Nov 14, 2014

New Index Indicates Investment Potential of Fancy Coloured Diamonds

A new index that tracks the prices of fancy coloured diamonds, particularly the more predominant yellow, pink and blue coloured diamonds establishes that this asset class has seen a 167% appreciation in value over the last nine years, more than most other assets currently popular with investors.

The Index is published by the Fancy Color Research Foundation, a new non-profit organisation

established by Eden Rachminov, author of "The Fancy Color Diamond Book" and winner of the NCDIA education award and his colleagues.

The new Index tool collates thousands of fancy colour diamond transactions to produce practical pricing and sales data for the industry. It will be updated on a quarterly basis.

The research tracks these categories since 2005 and report that pink diamonds have shown the greatest growth in value, up by 360 percent in the last nine years, with blues showing less dramatic but equally consistent growth of a 161 percent by value.

Remarkably, blues maintained their value while pinks increased even during the worst crisis period of 2008 to 2010.

The FCRF notes that auction houses have sold many record-breaking coloured diamonds in the past five years. In 2013, a 14.82-carat Fancy Vivid Orange pear-shaped diamond sold for $34.54M at $2.4M per carat, the most expensive diamond ever sold at auction by Christie’s for price per carat.

Rachminov notes, “The launch of The Fancy Color Research Foundation is in response to the growth in fancy colour diamonds transactions and the resulting need for greater education, understanding and clarity in the industry.