Diamonds occur in nature in a variety of colors, although only one in every 10,000 diamonds is a diamond with true natural color. In the trade these diamonds are known as “fancy color diamonds”. They are among the most expensive diamonds in the world.
Through different natural means the diamonds acquire their various colors and hues. Traces of elements in the diamonds themselves can create the color phenomena. Essentially it means there is a natural deformation in the structure of the crystal the causes it to capture a certain wavelength of light that enters the diamond.
Yellow diamonds, which are the most common fancy color diamonds, contain trace elements of nitrogen. The color of green diamonds, among the rarest fancy color diamonds found in nature, occurs as a result of radiation being present during the time of the diamond’s creation underground. Natural blue diamonds, which are even rarer contain traces of the element boron. However all of these examples do not compare to the rarity of natural red diamonds, which are estimated to be found only once in every 500,000 natural diamonds. Color diamonds appear in every variety of hue in the spectrum, and each possesses its own unique color variation as well as overtones.
Color intensity scale is used in the grading of fancy color diamonds. The scale of intensity and the terms used begin with Faint and continues in gradation to:
Very Light
Light
Fancy Light
Fancy
Fancy Intense
Fancy Vivid
Fancy Dark
Fancy Deep
Intensity and richness in hue are the most important things to look for in evaluating a color diamond’s value. The more intense and rich the color, the more worth the diamond has. Though fancy dark and fancy deep graded diamonds have stronger saturation, fancy vivid is considered as the best intensity a color diamond can have, as it usually means the color is perfectly pure.
The cutting of natural color diamonds mostly pays special attention to emphasize and complement the color. The cut also attempts to set each diamond’s sparkle and brilliance to optimum advantage. As with diamond cutting in general, it's the art of prioritizing and finding a balance between different values whether it's size, shape, clarity and of course color.
In recent years, fancy color diamonds have set historical sales records at the world's biggest auction houses, Sotheby's and Christies. Among the amazing stones sold were the "Pink Star" 60 carat fancy vivid pink diamond, sold for a reportedly incredible $83m, The "Zoe" 9.75 carat vivid blue diamond for $32m and even a vivid orange diamond (less popular than pink and blue), 14.82 carat sold for $35m.
Obviously the investors who made these grand purchases knew what they were doing. When you look at the history of these specific stones you will learn that all of them have doubled their value in a relatively short time period.
A fancy colored diamond cannot be commodified at set list prices, and as with other fine articles of value, its price will depend on its shape, size, and overall quality, as well as its rarity and market considerations at the time of its sale.
Many investors seek the best way to increase their income through commodities, buying and selling currencies etc. Most of them agree that investing in colored diamonds is still the most rock solid way to invest money for the future in these challenging economic times.
Colored Diamonds are an everlasting asset. That means they can be used for long term estate planning, as an alternative asset or as a collectors' item to be passed throughout the generationsof a family. The rare combination of an item of such value, with its rarity and beauty, which can be collected and even worn, makes diamonds a smart investment.
Although diamonds are not as liquid as a traditional investment (e.g. stocks) it is important today to also focus on the preservation of capital rather than on increasing financial gains. Fancy natural color diamonds offer an unwavering source of value for those who choose them as an investment.
So how do you choose the right diamond to invest in?
This is where we, Reddiam Ltd, come into the picture as both consultants and suppliers for such assets. Our expertise and experience are highly valuable when it comes to deciding on such a matter. Don't hesitate and contact one of our consultants to guide you through the process.
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