Fancy colour diamonds registered a marginal 0.4% increase in wholesale prices overall during 2016, with stronger demand for fancy blues and pinks offsetting the decline in demand for fancy yellows, Fancy Color Research Foundation (FCRF) said in a statement.

Prices for blue and pink diamonds rose 5.5% and 1.4%, respectively, but those of fancy yellow diamonds declined by 4.0%, the foundation reported.

During Q4 2016, average overall prices for fancy colour diamonds were slightly down, while prices of white diamonds decreased significantly during the same period, as a result of the India liquidity crisis, the organisation said. It added that the trends during the quarter mirrored the pattern seen over the past 18 months: consistent demand-driven price increases for blue fancy color diamonds, partially offset by continued price declines in lower-cost, commercial yellow fancy color diamonds.

The statement noted that the strongest price performers during Q4 2016 were the fancy vivid blue in the 10ct, 1ct and 2ct categories, appreciating by 5.6%, 4.8% and 4.3%, respectively. On the other side, price declines between 1-2% 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.

 The Fancy Color Diamond Index is calculated based on live pricing inputs from a large sample of the world’s leading traders of fancy color diamonds in Asia, United States and the Middle East.

FCRF Advisory Board chairman Jim Pounds said, “Blue fancy color 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”. He added: “Highly saturated yellow rough diamonds, especially vivids, have recently achieved high prices in tenders, likely representing improved demand that will impact prices.”