After initial uncertainty in the diamond market at the start of the pandemic, prices for colorless diamonds seemed to explode; they rose by almost 40% within a year from March 2021 to February 2022*. It was incredible, but comparable to other high-end products like mechanical watches, sports cars, or other luxury goods from various mega-brands, which were either unavailable or sold at exorbitant prices on the secondary market. The sentiment was “the sky is the limit.” However, as the pandemic-induced market shortages eased, prices returned to or even fell below “normal” levels.

The same happened with colorless diamonds. Additionally, the rise of high-quality lab-grown diamonds is putting further pressure on the market for colorless stones.

In contrast, natural colored diamonds, known as Fancy Diamonds, present a completely different picture. Since the FCRF² began evaluating prices for natural Fancy Diamonds in 2005, there has been an average price increase of 234% across all colors. The reason is simple – they are in enormous demand and naturally extremely limited. For comparison, only one in 10,000 diamonds is a Fancy Diamond.

Although the price increase for Fancy Diamonds also slowed down after the pandemic, “prices will remain stable” according to FCRF² data analyst Marcel Herszaft³. The closure of one of the world’s largest diamond mines, the Argyle Mine, in 2020 due to dwindling yields has also significantly contributed to the natural scarcity.

“As in 2022, Fancy Yellow Diamonds contributed significantly to the price increase throughout 2023. Overall, yellow diamonds saw a 4% increase, with even higher rates in the vivid categories.”¹ This is remarkable, considering we are currently in a phase of slowing price developments. “Fancy vivid yellow diamonds are becoming rarer and so are really holding their value” an expert told SCMP⁴. One of the most famous natural yellow diamonds is the Tiffany Yellow Diamond, a masterpiece of jewelry craftsmanship. “Fancy Yellow Diamonds are a good investment because there are more buyers who can afford them compared to pink or blue diamonds”, said FCRF² CEO Miri Chen⁴. In general, the trend in Asia leans more towards smaller, exclusive, beautiful Fancy Diamonds rather than large stones. This high demand for exclusive, affordable Fancy Diamonds is driving prices up further.

Additionally, more and more high-end labels like Tiffany, Bulgari, Cartier, Dolce & Gabbana, Boucheron, Piaget, Gucci, Dior, and Louis Vuitton are also embracing colored stones. They are even deviating from their traditional private presentations during the biannual Couture Fashion Week to host exclusive and extravagant parties where they unveil their latest jewelry collections for their top clients.⁵ This further underscores the exclusive status and iconic nature of Fancy Diamonds in the luxury world.

Another example of the Fancy Diamond trend is South African opera singer Pretty Yende, who performed an aria at the coronation of Charles III while wearing a Fancy Yellow Diamond necklace from luxury label Graff. Laurence Graff, who began to love yellow diamonds as early as the 1970s, is now famous for his yellow diamond jewelry. Even rare colors like orange are becoming increasingly popular among jewelers and customers, while pink and blue remain precious classics.

For these reasons, the Fancy Diamond market has a completely different dynamic, nobility, and brilliance that far surpasses that of colorless (white) diamonds, and therefore cannot be compared to them. Even though the value increase has slowed compared to the previous decade, we still see a clear buying recommendation due to the “bullish situation” as the market for Fancy Diamonds continues to mature and has not yet reached its peak⁴.

*IDEX (the most important online diamond exchange)
¹ IDEX Online News – 07.02.2024
² FCRF (a nonprofit organization that creates the official Fancy Color Diamond Index)
³ Rapaport (industry standard for diamond prices, publishes the official diamond price index weekly) – 01.08.2024
⁴ South China Morning Post (Hong Kong’s largest English-language daily and a leading media outlet in Hong Kong) – 03.01.2024
⁵ Bloomberg – 11.07.2024