About Colored Diamonds
Diamonds are carbon atoms that crystallized on earth billions of years ago at depths greater than 150 kilometers under conditions of extreme temperature and pressure. After their formation, explosive eruptions of deep-seated magma transported the diamond-bearing rocks to surface. Only a few diamonds survived this journey, and even fewer were of gem quality. Rarest of all are colored gems. For every 100,000 carats of flawless white diamonds mined, only one carat of colored diamond is found.
Limited Supply
Colored diamonds are found on a random basis in most of the world's diamond mines and represent a small fraction of annual diamond production. One notable exception is the famous Argyle Mine in Australia, which produces 95% of the world's pink diamonds and many other exquisite colors, including its richly hued champagne and cognac diamonds. This geologically unique mine is slated for closure in 2018, and as yet, no similar deposits of economic interest have been discovered in the world.
Determining Value
Colored diamonds are so rare and valuable that many jewelers never expect to stock or sell one. As a consequence, little is known about how these gems are graded and valued beyond the 4 C's introduced by DeBeers in 1939 as a benchmark for evaluating the quality of colorless gem diamonds. The Gemological Institute of America (GIA) system for color-grading is based on the attributes of hue, tone and saturation.
- Hue refers to primary or characteristic color. Saturation refers to the strength or weakness of the primary hue or color, while tone is the amount of light or dark coloration present in the diamond.
- Under controlled conditions, a grader determines the stone's color from one of 27 hues, such as red, pink, blue and green through to brown and black. The fancy grade describes the stone's tone and saturation in this order: Faint, Very Light, Fancy Light, Fancy, Fancy Intense, Fancy Deep, and Fancy Vivid.
In contrast to the color grading scale for clear diamonds, which is alphabetical with D as the best color grade, Fancy Vivid is the highest grade of colored diamonds.
- Colored gems with vivid colors - red, pink, orange, blue or green - are exceptionally rare and will have no fixed price. Known as the Rembrandts of the diamond world, they rank among the most coveted estate pieces.
- Yellow or brown diamonds of extraordinary hue, intensity or tone are prized by jewelers as the most affordable of all colored gem diamonds.
The traditional 4 C's pertain as well, but color is more important than carat size, and clarity is considered secondary to color as most colored gems are slightly included. The shape of the cut for a colored gem is the one that will best emphasize its beauty and color. Most are cut into fancy shapes that amplify color such as a Radiant, Cushion, Pear or Oval. Round shapes are less common because of cutting losses.
Colored diamonds are so rarely found that they are valued at 20 to 25 times the price of the finest quality white diamond. Exceptionally fancy gems will have no fixed price. As with fine art, their value is determined by an exclusive bidding process.
The Color Spectrum
Diamonds occur in all colors of the spectrum, with some rarer than others. Color is due to trace impurities of nitrogen and/or hydrogen (yellow and brown), boron (blue), radiation exposure (green), or irregular growth patterns within the crystal causing microscopic imperfections with the lattice structure (pink and red).
- All colored diamonds are rare, but some are extremely rare and more valuable. Red is the rarest of all, followed by blue, green, orange and pink.
- The more intense the color, the rarer and more valuable the diamond will be in most cases. Fancy colored gems with vivid hues and intense saturation are the rarest diamonds on earth and will have the highest value.
The New 4 C's
Colored diamonds and rare precious gems represent a small but exclusive niche of the global diamond and precious gem marketplace. Carats Rare & Precious Gems has developed and adopted the new 4 C's - Competence, Credibility, Cost and Commitment - as essential cornerstones of its corporate values and standards.
- Competence: Selecting rare colored gems of exceptional beauty and quality requires a keen eye and highly specialized expertise and experience.
- Credibility: We sell only colored gems that are natural, conflict-free and certified by the Gemological Institute of America (GIA).
- Cost: Purchases are always broker-direct at wholesale rates.
- Commitment: We provide current market information and after-sales service to our clients in the colored diamond and rare gem marketplace.