Blue Diamonds Make A Good Investment
By John Pearlman
The allure and mystery of natural fancy colored blue diamonds can not be underestimated. These diamonds must be classified as among the rarest of the rare when we speak of the natural fancy colors.
Every blue diamond is a one-of-a kind creation. Certain shades of Blue are amongst the 
rarest and most expensive of fancy color diamonds. There are not too many diamond mines that produce these stones throughout the world. The Cullinan Mine in South Africa is renowned as one of the primary sources for blue diamonds, while Rio Tinto’s Argyle Mine in Australia is known to produce many of the smaller Violetish, Grayish hues of these amazing fancy colored diamonds. As is the case with all mines, production is depleting and at this point in time there are not too many replacement mines on the horizon.
Given the existing strong demand for blue diamonds and the limited supply, the investment potential is apparent. The demand side of this equation continues to strengthen as the investment potential of rare fancy color diamonds in China, India, and America is beginning to be understood. Similarly, the supply side is becoming even more constrained as mines deplete and no new mines are being developed to take their place.
Fancy intense blue diamonds exceeding 5 carats appreciated by 368% over the 12 year period from 1998 for an annualized return exceeding 30.5%. This time frame spans both the “Tech Wreck” of 2000/2001 and the GFC of 2008. Fancy intense blue diamonds of between 2-3 carats appreciated 1000% over the same period for an 83% annualized return.
Source:- In 1998, a 5.32ct, Fancy Intense Blue sold for USD $285,000/carat
- In 2007, a 5.04ct, Fancy Intense Blue sold for USD $570,000/carat
- In 2011, a 6.60ct, Fancy Intense Blue sold for USD $830,000/carat
- In 2011, a 7.64ct, Fancy Intense Blue sold for USD $1,050,000/carat
When it comes to selecting a diamond color for investment purposes, blue ticks all the right boxes. It is a color which has been in demand for over half a millennia and that demand continues to build as is reflected in the price of blue diamonds. On the other hand, supply is dwindling at a rapid rate.
In an uncertain world drowning in sovereign debt, investing in fancy blue diamonds may be one of the last bastions of sanity.
Here at Pearlman's Jewelers, in conjunction with Leibish, we offer a spectacular array of the very rare natural fancy blue diamonds. All natural blues come with grading from The Gemological Institute of America so obtaining these rare diamonds come to you with a feel of confidence.
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