"Diamonds have emerged as a safe haven investment alongside favourites such as gold" - Financial Times

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Coloured Diamonds Are Attracting Attention

Coloured diamonds have started attracting the attention of investors around the world recently, as the economic turmoil seen in many markets is creating a strong demand for safe havens. As well as their renowned aesthetic appeal, coloured diamonds also represent strong long-term value; returns for the gems beat those of equities for much of the past 15 years. The Financial Times reports that from 1999 to 2011, three-carat diamonds increased by 145 per cent, while five carat diamonds rose by 171 per cent, as measured by the Rapaport Diamond Trade Index.

"If we continue diamond mine at this rate - we are within 20 years without" - De Beers

According to NuWire Investor, the appreciation this commodity has seen over the past decade is unprecedented. Generally the stones that fetch the highest and most surprising sums are those of highly rare colours, sizes, and shapes. Vashi Dominguez, chief executive of diamond trading company Diamond Manufacturers, says: Certain types of diamonds, including coloured diamond varieties, have held their value over the past few years better than other more volatile equity investments, And larger stones can certainly reap rewards for investors; the price of a typical fivecarat stone has grown by more than 150 per cent over the past ten years.

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"By 2016, global demand for diamonds will outstrip supply by 7 million carats" - Bloomberg

The colour and intensity of a diamond is as important as its size or weight. A Fancy Vivid Blue diamond less than half a carat in size could run into millions of dollars. A Fancy Intense Pink round diamond over five carats could bring in millions of dollars as well. On the other hand, a yellow diamond would have to be extremely large and unusual to bring in figures anywhere near these sums. Regardless of a coloured diamonds colour, shape, size, or quality, the bottom line is that due to the rarity of these stones in addition to the high demand, prices are soaring on a yearly basis. This makes coloured diamonds ideal investment opportunities. Though there are some coloured diamonds that are better to invest in than others, all coloured diamonds are wise as far as investments go.

"Yellow, pink and blue diamonds are catching the eye of investors around the world, according to dealers and industry insiders" - Reuters

Coloured Diamonds as Investments

Regardless of the purpose of your purchase, and especially in the event that the diamond is used for an investment, be sure to first speak with a professional. The diamonds that have demonstrated the most impressive numbers and are sought after by investors are pink diamonds, top quality yellow diamonds above 2.00-carats in size, and blue diamonds. When selecting a coloured diamond it is difficult to say without first assessing the stone, but in general go for the highest intensity your budget will allow, while still maintaining a decent clarity, size, and carat weight. If you cannot get a pure coloured, go with a coloured combination that showcases the colours well. There are so many options, but it is up to you to decide on the right colour, based on your taste, and on your wallet.

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"When times are bad, diamonds can hold their value better than realestate and have the advantage of being portable" - Forbes

How to Value Coloured Diamonds

Unlike gold, which can be valued purely on weight, diamonds need to be valued individually based on factors such as shape, colour and clarity. The common perception is that diamonds are sold using the carat value. This may be partially true on jewellery diamonds, but for collection diamonds the 4Cs are what make up the value. These are:

Cut, Colour, Clarity and Carat.

The cut of the diamond is the most important of the four Cs, as the skill of the diamond cutter is what gives a diamond its brilliance. A badly cut big diamond wont sparkle in the same way as a well-cut smaller one. Diamonds have a colour grading system to show how much yellow (caused by nitrogen in the stone) is in them. The grades D, E and F are colourless and therefore the most sought after. Avoid any colour lower than grade H as it starts to become too yellow. Clarity is also important, with the best grading being flawless. Investors who decide to buy and hold diamonds also need to factor in the cost of security and storage.

The prices of diamonds are expected to enjoy a compound annual growth rate of 16% until 2014 - leading diamond supplier Graff.

Content sources:

http://www.ft.com http://www.nuwireinvestor.com

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About London Commodity Markets

With over a century of combined experience in the alternative investments market, the team at London Commodity Markets have a proven track history of delivering excellent consultation as well as an unrivalled service to clients. As a result of this unrivalled standard of service, quality advice and ethical approach to the marketplace, London Commodity Markets have become the globes fastest growing alternative investments company. London Commodity Markets can provide information for people interested in investing in 100% natural fancy blue diamonds at excellent prices and certified by GIA. All diamonds supplied from London Commodity Markets come with a GIA certificate. This is issued from the Gemological Institute of America, the world's foremost authority in diamond grading. This certificate shows your diamond is the exact quality your were sold. London Commodity Markets can help you diversify your investment portfolio securely with access to GIA certified fancy coloured diamonds.

http://londoncommoditymarkets.com/ HEAD OFFICE Citibank Tower, 25 Canada Square, Canary Wharf, London E14 5LQ Tel: 00 44 (0) 203 514 6000 / Fax: 00 44 (0) 203 514 6001 Email: info@londoncommoditymarkets.com Disclaimer:
This document is issued by London Commodity Markets for the sole purpose of assisting the recipient in deciding whether to proceed with further analysis of this potential project and opportunity. The information in this document is general and informational only and is not intended to constitute professional or investment advice, or to be construed as an offer or solicitation for the subscription or purchase or sale of any securities, or as an invitation, inducement or intermediation for the sale, subscription or purchase of securities. This document does not take into account the recipients particular investment objectives or financial situation. Before making any investment decision, the recipient should conduct its own investigation and analysis of the project, as well as any data, pricing and projections described herein. London Commodity Markets does not give any warranty or representation as to the reliability or accuracy of the information contained herein, nor does it guarantee that the stated pricing and projections will be available to the recipient. London Commodity Markets are neither registered nor regulated by the FSA, and are not authorised to carry out regulated activities. All markets relating to Rare Earth Elements, Oxides and Metals are not regulated by the FSA, and as such anyone investing in these markets would not have access to the Financial Ombudsman Service (FOS) or Financial Services Compensation Scheme (FSCS). The information contained herein is for information purposes only, and is not intended for trading purposes or deemed to be investment advice or constitute a service. London Commodity Markets, directors or any of its staff, agents, creators and administrators of londoncommoditymarkets.com website shall not be liable for any errors or delays in the content of these pages, or for any actions taken in reliance thereon. As with any Investment there is a risk of losing money. Rare Earth Products are alternative investments and such should be regarded as high risk. LONDON COMMODITY MARKETS IS NOT REGULATED BY THE FSA OR SEC.

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