Fancy colour diamonds not affected by diamond price falls

Fancy colour diamonds are continuing to show consistent price levels, despite a backdrop of commodity value declines in Q4 2014. 

This is according to the first Fancy Color Diamond Index developed by the Fancy Color Research Foundation (The FCRF), which was launched in November last year.

The index revealed that fancy colour diamonds across the categories of pinks, yellows and blues have increased in value of 167% on average since January 2005.

Despite the price fall of white diamonds, the index found that fancy colour diamond prices remained virtually unchanged in the period between October 1 and December 31, 2014.

Ishaia Gol, member of the board of advisors for The FCRF, said: “unsurprisingly, the fourth quarter data collected by the FCRF team reaffirms our knowledge and understanding from the last decade that fancy colour diamonds are a separate niche, almost non-correlated to white diamonds.

“Fancy colour diamonds are rare and highly desirable. In periods of financial instability we have witnessed time and again that collectors, retailers and investors are able to maintain their assets’ value even as other asset classes are depreciating in price.

“This is caused by the inherent lack of global inventory, which is only projected to worsen in coming years. Our data contributors are reporting decline in number of transactions, mainly as a result of political developments in China.”