Reasons that Fancy Color diamond price increased in the past decade.
Diamonds are one of the most precious and valuable gemstones in the world. They come in different colors, and color diamonds are exceptionally rare, making them more valuable than regular diamonds. Fancy color diamonds are one of the most highly sought-after luxury items in the world. The price of these rare gems has been increasing over the past decade, and there are several reasons why this trend has emerged. In this article, we will be discussing some of the main factors that have led to the price increase of fancy color diamonds in the past decade.
What is color diamond?
White diamonds are graded on a scale that ranges from D (colorless) to Z (light yellow or brown). However, there are some diamonds that fall outside the scale and are considered as fancy color diamonds. These include pink, blue, yellow, green, red, and orange diamonds. Fancy color diamonds are extremely rare and valuable, and their price is determined by several factors, including color intensity, hue, and saturation. Over the last decade, the price of fancy color diamonds has risen significantly. According to the Fancy Color Research Foundation, the price of pink diamonds has increased by approximately 116% between 2010 and 2020. Blue diamonds, on the other hand, saw a price increase of around 81% over the same period, while yellow diamonds rose by 21%.
Supply and Demand
First and foremost, supply and demand is the most important factor. Fancy color diamonds are extremely rare, and they are not found in large quantities like other types of diamonds. In fact, only one in every 10,000 diamonds mined is a fancy color diamond. As a result, the scarcity of these diamonds has led to a surge in demand, and this increased demand has caused the prices to skyrocket. While regular diamonds can be found in many places around the world, fancy color diamonds are only found in a handful of mines, and the supply is limited. Furthermore, the mining and extraction of these diamonds is a complex and expensive process, which increases their overall cost.
Another factor that has contributed to the increase in price is demand. As the world economy has grown over the last decade, so has the number of wealthy individuals who can afford to invest in fancy color diamonds. These individuals are often drawn to the unique and rare qualities of these diamonds and are willing to pay a premium for them. Luxury brands have begun to feature more and more fancy color diamonds in their collections, and this has created a buzz around these unique gems. This increased exposure has led to a growing demand for fancy color diamonds among high-end consumers.
Furthermore, the rise of new markets has also contributed to the increase in fancy color diamond prices. The economies of countries such as India, China, and Russia have been growing rapidly in recent years, leading to an increase in the number of wealthy individuals in these countries. These consumers are now able to afford luxury items such as fancy color diamonds, thereby further increasing the demand for these gems.
Ming – New technology has improved diamond mining efficiency
The technology used to mine diamonds has also changed significantly over the past decade. New technology has enabled miners to extract fancy color diamonds with greater precision and efficiency, allowing them to find more diamonds than ever before.
However, this increased efficiency has also led to a decrease in the number of high-quality, larger diamonds available in the market. This scarcity of large, high-quality diamonds has further driven up prices.
Colour diamonds as investment
Another factor that has contributed to the rise in fancy color diamond prices in recent years is the fact that these diamonds are often seen as a valuable investment. As the global economy has become more unstable, many investors have turned to alternative assets such as diamonds as a way to diversify their portfolios. Fancy color diamonds, in particular, are seen as a safe investment due to their rarity and growing demand. There has also been an increase in the number of collectors who are interested in owning these diamonds. Many museums and private collectors have begun to acquire fancy color diamonds as part of their collections, further driving up demand and prices.
In addition to this, the rise of online commerce has also contributed to the increase in the price of fancy color diamonds. Online platforms have made it easier for buyers and sellers to connect, regardless of their location. This has increased competition for these diamonds, leading to higher prices.
In conclusion, the price of fancy color diamonds has undergone significant changes in the last decade. The rarity of these diamonds, coupled with their unique and rare qualities, has driven up demand and prices.
JennyBayDiamond – your color diamond investment specialist
Diamonds are known for their everlasting beauty, and they are highly sought after as a precious gemstone. Diamond investments have been increasing in popularity over the years, with many people now choosing to invest in these stunning minerals. When investing in diamonds, choosing the right color diamond is crucial to ensuring a high return on investment.
At JennyBay Diamond, we understand the importance of selecting the right color diamond for our customers. Our team of diamond experts has a wealth of knowledge and experience in the diamond industry, and they know exactly what to look for when selecting the perfect diamond for investment or wearing purposes. When searching for the perfect diamond, the color is the most critical factor to consider. JennyBay Diamond experts understand how to identify the subtle differences between each color grade and can provide you with the knowledge and understanding you need to make an informed decision.
Our experts know how to examine a diamond’s colour and potential to ensure that you get the highest quality diamond possible and best in value. At JennyBay Diamond we’ll help you identify any imperfections that may affect the diamond’s value and provide you with advice on how to care for your diamond to ensure its longevity and beauty. We understand that investing in a color diamond or purchasing such an expensive item is a significant decision, and we want to make sure that you feel confident and happy with your purchase.