FCRF: Fancy colored diamond prices up slightly in 2016

The Fancy Color Diamond Index rose by 0.4 percent for 2016, driven by price increases for blue and pink diamonds of 5.5 percent and 1.4 percent, respectively, and offset by a 4.0 percent decline in prices of yellow diamonds. The wholesale pricing data collected by the Fancy Color Research Foundation (FCRF), on average prices for fancy color diamonds remained unchanged in the Q4 2016. The overall trends were similar to the ones identified in the first three quarters. For more than 18 months, transactional data pointed to two clear pricing trends: consistent demand-driven price increases for blue fancy color diamonds, partially offset by continued price declines in lower-cost, commercial yellow fancy color diamonds.

In the fourth quarter of 2016 prices of blue diamonds increased 1.5 percent, while pink diamond prices remained largely unchanged. Prices of yellow diamonds declined by 1.4 percent, more than during the third quarter of the year.

Overall, prices in the fancy color diamond category were slightly down during Q4, while prices of white diamonds decreased significantly during the same period, as a result of the India liquidity crisis. According to RAPI™, 0.50 and 1.00 carat white diamonds declined by 4.8 percent and 3.0 percent, respectively, between October and December 2016.

The strongest price performers during Q4 2016 were the fancy vivid blue in the 10ct, 1ct and 2ct categories, appreciating by 5.6 percent, 4.8 percent and 4.3 percent, respectively. Price declines between 1-2 percent were identified across most yellow categories, including “fancy”, intense and vivid. Although rare yellow diamonds (namely unique intense and vivid yellow) did not see price declines.