SHOP
From crown jewels to rumored pirate treasure, diamonds created fortunes,
fueled imaginations, forged alliances, and changed history. The wealthy
have long understood the value and power of diamonds (and coloured
diamonds in particular) and have likely benefited from the misnomer that
diamonds are for the elite only. We’re happy to work with clients of
different backgrounds to actualize their dreams by unveiling to them the
accessibility of the diamond market.
Today’s coloured diamond market is relatively niche, but is becoming
increasingly recognized for its investment and wealth potential. It’s
estimated that
coloured diamonds make up only one to two percent of the entire
natural diamond market. Their rarity and beauty are big reasons why these gemstones command
higher prices and have long been sought after and collected by royals,
celebrities, and the wealthiest among us.
Timeless treasures
Not only are diamonds the hardest material found on earth, it’s
estimated that the coloured diamonds in circulation today were formed
between one and three billion years ago. There’s likely no other way you
could ever own something so near eternal.
With careful planning, know-how, and the help of trusted gemstone
dealers, everyday Canadians can also access this market and experience
the privilege of owning natural coloured diamonds – and even build
generational wealth through those acquisitions. Similar to bullion, a
coloured diamond is an asset that exists outside the stock and
financial market systems, and as such, can add diversity and hedging
within your portfolio or wealth plan.
Factors that influence the value of a coloured diamond
Each natural coloured diamond is one-of-a-kind, and its value is
determined on an individual basis. That said, there are several
factors that weigh into the price of a coloured diamond.
-
Colour rarity. Coloured diamonds are far
rarer than white diamonds, and among coloured diamonds, certain
colours are incredibly scarce. Red, purple, blue, pink, green,
orange, and yellow diamonds are especially coveted because of their
rarity. -
Colour intensity. The hue, saturation,
and tone all factor into the intensity of the diamond’s colour – and
the more intense and visually striking a diamond is, the higher the
price. -
Carat (weight). The size of a diamond is
gauged by weight, which is measured in carats. Larger diamonds are
generally valued higher than smaller ones of comparative colour. -
Cut. A well-cut diamond is one that is
considered to have good symmetry and proportion, all of which show
off its sparkle and brilliance. Preferences for different shapes
(such as oval, round, square, pear, etc.) tend to be based on the
buyer’s personal taste, especially if they intend to wear the
diamond in a jewelry setting. -
Clarity. Diamonds with few inclusions and
blemishes, frequently referred to as “flawless”, will typically
fetch a higher price. -
Certification. The authenticity and
characteristics of your diamond should be confirmed in writing by an
expert – not just so you know what you’re getting, but so that an
eventual sale of a diamond can be easier. Diamonds sold through
Guildhall include certification recognized by the leading industry
authority, the Gemological Institute of America (GIA). -
Historical connections. Diamonds and
jewelry that come with a story of their origin and ownership,
especially those connected to historical importance, tend to
captivate buyers. -
Demand. The popularity and demand for
certain coloured diamonds changes over time and can be influenced by
a number of factors. For example, gemologists and dealers saw a
notable uptick in demand for pink diamonds after Jennifer Lopez
received one as an engagement ring.
Wealth you can wear: Loose diamonds vs. diamonds in a jewelry setting
Guildhall provides our clients with the opportunity to purchase cut
loose diamonds, diamonds already in jewelry settings, and jewelry
services where we can design bespoke pieces that incorporate your
loose diamonds. The decision to purchase or place a coloured diamond
in a jewelry setting is a personal one. Some factors worth considering
include:
-
Beauty and fashion: The aesthetic
attraction of diamonds is nearly universal. For decades, red carpets
have featured stunning examples of beautifully crafted earrings,
necklaces, rings, and bracelets featuring rare coloured diamonds.
These brilliant pieces often draw just as much attention as the
celebrity wearing them. -
Luxury on display: Some clients love the
extravagance and status that is symbolized by wearing ones’ diamonds
in public or at a special event. It’s a privilege that few people
get to experience, and a part of a client’s enjoyment of this unique
investment. -
Added value: Skilled jewelers are able to
elevate a diamond into a work of art thanks to the special details,
additional gems, and precious metals used to create a piece of
jewelry. Not only does this add interest, it can raise the total
value of piece. -
Sentimentality: Once placed in a jewelry
setting, some of our clients consider the piece to be a family
heirloom, which gives it an extra personal meaning. -
Transparency: Some buyers prefer loose
diamonds because you can get a complete 360-degree view of the
diamond, and can confirm its characteristics and quality. -
Taxation: Jewelry and loose diamonds are
considered different kinds of assets, and, as such, have different
tax implications related to their sale or gifting. For more
information about this, we recommend speaking with an accountant. -
Insurance needs: Because jewelry and
loose diamonds are categorized differently in terms of asset type –
and if a jewelry piece is sometimes worn in public – your insurance
implications and coverage needs may be different. For more
information about this, we recommend speaking with an insurance
provider.
Purchasing and Selling Section
Purchasing and selling coloured diamonds
Similar to bullion, coloured diamonds are the kind of purchase that’s best
capitalized with a long-term view. While prices are steadily rising, the
gains are most likely to be seen when one takes a patient approach.
Between taxes and broker commissions, it rarely makes financial sense to
“flip” a diamond purchase quickly. Undoubtedly, this is not how wealthy
diamond collectors made their fortunes.
The entrance into the coloured diamond market is typically higher than
most financial products, but with careful planning, our clients have been
able to access this exciting opportunity. Guildhall’s team can walk you
through each step of
finding and purchasing a coloured diamond that’s right for you.
We strongly advise anyone interested in buying or selling a coloured
diamond to go through expert channels, such as working with a diamond
dealer who has received training from the Gemological Institute of
America (GIA) and holds a membership in the Fancy Color Research
Foundation (FCRF), as this can greatly reduce the risk of fraud,
forgery, or unfair sales prices.
Once someone has made this thrilling investment, it’s common for clients
to want to hold onto their coloured diamond, as this one-of-a-kind
treasure gains both sentimental and financial value. In fact, many decide
they want to keep the coloured diamond in the family and arrange to
include it as part of their children’s or loved ones’ inheritance. In some
cases, a coloured diamond purchase lays the foundation for generational
wealth.
However, should the need or opportunity to sell a coloured diamond arise –
sometimes to trade up to a larger coloured diamond purchase
– Guildhall’s team can be of service to broker that sale.
An investment that stands the test of time: Historical performance of
coloured diamonds
Since record-keeping began more than forty years ago, auction values have
rapidly increased alongside growing scarcity. Natural coloured diamonds
are a lasting global phenomenon with demonstrated market performance in a
changing world.
[Insert chart of coloured diamond values vs. Dow Jones vs. white diamonds]
Diamonds are a long-term investment to be cherished and passed down
through generations. Guildhall recognizes the value – both financial and
sentimental – of your coloured diamonds, and we can advise on the best
ways to store and care for your assets.
All Guildhall diamonds are accompanied by a full GIA grading report and an
independent appraisal for insurance purposes, which details fair market
replacement values should your diamond ever be stolen or lost.