The popularity and price of fancy colored diamonds have been on the rise globally, driven by Asian investors. From 2006 to 2014, fancy colored diamonds (pink, yellow, and blue diamonds) experienced an average total appreciation of 154.7%, according to the Fancy Color Research Foundation (FCRF), a non-profit colored diamond index that was established last year. In the same time period, the colorless, white diamond increased by 62.4%, according to the Diamond Prices Index.
China and Hong Kong now represent approximately 40% of sales of the fancy colored diamond market, according to FCRF. “Most increases in fancy colored diamond prices, particularly for pink diamonds, is driven by Asian customers,” says Tracey Greenstein, director of research at FCRF.
The high demand and extreme rarity of the colored diamond are what keep pushing up its price: It’s formed when a non-carbon element—such as nitrogen and hydrogen— is accidentally trapped during the crystallization process of the diamond. The foreign element is what renders the diamond colorful.
Outside of Asia, colored diamonds are often considered assets with highly attractive investment potential whereas colorless diamonds are more suitable for gifting. But in Asia, they are seen as both.
Edward Alvarado, director of colored diamond dealer, Diamintel notes that he often sees Chinese couples coming to his office looking for a colored diamond ring “for her” but walk out with “her ring and his ring.”
“A lot of men liked colored diamonds in China,” says Alvarado. “With white diamonds they might think it looks girly or flashy but with colored diamonds, they can choose some of the more masculine colors.”
As a Venezuelan company that supplies clients globally, Diamintel now sees 80% of their revenue coming from Greater China. Three years ago, Europe and the United States took up 50% of their total revenue.
Major auction houses have been bringing some of the most valuable natural color diamonds to market through the Hong Kong sales, whereas Geneva and New York were the two main focal points before, according to the Natural Color Diamond Association (NCDIA).
Sotheby’s Hong Kong sold an 8.41-carat purple-pink diamond for a record $17.77 million U.S. dollars in last year’s Magnificent Jewels and Jadeite Autumn Sale. Just two months ago, a 13.88-carat yellow diamond ring and a pair of 6.30 and 6.15-carat diamond earrings sold for $466,667 and $312,821 U.S. dollar, respectively, in Hong Kong.
And the colored diamond phenomenon is not exclusive to Asia’s super rich. Many of the private buyers at the Hong Kong wholesale jewelry trade shows are part of the growing middle class nowadays.
“We live in a time of a democratisation of the diamond market,” says Diamintel’s Alvarado. “The market is getting a lot more educated and global- and it’s not just the traditional elites that are collecting but the savvy Asian investors as well.”
My husband and I chose NCD to assist us in finding the perfect engagement ring that would compliment my style. We mostly dealt with Stephen who was very knowledgeable and really took the time to listen to what I was looking for and offered a really great selection of options to choose from. Thank you Stephen and NCD; I couldn't be any happier with my brand new canary yellow diamond ring. You wouldn't believe the compliments and interest that people give it. I just love it!! Thank you again for everything!
I have bought several coloured diamonds from Northern Cross Diamonds. I have found that Northern Cross gets me the best prices -- even when the diamonds come from another vendor and are listed with the other vendors at a higher price. Stephen Mitanidis has spent hours of his time educating me on coloured diamonds and helping me to choose diamonds that have the best investment potential. He has also allowed me to trade coloured diamonds that I own for coloured diamonds that I want and has assured me that Northern Cross will help me to sell my coloured diamonds if I choose to do so. If you buy a coloured diamond, I recommend that you consider showing it to your family members and friends. Most of them will be impressed with how it looks and might want to seize the opportunity to buy one or more before the value of coloured diamonds appreciates further.
I found Northern Cross Diamonds because I was looking for a colored diamond for an engagement ring to propose with. There are not many companies that have colored diamonds but they have quite a few. After considering for a couple of weeks, I decided to contact them to discuss the diamond I was looking at. The guy I worked with, Stephen, was very kind and helped me with the purchase process. I even had to ask them to ship my stone across the world to China. After I received it I had no doubt about the high quality of their products. I appreciate Stephen and Northern Cross to help me to achieve my perfect proposal plan. I am very happy to have done buisness with them and I will definately recommend Northern Cross Diamonds to anyone looking to get married or who would like to add more stones for their collection. Again, thank you Stephen
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