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  • Do the 4C's - color, clarity, cut and carat weight - pertain to colored diamonds as well as clear diamonds?
    • Yes, they certainly do, however with clear diamonds the color grading scale is alphabetical. For example, the best color grade for a clear diamond is "D" whereas with colored diamonds "Fancy Vivid" is the highest color grade.
  • What is the color grading standard for colored diamonds?
    • The Gemological Institute of America (GIA) grades colored diamonds in this order: Faint, Very Light, Fancy Light, Fancy, Fancy Intense, Fancy Deep and Fancy Vivid with Fancy Vivid as the highest color grade.
  • What makes a colored diamond rare?
    • All colored diamonds are rare in their own right. Out of 10,000 carats of diamonds mined, only 1 carat will turn out to be Fancy colored. There are approximately 110 million carats of diamonds mined each year and only 2000 carats will be cut and polished colored diamonds. The Argyle mine in Australia, mines 30 million carats a year and less than 590 are jewelry grade. Less than 1/10th of 1% are pink diamonds and out of those, only a hand full are investment quality.
  • What colored diamonds are considered the rarest?
    • The rarest colored diamonds are red, blue, green, orange and pink.
  • Why are colored diamonds such a strong investment?
    • Supply and demand is the strongest reason colored diamonds are a strong investment. Demand for colored diamonds is increasing as supplies are falling. DeBeers closed 3 diamond mines in Africa in 2006 and the Argyle mine in Australia is ceasing open-pit mining in 2007-2008. The newest mines in Canada and Russia are not producing much in the way of colored diamonds so, with supplies of colored diamonds falling and demand increasing, prices should increase substantially.
  • What colored diamonds have the greatest profit potential?
    • Pinks and yellows have very strong potential for huge profits. As the Argyle mine only produces a handful of pink investment quality diamonds a year and demand is growing dramatically, prices for a pink can reach the levels of blues and greens which are in the 7 figure levels. Very high grade yellows have the best potential for growth and percentage wise could offer the best return as they have not yet reached the levels of pinks. Yellow are beginning to set records at major auction houses.
  • Is this a long term investment and how do I sell my diamonds?
    • Fancy colored diamonds are a 10-year investment in my opinion and the returns can be substantial. As with fine paintings, there are no set prices. Colored diamonds, like a Picasso, are a work of art and the price should be decided by the purchaser which is why I believe rare colored diamonds should be sold at auction.
      The highest price ever paid per carat for a colored diamond was in 1987 at Christies Auction House and was a 0.95ct Fancy Red Diamond that sold for over $927,000.00. It is hard to believe, however true, that a red diamond the size of your baby fingernail, is worth millions of dollars.
Rare Colored Diamonds is proud to offer diamonds graded by the GIA