But every crisis brings with it opportunities. As the world reels in hardships caused by this pandemic, it has become increasingly evident that people who can afford luxury have become mindful of what they purchase, they want to acquire items that have lasting value, and are incredibly rare. While fancy colour diamonds were always a symbol of aspiration, status and luxury, the pandemic has led people go after these priceless jewels because of the intrinsic qualities that make them ever so exceptional.
the matter of price
Prices for fancy colour in most shades
have remained stable, except for
yellow. “Price wise, yellows have
crashed nearly 30-40 per cent in the
last 3-4 years. After Covid19 however,
all prices have stabilized. There is a
price correction in blues as well. Prices
for pink are always rising.” says Denish
Shah of Ddiam, an internationally
recognized specialist and dealer of
natural fancy coloured diamonds. If
auctions are anything to go by, demand
for rare, exceptional fancy colour
diamonds has steadily increased,
despite the pandemic. “Well priced
fancy coloured diamonds fresh to the
market are performing well at auction
overall and prices have remained
stable throughout the pandemic,” says
Graeme Thompson, Worldwide Head
of Jewellery, Phillips. Whether people
want to invest in colour diamonds or
not, they have been curious about their
properties and thanks to their rare
qualities, these gemstones are recession
proof. “Prices of rare coloured diamonds
haven’t been affected. They have been
insulated in a way. Rare coloured
diamonds have held their value through
any sort of uncertain economic climate
and financial volatility. Covid19 was
definitely frightening for everyone
globally at first, however, things are
looking better, everyone has adjusted
or are adjusting to this new normal. In
certain categories of colour diamonds,
prices have actually appreciated
during the pandemic, and the world’s
most sophisticated collectors are
continuously searching for more.
It has worked as a lifeline to be a stockist of such rare colour diamonds, and possess such sought after gems,” says Harsh Maheshwari of Kunming Trading Co. Kunming acquired Argyle’s Everlastings Collection comprising 64 lots of carefully curated diamonds, weighing 211 carats last November.
In August, Christie’s dedicated a first-ever virtual auction completely dedicated to diamonds, where a plethora of wide variety of rare colours including pinks, grays, oranges, greens, browns and yellows headlined the auction. “Demand for coloured diamonds has always been a significant part of our business and we anticipate that will remain steady for years to come,” says Daphne Lingon, Head of Jewellery for Christie’s Americas.
“The main reason for a spike in demand for coloured diamonds is as a result of the well-publicized closure of the Argyle mine in Australia. Not only does the Argyle mine produce 95% of the world’s pink diamonds, it also produces a large amount of fancy coloured brown and yellow diamonds. Should this supply dry up by next year, which we expect it to, demand should continue to rise, therefore increasing prices further ,” adds Thompson.
Educated and passionate connoisseurs of jewellery continue to see exceptional value in these rare diamonds in beautiful hues, as they are not just one-of-a-kind wearable pieces but also prove as worthy investments. The demographic who like to invest in these colour diamonds as an asset class, especially pink, has only broadened over the years.
the pink fever
Australia’s Argyle mine, which has
produced over 90 per cent of the world’s
most coveted pink diamonds for the
last 35 years closed its operations in
October. The mine that produced over
10,000 polished carats annually has run
dry and hence, prices for fancy colour
diamonds, especially those in pink are
expected to sky-rocket. Named after
Lake Argyle, the mine has produced
over 865 million carts of rough in the
most exceptional colours in the last four
decades – and the diamonds from this
mine became more sought after because
of how pure, strong and intensely hued
they were. “Argyle is the best -- in any
colour, purple or blue there has been an increase in prices – values have nearly
doubled,” adds Shah.
Arnaud Soirat, Rio Tinto’s chief executive of Copper & Diamonds said “Fifty years ago there were very few people who believed there were diamonds in Australia – even fewer could have foreseen how the Argyle story would unfold. To arrive at this final chapter has required vision, courage and determination to overcome significant challenges to enter new territory in diamond exploration, mining and marketing. “Today Argyle’s influence stretches into many spheres and over many continents and I am very proud to acknowledge all those people who have contributed to the discovery and development of the mine and the production of some of the finest diamonds the world has ever seen.” There are no other consistent sources for pink diamonds anywhere else in the world, and even if such a source has been discovered, it would take nearly 10 years for the mine to start operating.
a rise in appetite
Over the years we have seen celebrities
dazzle on red carpets with gorgeous
fancy colour diamond jewellery. From
Kate Winslet to Blake Lively and
Jennifer Lopez many celebrities have
endorsed fancy colour diamonds,
making it even more popular. Rio Tinto also has a partnership with select
ateliers across the world, to which it
supplies some of its rarest fancy colour
diamonds. British jeweller Boodles,
one of Argyle’s select Atelier has been
consistently launching collections
redolent with beautiful fancy colour
diamonds after witnessing a spike in
demand in the last few years. “Pink
diamonds are always in demand,
particularly in Asia, however, yellows
are popular in the USA and brown
diamonds more so in Europe,” adds
Thompson. Many spectacular colour
diamonds like Empress Rose, Golden
Empress, Wittelsbach and more
have passed the hands of gemstone
connoisseur and jeweller Laurence
Graff. High jewellery houses like
Tiffany & Co., Cartier and Bulgari have
also used fancy colour diamonds in
their collections.
The concerted marketing effort by auction houses, especially in the time of pandemic has also made these stones more sought after amidst collectors. “During this period, we have rapidly innovated, allowing our clients more ways than ever to successfully transact at Christie’s in our international jewellery sales. Our teams have been exceptional in transitioning to digital and many of our established clients as well as new buyers have purchased sight-unseen. We are proud to say that Christie’s Jewellery Department has been the market leader for 26 consecutive years. Our commitment to excellence combined with our strong personal relationships has built our reputation, which in turn has created trust; the most important factor for clients when buying online. Technology has also played a large part as photo quality has risen and capabilities such as a 3D-view or video have enhanced how objects can be viewed virtually,” says Lingon.
Who, what, where?
Collectors of such fancy colour
diamonds are mostly seen in Australia,
U.S., Asian countries like Hong Kong,
China and Singapore as well as parts
of Europe. “Demand from the U.S.
is constant. Chinese markets have
shutdown, however, we cater to the
Chinese market as demand is high. We
have reasonable demand from all over,
Singapore, Hong Kong and Europe.
In India, currently demand for yellow
diamonds is high. Indian retailers aren’t
confident of demand so they don’t want
to invest for a single pair of earrings
etc. But few years down the line as
they will realise that there is demand in
Indian market for coloured diamonds –
local demand too will increase,” adds
Shah. India, especially in the South
is more about clarity when it comes to
diamonds and this mindset has been
ingrained in their psyche. “In India,
people have been buying jewellery as a
tradition. Indian customers are attuned
with their diamonds, precious and
other semi-precious stones, but only a
few understand the rarity, uniqueness
and finite nature of such diamonds.
Education and awareness leads to
confidence in the consumers, which is
lacking in India. The potential is there,
and there will come a time where India
will become a major market for coloured
diamonds,” adds Maheshwari.
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