The current volatility in the gold market is proving an additional incentive for investors to invest in the Sciens Coloured Diamond Fund, which focuses on the acquisition of rare, intense and vivid coloured diamonds.
Coloured diamonds offers an advantage over gold and an improved hedge as the demand for coloured diamonds far exceeds the supply so prices remain stable in volatile markets. Coloured diamonds are a defensive asset the coloured diamond market has consistently been an asset class that has held its value during recessions and economic downturns.
Certain categories of coloured diamonds have not decreased in price on a wholesale level in 35 years, consistently outperforming other diamond categories, with their value increasing on average between 10 and 15 per cent in a year. Coloured diamonds have continued to defy the ebb and flow of economic cycles offering a real hedge against market and political crises.
Philip Baldwin, Managing Director and Co-Founder of Sciens Diamond Management, says: “If an investor is looking for a real alternative investment opportunity we believe coloured diamonds offer that unique and exclusive investment opportunity. We have always stated it is a better investment than gold and the current volatility in the gold market is proof of that. Coloured diamonds have outperformed gold as a hedge particularly in periods of moderate to low inflation”.