Now remains a great time to purchase coloured diamonds, despite poor Q2 2019 performance, longer term trends demonstrate that coloured diamonds are on the rise.
2019 Q2 Performance
From 1st July 2019 to 30th September 2019 coloured diamonds continued to decline as was the case in the previous quarter. Fancy Colour Research Foundation (FCRF) advisory board member Eden Rachminov stated “The recent price declines in the white goods created an overall negative psychological effect on all diamonds. This is probably the reason we also witnessed a decline of 0.1% in the Fancy Colour Index in Q2”.
Yellow Diamonds
According to the FCRF, yellow diamonds displayed a decline of 0.1% in comparison to a 0.2% increase for the same quarter period in 2018. The overall 0.8% decline can be attributed mainly to the 1-3 carat categories, with the biggest being the 2.7% decline in the 1 carat category.
Blue Diamonds
The same data available from the FCRF presented a 0.3% decrease for Blue diamonds in Q2 2019, in sharp contrast to the 1.5% increase achieved for the same quarter in 2018. The largest influencers of this Q2 decline were the 8-10 carat weight category which yielded a 0.9% decline during the period.
Pink Diamonds
The FCRF did however provide some positive news on the pink diamond front. Pinks achieved a 0.4% increase for the second quarter of 2019, in stark contrast to the 0.5% decrease achieved in the same quarter of 2018. The pink category continued to outperform all other categories, with all fancy vivid pinks rising by 1.3%, with fancy vivid pinks of 2 and 3 carats showing a rise in the second quarter of 2019, increasing by 2.8% and 2.6%, respectively.
Comparing Q2 2019 in the Short Term
How does Q2 2019 compare to the bigger picture
Knight Frank, an independent global property consultancy launched its Luxury Investment Index (KFLII) on the 25th June 2019. The report in particular focused on coloured gem stones, seen to be out performing the wider jewellery market and therefore becoming more popular with investors and collectors worldwide. The index series provides data on investments of passion, such as whisky, cars, jewellery and others, tracking each over time.
As is clear from the independent data available, despite the short term negative effects, the long term pricing trend of coloured diamonds looks positive. An 113% Asset Value Growth for coloured diamonds certainly looks strong over the last 10 years, particularly when you compare to some of the typical luxury investments such as Jewellery and watches. Its little surprise that Rachminov closed the latest Q2 publication by saying “definitely a good time to buy now”
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