The Beauty of Colored Diamonds

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Over the past few years, fancy color diamonds have forged a path into the consciousness of the public, making up for the centuries whereby they have been the preserve solely of nobility, the very wealthy, and those in the know.

Approximately 10,000 rarer than colorless diamonds, natural fancy color diamonds started to garner wider attention when celebrities such as J-Lo, Beyonce, Kate Hudson, and Kim Kardashian started receiving them as engagement rings and were draped in them at red carpet events. In fact, colored diamond engagement rings have become all the rage and with the 20th of March, also known as Proposal Day, soon upon us, no doubt there will be many more colored diamonds gracing the hands of elated females.

Colors of the Rainbow

Jewellery Colored Diamonds
Fancy color diamonds come in the following colors – yellow, pink, blue, red, violet, purple, gray, white, black, green, chameleon, orange, and champagne. When you consider that these basic colors come in an excess of 90 secondary hues and 9 intensity levels ten you can begin to imagine the range of colors available in colored diamonds. Consequently, the process of finding a stone is much more complex than with a colorless diamond as there are so many more parameters to consider.

Not all Diamonds are Created Equal
Diamonds

Even among colored diamonds, not all diamonds are created equal. The two most popular colors for diamonds are fancy yellow diamonds and fancy pink diamonds. There is strong demand for yellow diamonds, also known as canaries but it is the pink diamonds that have buyers around the world in a frenzy. A top of the line pink diamond can sell for in excess of USD1.5 million per carat.

Red diamonds together with purple and violet are among the rarest of colors and attract prices that reflect this. Blue and green diamonds are also considered to be very rare. Larger examples of orange and chameleon, a color that actually changes color when exposed to heat or light, are also considered rare. Less rare but no less beautiful are black, white, champagne, and gray diamonds.

Diamonds as an Investment
Diamond and Jewellery

It is this rarity in colored diamonds and increased public knowledge that has made them a standout investment over a number of decades.

The best fancy color diamonds are auctioned by famous auction houses such as Sotheby’s and Christie’s in jewelry auctions held in the major financial centers of the world such as New York, Hong Kong, and Zurich. Of course, the stones auctioned are only the finest examples and prices can run into the tens of millions of dollars for a prize piece putting them out of the range of most buyers.

Auction prices for the finest stones have displayed an almost unceasing upward trajectory, reflecting high double-digit gains over a protracted period of time.

Even during the Great Financial Crisis of 2007/2008, the price of color diamonds barely paused for breath. As a hard asset that can never be replicated, color diamonds are also easily transported and not subject to reporting requirements for tax purposes. This has made them the darling of wealthy individuals looking to protect their wealth from the debasement of fiat currencies.

However, a rising tide certainly does lift all boats and although it is the pinks, blues, and other rare colors that have rocketed in price, this priceFfanc appreciation has flowed through to the relatively less scarce colors which have also appreciated strongly in price.

The Perfect Acquisition
Jewellery acquisition

So how about it? As well as being rare and beautiful, color diamonds can also be a great investment. How often can you say that about a precious gem, piece of jewelry, or even a colorless diamond?

There is a color diamond out there to suit virtually every budget, the only choice is which stone to select.

John

 

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