Diamonds may be a woman’s best friend, but treat them as lucrative investments and they can become your best friend as well –no matter what gender you are. Specifically, we are talking about colored diamonds. While colorless diamonds are rare gemstones, only 1 in 10,000 diamonds are colored and come in different shades like yellow, pink, blue or red.

The international colored diamond market may not be well understood or appreciated by the average investor. So much so, that Diamond Circle Capital Plc of the UK delayed its plans to raise about $400m for the world’s first publicly traded diamond fund last summer. They saw a potential there, however, may have postponed amidst a poor investor reception or lack of interest.

Alternative investors can look at this as an opportunity to be one step ahead of the mainstream crowd and build their own colored diamond portfolio. There are plenty of reasons why these diamonds make a good investment.

The global diamond retail market was estimated at $61 billion in 2005, up from $50 billion in 2002, and is expected to reach $90 billion in 2015. Fueled by the spending power of the new middle class in China, Russia, India and Latin America, demand is outstripping the limited supply. Natural colored diamonds are extremely rare and this demand has caused the premium colored diamond prices to increase every year for the past 30 years.

Long-Term Growth
It has been shown that quality colored diamonds doubled in value in a 3 to 5 year period. Colored diamond prices are expected to rise significantly over the next decade as sophisticated collectors and jewelry buyers increase their holdings and major sources of supply declines.

Free Market System – Hedge Factor
The colored diamond market is governed by the laws of supply and demand. It is basically free of any external influence and no cartel, individual group or company controls the colored diamond market. These diamonds are considered one of the best global tangible asset hedges against currency devaluation, inflation and equity market exposure.

Unregistered Hard Asset – Transportable
If privacy is a concern, there are no requirements to register your diamond portfolio with any governmental authority. Considered the most concentrated form of wealth, millions of dollars worth of colored diamonds can be discreetly carried in your pockets. Try transporting a million dollars worth of gold around.

Affordable Safety and Protection
You can start building a portfolio with a moderate sum that suits your financial situation. Colored diamonds are one of the safest havens for your money given its stability and status for the past 30 years.

Investors interested in learning more about colored diamonds as an investment should take a look at Pastor-Geneve as a good starting point. Pastor-Geneve has built a solid reputation by advising investors on dealings in the diamond market for the past four decades and has offices located in Antwerp and Geneva.

Pastor-Genève B.V.B.A.
Brusselstraat 51, B-2018 Antwerpen, Belgium
Tel: + (0) 32 3 244 1871 Fax: + (0) 32 3 244 1873
info@pastor-geneve.com