com headquartered in Sunrise.

"Exceptionally rare colored diamonds have no fixed price. Like a Picasso or Rembrandt painting - their true value is determined at auction. Rare colored diamonds run about 20 times the cost of white diamonds." Seigel explains. "It's a matter of supply and demand. Mines are drying up and no new mines in the past decade have produced colored diamonds. The Argyle Mine in Australia, for example, produces the rarest fancy pink diamonds - and when that closes, there will essentially be no more new pink diamonds produced and demand will continue to skyrocket. With the cost of oil and gold way up and with the Middle East problems, rare colored diamonds - if you can find them - are an investment that earns positive growth in a negative market. A rare colored diamond bought today could increase in value five to 10 times by next decade."

Diamond Value: An Historical Truth

History provides proof of this sound investment. Case in point: An intense, flawless pink one-carat diamond would have sold for $70,000 20 years ago. Today it would sell for $500,000. Seigel's collection includes a three carat dramatic purplish pink heart-shaped diamond from Australia's Argyle Mine that's worth $1.5 million and a radiant cut five carat, fancy pink, internally flawless diamond worth $2 million.

A treasured South Florida diamond jeweler celebrates 25 years of business.

With a rare colored diamond costing millions, Seigel says it's important to select a highly reputable jeweler to mount the stones. He deals exclusively with Levinson Jewelers. This year, Robin and Mark Levinson celebrate their 25-year anniversary in the business.

"We are often the first to view these rare diamonds on an invitation-only basis," said Mark, who plans to travel to Geneva, Switzerland in April for another diamond unveiling. "We've seen tremendous growth in diamond demand because investors are discouraged by stock market and real estate uncertainty. They're including rare colored diamonds in their portfolios because history has proven the value will increase."

When asked how much a new investor would need to get started in the rare colored diamond market, Levinson said it's difficult to say because the same-size stone can sell for $25,000 or $100,000 depending on shape and depth of color. "In coming years, as the economy continues to correct itself and as mines dry up, the demand for nature's rare colored diamonds will soar. Think about it. If it were announced that all sources of water were gone, how much would you pay for water? Anything you could. The same is true for diamond collectors."

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Rare Fancy Colored Diamonds
posted by Rare Colored Diamonds on Wednesday, February 27, 2008

Wednesday, February 27, 2008

Rare Fancy Colored Diamonds

A Girl's and Investor's Best Friend

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