Fancy Red Diamonds Emerge as New Asset Class

DeVanx Assets, a Swiss rare mineral investment advisory, has reported that demand for red diamonds among institutional, ultra-wealthy investors, and intermediaries is surging as their value continues to increase. Red diamonds are one of the rarest minerals in the world and the highest quality of these diamonds have more than tripled in value in the past decade.

One of the most anticipated red diamond events, Rio Tinto’s annual Argyle tender, is currently creating a global bidding war featuring the Argyle Cardinal, a rare red 1.2–carat diamond, 3 additional reds, and 51 Argyle pink and purplish-red diamonds. Experts say the highest quality investment worthy red diamonds can command up to $2.5 million a carat. Only 13 fancy red diamonds have been included in the annual tender during the past 30 years. This year’s tender ends on October 8, 2014.

Accordingto Paula Vance, CEO of DeVanx Assets, her company has standardized the red diamond industry by tracking data including sales and pricing over the past 50+ years from the entire supply chain, mining to investors.

“The careful review and selection of an investment grade red diamond is critical to enjoy the highest ROI for these stones,” she said. “While certainly beautiful and precious, not all red diamonds are of investment quality. The best in red diamonds have become a new asset class offering stable value appreciation and low volatility, and are an excellent inflation hedge and substitute for gold and other precious metals.” Accordingto DeVanx’s in-house GIA Master Gemologist, Doris Hangartner, only 126 investment grade fancy red diamonds are known to exist in the world today.

DeVanx Assets offers exclusive access to 82% of the world’s limited supply of open market investment grade red diamonds. It provides customized asset packages meeting client specifications and liquidity programs to allow investors to capture capital in six to 12 months versus the typical three to five years.

“Our client base is shifting,” says Vance. “While the majority is institutional, such as independent wealth managers, private banks, intermediaries and family offices, more Ultra High Net Worth Investors are seeking to directly invest in red diamonds. These investors hail from all over the world: Europe, Russia, China, Japan, Korea, U.S., Canada, and South America.”