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FANCY COLORED DIAMONDS

FANCY COLOR diamond

Diamonds from Rio Tinto’s Once in a Blue Moon Collection, part of the final signature tender conducted by the company in 2021.

FANCY COLOR PRICES SHIFT UPWARD DURING FIRST QUARTER,
BUT RUSSIAN AND CHINESE CRISES MAY PORTEND CHANGE

 

Not for the first time, fancy color diamonds have dominated headlines over the past several months, with near record prices being paid at the spring auctions and celebrities getting in on the action.

There was little surprise, therefore, with the latest data supplied by the Fancy Color Research Foundation (FCRF), which on May 9 revealed its Fancy Color Diamond Index (FCDI) for the first quarter of 2022. According to the organization, prices of fancy color diamonds continued 2021’s positive trend, rising by 1.0 percent across the board.

Source: Fancy Color Research Foundation (FCRF)

The Fancy Color Diamond Index tracks pricing data for yellow, pink, and blue fancy color diamonds in four major global trading centers – Hong Kong, New York, Geneva, and Tel Aviv.

In its report, FCDI stated that the general increase was led by Pinks, which rose on average by 1.3 percent, followed by yellows with a 0.7 upward shift. Notably fancy blue colored showed almost no change in price at all. 

Looking at all color categories together, the Fancy category and Fancy Intense category showed an increase of 1.3 percent and 1.2 percent respectively, FCDI noted, outperforming the Fancy Vivid segment which saw a more modest increase of 0.6 percent.

PRICE RISES UP TO 3.5 PERCENT

Looking into the various color categories separately, FCDI reported that pink diamonds’ general price increase of 1.3 percent was mainly driven by the Fancy category, which increased by 1.7 percent among 1-carat and 2-carat merchandise, with 2-carat Fancy Intense prices rising by a substantial 3.5 percent, 2-carat Fancy Vivid prices increasing 3.2 percent and 1-carat Fancy Intense prices climbing 2.9 percent.

Larger weight categories also exhibited significant price increases with pinks, with Fancy Vivid 10-carat and Fancy Intense 3-carat stones leading this color category, both rising 2.2 percent.

The only two pink categories whose prices decreased during the first quarter were the Fancy Vivid 3-carat and the Fancy 8-carat, both of which dipped in price by 0.3 percent.

The Yellow category rose by 0.7 percent, FCDI explained, mostly due to appreciation in the Fancy Intense grade, which rose by 1.1 percent. Across the board, yellow diamonds weighing more than 5 carats rose more than diamonds below this weight.

Fancy Intense 8 carat yellows stood out from the rest of the color category with an increase of 2.5 percent. The weakest performance was noted in Fancy Vivid 1.5 carat yellows, which declined in price by 0.5 percent.

Fancy blues showed overall stability, FCDI reported, rising by a nominal 0.1 percent in all weight categories. Fancy Intense blue diamonds rose by 0.5 percent in price, outperforming Fancy Vivid and Fancy grade saturations.

The only two blue categories that fluctuated more than one percent were Fancy Intense 2 carats, which climbed by 1.3 percent, and Fancy 3-carat stones, which fell in price by 1.3 percent.

 

KEEPING AN EYE ON RUSSIA AND CHINA

The FCDI report seemed to belie the skittishness that currently is being witnessed in the market, largely because of the absence of a steady supply of rough diamonds from Russia, as a mainly indirect result of the sanctions regime imposed because of the war in Ukraine.

But, said FCRF Advisory Board member Eden Rachminov, the fragile geopolitical situation cannot be discounted, and it may still impact on the fancy color market, as it seems to be doing on the market in general.

“The results of the index reflect pre-boycott prices on Russian diamonds,” he stated. “Since this boycott, the supply of yellow diamonds has dropped dramatically.”

Source: Fancy Color Research Foundation (FCRF)

Russian sanctions are not the only outside influence that may impact the fancy colored diamond business. The ongoing COVID lockdowns in China are  also a factor, although in this instance Rachminov was more upbeat.

“The price increases also took place while China has been under a harsh lockdown,” he stated. “Once [the country’s government’s] COVID policy will dissolve and Chinese diamond lovers will return to the market, we will witness a burst in demand for luxury goods and fancy color diamonds in particular, followed by an additional significant price increase. “

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