Fancy Color Diamond Index Holds Firm:
May 13, 2015 5:02 AM By Fancy Color Research Foundation
Press Release: Analysis of the latest data published by the Fancy Color Research Foundation (FCRF) in its third Fancy Color Index reveals a stark contrast between the performance of colored diamonds and their colorless counterparts. While white diamond categories suffered price declines of 4 percent to 6 percent, according to the Rapaport Group’s RAPI™, the value of fancy colored diamonds continued to hold firm, with key types increasing in value, during the period between January and April 2015.
Commentary from those who contributed data to the quarterly analysis suggests that a key factor in their resilience during this period is the significant shortage of product across most color and size categories.
This has resulted in those working with fancy color diamonds continuing to enjoy the high margins that these assets deliver. It is expected that the analysis and insight provided by the foundation will continue to enable members to make informed decisions ahead of undertaking significant fancy color diamond transactions.
Product segments that showed price increases of more than 2 percent in the period January to April, included 1-carat fancy and intense blues, 3-carat intense blue and 1.50-carat fancy yellows. A complete data analysis by each category is available to FCRF members at FCResearch.org (membership is open to anyone in the jewelry and related industries and payment can be carried out online).
Ephraim Zion, a member of the advisory board of the Fancy Color Research Foundation, commented: “It is encouraging for our members to see that, once again, fancy color diamonds have exhibited a solid growth in value, with fancy and intense blues performing particularly well.
By collating and analyzing sales data from major diamond trading centers we are able to provide far greater levels of understanding as to the performance of fancy color diamonds. This gives our members increased certainty when transacting fancy color diamonds.”
Eden Rachminov, chairman of the board of advisors for the FCRF, said, “Our members are telling us that our analysis is exceptionally useful as they capitalize on the wealth of information and educational tools at their disposal. We are seeing that increased levels of understanding promoting greater adoption of fancy color diamonds as a product category.”
About the FCRF:
The FCRF is an independent, non-profit organization formed to promote fair-trade, ethics and transparency in the fancy color diamond retail, wholesale and mining industry. The FCRF activity includes the development of innovative research and digital tools that will support the fancy color diamond retail selling process for consumers, retailers and collectors; the promotion of fair trade in fancy color diamonds throughout the value chain underpinned by reliable data analysis to create a uniform knowledge base across all industry layers and the authoring of publications to clarify the complex methodology for evaluating fancy color diamonds.
Membership of the FCRF is open to retailers, auction houses, wholesale traders/manufacturers, financial institutions, insurance appraisers and mining companies. Organizations interested in membership of The FCRF should visit fcresearch.org to register details.
About the Fancy Color Diamond Index:
The Index is a first-of-its-kind tracker of changes in the market prices of yellow, pink and blue fancy color diamonds, the three most commonly traded fancy color diamond categories (a market price is a wholesale transaction taking place in one or more of the global diamond trading centers).
The Index is a composite representation of changes in price points gathered since 2005, based on a statistically significant sample size. It offers insight into variations in the appreciation of diamonds of different colors and sizes.
The Fancy Color Research Foundation oversees proprietary prevalence and pricing data aggregation and production of the index. A third party New York-based audit firm reviews the development of The Index from the various data points gathered.
The Index can be used to understand and track the historical price behavior of different rare fancy color diamonds.