Unfortunately for buyers outside of the jewellery industry investing in white diamonds is generally a secure but modest growth long term investment product that can be difficult to predict. White diamonds have a steady growth rate of 3-6% a year which over the long term will have good compound growth but in the short to mid term there are larger factors that can affect the chances for profit. As a private investment buyer the GST and profit made by the seller will be lost on the initial purchase, which will need to be earned back with time as well as that all diamonds are priced in US dollars so any fluctuations in currency valuations can also affect the short term growth of a white diamond.
To invest in white diamond the diamond must be purchased as close as possible to the wholesale diamond price and very well selected to predict the saleability of the diamond once the invest is ready to be cashed.
The old theory of diamond investment was to purchase the best quality and rarest diamonds namely a D/IF or similar quality as this would give the best investment growth. However to sell a D/IF diamond especially in Australia is very difficult and is not the type of diamond that is currently in demand. With global connectivity there really now is no such thing as a rare white diamond and there is very little demand to need to buy white diamonds from investors unless there is a significant gain for the wholesaler. This means that unless the investor can sell the diamond privately they will again loose real value off the diamond on selling to a wholesaler. With all of the incurred losses to make any profit on white diamonds it is a long term investment that will only make a very modest profit.
Are white diamonds still an investment
White diamonds are an investment in terms of that they will improve in value over time but as a profit earning investment for private investors there are just too many negative implications with white diamonds that can reduce the ability to make a profit and there is a very high risk of loosing money if you need to sell out in the short to medium term. For a industry buyer it is much easier to make a good short term profit with only a very low risk of a short to mid term negative growth. White diamonds as an investment for private buyers is really now not recommended as although reasonably secure over the long term the growth potential is only just above the general cash rate.
If you are a serious investor looking for a high growth alternative investment then you cannot go past an expertly selected fancy coloured diamond for a specialised high growth investment product.