Demand for blue diamonds increased strongly last year, while demand for yellow stones continued to decline, the Fancy Color Research Foundation (FCRF) said based on wholesale pricing data that it collected.
The FCRF reported that its Fancy Color Diamond Index increased by 0.4 percent in 2016 as a result of price increases for blue and pink diamonds of 5.5 percent and 1.4 percent, respectively. The increases were offset by a 4.0 percent drop in prices of yellow diamonds.
The FCRF said prices for fancy color diamonds were unchanged on average in the fourth quarter of last year. The overall trends were similar to the ones identified in the first three quarters. For more than 18 months, transactional data has pointed to two clear pricing trends: consistent demand-driven price increases for blue fancy color diamonds, partially offset by continued price declines in lower-cost, commercial yellow fancy color diamonds.
In the fourth quarter of 2016, prices of blue diamonds increased 1.5 percent, while pink diamond prices remained largely unchanged. Prices of yellow diamonds declined by 1.4 percent, more than during the third quarter of the year. Overall, prices in the fancy color diamond category were slightly down during Q4, while prices of white diamonds decreased significantly during the same period, as a result of the India liquidity crisis.
The strongest price performers during Q4 2016 were fancy vivid blue stones in the 10ct, 1ct and 2ct categories, appreciating by 5.6 percent, 4.8 percent and 4.3 percent, respectively.
On the other side, price declines between 1-2 percent were identified across most yellow categories, including fancy, intense and vivid diamonds. Nevertheless, rare yellow diamonds (namely unique intense and vivid yellow) did not decline.
FCRF Advisory Board Chairman Jim Pounds said, “Blue fancy color diamond prices are at their all-time peak due to a combination of very thin supply and a healthy demand. Overall, high quality, and well cut vivid blues and pinks do not exist in sufficient volume to create price stability. Highly saturated yellow rough diamonds, especially vivids, have recently achieved high prices in tenders, likely representing improved demand that will impact prices.”
