Since 1959 commodities have been less risky than stocks. they have produced better annual returns than stocks and out performed bonds even more.

For the last 50 years commodity prices have generally been less volatile than stocks and bonds. According to Antwerp World Diamond Centre, during that period investment grade coloured diamonds have risen in price by approximately 15% per year.

"Diamonds are precious stones that hold their values through recessions."

Why Invest in coloured diamonds

Ordinarily as the demand for a product increases the price rises which attracts new suppliers who bring more such products to market which in turn causes the price to return to a lower level. This very basic law of supply and demand does not apply to coloured diamonds because each and every one of them is truly unique. Fashioned by nature over many millions of years each coloured diamond, no matter its size or hue, has its own shade of colour and its own unique quality.

With no new significant diamond mine discoveries in the last two decades, prices have continued to increase at approximately 15-25% year on year; larger, rarer stones have seen considerably stronger performances and in some cases have doubled or more estimates at auctions.

The global demand for diamonds is set to continue to rise as emerging markets, predominantly China and India, continue to purchase rare fancy coloured diamonds in order to protect and increase their wealth.

There are numerous reasons why investment graded coloured diamonds have not fallen in value for the past 30 years. The main reasons are supply and demand fundamentals.