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  Shades of Gray: The importance of the second color moderator on value (Part II)


March 30, 2015


In one of our more recent issues of the newsletter, we discussed the effect of a brown or brownish, second color moderator on the price of colored diamonds. In this issue, we shall explore the effects of gray and grayish second color moderators on the overall appearance and value of a stone.

As explained in Part I, grading reports for certain colored diamonds will describe three colors, such as "brownish greenish Yellow." The third color, also referred to as the second color moderator, may either be Brown, brownish, Gray or grayish. These second moderators occur in diamonds with lower saturation - in other words in all of the fancy grades, with the exception of "Fancy Intense" and "Fancy Vivid."

To explore the influence of the Gray/grayish moderators, we once again refer to our substantial database of color and pricing data, comprising $420 million worth of colored diamonds offered online, to sort and compare the items according to their listed moderators. As we did in the first part of this series, when we focused on the Brown and brownish second moderators, this time we filtered the results to include only items which display Gray or grayish third colors.

What we discovered is that, in contrast to the brown/ish second moderators, which are displayed in most of the warm colors, Gray and grayish are displayed a very narrow range of colored diamonds - from greenish Yellow to yellowish Green and from Green to Blue to Violet.

The effect of a Gray or grayish second moderator on the diamond's value is fairly similar to a Brown one. Its existence is so substantial that it takes over and the influence of the first moderator is ignored.

For example, a grayish Blue Green diamond will be valued as a grayish Green diamond (without the Blue). This influence is always negative and ranges from a 20 percent discount (for Yellow colors) to even more significant 50 percent, 60 percent and 65 percent discounts (for Blue, Violet and Green colors, respectively). For the Gray moderator, the effect is even stronger and ranges from a 20 percent discount (for Yellow colors) up to a 70 percent discount (for Blue, Violet and Green colors).

The following example may clarify this issue somewhat. Consider a diamond seller pricing a Fancy grayish bluish Violet diamond. The calculation will still be based on the Violet color. However, adding the grayish tint as the second moderator will impair its appeal and reduce its price by approximately 60 percent, regardless of the identity of the first moderator (bluish). The same color combination but with Gray instead of grayish, will decrease the price even further, to approximately 70 percent below the pure Violet price.

To sum up this two-part research project, both gray/ish and brown/ish second moderators reflect negatively on the diamonds' value. The Brown and gray/ish tints ignore the secondary color and act as a "first moderator," resulting in a dramatic decrease in value. However, while a brownish tint is considered to be less of a burden on the diamond's value than a Brown, the Gray and grayish tints both have similarly profound negative effects on the price.

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