Rapaport: Fancy Color Diamonds Identified as Stable, High Growth Alternative Asset Class

By Ariel Carmeli | 18.11.14
New Price Trend Index Marks Launch of The Fancy Color Research Foundation

 

Press Release: A new index by The Fancy Color Research Foundation (The FCRF) shows that fancy color diamonds have delivered strong and consistent price increases, outperforming key global asset indices  since 2005.

 

Fancy color diamonds, predominantly  yellow, pink and blue diamonds, have always been highly prized and rare assets. They are found randomly and unpredictably in diamond mines throughout the world and are enjoyed by sophisticated jewelry buyers and gem collectors alike. Consistent recent growth in values has reflected the changing dynamics of global wealth notably the fast paced growth of emerging markets and the appeal of fancy color diamonds as an investment product.

 

The Fancy Color Diamond Index (The Index) has been developed by The FCRF from proprietary access to tens of thousands of fancy color diamond transactions since 2005 and will be updated on a quarterly basis. The Index provides greater knowledge and understanding of fancy color diamond pricing trends to jewelry retail, wholesale and mining industries.

 

Fancy color diamonds, across pinks, yellows and blues, have increased in value by 167 percent on average since January 2005, outperforming other leading assets in a similar period, for example, the Dow Jones industrial average has increased 58 percent,  Standard & Poor’s 500 has increased 63 percent and London house prices have increased 82.1 percent.

 

Looking in more detail the Index shows that pink diamonds have shown the greatest growth in value, up by 360 percent in the last nine years, with blues showing less dramatic but equally consistent growth of a 161 percent by value. Crucially, both pink and blue diamonds were unaffected by the global financial crisis with blues keeping their value and pinks still increasing through 2008 to 2010.

 

The publication of the Index marks the launch of The FCRF, which is an independent, non-profit organization formed to promote fair-trade, ethics and transparency in the fancy color diamond retail, wholesale and mining industry.The FCRF activity will encompass:• Developing innovative research and digital tools that will support the fancy color diamond retail selling process for consumers, retailers and collectors;

 

• Promoting fair trade in fancy color diamonds throughout the value chain underpinned by reliable data analysis to create a uniform knowledge base across all industry layers;

 

• Authoring publications to clarify the complex methodology for evaluating fancy color diamonds;

 

• Correcting common misconceptions about evaluating fancy color diamonds.

 

The FCRF expects that together these activities will enhance consumer demand and retail understanding of fancy color diamonds.

 

The FCRF was initiated by Eden Rachminov, author of “The Fancy Color Diamond Book” and winner of the NCDIA education award. Ambitions and activities of The FCRF will be guided and evaluated by an experienced board of advisors that work throughout the diamond pipeline.

 

Rachminov, a member of the board of advisors for The FCRF, commented, “The launch of The Fancy Color Research Foundation is in response to the growth in fancy color diamonds transactions and the resulting need for greater education, understanding and clarity in the industry.

 

“The process and skills for evaluating fancy color diamonds are unique to this exceptional product. As a result there is a need to clarify misconceptions and to highlight the differences to evaluating colorless diamonds.

 

“In addition to publishing the Index, The FCRF is developing and publishing a series of practical tools, targeted at retailers. We are confident that The Fancy Color Research Foundation will be a significant influence on increasing demand within the fancy color diamond industry.”

 

Membership of the FCRF is open to retailers, auction houses, wholesale traders/manufacturers, financial institutions, insurance appraisers and mining companies. Organizations interested in membership of The FCRF should visit fcresearch.org to register details.

 

About the Fancy Color Diamond Index:

 
The Index is a first of its kind tracker of changes in the market prices of yellow, pink and blue fancy color diamonds, the three most commonly traded fancy color diamond categories (a market price is a wholesale transaction taking place in one or more of the global diamond trading centers).

 

The Index is a composite representation of changes in price points gathered since 2005, based on a statistically significant sample size. It offers insight into variations in the appreciation of diamonds of different colors and sizes.

 

The Fancy Color Research Foundation oversees proprietary prevalence and pricing data aggregation and production of the index. A third party New York-based audit firm reviews the development of The Index from the various data points gathered.

 

The Index can be used to understand and track the historical price behavior of different rare fancy color diamonds.

 

Rapaport News is not responsible for, and does not endorse, the content of any third-party press release. This is not a Rapaport Press Release. It has been provided as additional information for our clients.

+

The article has been sent to your email address. Enjoy!

ipad

Read This One Article For Free

    Fill out the info and a link will be sent to
    you. Your data will be kept safe with us.



    People who read this article, also read:
    Auction Analysis
    Pre-Auction Analysis: July 19th, 2022, Sotheby’s Hong Kong – Important Jewels
    Our Sotheby’s Hong Kong Pre-Auction Analysis focuses on elements that are not always visible to the untrained eye. We discuss characteristics such as Inner-Grade, Color Dispersion, and Undertone – collectively termed IDU. Professionals use the IDU method intuitively when analyzing a Fancy Color Diamond. The acronym we use makes these elements easier to remember.  Members […]
    Auction Analysis
    Pre-Auction Analysis: June 16, 2022, Sotheby’s New York – Magnificent Jewels
    Our Sotheby’s New York Pre-Auction Analysis focuses on elements that aren’t visible to the untrained eye. We describe important visual elements for those who cannot attend the preview. We discuss characteristics such as: Inner-Grade, Color Dispersion, and Undertone – collectively termed IDU. These visual assets are explained in detail at the bottom of this article. […]
    Auction Analysis
    Pre-Auction Analysis: June 08, 2022, Christie’s New York – Magnificent Jewels
    Our Christie’s New York Pre-Auction Analysis focuses on elements that aren’t visible to the untrained eye. We describe important visual elements for those who cannot attend the preview. We discuss characteristics such as: Inner-Grade, Color Dispersion, and Undertone – collectively termed IDU. These visual assets are explained in detail at the bottom of this article. […]
    x close

    To continue reading this article

    Or

    Shopping Cart

    You cart is empty

    +
    Discover The FCRF Tools and Services

    Become a part of our community and get unlimited access to all of our innovative Tools and Articles

    The FCRF App is now available for
    Download Button
    Continue To Website