An anonymous buyer forked over US$17.4 million Tuesday, May 29th, 2012 for a breath-taking fancy intense pink diamond. Advertised as the “largest round fancy intense pink diamond” to come to market, The Martian Pink began to wow crowds and gained momentum as it was exhibited on a world-wide tour. The tour led up to the record-breaking sale at Christie’s Auction House:Hong Kong; US$551,000 per carat. Many pink diamonds can have additional color to them such as purple or orange, however, this diamond is completely void of extra color deeming it pure pink. The only comparable diamond to The Martian Pink is owned by Queen Elizabeth.
“Having appeared on the market for the first time in 36 years, The Martian Pink sold by Harry Winston in 1976… achieved a staggering US$17.4million after a 10-minute bidding war,” said Vickie Sek of Christie’s Asia.
“The bids were very competitive… there was a lot of excitement… when it finally did come up for sale the buzz in the room was sensational,”said Christie’s auctioneer Rahul Kadakia.
In 1976 the US sent a satellite to mars. The jeweler Harry Winston was so enthralled by the achievement that he cut the stone in such a way as to reflect the deepest, most intense color possible. It was his aim to identify the stone with the planet mars; hence the name The Martian Pink.
What is the take away from such a momentous event?
- Diamonds ARE the new gold. Savvy investors know that diamonds will maintain value in the global market. Chiang Chaofeng, a diamond expert working in Christie’s Hong Kong Office, said “the biggest advantage of diamond investment is the stable rate at which the jewels increase in value. The appreciation of diamond investment grows slowly compared with other investment aspects, but the biggest advantage is the stability of the growth”.
- Color in diamonds increase value exponentially (gogreendiamonds.com)
- Hong Kong is emerging as a world-wide contender for the diamond market
- Now is the time to think about adding diamonds to your diversified investment portfolio
Many believe that diamonds are a great investment for others, and can see the potential for others, but still have a natural hesitancy to personally get started. It feels a bit risky. This is actually a good thing. It would be foolish to just dive into something just because of claims found on a few websites. Therefore it is imperative to practice due diligence. Talk to those you know and trust. Do your homework. In the meantime, here are some insights that may help alleviate some fears, concerns, and skepticism regarding diamond investing through your decision-making process; maybe even bust some myths.
Myth # 1 Trading diamonds is complicated
Trading diamonds is one of the easiest types of investment one can engage in. There is little paper work, trades are easy, and liquidation is fast and simple. The commodity is small and portable and easy to ship. It is harder to open a bank account than make a diamond trade!
Myth # 2 I don’t have the skill to make a profit
Determining if a diamond will make a profit is easy. Simply look at what the going rate per carrot is, and buy below that price. History says that it will significantly increase in value. When you are ready to sell, simply present the diamond to market yourself or have your advisor guide you through the process.
Myth # 3 It is easy to get ripped off buying diamonds
One can be taken for a ride without diamond certification. However, the GIA certification process provides quality assurance and authenticity. One can be 100% sure that they are getting what they pay for.
Myth # 4 The middle man is eating into my profit
In some business this may be true. However, in the diamond business, the opposite is true. The “middle man” or wholesale dealer/distributor can negotiate a purchase for you at a much more discounted price than what can be acquired on ones own or at retail outlets.
Myth # 5 Diamond investing is only for high rollers
The average person can get started investing in diamonds. Whether you invest $10,000 or ten million, one can profit through diamonds.
Myth # 6 It is too risky to invest through an internet-based business.
The internet tremendously reduces overhead cost. These savings can be passed to the consumer. When you buy retail, your purchase is paying for store property, air conditioning, sales associates, security, etc. The best deals can be found via internet.