Natural color diamonds continue to shine the brightest within the jewelry industry, with record-setting auction sales, increased popularity among the Hollywood elite, and an investment potential that continues to grow year after year.
Near the end of 2014, the diamond world has been set afire by two sensational auction sales. On November 20, Sotheby’s New York held a jewelry auction of pieces belonging to famed philanthropist Bunny Mellon. Her 9.75-carat Fancy Vivid Blue diamond sold for USD$32.6 million, setting a world auction record for the highest price for a Blue diamond in history, as well as the highest per-carat price for any diamond ever sold at auction.
Five days later, on November 25, Christie’s Hong Kong held its “Magnificent Jewels” auction, where a 2.09-carat Red diamond ring sold for a whopping USD$5.1 million, a record amount for a Red diamond.
What accounts for the surge in interest and demand for natural color diamonds? The primary reason is their rarity. Although Yellow diamonds are the most common color in the natural color diamond spectrum, they represent less than 2% of the world’s diamond inventory, while exceedingly rare colors like Red represent only 0.1%.
Color originates in diamonds in various ways. Some like Blue or Yellow, obtained their unique hues when foreign elements such as boron or nitrogen were present at the time of formation under the earth’s surface. Others, such as Brown diamonds, got their color due to defects in their chemical interior structures.
Red, Pink and Purple form as a result of intense pressure within the earth during their formation.
The appeal of Pink diamonds, other than their obvious beauty, is their rarity factor; the earth is producing an ever-diminishing supply. Almost 95% of Pink diamonds come from the Rio Tinto Argyle Diamond mine of Western Australia. However, this mine is expected to close by 2019 and with no substantial quantity of Pink diamonds found anywhere else in the world, the supply may be used up.
Amongst all natural colors, Pink is often the star attraction. The “Pink Star,” a 59.60-carat diamond rated as a Fancy Vivid Pink by the Gemological Institute of America, was sold at auction by Sotheby’s in November 2013 for over USD$83 million. At the time, the sale price was a world-auction record for a gemstone of any kind.
In a shocking turn of events however, just days after the auction, the buyer had defaulted and the diamond was put back into Sotheby’s inventory. However, as recent history has proven, the diamond will in all likelihood set new records when it goes up for auction once again.
In the last decade, natural color diamonds have had an average yearly value increase of between 15 and 30%. This rise has been even more dramatic in the last two years, where the increase in value has been over 30% for especially rare diamonds.
If you want to learn more about the exciting world of natural fancy color diamonds, contact one of our diamond experts here at Ouroboro Diamonds of Rare Color. We can be reached at 1-866-350-4646, found at www.ouroborodiamonds.com, or follow us on twitter at @ouroborodiamond.