The Fancy Color Research Foundation (FCRF) said that the prices of fancy colour diamonds continued to climb moderately during Q3 2016, at a rate similar to Q2, driven by consistent demand for pink and more notably blue diamonds, which was partially offset by continued price declines in lower-cost, commercial yellow diamonds.

During the quarter ended September 30, 2016, prices of blue and pink diamonds increased 1.2% and 0.5%, respectively, FCRF said. On the other hand, prices of yellow diamonds declined by 0.1%, more than during the second quarter of the year. Overall, prices in the fancy color diamond category climbed by 0.4% for the period, it added.

FCRF said that the strongest price performers during Q3 2016 were the fancy vivid blue and fancy pink categories across all carat sizes, appreciating by 6.7% and 3.1%, respectively. At the other end, price declines of between 1-3% were reported for all yellow categories, including fancy, intense and vivid. However, trader interviews reveal that certain intense and vivid yellow diamond shapes such as rounds, pears and emeralds, did not experience price declines.

The foundation tracks and analyses wholesale pricing data, and reported that over the 12 months ending October 2016, the Fancy Color Diamond Index appreciated by 0.9%. The rise was driven by price increases for blue and pink diamonds of 3.2% and 1.7%, respectively, and offset by a 1.6% decline in prices of yellow diamonds.

According to FCRF Advisory Board member Ephraim Zion, “High quality, rare fancy color diamonds, especially vivid blues and vivid pinks, have continuously demonstrated their price resilience, as their supply is very limited, effectively neutralizing the effect of economic conditions on consumer demand.” He added that “On a positive note, it seems that prices for yellows are beginning to stabilize as inventories in the U.S. are running low, after a long period of sluggish demand."