According to The Fancy Color Diamond Index (The Index), which was developed by The Fancy Color Research Foundation (The FCRF), fancy colour diamonds are continuing to display steady pricing in Q4 of 2014.
Ishaia Gol, a member of the board of advisors for The FCRF, commented, “Unsurprisingly, the fourth quarter data collected by the FCRF team reaffirms our knowledge and understanding from the last decade that fancy colour diamonds are a separate niche, almost non-correlated to white diamonds. Fancy colour diamonds are rare and highly desirable. In periods of financial instability we have witnessed time and again that collectors, retailers and investors are able to maintain their assets’ value even as other asset classes are depreciating in price. This is caused by the inherent lack of global inventory, which is only projected to worsen in coming years. Our data contributors are reporting decline in number of transactions, mainly as a result of political developments in China.”
We previously reported about The Index being first launched in November 2014 with the purpose of measuring and analyzing the performance of these rare diamonds as an alternative asset class. The Index has revealed that fancy colour diamonds, across the categories of pinks, yellows and blues, have increased in value by 167 per cent on average since January 2005, outperforming other leading assets in a similar period. The Dow Jones industrial average, for example, has increased 58 per cent, Standard & Poor’s 500 has increased 63 per cent and London house prices have increased 82.1 per cent.
According to the most recent Index read in January 2015, fancy colour diamonds remained unchanged in the period between October 1 and December 31, 2014.