TRUE COLOURS: THE 2018 COLOURED DIAMOND REPORT

With consumers increasingly savvy about white diamonds, coloured diamonds continue to offer retailers a better margin. ALEX EUGENE reports on the best way to take advantage of these highly-prized stones.

There’s a scene in the film Titanic where Kate Winslet’s character Rose sits for a seductive nude portrait, wearing a 56-carat blue diamond, strung upon a chain of white diamonds.

The fictional gemstone, known as ‘the heart of the ocean’, is a replica of the famous Hope Diamond, a 45.52-carat stone reportedly stolen from an ancient statue in India, and subsequently blamed for the misfortune that afflicted its various owners. According to myth, the Hope Diamond is cursed, but this hasn’t stopped it from enchanting the collective consciousness of gemstone lovers since the 17th century.

History is abundant with intriguing tales of coloured diamonds, which have only become more popular over time.

A history of love

Whether invention or fact, many of the greatest love stories have involved coloured diamonds.

“There has traditionally been a romance associated with coloured diamonds and this has always attracted a premium in their pricing,” says Gersande Price, sales manager at Ellendale Diamonds. “There is no fixed price for exceptionally fine coloured diamonds.”

Brett Bolton, Director of Bolton Gems confirms this is the case: “Consumers believe price is secondary to finding the right stone for them. Colour is more of an incentive.”

Add to that the dwindling supply of some colours, notably Australian pink, and say hello to one of the most lucrative products available to jewellers.

“Despite producing 95 per cent of the world’s pink diamonds, the Argyle mine’s total pinks production is under 1 per cent, and with the upcoming closure in two to three years’ time, Argyle pink diamonds are a unique West Australian sensation around the world,” says Price.

"Fancy-colour diamonds are so rare and beautiful they have become a serious investment opportunity." Miri Chen, CEO of the Fancy Color Research Foundation (FCRF)

Miri Chen, CEO of the Fancy Color Research Foundation (FCRF) says that fancy-colour diamonds are so rare and beautiful they have become a serious investment opportunity.

“Out of all diamonds in the world, only a fraction of a percent actually show special colours and are entitled to being called fancy-colour diamonds,” she says.

Maulin Shah, director of World Shiner says, “Demand is increasing for the pink diamonds; they are very unique. People are buying Argyle diamonds for investment.”

Price agrees with that sentiment. “Everyone in the market is after an Argyle diamond, for love of their land, the beautiful arrays of colours or for pure investment purpose.”

Steve Der Bedrossian, CEO of Sams Group, is matter of fact about his pink diamond stock. “A low end pink melee in a light pink colour is still going to cost around AU$1,900 a carat. But for white diamonds, the best, cleanest, small melee white diamond is never going to pass AU$750 a carat,” he explains.

Original Source: https://www.jewellermagazine.com/Article/7740/True-Colours-The-2018-Coloured-Diamond-Report