Saul Singer is a partner at Fusion Alternatives, an innovative investment house and the leading alternative investment asset manager specialising in investment diamonds. Click on his photo (left) to see a presentation on the investable diamond market.
There has been much fanfare in the international financial press regarding the emergence of diamonds as an alternative investment asset class. Their perceived ‘safe-haven’ characteristics are what have made investment diamonds a hot topic in the wake of the uncertain macro-economic sentiment sweeping across the globe. However when one delves beyond the grandiose proclamations and superlatives by market players regarding the ease of gaining a true exposure to investment diamond price movements one is confronted with a complex trading market that requires expert and independent investment diamond professionals to navigate through the intricacies of the global diamond market.
There are literally thousands of categories of both rough and polished diamonds with only a tight band of diamond classes with homogeneous gemological characteristics that qualify as being investable. Moreover, one must be aware of the price transparency and liquidity of various classes of diamonds which are critical factors when assessing the investability of diamonds.
Interestingly, the recent wave of interest in investment diamonds by the broader investment community has been spurred by some major players within the global diamond industry who are looking to capitalize on the emergence of the diamond investment market as either an alternative sales channel for their diamond inventory or as a source of external capital investment at a time when certain sectors of the diamond market are softening.
Independence is paramount when assessing the viability of a foray into the investment diamond market. To be sure, investment diamonds definitely do present a very interesting investment proposition with strong market fundamentals and a positive projected outlook for continued strong appreciation into the medium-term. However, independent and deep investment diamond market intelligence and expertise is a critical success factor for any prudent exposure to investment diamonds especially in softening market conditions.
Just as it takes an objective and discerning ‘eye’ that has mustered years of specialized training and experience to properly value a diamond, so too does it take an independent investment diamond expert to adequately assess potential risks and subsequent returns of an entry into the investment diamond market.
Investing in Physical Diamonds (Viddler/Objective Capital Conference)