2016 was the year of some record-breaking sales for the fancy colored diamond industry. ‘Unique Pink’, an extremely rare, 15.38 carat pear-shaped pink diamond was sold for USD 31.6 million. For the past 30 years there is a steady increase in the value of fancy colored diamonds. The price of colored diamonds currently sits at a record high and has increased 180% in the last eight years alone.
However, the largest producer of colored diamonds, particularly pink diamonds, Argyle mine is Australia is on the verge of shutting down. The mine located in Kimberly, Australia is the source of 90-95% of global supply of pink diamonds. Due to decreasing production the mine is scheduled to shut down in 2018. Realizing this, many people are now acquiring pink diamonds before they run out.
Apart from the rare pink diamonds, various hues of diamonds are attracting customers, whose interests are being shifted from traditional whites. Variations in the hues of pink with a brownish shade give a sense of uniqueness and individuality. Yellow is one of the most common and sought after color in the fancy colored diamonds category.
These colored diamonds are extremely rare and are formed because of certain impurities and inclusions. One in every ten thousand diamonds mined is a colored diamond. This rarity influences collectors to invest in them.
Another reason driving demand of fancy colored diamonds is ‘celeb culture’. Increasing exposure to celebrities and rich and famous adorning colored diamonds has influenced consumer preferences to colored diamonds.
Traditionally white diamonds have been long preferred but consumer preferences are now inclining towards colored diamonds. With rising value, colored diamonds, also labelled as ‘wearable investments’, are attracting lot of investors, a trend noted by Paragon International Wealth Management Inc.