For the full year of 2016, the Fancy Color Diamond Index™ (FCDI) rose by 0.4 percent, driven by price increases for blue and pink diamonds of 5.5 percent and 1.4 percent respectively, and offset by a four-percent decline in prices of yellow diamonds, based on the wholesale pricing data collected by the Fancy Color Research Foundation (FCRF).
According to FCRF, on average, prices for fancy-coloured diamonds remained unchanged in Q4 2016. The overall trends were similar to the ones identified in the first three quarters. For more than 18 months, transactional data has pointed to two clear pricing trends: consistent demand-driven price increases for blue diamonds, partially offset by continued price declines in lower-cost, commercial yellow diamonds.
In the fourth quarter of 2016, prices of blue diamonds increased 1.5 percent, while pink diamond prices remained largely unchanged. Prices of yellow diamonds declined 1.4 percent more than during the third quarter of the year. Overall, prices in the fancy-coloured diamond category were slightly down during Q4, while prices of white diamonds decreased significantly during the same period, as a result of the India liquidity crisis. According to RapNet Diamond Index (RAPI), prices of white diamonds weighting 0.50 and 1.00 carat declined by 4.8 percent and three percent, respectively, between October and December 2016.
The strongest price performers during Q4 2016 were the fancy vivid blue in the 10 carats, 1 carat and 2 carats categories, appreciated by 5.6 percent, 4.8 percent and 4.3 percent, respectively. On the other side, price declines between 1-2 percent were identified across most yellow categories, including fancy, intense and vivid. Nevertheless, rare yellow diamonds (namely unique intense and vivid yellow) did not see price declines.
“Blue fancy-coloured diamond prices are at their all-time peak due to a combination of very thin supply and a healthy demand. Overall, high quality and well cut vivid blues and pinks do not exist in sufficient volume to create price stability,” said FCRF advisory board chairman Jim Pounds. “Highly saturated yellow rough diamonds, especially vivids have recently achieved high prices in tenders, likely representing improved demand that will impact prices.”
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