Naturally Colored Diamond Blog

Colored Diamonds: The Next Wave Of Investments

Posted by Tony Cathaway on 6/13/17 8:58 AM

More and more, investors are looking into colored diamonds as an investment. The values of these stones continue to grow, and are projected to continue to do so. To put things into perspective, the record sale price for key colored diamonds was shattered again in 2017! 

The Pink Star was sold for over $71 million dollars; that’s over $1.2 million per carat! To date, the Blue Moon of Josephine holds the record for the highest price per carat of a colored gem at over $4 million. But are these investments just for millionaires? If you think so, you’re absolutely wrong. 

Co-Founder and Managing Director of diamond retailer 77 Diamonds, Tobias Kormind says: “Diamonds are the next area for alternative investments. People have done wine and art and they are looking for something else.”

He continues to say: “Unlike art and wine, diamonds are portable and using them does not reduce their value; they are meant to be worn.” If you haven’t read our article comparing colored diamonds to art, you can find it here.

Traditionally, many people are familiar with white diamonds; but it’s Fancy Colored Diamonds that are getting the most attention from investors. Why is this? It’s because these stones are extremely unique and rare. These diamonds are created when the stone has some sort of impurity that leads certain lights to be absorbed and released. Prices of these diamonds are purely based on the type of color and quality. (The more rare the color, the higher the price. This is the same with quality as well.)

Which Diamonds Are The Most Rare?

Of all the colored diamonds in the world, experts consider red diamonds to be the most rare. In fact, it’s been estimated that only 30 pure red stones have ever been found. As we previously mentioned, these gems get their impurities from a chemical disturbance. In the case of red diamonds, they are under enormous stress that the pressure causes deformities in their anatomical structure.

The more popular colored diamonds (and also among the most rare) are pink diamonds. When considering an investment, these stones are the first to come up. Much like red diamonds, these gems get their colors from anatomical deformities from stress during their formation.

To read more about investing pink diamonds, check out this post

Still Not Convinced?

Naturally colored pink diamonds have been appreciating faster than ever. Since 2005, these stones have experienced over 600% increase in value! Edahn Golan, of Edahn Golan Diamond Research & Data had to say this about these stones: “Pink diamonds are not a bubble. There is a market. People are not just buying, but selling. There is economic sense to this.”

There’s no better time than now to start looking into naturally pink colored diamond investments. By the year 2020, the Argyle mine, which produces approximately 90% of all pink stones, is expected to cease operations. What do you think will happen to the value of colored diamonds then? Basic supply and demand suggests they will dramatically increase in value.


If you are unsure about how to position your investments in fancy colored diamonds, Arpège Diamonds stands ready to help.  With over 50 years of combined industry experience, we'll help you gather the most effective information and insights so that you can make educated decisions on your fancy colored diamond investing.  You can contact us at 866-821-5508 for a personalized review.

For more reading on colored diamonds, see the links below:

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The world of naturally colored investment diamonds and jewlery is fascinating! 

Auction prices hitting new heights, stars and entertainers wearing new fancy colored diamonds, and backstories on some of the most iconic colored diamonds of all time. 

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