The colour of your money

© Written by Rachael Taylor for Rapaport

With a return that outstrips white diamonds, rare top-quality examples of coloured diamonds are proving to be an attractive alternative investment for buyers with an eye on the future – and pockets deep enough to compete.

Research released last month by the Knight Frank Luxury Investment Index (KFLII) claims the price of coloured diamonds has risen 89% in the past decade, while white diamond appreciation over the same period has been slower at about 30%. The decade’s worth of data that Knight Frank has compiled shows that colour matters when it comes to a return on investment. Between 2010 and 2015, pink diamonds delivered the highest growth at 189%, blue diamond prices rose 89%, and yellows were up 17%. Over the past year, however, blue diamonds have taken over as the stone to invest in, delivering a 5.5% increase; average prices of pink diamonds have actually dipped in the past 12 months.

Look a little more closely at the KFLII data and you can spot a slowing in the colour diamond boom. Average prices of coloured diamonds increased just 15% in the past five years and were flat in the past 12 months. Thomas Gelb of the Natural Color Diamond Association isn’t worried though…

This story was originally published in the October 2017 issue of Rapaport magazine. Continue reading to see layouts and download a full-sized PDF of the feature and front cover. (Main image: Fancy intense blue diamond sold at auction house Bonhams)

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PDF of feature: RapMag Oct 2017 – Colored diamonds

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PDF of cover: RapMag Oct 2017 – front cover

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