Knowing that two out of three, Fancy Color Diamonds buyers in the world are Chinese, what is the impact of the civil riots in Hong Kong on Fancy Color Diamond prices?
I don’t think that the civil riots in HK are directly affecting Fancy Color Diamond prices. What the civil riots are doing is temporarily keeping people away from HK to come and source merchandise. However, these are cycles that could easily change, especially in times of uncertainty when portable wealth, that traditionally maintains its value, becomes more lucrative.
What is the reason that we are seeing a decrease in the amount of fine Fancy Color goods at auction? Is the reason the low-price results in comparison to the market price, or just less availability on the market?
The general mindset is that when merchandise is rare it is sold for a higher price. Five years ago we were used to seeing very special large Fancy Color Diamonds sold for record prices. These were unique and rare pieces, aimed to collectors, and today the auctions offer smaller diamonds which leads to owning Fancy Color diamonds becoming a mainstream trend.
What are your thoughts on the future of the Fancy Color Diamond market?
I believe most people think that there’s lots of Fancy Color Diamonds in the mines, but we know that there are more diamonds in people’s safes around the world than there are reachable underground. I perceive there will be a greater profitability in the marketplace, because there will be fewer people owning the merchandise. The prices will be lower and it will allow people to buy more diamonds. I believe this market swing should come most likely in the second half of next year.