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Possibly the world’s most treasured stones, Diamonds are clearly becoming more valuable by the second, as demand for them increases worldwide and production declines. For the first time in 25 years, diamond production is declining, making these coveted stones stronger investments compare to this year’s leading commodities, copper, nickel and Zinc. The holiday season may be over, however, the time couldn’t be better to begin investing in diamonds this new year.
It isn’t a surprise that the ultra savvy, tremendously wealthy people from countries worldwide have dedicated a portion of their fortunes to invest in diamonds, especially within the last few years as many stock and real estate markets suffer from the economic downturn.
According to Francois Graff, managing director of London-based Graff Diamonds International, five years ago, dealers were paying $70,000 per carat for colorless diamonds of 10 carats and more. Now they are paying over $200,000 per carat.
Falling production, triggered by decline in the biggest producers, including Rio Tinto Group’s Argyle mine in Australia, the world’s largest, will leave $10 billion of demand unfulfilled. Also contributing, some untapped diamond deposits are too dangerous to develop and of the 170 diamond companies in existence, only 25 are actually producing. The drop in production also comes as demand and purchases of the stones rise, especially from the booming economies of China and India. In fact, jewelry purchases in China alone have doubled since 2001 and the Chinese are predicted to buy 20 percent more this year, according to Diamond Forecast Ltd., a London-based research firm.
There are only about 200 highest-grade, D-flawless colorless diamonds of more than 5 carats discovered per year, according to Raymond Sancroft-Baker, Christie’s International’s European director of Jewelry. Colored diamonds are becoming even rarer and thus un-believably valuable. Once viewed as curiosities, colored diamonds are being taken more seriously, as demand for their uniqueness and for something different, increases. In fact, pink and blue diamonds have increased in price between 75 and 100 percent.
Global demand is predicted by many to rise 6 percent a year to $23 billion by 2015, and just last year consumers bought $70 billion of diamonds worldwide, indicating that their value is going nowhere but up. Both of these factors lead to the prediction that the value of rough diamonds, otherwise uncut stones, is likely to increase 30 percent in the next 6 years. With diamonds being not only the hardest substance and coveted stones in the world, it’s no wonder that they’re considered by many, strong and flawless investments.
For over 25 years, CJ Charles has been representing the most extraordinary diamonds. In accordance with CJ Charles’ tradition of excellence, President and CEO, Vahid Moradi personally selects and grades each single diamond for every piece created. Vahid’s passion and desire to deliver exceptional pieces has become the legacy of CJ Charles, recognized and trusted by generations of clients throughout the years. You may preview the C.J. Charles collection in our 2011 catalog by clicking on the highlighted link.
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