a DIAMOND in the HAND is worth…5 reasons to INVEST in DIAMONDS!
Marilyn Monroe and Shirley Bassey were onto something with all that diamonds are forever business. Besides the fact that they won’t leave you in the night, that they never lie, and that they’ll lustre on even when love’s gone...here are five reasons WE think you should invest in diamonds:
1. DIAMONDS DON’T GROW ON TREES YOU KNOW
They “grow” in mines. And there aren’t many of those around. Diamonds can only be found in a handful of places and most of the diamond mines have already been exploited. Which is to say, eventually all the sources will have been exhausted...oh, alright I’ll put it in business speak, demand will exceed supply...and when that happens, er, you’re probably better off being on the supply end.
2. CUT THE CRUNCH
We all know that diamonds are the only thing hard enough to cut glass, but they are also one of the only investments hard enough to cut the credit crunch. Well, to be fair, the diamond industry did suffer its own lashes and slashes during the economic crisis, but studies conducted by The DeBeers Group prove that diamonds performed better than any other luxury sales in that catastrophic year that was 2008. Yep, better than watches, better than yachts, better than Crème de la Mer. Who needs moisturizer when you have diamonds!
3. BECAUSE THE FT SAYS SO
Oh come on, you know you blindly trust the FT and paraphrase their articles whenever you’re lacking in something finance-savvy to say! An article entitled “Sparkle returns to the diamond market,” published in the FT earlier this year assures investors that the diamond market is back on its feet, and recommends investing in “loose diamonds of 5 to 20 carats with grading certificates,” adding that “blue, pink, yellow and red hues are sought-after.” Being “in the red” just took on a whole new meaning...
4. TRAVELIN’ LIGHT
Good things really do come in small packages. Diamonds are one of the most concentrated forms of investment that exist. Wouldn’t it be nicer if you could carry all your assets in your pocket rather than annoy your neighbours with all the cases of wine you’re storing outside your door?
5. HAVE YOUR CAKE AND EAT IT TOO
Unlike that country house in the Cotswolds you invested in that you neither rent out nor visit as often as you planned, and unlike that case of ’65 Bordeaux that ceaselessly calls your name begging you to drink it...you can wear your diamonds all you want without the worry of them running out or losing value, without the guilt, without the hangover. This, if anything, is what it means to have your cake and eat it too.
Of course, when you have diamonds in your possession, there’s always that little risk of getting called in testify against a war criminal, but then again you could always say you thought they were just “dirty little stones.” And actually, if you buy them from Seventy Seven Diamonds –you can be sure they’re conflict free. Yes, here at Seventy Seven, we believe the best things in life are (conflict) free.
Please call us on +44 (0) 207 631 5304 should you wish to learn more or consult with one of our diamond experts regarding investment opportunities.
Diamonds: why it’s a good time to invest
This week the global gem-mining giant De Beers Group revealed that the world’s diamond supplies are running out. Despite recent economic hardships, the choice to invest in diamonds now may be a wise one.
According to the mining company, diamond mines are getting scarce and will eventually become history. De Beers has decided to reduce its production in order to extend the life of the mines.
The depletion in diamond mines will have a direct impact on the prices of stones. Diamond analyst at Royal Bank of Canada Capital Markets, Des Kilalea, explained that owing to the moderated output, diamond prices could rise by at least 5 percent every year for the next five years.
De Beers is responsible for 40 percent of global diamond sales, but this figure is now likely to decline. The company had an astonishing record of producing 48 million carats per annum, but will now reduce their diamond production to 40 million in 2011.
Global Trends in Diamond Demand
There is debate whether the diamond industry is a manufacturing, natural resource, or a consumer industry. Many factors contribute to the rise and fall of diamond production and purchase which can be reviewed as global demand trends.
According to the IDEX Online Polished Diamond Price Index, average day-to-day polished diamond prices have remained steady for the last eight consecutive months, rising a mere 0.1 percent in November month-over-month. The IDEX Online Diamond Price Index is a real-time index constituted from actual asking prices in the global diamond industry: it therefore objectively reflects price trends as they occur.
Whilst rough diamond prices are higher, consumer demand for diamonds and diamond jewellery has been tenuous for over the past year which has kept polished diamond prices low. Year-over-year prices have dipped for polished diamonds for the past eleven months and prices remain 10.1 percent below last year’s average.


