According to The Wealth Report, there has been a staggering 167% increase since 2005 in the value of fancy coloured diamonds, including pink, yellow and especially blue diamonds. Recent auction results are certainly reflective of this. Bonhams’ Fine Jewellery Auction of 2013 set the record at the time for the auction of a rare fancy blue diamond weighing 5.30 carats set in a “Trombino” ring by Bvlgari (see below left). It sold for £6.2 million, making it a record price of £1.8m per carat. This was surpassed a year later by Sotheby’s auctioning the Mellon Blue diamond (see below right). This 9.75 carat fancy vivid blue diamond sold for a staggering $32,645,000, working out at $3,348,205 per carat.
The steady rise in the popularity of fancy coloured diamonds is further explained by the Wealth Report: “Diamonds are arguably the most transportable form of wealth in existence”. White diamonds are widely available, and even those of exceptional colour and clarity, despite being expensive, can be secured through auction or a reputable diamond trader. However, a natural fancy coloured diamond is difficult to come by. The appeal of coloured diamonds lies in their rarity, which is why the above diamonds performed exceptionally well at auction.
The success of blue diamonds at auction, which has seen an increase of 360% since October 2014, is followed closely by the pink diamond, which have seen an increase of 161%, and finally yellow diamonds with a 56% increase. The popularity of blue diamonds can be explained by their rare chemical composition comprising of Boron, which gives blue diamonds their colour.
Reflecting the statistics for pink diamonds, this beautiful fancy colour pinkish brown diamond was sold at the most recent Fine jewellery auction at Bonhams. Achieving £117,700, it more than exceeded its original value of £15-25,000.
The accompanying GIA certificate states that it was a type IIA diamond. These diamonds have little to no nitrogen in their atomic structure. This lack of nitrogen will make white diamonds exceptionally colourless and give fancy colour diamonds their pink, purple or blue tones. They are extremely rare and make up only 1-2% of all diamonds that are mined. This explains the demand on these types of diamonds.
Grading fancy coloured diamonds is no easy task, and requires the expertise of world leading specialists based in Gemological Laboratories such as the GIA and Anchor Cert. Colour is the dominant factor in the value of a fancy colour diamond. The intensity of the hue is a factor which is very important when establishing the colour. The grading scale, rather than being based on the absence of colour, is based on the intensity of the hue and ranges from fancy light, to fancy vivid and then to fancy deep. In regards to the clarity, as long as the diamond has a good face-up colour, then even those stones that are included can be appreciated. This is why when considering investing in a fancy colour diamond, research is crucial. Ensure that the diamond is certificated by a recognised laboratory. It would be devastating if the diamond you purchased was tinted rather than naturally fancy coloured. Considering the rarity and the increase in demand for these stones and the impressive auction prices achieved, a fancy coloured diamond seems like a very worthwhile investment.
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