The Truth About Fancy Coloured Diamonds: Are They Worth It?

In the jewellery industry, coloured diamonds are referred to as "fancy diamonds." Coloured diamonds come in various colours, tones, and saturation and are extremely rare. Only 1 in every 10,000 diamonds possesses natural colour and generally comes at a hefty price. But are they worth it?
In this blog, we discuss the 5 most sought after coloured diamonds and whether they are a good investment or not.

What Is a Fancy Coloured Diamond?

The D-to-Z colour-grading system defines diamonds in the typical colour range, from colourless to pale yellow. Yellow and brown diamonds with colour outside the Z range and diamonds with any other hue face-up are considered fancy colour diamonds. They are exceptionally unique and come in various colours, with red, blue, pink, green and yellow as the most desired variations.

1. Fancy Red Diamonds

fancy red diamond

Although natural fancy coloured diamonds are incredibly scarce, the red diamond is the rarest. Red diamonds are so rare that only about twenty to thirty natural red diamonds are known to exist, and the majority are less than half a carat in size. They are usually found in Africa, Australia, and Brazil. Red diamonds generally cost more than $1 million per carat, making it the most expensive coloured diamond in the world.

2. Fancy Blue Diamonds

fancy blue diamond

Blue diamonds are rarer and more valuable than any fancy coloured diamond except for red diamonds. Blue diamonds are so scarce they only occur in three countries: Australia, South Africa, and India. The more intense the blue diamond's colour, the rarer and more valuable it is. Blue diamonds of considerable carat weight, such as 2 or 3 carats, are much more difficult to find and consequently more expensive. For example, Leibish & Co.'s 2.35 carat Fancy Green Blue Cushion Cut Diamond costs USD $420,100.

3. Fancy Pink Diamonds

fancy pink diamond

A fancy coloured diamond with a pink hue is a pink diamond. Unlike other fancy coloured diamonds, the colour of pink diamonds is not generated by chemical impurities. Instead, the specific explanation for the creation of pink diamonds is unknown. Pink diamonds were once most commonly found in Western Australia's Argyle diamond mine (now closed after 37 years). India, South Africa, Brazil, Russia, and Canada are among the countries that have been known to produce pink diamonds.

Although number 3 on our list, pink diamonds are still among the rarest coloured diamonds on the market. A high-quality pink diamond with a deep colour can sell for up to $700,000 per carat.

4. Fancy Green Diamonds

fancy green diamond

Green diamonds get their colour due to exposure to radioactivity and atomic radiation over millions of years. Even though the stone's green appearance is caused by radioactivity, there's no need to be concerned because holding it is entirely safe. The formation process is unusual, resulting in a highly difficult-to-find coloured diamond.

However, being on a budget does not rule out the possibility of owning a green diamond. A lovely hue can often be found in a very pale green diamond, adding distinctiveness to the stone without breaking your budget. For example, in the world of green diamonds, this 1.72 carat round diamond from Leibish & Co. was reasonably priced.

5. Fancy Yellow Diamonds

fancy yellow diamond

The presence of nitrogen in yellow diamonds gives them their distinct colour. Because the nitrogen molecules absorb blue light, the stone appears yellow. A yellow diamond can be pale or dark depending on the amount of nitrogen present. Diamonds that are entirely clear and colourless attract a greater price than diamonds with a yellowish hue, which is often regarded as a negative feature. As soon as the diamond reaches a point where yellow is the dominating colour, it is considered a fancy coloured diamond or Canary diamond and the price goes up considerably.

Are Fancy Coloured Diamonds a Wise Investment?

Natural fancy coloured diamonds are regarded as exceptionally prudent investment pieces due to their scarce colours, making them one of the most treasured valuables globally. Subsequently, numerous financial organisations are starting to add a little colour and sparkle to their client's investment portfolios to boost their long-term chances of great returns. 

Is there a catch? Yes. Fancy coloured diamonds are only considered a wise investment if they are entirely natural. As discussed in our blog "Lab Grown vs Natural Diamond: What’s The Difference & Which One Should You Buy?", lab-grown diamonds decrease in value over time, making it an ill-advised investment.

The Bottom Line

Natural coloured diamonds are in a category of their own when it comes to "prized possessions" due to their scarcity and stunning colours. There is no other coloured jewel that can compare to the brilliance of a diamond, let alone the strength and durability of these coloured stones. 

So, should you invest in coloured diamonds? The uniqueness, rarity, beauty, prestige, and investment potential of fancy coloured diamonds are just a few of the many reasons you should consider buying one. A great place to start looking for highly valuable natural diamonds in Hong Kong is Diamond Marketplace. It’s a conflict-free and ethically sourced natural diamond marketplace for the buying and selling of diamonds.

Explore Diamond Marketplace here