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In my opinion, people see fancy color diamonds as an investment because of a combination of the advantages to holding onto them.
First, fancy color diamonds are rare, and they become even rarer over time. The rarer something is, the more valuable it is. For example, after rumors spread about the Argyle Pink Diamond mine closing, prices for pink and red diamonds increased dramatically, especially for Argyle Pink Diamond merchandise.
Additionally, diamonds with the same color grade on their GIA certificates often have a different color appearance, which makes it impossible to formulate a price list. Fancy color diamonds are mobile and are easy to sell, which became important during the pandemic. To my knowledge, the increase in demand for fancy color diamonds is contributing to their rising price.

In the past year, all diamond prices rose between 20-40% after a 10-15% decrease in 2019-2020. Fancy color diamonds are flowing. In my opinion, they started going up in price a little late, but there has been upward movement in yellows and pinks, and even blues are gaining traction. This is the reason for the sharp increase in prices seen in the last quarter.
There is very strong demand for pink diamonds, and it’s very difficult to get the right color. Labs are stricter than they were a few years ago, leading to a shortage of nice stones. I think that in the long run, we will see an increase in pink prices.

The pandemic has somewhat rewired the global consumer's mindset. Historically fancy colored diamonds' demand waxes and wanes with the fortune of the world economy. Just as the financial crisis rebounded, the demand for colored diamonds and other luxury goods became insatiable. In my opinion, I can see these changes in prices and consumer behaviour likely to endure long after the pandemic. Last year's turbulence reminded us of the significance of having a sound wealth preservation strategy, and natural colored diamonds are one of the safest choices for storing wealth. Collectors are increasingly looking to make their assets strong not only for themselves but also for future generations.

In my 26 years of experience I have seen the price of fancy colored diamonds getting soft three times, and every time their prices rebounded back. Starting in 1987, wealthy investors understood the potential of a rare, beautiful, and transportable commodity that proved over the years to be as steady as real estate, with even better returns. 2020 created immense wealth for the super riches and anyone ready to take risks. In addition, the Hip Hop culture became huge worldwide, with the famous and wealthy enjoying wearing big rocks and Color Diamonds. It created a new diamond market for men alongside women.
Strangely enough lockdowns combined with social networks helped our industry tremendously: very wealthy individuals had to stay home and after some time boredom brought them to Instagram where people like to show their wealth, they spent money first on hard-to-get watches and then on rare diamonds.
Moreover, large diamond companies now feel compelled to have a color diamond inventory to satisfy their clients' requirements, while production is slow and demand is high, so prices go up. Last but not least, countries had to print money to help their citizens during lockdowns and inflation reflected in the stock market and cryptocurrencies. Therefore, when people started cashing out their profits, why not buy one of the most beautiful and transportable wealths that are Fancy Colored Diamonds?

The reason is only a lack of goods, specifically great looking goods, while the demand hasn’t necessarily grown, in my opinion.

Money is losing its value, while the inflation rates are on the rise.
History shows us that Fancy Color diamonds, and especially Pinks and Blues, are a great investment and a great hedge. For example if I would’ve held on to the best five stones I had, Blues and Pinks from 10 years ago would’ve probably double up my money.