GemeWizard
Home|About Us|Store|Color Report Newsletter|Support|News & Events|Contact|Gemstones Colors

Gemstones Colors and Prices



         


   

      Gemewizard archive daily article







FIGURE 1 (click to enlarge)

  Honey, honey? Not right now dear

By the Gemewizard team
February 26, 2013


One of the more notable trends in the fancy colored diamond market of latter years is the way that brown diamonds have risen in the estimation of traders. Once regarded as a shunned and undesirable category, they have been transformed into a sought-after commodity with delectable trading names, like "Chocolate," "Cognac" and "Coffee."

But when analyzing the fancy brown trade, one notices sharp variations in prices according to the internal color composition of the gem. Adding a secondary color, or moderator, to the brown body color will generally cause the value of the diamond to rise, with the exception of gray, which lowers its value even below that of an unadulterated brown stone.

Prevailing fashion trends tend to influence brown diamonds prices more than those of the other fancy colors. A color combination that is considered a hot item and sold with a premium one season, may be seen as an old hat the next and sold for a discount.

This volatility makes it a challenge to determine the constants of the brown market. To better understand them, we decided this month to examine the current balance of forces among the color variations among brown diamonds. In other words, which color combinations of brown are selling?

For this research, we delved into our online fancy colored diamond-prices database, which provides us with more than $200 million worth of real time asking-price data, and we scanned it for fancy-graded brown diamonds weighing from 1.00 carat to 1.24 carats. Then, we sorted the results according to the various moderator colors and compared the current prices with the prices published by GemePrice™ for brown diamonds with the same properties, which we used as our baseline to measure change.

The results are illustrated in Figure 1. The prices from GemePrice™ are marked at 100 percent for each of the color grades. The pure brown colored diamonds, that were used as a test for the research, are being offered at prices that are only 2 percent higher than their GemePrice™ listing, indicating a stable market.

However, when moderators are added, the results change. Brown diamonds with pink or pinkish tints, which are priced between 20 percent to 50 percent higher than pure browns in the GemePrice™ pricelist, are being offered for more than twice (219 percent) the published price. It seems that brown diamonds with even a slight pink influence are considered very attractive and people are willing to pay for them huge premiums.

Dealers who we polled said that brown stones with a reddish tint behave much like those with pink tints and may even fetch higher premiums. However, since this combination is quite rare, there is insufficient amount of data available to provide a basis for responsible analysis. Still, the dealers say that even mentioning a pink or reddish tint may multiply the price of a stone.

In contrast, browns with yellow and orange moderators, which are commonly sold with attractive names such as "Golden" or "Honey," have become less attractive. Brown diamonds with an orange or orangey moderator, which are priced up to 50 percent higher than the pure browns in the pricelist, are being posted with discounts of 52 percent off their current price - in other words 48 percent below the list. With yellow and yellowish moderators, which are priced the same as pure browns, the negative influence is even stronger. The current asking price for these colors is 51 percent below the pricelist.

These results, which have been confirmed by diamond dealers, illustrate well the up-and-down nature of the category. "Golden" and "Honey" colors enjoyed their time in the limelight not so long ago, but they are now tough to move.

©2007 Menahem Sevdermish, GemEwizard, Inc. All Rights Reserved. Designed by YCS - Yahalom Creative Solutions