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Red diamonds emerge as new asset class

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Demand for red diamonds among institutional, ultra-wealthy investors and intermediaries is surging as their value continues to increase, according to Swiss rare mineral investment advisory firm DeVanx Assets.

Red diamonds are one of the rarest minerals in the world and the highest quality of these diamonds have more than tripled in value in the past decade.
 
One of the most anticipated red diamond events, Rio Tinto’s annual Argyle tender, is currently creating a global bidding war featuring the Argyle Cardinal, a rare red 1.2-carat diamond, three additional reds, and 51 Argyle pink and purplish-red diamonds. Experts say the highest quality investment worthy red diamonds can command up to USD2.5 million a carat. Only 13 fancy red diamonds have been included in the annual tender during the past 30 years. This year’s tender ends on 8 October 2014.
 
According to Paula Vance, chief executive of DeVanx Assets, her company has standardised the red diamond industry by tracking data including sales and pricing over the past 50+ years from the entire supply chain, mining to investors.
 
“The careful review and selection of an investment grade red diamond is critical to enjoy the highest ROI for these stones,” she says. “While certainly beautiful and precious, not all red diamonds are of investment quality. The best in red diamonds have become a new asset class offering stable value appreciation and low volatility, and are an excellent inflation hedge and substitute for gold and other precious metals.”
 
Only 126 investment grade fancy red diamonds are known to exist in the world today.
 
DeVanx Assets offers exclusive access to 82 per cent of the world’s limited supply of open market investment grade red diamonds.
 
“Our client base is shifting,” says Vance. “While the majority is institutional, such as independent wealth managers, private banks, intermediaries and family offices, more ultra high net worth investors are seeking to directly invest in red diamonds. These investors hail from all over the world: Europe, Russia, China, Japan, Korea, US, Canada, and South America.”

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