There’s no denying the beauty of natural colour diamonds; even technical descriptions like ‘vivid’, ‘intense’ and ‘fancy’ are as vibrant as the stones themselves. Their power to capture the imagination and create emotional connection is unparalleled in the gemmological world – and speaks to the very heart of the retail jewellery industry.

Unlike colourless (‘white’) diamonds, which have an intrinsic, quantifiable value based on standardised characteristics and a fairly uniform supply, colour diamonds are far more mercurial. Trends are difficult to predict and can be more easily influenced by supply and demand, and whimsical outside factors like clever marketing and celebrity trendsetters.

Crucially, different colours offer different opportunities for retailers.

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In the eye of the beholder

For retailers, colour diamonds can be divided into two tiers: highly-promoted fancy diamonds whose demand is driven by their scarcity (yellow, pink and blue diamonds), and softly-promoted diamonds whose demand is driven by other factors; brown, pastel and multi-colour diamonds fall into this category.

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The former category tends to fetch a much more significant price-per-carat than that of white diamonds – a vivid pink could be expected to sell for many, many times the price of a flawless white with the same cut and clarity.

In contrast, the latter group is full of far more common and affordable stones; never mind competing in the same league, they’re barely playing the same sport – or so the perception goes.

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However, both products offer rewards for retailers, because the two categories have something in common; they are beautiful, and with the right guidance, consumers’ eyes can be opened to their charms. The common denominator is that they want a diamond that is unique and that has a point of difference from a traditional ‘white’ diamond.

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“For the longest time the trendsetters or marketing masters were telling us that the most desirable or most beautiful colour was a pure yellow, pink or blue.

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“It’s like diamonds that contain inclusions are called inferior, when the nature of the inclusion may make the connection more personal, more special. Inclusions, which I refer to as beauty marks, open up a whole new way to engage in the appearance.”

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When it comes to selling traditionally valuable colour diamonds, there are two standouts: pink and yellow, with blue a distant third. Distantly followed by yellow, then cognac, then blue.”

Neuman says the rarity of purple and red diamonds renders them irrelevant to the retail market: “Very few customers have ever heard of them or know that they exist, but those that do, perceive them as rare and valuable – and unaffordable.”

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The Fancy Color Research Foundation (FCRF) has been tracking the prices of fancy colour diamonds for nearly 15 years and CEO Miri Chen explained, “Yellow diamond prices had a significant dip in 2009 but increased during the following decade by up to 81 per cent, and pink diamond prices rose by 177 per cent [over the same period]. At that point, the world will lose the major source of pink diamonds, a factor that has been driving up prices for the past few years and putting them out of reach for most consumers.

The appeal of pinks is a blend of their rarity and passion for the colour. This generated at least five years of demand from the wealthy Chinese, especially here in Australia,” explains Neuman, who adds: “The most recent instigator of demand has come in the last three to five years, as the distribution channels of pink diamonds have become less controlled and access has been available to almost anyone.”

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When dealing with customers it’s important for retailers to emphasise the scarcity of pink diamonds, as most people aren’t aware of just how rare they are; natural pinks account for a fraction of one per cent of all diamonds mined, and that’s why the premium pricing exists.

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“The perception of a significant proportion of customers is that a pink diamond is just like a white diamond, only pink. The price is secondary to having the desired colour – however most often the desired colour does not fit the available budget! Garry Holloway, director of Holloway Diamonds, says: “With the closure of Argyle next year, we are getting many more requests for pinks and some clients are collecting champagnes again,” adding that Argyle Tender stones have been “rising beyond belief.

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To combat the higher prices of pinks, he emphasises the versatility of smaller stones, saying: “There is still a demand for engagement rings with a white diamond in the middle and then pink diamonds in a halo around it.

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Neuman claims “many people are still not aware that they are an Australian product” while Kovacs adds: “End consumers – especially, it seems, those purchasing at the higher end of the market – don’t understand the scarcity of material. This tool will provide the owner with a document displaying the rarity of the fancy colour diamond based on data from mining companies, the GIA [Gemological Institute of America], fancy colour manufacturers around the world and online surveys, and will reflect years of research and data analysis.

