Despite 2019 Decline, Fancy Color Diamonds a Strong Investment

Market Analysis
10/02/2020 14:02

According to data published by the Fancy Color Research Foundation (FCRF), over the past decade (2010-2019) the general Fancy Color Diamond Index showed a steady market price increase of 77%. Leading the index during the decade were Pink diamonds, which increased by 116%. The prices of Blue diamonds rose by 81% and of Yellow diamonds by 21%. Prices in 2019, however, saw a 1.4% decline in the general index, mainly influenced by a 5.4% decrease the price of Yellow diamonds, while Pink and Blue prices remained stable; the general decline in the price of colorless diamonds has also had an impact.

Zooming into to price changes in 2019 for specific categories of colored diamonds: 

  • In the Pink category - Fancy Vivid Pink increased by 4.4%, while Fancy Vivid Pink 3-carat increased by 9.1%.
  • In the Blue category - 1-carat, 1.5-carat and 2-carat increased by 2.5%, 3.7% and 2.7% respectively. Fancy Vivid Blue 1.5-carat increased 7.2%.
  • In the Yellow category - Fancy Vivid Yellow 10ct decreased by 6.1% and Fancy Intense Yellow 3ct decreased by 5.3%.

Over the past decade, the lucky few capable of owning these rare stones achieved significant return on investment: the price of a 5-carat Fancy Pink diamond increased by 99% while a 1-carat Fancy Vivid Blue increased by 135%. Fancy Vivid Yellow 5ct and 3ct increased by 30%.

FCRF Advisory Board member, Jim Pounds said: “The declines we witnessed in 2019 in the fancy color index are a ripple effect caused by the double-digit decrease in the colorless category in the last few years. From the mining perspective we are currently experiencing a shortage in high quality fancy color rough and we therefore feel quite optimistic about the future.” In Q4 2019, the price index for all categories of fancy color dimonds fell 1.4% year-over-year. The price index for Yellow Fancy Color Diamonds fell 5.4%; the price for all Pink Fancy Color Diamonds increased 0.1%; and the average price for all Blue Fancy Color Diamonds rose 0.2%.