Fancy Color Diamonds See Growth While Colorless Diamonds Tumble

In the world of luxury and investment, fancy colored diamonds have carved out a niche of their own, demonstrating resilience in the face of economic fluctuations. The Fancy Color Research Foundation (FCRF) reported a steady growth of 2.2% in the value of FCD’s throughout 2023. This increase, although more modest compared to the 3.9% surge in 2022, starkly contrasts the 16.5% decline experienced by colorless diamonds.

The year saw fluctuations in growth, particularly in the fourth quarter, where the Fancy Color Diamond Index, which monitors prices across major markets including Hong Kong, New York, Geneva, and Tel Aviv, recorded a mere 0.1% increase. This period saw yellow diamonds maintain their value, while pinks inched up by 0.1%, and blues slightly declined by 0.2%.

Consumer behavior has shifted towards purchasing smaller carat diamonds, a trend attributed to reduced spending. However, Ephraim Zion, a key data supplier for the FCRF, notes an offsetting trend towards diamonds with higher saturation levels, such as intense and vivid colors. This shift suggests a nuanced consumer appreciation for quality over size, with expectations of a rebound in demand for larger carats as the global economy recovers.

Yellow diamonds, particularly those of vivid intensity, were the standout performers of 2023, driving much of the year's growth. These diamonds saw a price increase of 4%, with the vivid category leading at 5.3%. Pink diamonds also enjoyed a rise in value, albeit at a more modest rate of 1.8%, while blue diamonds remained almost flat, with a slight increase of 0.1%.