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Chen says the affordability of yellow diamonds plays a big role in consumer demand, explaining: “Naturally, there are more people who can afford to buy yellow diamonds – it doesn’t mean that blue and pink diamonds are less desirable, they are just less affordable. scooped headlines when the 128.

In addition to getting more commercial exposure, yellows currently don’t suffer the supply problem of pinks, Can You Buy Diamonds In Thailand – diamonds.backtoglamour.com – (simply click the up coming web site) as they account for around 50 per cent of mined colour diamonds. One grade up, fancy yellow diamonds are on par with good quality colourless diamonds. There is no continuity to the ebb. Flow of all colours in diamonds. It is not a commercial item that shoppers seek out – unless they have come to awareness through marketing of browns and yellows, or the auction results of pink, blue and other unusual colours. Fancy light-graded yellows are cheaper per carat than colourless diamonds. Can be intensified by being set in yellow gold. So, trends come and go over time,” he says.

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Above: K&K Export Import

Above: Aurora Pyramid of Hope Photo: Robert Weldon

Above: K&K Export Import

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Brave new world

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Low-cost and more common colour diamonds have already proven themselves viable for jewellery; the best example is brown diamonds, which went from being ungraded on the diamond scale and used for industrial purposes, to huge popularity when re-branded as chocolate, cognac or champagne – and now even aubergine.

While some dismiss the ‘chocolate diamond’ as a cynical marketing campaign to sell intrinsically less-valuable stones at a premium, others see it as a way to open consumers’ eyes to the stones’ natural beauty and help them emotionally connect with the jewellery.

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Bronstein is philosophical on the topic: “I’ve always believed that we should discuss the colour of a diamond as a metaphor for another natural object. This is the universal language of colour. Jewellers should feel very comfortable engaging clients in the discussion of ‘what do they see’ – encourage them to come up with a comparison from their knowledge… [and] explore options for what they can afford.

Yet others argue that if colour diamonds are not being bought as an investment – and they shouldn’t be – and the jewellery itself is well priced for the customer’s budget, the only thing that matters is the personal connection.

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“The consumer must be educated that what is beautiful to the individual does not have to meet with anyone else’s approval.

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Kovacs agrees, and says the demand from consumers is definitely there: “Cognacs and champagnes that have good, true colour with no greenish overtones and high clarity have always sold well and continue to do so.”

Shifting the paradigm

In jewellery retail, as in any market, it’s crucial to look to the future and assess economic trends. It’s a familiar story: in the past few years, weak consumer confidence combined with sluggish wage growth has put downward pressure on discretionary spending – particularly on luxuries.

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“Like any industry in the world, gems and jewellery go through cycles of strong activity and weak demand. This is a normal course of business. When business slows, it gives us the opportunity to adapt and change.

“While we tread water, we are essentially preparing for the next big wave that will carry us to the next level. You will sink and be gone before the next ride comes around. Ways of doing business. No one can afford to hold on to old ideas.

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So how can colour diamonds help in this process? Natural coloured diamonds are a niche, specialist field of diamonds. When it comes to traditional colours, pink diamonds are still a solid option if the higher costs can be absorbed; but for some, they are offering diminishing returns and yellows offer an attractive alternative. To gain understanding, one must have experience with them, through buying, selling and researching – working with them on a daily or weekly basis, especially where prices and availability are concerned,” he says. “Most jewellers and consumers do not have the same understanding of coloured diamonds that they do of whites.

He uses the analogy of car mechanics, explaining, “White diamonds represent all makes and models of cars.”

Truly, in the world of colour diamonds, there’s room for retailers at every point in the market. As Bronstein says, “When the messaging is conveyed in an honest, transparent and passionate way, there is something unique, something special, something beautiful and something affordable for anyone who would like a unique piece of the Earth.”

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