Blue Diamonds Drive Colour Index Higher in Q2 2015
“Fancy color diamonds are continuously demonstrating resilience and positioning themselves as a uniquely protected product category, strongly affected by dwindling supply.” -Ishaia Gol, FCRF
The Fancy Color Diamond Index (FCDI) rose in the second quarter, driven mainly by the blue-diamond categories, according to the Fancy Color Research Foundation. Fancy-color diamonds continued to outperform, showing price strength amid a backdrop of declines in their white counterparts during the second quarter.
Based on a survey of more than 20 wholesale traders, analyzed by the FCRF and reviewed by accounting firm Citrin Cooperman, the index revealed prices of fancy-color diamonds across the pink-, yellow- and blue-categories, increased 1% over April to July. The strongest performers included 1-ct fancy blue and 1-ct fancy vivid yellow, both up 4% each. Fancy vivid blue in the 3-10ct range jumped 4-6%. A significant advance of 5-6% was noted in 8-10ct pinks, both intense and vivid. In most categories, the increase in prices was because of lower supply.
Price weakness among white diamonds continued during the period under review as polished inventories accumulated across the supply chain. According to the RapNet Diamond Index (RAPI™), 1-carat diamonds prices slid 1.6% over the same period.
“Fancy color diamonds are continuously demonstrating resilience and positioning themselves as a uniquely protected product category, strongly affected by dwindling supply,” Ishaia Gol, a member of the board of advisors for the FCRF, said. “Actual trading has been thin over the last quarter, mainly driven by notable softness in China.”
Gol, however, pointed to improved demand in other regions and added traders felt strongly about their pricing, acknowledging a decline in supply channels, which would likely be further diminished as miners cut production later this year.
To further enhance data consistency and improve accuracy, the FCRF has continued to expand its global contributor reach in collecting pricing data. Market pricing is submitted by contributors over a secure data link that applies advanced statistical tools to identify trends and rule out pricing outliers.
Source: Rapaport News August 25, 2015