In November 2015, new world auction record for any diamond of any colour was set when the much talked about exquisite Blue Moon Diamond weighing 12.03-carats, boasting of internally flawless clarity and truly outstanding colour, was sold for staggering $48.4 million at Sotheby’s Magnificent Jewels and Noble Jewels auction held in Geneva. Another highlight of the auction was a Superb Fancy Vivid Purple-Pink Diamond Ring which fetched $13.9 million. This shows that colour diamonds are attracting huge price from buyers amidst the negative price trends for colourless diamonds.

Colours

Fancy colour diamonds span the spectrum of the rainbow, and host shades of everything in between. There are twelve main colours with a variety of overtones and shades. Each colour has its own beauty and is because of trace elements such as nitrogen in yellow, boron in blue, as well as, crystal lattice defects causing red and millions of years of natural radiation for green.

Of the ones that are commonly known in order of rarity is yellow diamond followed by brown, colourless then by blue, green, black, pink, orange, purple and red. According to www.gia.edu “Size and shape are two aspects of cut that can influence diamond colour. The larger a diamond is, or the deeper its pavilion, the farther light can travel in it. This can often lead to a richer, more intense colour.”

Argyle pink diamond has always been the centre of attraction. However, a drastic supply shortage is due to occur in 2020 with the closure of the Argyle mine, as per the reports.

Trends

If we look at the recent auctions, blue and pink colours undoubtedly pushed up the sale. But this happened at the auction. What about the overall market? “With their sunny shades gleaming everywhere from Hollywood to runways, yellow colour diamonds have become a rage and one of the most coveted stones. For yellow stones cushion cuts are better preferred as it brings out and enormously enhances the yellow colour of the stone,” says Rishabh Tongya, Creative Director, Diacolor.

Starring at the Auctions

Fancy colour diamonds are currently having a good run at the auctions, which gives rise to a question - “Why this sudden interest in colour diamonds?” Harsh Maheshwari, Director, Kunming Trading Company answered for us “Personally at auction markets, I see pinks and blues more often than I see orange diamonds. Orange diamonds are incredibly rare. This year, there is a surge of interest in yellow diamonds. They are quite popular as they are very wearable, and their price point is quite reasonable in comparison to other colour diamonds.”

“Colour diamonds are much rarer; it hence makes sense to invest in something that is not as commonly available in the market. Investors are also looking at diversifying their portfolios and add tangible assets owing to the volatile nature of equity markets,”says Rishabh Tongya.