Data Suppliers: Index Feedback

I think it’s demand for yellow. Yellow diamonds are still relatively cheaper than white stones in the same size category. Medium quality white stones are much more expensive than Fancy Yellows.

I think most people who are buying diamonds already have anything you can think of in whites: 5, 10, 30 ct stones. The next step for them is fancy color. They want the best of the best. Money is no object and there are a lot of people fighting and looking for colored goods that are all in short supply. There may be 1 or 2 stones a year in these color categories; they’re extremely rare. The demand is significantly higher than the supply.

I believe that prices for yellow diamonds have hit the bottom, however, buyers are still very selective when purchasing. The fact that the polished is in strong hands is more important than any shortage of rough.

These stones have been actively pursued by the trade and investors for a number of years now, creating a shortage of polished. This increased interest in an area of the market where there is little supply has caused a dramatic surge in prices when compared to all other categories of diamonds. It should be noted, however, that this is limited to Intense and Vivid pinks and blues that are VS clarity or better. The lower clarities have not performed as strongly.

With the exception of the very strongest and purest grades, yellows are the most common of the the primary colours and the most price sensitive. They can thus be described as the connecting “bridge" between the highly commoditized white goods and the rest of the primary FCDs, and as such will be partially influenced by what is happening with the white market. The relatively recent closure of the Ellendale mine in Australia which had a large concentration of yellow rough in its run of mine is certainly one factor for the recent increase in prices.

I believe macroeconomic factors such as quantitate easing (money printing) and low to non-existent interest rates have a strong bearing on the above situation, and with the world’s wealthy searching for alternative asset classes. A diamond’s transportability and the sheer concentration of wealth in a carat of the strongest colours of blues and pinks allied to the very limited mining production in these categories of colour (especially in larger sizes) means that they have become the ideal vehicle for the discerning super rich. With such limited supply it does not take much demand to send prices on a continuing upward trajectory aided by the the continued publicity from the auction houses.

No, not really. I think it is only due to their rarity.

Well, the price per carat of blue diamonds is higher because of how scarce they've become in recent years.

No, I would say I see about the same amount in the market and at rough tenders.

No, I don't think it's related to the auction. The auction results will be something different.

Because of the marketing of Argyle diamonds. People are much more aware of pinks now, and blues are so scarce in comparison.

Yes. I definitely see less fancy color rough in the market and at tenders.

I think there's a connection, but the majority of very rare stones didn't decrease in value; rare Vivid Yellows and rare pinks haven’t gone down at all. Only the "ABC" goods saw a decrease in prices.

Only because of rarity. There are less blues on the market so the prices are higher. For every Fancy Blue there are 3 or 4 Vivid Pinks. That’s why the prices are significantly higher for blues.

I don’t deal with rough, only polish. I see less and less quality polished goods on the market due to a lack of cutting. Because I don’t see a lot of polish, I can tell you that there is less rough.

People want to invest in rare goods, locking things in safe and waiting for time to pass so values appreciate. They start with a few whites and then move to colors and buying something else, variety.

I don’t think so. I don’t forecast an increase in prices.

They’re rare items and we target a very wealthy, small percentage of the population - they’re still wealthy and doing business. The art business is also doing very well because for the very expensive goods there’s still a market out there. These stones are getting rarer and rarer.

In white diamonds you can get as many as you want of them, even if they’re 10ct D flawless. Fancy color is just so rare. I’ve been saying for the last 5-7 years that each time you sell a nice fancy color diamond you’re getting that much closer to closing your office. A nice FCD is getting rarer and in ten years time they’ll only be a few people who still have them. Diminishing supply and growing customer demand will speed up the process in their rarity.

Fine fancy colors will continue to rise for the rest of our lives, let alone the rest of the summer.

There are very wealthy people out there who are being advised to buy a collection of fancy color now because they’re running out. They will probably be worth more in the long run. There are a million reasons to jump on the bandwagon. Even in 2008-2009, people said FCDs would go down and I said no way, so far I’ve been proven right.

It’s primarily a result of the rarity factor. The index proves the consistent upward improvement in value of colored diamonds over time and demonstrates how they will keep going up in value. It’s the only area of the market that is improving.

I don’t think there will be any noticeable change because of the vacation. It’s a market that doesn’t really take a break. Maybe people will make their final decisions for things they’re reviewing or considering, but as far as the supply demand and marketability and perceived value I think it’s a 24-7 type of market where you don’t see seasonal change. At least for my focus, I’m more focused on the rare, larger, high-end pieces.

I think it’s something that people have a lot of confidence in because of the real rarity factor and the continued historical success of it. I think it’s actually amplified by the regular diamond market not doing so well so more people are chasing the same target, which increased demand and strengthened it.