Polo De'Marco Magazine Issue No.23 | Page 42

Store of Wealth 8 Reasons to own a Natural Coloured Diamond by Neil Duttson and Spencer Matthews Natural Coloured Diamonds are valued around the world for their beauty and rich history, interwoven into cultures for thousands of years. Natural coloured diamonds are extremely rare; each diamond is over a billion years old and can be found in hidden corners across the earth. The first diamond-grading system ever used dates back to India around in the sixth century. The scheme was based on the old class structure of the state. Members of different levels of rank, or castes, are permitted to own and wear only coloured diamonds. As a result, diamonds served as a class badge. In many cultures certain colours have certain meanings such as purple as a sign of royalty, nobility, luxury, and ambition. Much like Gold – Throughout the centuries, people have continued to hold diamonds for various reasons. Societies, and now economies, have placed value on especially coloured diamond, thus perpetuating its worth. It is the metal and diamonds we fall back on when other forms of currency don’t work, which means it always has some value as insurance against tough times. Natural Coloured Diamonds are naturally low in supply since in addition to the qualities needed to have a diamond Kimberly pipe, they also need anomalies in or near these pipes to alter the diamonds and create colour. Many coloures in the coloured diamond spectrum are very uncommon and are extremely desirable. Key Takeaways Throughout history, natural coloured diamonds have been seen as a special and valuable commodity likened to rare art. They have been worn by royalty and have represented the wealth and power of nations. Owning a coloured diamond can be a good hedge when other forms of currency are at risk. They are transportable and can act as insurance against tough times. As global demand increases for insurance against economic uncertainties and governments add liquidity with low interest rates and quantitative easing, valued assets with naturally low supply like coloured diamonds have shown to retain or increase in value. No colour is the same; every coloured diamond is different and unique. Limited supply determined by natural forces, global demand increasing via the information age. Certain colours are extremely rare, some appearing only a few times in history. Polo De’Marco July 2020