Investment In Historic Diamonds Requires Specialized Knowledge And Sustained Diligence
The very basic truth about investing in historic diamonds is that, you should have significant knowledge about diamonds. A thorough research into recent and distant (past), diamond auctions would help reduce risk levels in your diamond investment.
We name a few highly desirable historic diamonds here with the observation that, most of them are very unlikely to be come up for public auctions or sales any time in the near future!
The Koh-i-Noor Diamond, The Seraphim Blue Diamond, The Hope Diamond, The Sancy Diamond, The Idol Eyes Diamond are some historic diamonds.
When it comes to investing in a historic diamond, the value goes far beyond just the physical attributes of the gem.
Authenticity of the Diamond
A basic requirement, but not the sole factor. A certification for the diamond by reputable gemological laboratories such as GIA, SSEF, or Gübelin confirms cut, clarity, carat, and color.
Certified Narrative (Provenance Certification)
A historic diamond must be accompanied by an officially certified narrative or report that verifies its origin, historical relevance, and chain of ownership. Leading labs now include provenance studies in their reports if requested.
The Sancy Diamond for example, belonged to many European royals before it made its way to the Louvre Museum, Paris.
The Seraphim Blue Diamond which is believed to have been, worn in a turban ornament by the first Nizam of Hyderabad in India (1724) – has not been seen in public, for a few centuries. Recent rumors of it being in the possession of a European collector could be true but, seasoned diamond collectors and reputed auction houses, will wait for the related certifications from reputed diamond testing laboratories.
Origin of the Diamond
Investment in historic diamonds from the Golconda mines in India, are considered to have good potential for growth. Golconda diamonds, known for their pure Type IIa chemical structure and absence of nitrogen, are particularly prized.
According to reliable sources, fine quality diamonds coming from the Golconda mines in India, become extremely rare after the year 1725. So when we talk about investing in Golconda diamonds, these would be historic diamonds that already, command astronomically high prices.
Reputed diamond testing houses like Gubelin, have the technical expertise required to certify the origin of a diamond. So when paying a premium price for a historic diamond, claimed to have come from the Golconda mines – it is important to check the certification that comes with the diamond.
Naming a few famous and highly sought after diamonds that, are believed to have originated in the Golconda diamond mines – The Koh-i-Noor Diamond, The Idol’s Eye Diamond, The Seraphim Blue Diamond, The Hope Diamond, The Regent Diamond and the Great Mogul Diamond. While the list is not exhaustive, there are not many more! Many diamonds have not been heard of for centuries.
While all the above historic diamonds, would make good investments, authenticity of the diamonds, their provenance and their origin would be of high importance. Even the slightest doubt on any of the authenticity related factors, should draw a prospective investor away.
Provenance and Royal Connection
A well-documented provenance—ownership history through noble families or royal courts—can boost the diamond’s value exponentially.
For example, the Darya-i-Noor Diamond, the largest known pink diamond was once part of Iranian Crown Jewels. The Regent Diamond was once owned by Louis XV and worn by Napoleon. The Seraphim Blue Diamond mined in the Golconda mines, is believed to have been worn by the first Nizam (Asaf Jah 1) of Hyderabad in India. Links to royalty in the provenance of a historic diamond, are considered to be positive factors when investing in diamonds.
NOTES
Every investment even the finest Golconda diamonds, no matter how promising, comes with its own set of risks. Some, like stocks or real estate, may take years before they show significant returns.
Investing in specialized assets like historic diamonds, requires professional knowledge in the asset type. Staying informed through research and staying connected with the industry or asset you’re investing in definitely helps in managing and even minimizing those risks.
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