These stones continue to rise in price and popularity as they prove their investment potential, a recent report shows.
Against the backdrop of the legendary Marie-Thérèse Pink diamond bringing in nearly $14 million at Christie’s New York, and the media attention on the wedding of Amazon founder Jeff Bezos and Lauren Sanchez — whose engagement ring boasts a cushion-cut pink diamond weighing an estimated 20 to 30 carats — the Natural Diamond Council (NDC) released a report on fancy-color diamonds in early July.
The report documents the surging interest in these extraordinary stones. With market supply tightening and demand diversifying, the diamond industry could be entering a new era in the fancy-color category.
Such diamonds are commonly in the headlines, nearly always with an eye-watering price. They have become star performers on the global auction circuit, as their rarity and investment potential make them highly coveted among collectors, particularly in Asia and the Middle East.
The market at a glance
The estimated wholesale value of fancy-color diamonds entering the market in 2024 exceeded $4.5 billion, according to the NDC report, which also cites data from the Fancy Color Research Foundation (FCRF) showing that prices for these diamonds have grown at a compound annual rate of 5.7% over the past 20 years.
“While global trade anxieties have created caution across luxury sectors, the fancy-color diamond market remained impressively composed,” says FCRF CEO Roy Safit. “The data shows a contained, strategic repositioning. It speaks to the market’s growing maturity and the defensive appeal of vivid-color diamonds.”
Fancy-color stones come from only a handful of mines around the world. The 2020 closure of Rio Tinto’s Argyle mine — which was formerly responsible for over 90% of the world’s pink and red diamonds — introduced scarcity into the market, as no other consistent source of pink diamonds has since emerged to fill the gap. This pressure has dealers scrambling to secure the remaining inventory — in some cases, at any cost.
Some mines are still producing colored diamonds, albeit at minimal volumes. South Africa’s Cullinan Mine remains a premier producer of exceptional blue diamonds, while Botswana’s Orapa and Jwaneng mines yield both blues and yellows, among them the renowned Okavango Blue. Canada’s Diavik and Ekati mines have emerged as sources of significant yellow diamonds, with Sierra Leone’s Zimmi region also producing intensely vivid yellows. Additional goods from Brazil, Russia, and South Africa’s Venetia mine contribute to the global mix.
Maximizing visual appeal
Fancy-color specimens constitute well under 1% of global diamond output, and only a small portion of those maintain their colors post-cutting. Cutting colored diamonds is a highly specialized process. While traditional cutting prioritizes brilliance and carat retention, the goal in this case is to maximize the color intensity.
This has led cutters to experiment cautiously with new techniques, such as using split bezels and pointy corners to direct light in a way that makes the color appear more vibrant. They’ve also found that radiant cuts hold color better than other stone cuts. Companies like Choron Group — which specializes in handling colors like pink, purple, blue and yellow, and which contributed to the NDC report — have refined these processes, combining technology with craftsmanship to ensure that each diamond reveals its fullest potential.
A spectrum of value
While the 4Cs still apply, the Gemological Institute of America (GIA) introduced an additional set of elements in 1995 for fancy-color diamonds: hue, tone and saturation. Besides these three standards — which include 27 hues and nine saturation grades — collectors, dealers and retailers also place importance on visual appeal when evaluating a fancy-color diamond. Color richness, color dispersion, undertone, and the stone’s appearance relative to carat weight contribute to the overall valuation, according to the FCRF.
For jewelers and dealers, the path forward will require greater expertise in grading, provenance and cutting as buyers become more discerning and emotionally connected to the stories behind each gem they purchase.
In the words of Eden Rachminov, author of The Fancy Color Diamond Book: “In a modern affluent society where almost anything can be purchased, owning a rare fancy-color diamond serves as a statement of individualism, highlighting the power of an unattainable luxury.”
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