By Leibish Polnauer, President & Founder By Leibish Polnauer, President & Founder When we got married in London in 1976, the average house in Hendon sold for about £60,000. I was in London recently and houses on the same street are selling for over £1.5 million. UK Real Estate Price
C Level Contact List Increase United Kingdom Real Estate Price Increase Over the Years U.S. property prices are still under water, but in 30-year terms they did fairly well. Many people come to us with the aim of investing in fancy color diamonds and some of them made really fine returns on their investment. But fancy color diamonds are not for investors who are used to getting in and out of stocks, but rather for long-term investors who look to buy something akin to a piece of land with an investment horizon of 10 years or more. According to the Rapaport Group, a market research firm that maintains its own index for diamond prices, the U.S. imported nearly $23 billion of polished diamonds in 2013, up more than 16% from 2012. According to their index, the average price of diamonds increased almost 14% to $1,855 per carat last year. But that is only the beginning. Diamonds are a greatly undervalued commodity. Rapaport One Carat Price Appreciation Although, as undervalued as they are, it seems that some are picking up on the trend.
For example, look at the increase in prices per carat for a 0.50 carat fancy intense pink diamond over 10 years, and this is not including multi-million dollar prices paid for famous pink stones sold at auction. Pink Diamond Price Appreciation Intense Pink Diamond Price Appreciation of 0.50 carat Diamonds Over the Years When you bought a midsize car in America 30 years ago for $5000, you got a fine car. At that time, good quality melle diamond of 1/10 carat sold for about $500 dollars per carat. So, you sold 10 melles to buy a midsize car. However, in order to buy a similar car today in America, a Chevrolet Impala retails for $26,000, you need to sell approximately 35 carats of melles. Consequently, car prices outperformed the prices of small melle diamonds. When you consider investing part of your money in fancy color diamonds you need to stick to the following rules: Only part with money which you will not need for at least five years. If a year or two down the road you suddenly need your money and need to liquidate your color diamond portfolio, you may lose money.