Fancy Color Diamond Index Inches Up in Q3, Scarcity Driving Prices

Polished
08/11/2017 12:17

The scarcity of blue and pink fancy color diamonds on the market is driving prices higher, writes the Fancy Color Reasearch Foundation (FCRF). The Fancy Color Diamond Index for the third quarter of 2017 increased slightly compared to Q2, with a 0.2% total rise for yellow, pink and blue fancy color diamonds in all sizes and saturations. The best performers with regard to prices in Q3 were fancy blue and pink color diamonds, which appreciated 0.4% and 0.3% respectively. Similar to Q1 2017 trends, the strongest performing price categories during Q3 2017 were fancy intense and fancy vivid blue diamonds across all carat sizes. The price of fancy blue diamonds has increased 4.7% since compared to Q3 2016, and 8.1% over Q3 2015.

FCRF Advisory Board chairman Eden Rachminov attributed the rise mainly to a reduction in supply: “As far as supply is concerned, 2017 and the year before were record low years for blue fancy color diamond production from mines. The majority of the blues that are coming into the market are pre-owned stones. Manufacturers have seen a significant drop in availability across all sizes and qualities, and consequently prices have continued to increase. Going forward the market will have to adjust to a lower "new normal" supply level for blue fancy color and pinks in the high saturations levels.” 

In Q3 2017, fancy yellow diamond prices declined by 0.1%, the lowest price decrease for the category since Q3 2016. There was price stability across most other fancy color diamond categories, continuing the trend in fancy color diamond pricing patterns during 2016 and early 2017. On a year-on-year basis, when compared to Q3 2016, the Fancy Color Diamond Index is slightly down by 0.2%, with fancy blue up 4.7% and fancy yellow and fancy pink down 2.5% and 0.6%, respectively. Compared to the same period in 2015, the Fancy Color Diamond Index is up 0.7% with fancy blue and fancy pink up 8.1% and 1.2% respectively, and fancy yellow down 4.1%.