Fancy Colored Diamonds Continue Their Rise

You’ve probably seen TV commercials for them … gorgeous diamonds in pastel shades of pinks, blues, and yellows. It wasn’t long ago that clear white diamonds were the example of perfection in the diamond world, but no more. Fancy colored diamonds continue to rise in popularity into 2015. Here’s some information on how they are valued and appraised, according to Jennifer Heebner, senior editor of jckonline.com.

Authentic fancy colored diamonds are diamonds that have been naturally colored, and are some of the most expensive diamonds in the world. They are found in 12 different colors, with more than 90 secondary hues and nine intensity levels within the 234 color combinations.

Proof of the increasing popularity of fancy colored diamonds: A few years ago, Leibish & Co., a leading source for natural fancy colored diamonds and jewelry, unveiled its World of Colors guide for identifying fancy colored diamonds. Until then, the only other fancy colored diamond grading guide in existence was by the Gemological Institute of America. Many in the industry are happy to see a second guide available.

Authentic, synthetic and treated

Fancy colored diamonds get their color from the trace elements they are exposed to. For example, radiation can create a greenish tint, while large amounts of nitrogen causes a yellowish color.

Authentic fancy colored diamonds are very rare and expensive, but through irradiation and heat treating, gemologists are able to enhance the color of most diamonds. They are also able to create beautiful synthetic diamonds in labs. These methods have made fancy colored diamonds more affordable and accessible to “regular folks,” not just the wealthy.

If you plan on buying an authentic fancy colored diamond, make sure it comes with a certificate of authenticity from a respected grading laboratory. If it doesn’t, then it is safe to assume it is either an irradiated or synthetic diamond.

How fancy colored diamonds are graded

Fancy colored diamonds are graded a bit differently than white diamonds. The four main criteria for determining a fancy colored diamond’s value include hue, color saturation, color purity, and availability. The diamond’s color, including intensity of color, and hues are considered the diamond’s most important qualities.

The rarer a diamond is in color, the more valuable it will be. And if the color is richly saturated, the diamond will also be worth more. And like a white diamond, a colored diamond’s clarity or purity of the color will also increase its value.

Another difference in the way colored diamonds are graded: inclusions can be desirable. Inclusions are actually flaws, but in a colored diamond, they can create unique tones and beautiful flashes of color.

Fancy colored diamonds increasing in value

Not only are fancy colored diamonds more popular than ever, they’re also in demand as a financial investment. According to the Forbes magazine article, “A Guide for Fancy Colored Diamonds,” the value of fancy colored diamonds has grown far greater than most other investments over the last 10 years.

Diamonds.net reported that fancy colored diamonds have increased in value by 167 percent on average since January 2005, outperforming other leading assets in a similar period. By comparison, fancy colored diamonds outperformed other assets in that period, including the Dow Jones industrial average increase of 58 percent, and Standard & Poor’s 500 63 percent increase.

And RareColoredDiamonds.com wrote that 20 years ago, a one carat fancy intense-pink internally flawless diamond would have sold for approximately $70,000. Today, that same diamond would be worth $500,000!