The rise of fancy coloured diamonds

Why the number of fancy coloured diamonds has more than quintupled in value over the past 14 years, and what it means for the jewellery industry overall

One in every 10,000 diamonds produced possesses natural colour. For this reason alone, fancy coloured diamonds have long been cherished for their beauty and rare form, retaining value and making prized and valuable jewels within the diamond industry.

Over the past 14 years, fancy coloured diamonds (typically blue and pink stones) have more than quintupled in value.  On average, fancy vivid blue diamonds have seen an increase in value by more than 500% to $1.5 million per carat from the typical $300,000 per carat. Fancy pink diamonds have also risen dramatically from less than $50,000 per carat to more than $300,000 per carat. Argyle, Rio Tinto’s Australian mine and the producer for more than 90% of the world’s natural pink diamonds, reported its plan to cease production in 2018 due to the lack of mineable material and supply, triggering a rise in prices for pink diamonds and solidifying their status as a solid diamond investment.

Unshaken by the financial crisis, fancy coloured diamonds have consistently retained and increased in value, carving out a lucrative settlement for investors in addition to becoming the latest consumer must-have accessory on the market.


Consistently over the last four years, fancy coloured diamonds at auctions have also seen a rise in demand sending ultra-high net worth individuals and diamond companies into multimillion dollar bidding wars in attempts to diversify their portfolio and jewellery collection.

Early this year, Petra Diamonds sold their 29.6 carat blue diamond for $25.6 million only to discover months later another blue diamond find, weighing an enormous 122.5 carats. Recently Graff Diamonds traded their Vivid Yellow jewel at auction for an impressive $16.3 million.

Other market forces have contributed to its rise in popularity from a growing interest amongst Hollywood A-Listers and royalty for fancy coloured diamond engagement rings. Princess Diana’s 1981 blue sapphire engagement ring worth £28,000 (now worn by Kate Middleton) has seen a huge growth in value over 33 years and is currently estimated at £300,000.

Celebrities Halle Berry, Heidi Klum and Jennifer Lopez have also opted for a rare and exquisite fancy coloured diamond engagement ring, sparking a demand in natural coloured stones amongst high retailers. Blue sapphire prices rose by 20% during last year (2013) and have tripled in the last five years, according to Jack Ogden, the International Ambassador of the Gemmological Association of Great Britain (Gem-A).

With no signs of disruption to the market’s value on fancy coloured diamonds, now is the perfect time to invest in these rare diamond commodities.

By celebrity jeweller and founder of, Vashi Dominguez

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