With the growing interest in pink diamonds investment and their increasing value, it's good to get some useful tips before diving into the deep end and hoping you've invested wisely.
In the last 15 years, there has been a clamour for investment in grade pink diamonds from investors worldwide to have a piece of these rare stones.
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Here we take a look at what it could mean to invest into this asset class.
Pink Diamonds would undoubtedly bring diversification to any portfolio, especially with Australian investors with an SMSF.
There are three obvious reasons to take a serious look at putting your money into them:
Since 2005 all investors who purchased pink diamonds saw a healthy appreciation in the value of their investment, which has seen consistent returns in the market. Across varying categories, there has been a return of between 12 to 20% per year.
The global markets have seen an unprecedented run in recent years with many global indexes breaking their previous boundaries but still pink diamonds since 2005 have topped most asset classes.
While international equities and other more traditional asset classes have appreciated sharply in the past few years, the returns from pink diamonds since 2005 exceed most listed assets.
Pink Diamonds protect from market volatility.
Pink diamonds do not perform like holding shares that are subject to volatility and unstable investment banks. In the 13 years, they have been trading there has been almost no downturn even around the time of the global financial crisis.
Modest safe, secure gains are what constitutes a place in anyone's portfolio.
However, the word modest could be understating where pink diamonds are heading. Rio Tinto has indicated that the Argyle mine in Western Australia that provides around 95% of the entire world supply of pink diamonds will be closed by 2021, substantially changing the balance of supply to the market.
With the looming closure of the mine will constitute a very bullish approach to pink diamond investments in the shot and long term. Buy them and hold them that's the best advice out there right now.