As a result of their extreme rarity, there is simply not enough product in the entire world to supply the ever growing demand for NCD’s, let alone to over saturate this market. As such, we have seen a continuous price increase both on a supplier and retail level, without a decrease in over four decades, ever since these market prices have been closely tracked.
What’s more astonishing is that even through the many boom and bust economic cycles of the past 40 years, this trend of never depreciating in value has continued to defy all other major asset classes. This is truly a claim that cannot be made by any other investment vehicle available in the world today.
Largely due to mine closures now and in the very near future, we are already witnessing an increase in value of 15-30% annually for “Investment Grade” Natural Coloured Diamonds. The key reasons for this occurrence can generally be attributed to these main facts:
The number one factor to understanding why Natural Fancy Coloured Diamonds are considered the world’s safest investment is that they are NOT officially priced or traded on ANY global market index. It is this one major characteristic that completely divorces them from the volatility that is experienced throughout every single globally traded market such as stocks, bonds, gold, silver, oil, property etc.
NCD’s cannot be printed, over produced or over saturated and because they are “priceless” and not officially indexed on any market, their value also cannot be manipulated. Similar to Art, they are one-of-a-kind, collector’s items and their true value rests solely on their extreme rarity. This is exactly what makes them the world’s one and only true “Safe Haven” Investment.
In 2008 the world was blindsided by an economic catastrophe now known as the “Sub-Prime Mortgage Crisis”. Even to this day, the “experts” do not fully understand how it came even to be. However, what is even more unsettling is that none of these so called investment “professionals” ever saw it coming in the first place.
Fortunately for society, the worst scenarios of disaster such as major civil unrest and a complete economic collapse, never came to be and the severity of the situation was contained in a relatively short period of time. Unfortunately, aside from the government protected “too big to fail” institutions, severe damage was already inflicted on the everyday investors short and long term portfolios.
During this economic disaster, property values plummeted both in the USA and abroad, with some markets losing over 75% of their pre-crisis values. Furthermore, in a chain reaction of events, the fragile state of the globes interdependent market system was exposed when the world’s credit essentially froze which resulted in banks and institutions refusing to lend to both private and business clients on a global scale. In the USA and Canada, retirement funds dropped in value by over 50%.
This chain reaction of equity and commodity selloffs spanning every single market had caused a domino effect of plummeting values that affected most every single asset in the world, except for one. Natural Coloured Diamonds not only retained their value but continued to break records at auction in 2008, proving itself to be completely divorced from all volatility while it seemed that the rest of the financial world was falling apart.
One of the most amazing attributes that is entirely exclusive to a Natural Coloured Diamond is that it is the most concentrated form of wealth that exists in the world today. That is to say that there is nothing available that is smaller and of higher value. One has the ability to literally hold a million dollars on the tip of their finger. As such, a NCD can be easily concealed and transported to another country with complete privacy.
Natural Coloured Diamonds are an internationally recognized, well established monetary device. Their value is not geographic and the methods for grading and evaluation are consistent in every country of the world. As such, an Argyle Pink Diamond is worth the same in Toronto as it is in London, Dubai or Hong Kong and can be sold or traded in any currency.
Furthermore, Natural Coloured Diamonds are a privately held asset, which do not require any reporting of ownership or increased value to any government or bureaucratic agencies. This makes them without a doubt the world’s true 100% Private and Portable investment.
Natural Coloured Diamonds are the ultimate safeguard against the never ending battle against inflation. As a physical Hard Asset, NCD prices are hedged and as such will rise with inflation. Any wealth that you protect by investing into a Natural Coloured diamond will not only appreciate exponentially but also retain it’s original purchasing power.
As you can tell by this straightforward chart below: Since the U.S. Dollar has been removed from the Gold standard (first in 1933 and then completely in 1971) it has subsequently resulted in a loss of 99% of it’s original purchasing value. This drastic decline of value is almost completely attributed to money printing and inflation.
In 1971 the full removal of the gold standard of value from backing the US dollar provided the controllers of the printing press carte blanche to run amok of the financial system. Of course, without having the restriction of the gold standard to regulate the amount of dollars in the money supply, it was in a sense the time that the keys of the insane Asylum were given to the inmates. Needless to say 35 years later the the outcome has been more than predictable.
The United States has since shifted from the world’s number one lending nation to its number one debtor (borrowing) nation in the very short period of only approximately 35 years since the Gold standard had been removed. To put this into perspective, between the years of 1776 - 2007, all 43 Presidents (up to George Bush Jr.) combined increased the US debt to the staggering amount of 6.3 Trillion dollars.
What’s even more disturbing is that in during the Obama administration alone, this debt has risen from 6.3 Trillion to an absolutely mind boggling 12.8 Trillion. This would mean that the Obama presidency alone has added more debt to the USA books in two terms than the previous 195 years and 43 presidents combined!
You may have heard of terms like QE1, QE2, Operation Twist in the media. However, these catchy sounding names are merely just the various mechanisms implemented by the Federal Reserve to print massive and unfathomable amounts of money in order to (officially) combat rising interest rates in an attempt to aid the economic recovery. However, these clever sounding names all have the same base principal: Printing Money.
America must continue this money printing process indefinitely because it can only afford to run on zero or negative % interest rates to stay alive. It is believed that if interest rates even increase by any amount, they will no longer to be able to even afford the interest payments on their own debt.
Needless to say, when the “chicken finally does come home to roost”, inflation has the potential to run rampant like never before seen in our history. As such, there really has never been a more important time to safeguard your family’s hard earned nest egg against these very real and prevalent threats then by investing in Natural Coloured Diamonds.
I have used Northern Cross Diamonds for the last couple years. I have a full time job, rental properties, stocks and mutual funds, yet I am always looking for new investment opportunities. Meeting and dealing with the professionals on staff (especially Stephen) has pointed out creative ways of maximizing the investment potential within coloured diamonds. They are always there to answer questions when I am curious on making a new investment and the experience has been nothing but great!
Working with Northern Cross Diamonds was great! The staff was very knowledgeable and provided me with a great deal of information about the canary yellow radiant cut diamond that I purchased. They wanted to make sure that I understood everything about the stone before I made my decision. The price was very competitive, less than other diamond providers. Once I had made my decision to purchase, the process and delivery time was very quick. Now I have a beautiful and valuable diamond in my possession, thanks to Northern Cross. I hope this helps spread word about your services.
My husband and I chose NCD to assist us in finding the perfect engagement ring that would compliment my style. We mostly dealt with Stephen who was very knowledgeable and really took the time to listen to what I was looking for and offered a really great selection of options to choose from. Thank you Stephen and NCD; I couldn't be any happier with my brand new canary yellow diamond ring. You wouldn't believe the compliments and interest that people give it. I just love it!! Thank you again for everything!
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