Investors Turn to Rare Diamonds Amid Market Uncertainty

Apr 8, 2026

76 min

Apr 8, 2026 11:31

Global investors turn to rare diamonds as Middle East tensions fuel market uncertainty

## Rising Interest in Tangible Assets

As geopolitical tensions and financial instability rise, investors are increasingly turning to tangible assets to safeguard their wealth. Rare diamonds have gained popularity due to their physical presence and intrinsic value, offering a stable investment option independent of traditional financial systems.

## The Appeal of Rare Diamonds

Rare diamonds, particularly natural fancy color diamonds, are highly sought after due to their scarcity and global demand. These stones are formed over millions of years, with only a limited number reaching the market, making them a unique investment category. Their rarity and portability make them attractive during uncertain times.

## Dubai: A Growing Diamond Hub

Dubai has emerged as a significant center for diamond trading, facilitating international transactions and providing access to premium stones. Companies like Novel Asset Management are instrumental in sourcing and structuring investment opportunities in this sector.

## Historical Performance and Liquidity

Over the past two decades, rare diamonds have shown consistent annual appreciation of around 8%, proving their value stability and growth potential. They are regularly sold through prestigious auction houses like Christie’s and Sotheby’s, where investors often see significant returns after holding periods of 3-5 years.

## Expert Insights

Eliad Cohen, Co-founder and CIO of Novel Asset Management, highlights the importance of professional guidance in the diamond investment process. From strategy development to acquisition and eventual sale, expert support is crucial for maximizing returns. As global uncertainty persists, rare diamonds are increasingly viewed as both luxury items and reliable wealth preservation tools.

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