Gold or Fancy Color Diamonds
The US stock market is on life-support, and has been for quite some time. It will depend on the actions of the Fed and other Central Banks throughout the world to save our financial system from crumbling. While Bernanke's recent statements and testimony before Congress was somewhat disappointing to those hoping fervently for a hint that QE3 was just around the corner, the hope is still alive.
The world we live in is full of some amazing natural resources such as Argyle Diamonds that prove to be a safe haven for investors. Just because the US economy has seen better times doesn’t mean a promising future is hopeless.
The Rapaport historical price graphs below show statistical data over a period of the last 10 years that prove the strength of Fancy Color Diamonds compared to other major assets in the market, such as Gold, Platinum, the DJIA, and Colorless Diamonds as well.
Many of Leibish & Co.’s respected private clients have questioned whether Gold or Fancy Color Diamonds are a good and safe alternative for long term investments. ‘Fancy Yellow diamonds above 2.00 carats with an IF clarity grade’ and ‘Argyle Pink diamonds above 0.50ct in any clarity grade’ are only some of the stones highly recommend to retain and increase in value over the next 10-15 years. However, there are many different opinions on the matter by some of the most well respected financial institutions we have had the pleasure of working with.
A collection of a number of the finest color diamonds that all make sound investments
Chief Investment Officer at Talisman Global Asset Management Limited
Gold - our view is that it works in times of great expectations of lots of inflation or lots of deflation (a bust) but in the "interregnum" is just an asset to trade vs. Fiat money (i.e. USD). We reduced our exposure in the 1600/1700s for what it’s worth.
Owner of Wexford Capital Management
In 11 years time, Gold has appreciated by 473.7% and silver by 515.3%. Regardless of what it has done over the last 5 months; gold and silver hit new 30-year highs in 2011. Consolidations always take longer than expected. Try $5,000 Gold and $160 Silver on for size and see where buying even today after 11 years of a bull market would put an investor!
Chief Compliance Officer of Royal Metals Group
I say both as any good diversified portfolio as we have no idea how things will play out. I prefer colored diamonds to store my wealth and gold and silver to barter with as they are easily recognizable and can make for an easy transfer for small barter transactions.
For those, including myself not trusting of his Govt. I want to encourage my agents and advisors to diversify their clients into natural colored diamonds. Both will do extremely well in a massive inflationary environment. Deflation is only temporary then you will get the massive inflation and then hyperinflation.
I like Fancy Color Diamonds the best out of any asset class due to its Portability and Privacy. Advisors who miss FCD are doing a disservice to their clients.
They say “different strokes for different folks.” Meaning, everyone will go with what they feel fits best. Leibish Polnauer, President and Founder of Leibish & Co. Fancy Color Diamonds, explains why he feels when comparing some very strong alternative investments, why he sides so strongly with color diamonds.
"I look at our 0.53ct Fancy Red GIA VS1 Argyle diamond vs. the other option of Gold. The stone is worth just below $400,000 US. It fits in your shirt pocket and can easily be transported and remain on your possession in the time of need. One can wear it in a ring or pendant and enjoy every moment of their investment while not reducing the value because it is in use. There is no need to report the price increase in your yearly statements and nobody will notice how much value it has. If you spend $400,000 US and buy Gold bars, you or your bank is forced to report each year how much your gold is worth."
One day the cash strapped US government may decide on a Gold Tax, a new Capital Gain Tax, or any other tax- you name it.
Your red diamond is a rare commodity, with an Argyle Number and GIA VS clarity grade. You can buy and sell gold with a click of a finger- but with the right tools you can mine more gold as much as you want. Color diamonds are very different. They are rare and extremely unique! More can and will be found, but stones like this are one in a million.
A question frequently asked by clients that call in, is what is the liquidity of fancy color diamonds? People want to know if the stone they purchase will be resalable and if they will be able to turn it back over to cash when the time comes.
One who has Gold, Bonds, or Stocks in their portfolio can quite easily liquidate them in an instant with the push of a button or a single telephone call to the bank. Liquidity of an investment is important, but it should not be the absolute decision maker.
A gorgeous piece of prime land in New York City or Sydney, Australia is worth a substantial amount of money and translates to excellent investment property. Similarly, those looking to sell an important impressionist painting, like those often auctioned off at Sotheby's in Geneva, can often expect a rather high return on their investment. Only, in order to sell a painting or a Pink Diamond, one needs a professional network at their fingertips. These are the types of long-term investments that are worth adding to a portfolio even though it often takes more than a mouse-click to liquidate.
Furthermore, Leibish & Co. is always interested in assisting one to resell their Leibish branded diamonds or diamond jewelry for our clients. Some goods they will actually purchase themselves for their own stock and some they will consider putting up on their site to resell on behalf of the customer.
Long-term investment assets are not as easy to liquidate as stocks. Still, they are extremely powerful and for good reason! Diamonds are forever, and some colors more than others will remain a very wise investment.
If you are in a hurry, fancy color diamonds are not for you. Rather, keep you money in the money market. However, if you are planning for the next generation or for the future of your family - Fancy Color Diamonds should be part of your portfolio.
Contributor: Benji Margolese