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  Darkening the color, raising the value?

by Guy Borenstein, FGA
September 20, 2012


Most of our past trend researches focused on the common fancy colored diamond grades in the market (fancy light to fancy vivid). Beside these, two additional grades are used, "fancy dark" and "fancy deep." They describe gems with a markedly darker appearance.

Up until several years ago, the fancy dark and fancy deep diamonds were considered to be of low-value with an over-colored appearance. The general perception was that they were too dark. But since then attitudes have changed, and today some of these colors are regarded as considerably more desirable. They are frequently priced equal to, or sometimes even more than a similar fancy-graded gem.

This month we decided to inspect the current differences of these two grades. We analyzed our vast database, containing now more than $180 million of colored diamonds and sorted it according to weight groups and color grades. Next, we took the 1.00 to 1.49-ct. diamonds group and formed comparable charts to see the average price difference between the grades. From the resultant charts, we created graphs, displaying the percentage change of two pairs: fancy versus fancy dark and, for the more saturated colors, fancy vivid versus fancy deep.

The fancy and fancy dark graph (Figure 1) showed a mixed tendency. The yellow colored diamonds, which were graded as fancy dark, showed more than a 10% decline in their average price from the fancy yellow graded diamonds. The brown colored diamonds showed almost no change at all, hinting that fancy and fancy dark brown are considered the same by the trade.

But in contrast to the fancy dark yellow or brown diamonds, all the other colors reported a rise in the average prices, from a gentle 5% incline (for gray) to a dramatic 77% hike (for green and blue), emphasizing the greater value that these stones possess.

The fancy vivid and fancy deep graph (Figure 2) showed that in all colors, the vivid grade is still the most desired grade of all. The decline changes ranged from 8-10%, for pink green and blue colors, to approximately 29% for orange and brown. The yellow colored diamonds showed, again, the largest decline of all colors, of approximately 45%.

The numbers point to different trends for every color. The fancy dark yellow is still valued less than a similar fancy grade. However, when the yellow color becomes more saturated, and the grade changes to fancy deep, a slight incline is noted. Still the fancy vivid yellow's value is much higher.

Brown-colored fancy dark or fancy deep-graded diamonds show an average price equal to the corresponding fancy grade. This stresses the assumption that the trade does not differentiate between the brown fancy grade to its darker tones. Brown is brown no matter what! However, pink, blue and green-colored diamonds show much higher prices for darker grades, indicating that these colors are more attractive.

It should be reiterated that the above price analysis is based upon our database, which is compiled from stones that have been listed online. Consequently, certain deviations are possible, including discounts being offered by dealers.

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