Press Releases

Diamonds: The Investor’s Best Friend?

Investment diamonds are an outperforming and versatile alternative asset class that can be used as part of a diversification strategy, actively traded, purchased as a “safe-haven” asset or an “investment of passion”.

Investment Diamonds are emerging as a robust alternative investment asset class and garnering increased interest from the professional investment community. They are considerably more advanced than other actively traded tangible alternative investment assets in terms of price transparency, market liquidity, commoditisation and market infrastructure.

On a risk-adjusted basis, investment diamonds have consistently outperformed against other comparable assets. Price increases of investment diamonds have been considerable over the last five years and this upward trend is set to continue into the medium term as demand outstrips supply. The natural growth rate of investment diamond prices into the medium-term is projected at 12%-16% per annum.

Investment Case For Diamonds

Investment diamonds have become an increasingly popular addition to professionally managed investment portfolios as they are not highly correlated to other traditional asset classes and have relatively non-volatile price movements. With continued uncertainty across global financial markets, the tangibility and safe-haven characteristics of investment diamonds have made this alternative asset class even more appealing.

Spurred by strong demand from emerging diamond consuming markets such as China, India, Turkey and the Gulf, global demand growth for diamonds is set to continue against the backdrop of flat supply of diamonds coming into the market due to the lack of new diamond mine discoveries. This in turn will support the continued upward trend in diamond prices into the medium-term.

Investment DIamond Price Movement

Historically investors have not been able to gain an effective exposure to investment diamonds. Fusion Alternatives has filled this gap by offering its clients a suite of investment products and services providing direct access to global diamond dealer markets with increased control and heightened transparency over their investment diamond portfolio.

Who We Are

Fusion Alternatives Investment Management (FAIM) is an independent boutique investment management firm specialising in investment diamonds. The management team comprises leading industry executives at the forefront of innovative developments within the emerging investment diamond market. FAIM fuses its collective experience of over 40 years from both the global financial services and diamond trading industries providing its clients with independent market intelligence and personalised client services.