It is no secret that the colourless diamond industry took a huge hit in 2015. However, interestingly this is not reflected in the world of fancy colour diamonds. In fact, their market trends and industry behavior couldn’t be more different. This discrepancy is unique to the diamond sector and there is no other commodity class where two products that are so closely related behave so very differently.
So why are coloured diamonds popular? Apart from headline-grabbing prices at auctions, “very, very little supply in the fancy coloured diamond market….people want rarefied things” is the bigger reason, says Graeme Thompson, Director of Jewelry, Asia, at Bonham’s.
There are simply fewer colour diamonds in the world – only a fraction of a percent of all diamonds, says Tracey Greenstein, director of research at the Fancy Colour Research Foundation (FCRF).
The rarest sparklers of all are pink. About one in 10,000 carats of diamonds are fancy coloured diamonds of gem quality, and of these, only 0.1% are pink. And nearly all the supply of pink diamonds in the world comes from the Argyle Mine in Western Australia, which owner Rio Tinto is expected to close within a few years which will have a huge impact on pink diamond prices.
Known as ‘the most concentrated form of wealth on earth’ the Argyle Pink diamonds continued their double-digit price growth trajectory in 2015, achieving the highest average price per carat since the Tender began in 1984.