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Figure 1: Price canges on fancy yellow diamond colors from April 2012 to May 2012.



  Fancy Vivid Yellow prices dip: A sign of things to come?


May 11, 2012


Having a vast and continuously growing database of fancy colored diamonds currently available for sale online over the Internet provides us not only with the support data required for the pricing information in GemePrice™, but also with plenty of leg room to perform a wide range of analyses to understand trends, changes and relationships taking place in the gem world.

Since the changes in prices of colored diamonds are constantly monitored for the benefit of GemePrice™, we decided this month to focus on the current state of prices and not general tendencies or relationships as we did before. Hence, with the help of our database, we chose to inspect the changes in the online prices of pure yellow colored diamonds during the past month and to try to project it on the global market.

First, we sorted data collected on May 1, 2012, to include 1.00 carat to 1.99 carats of pure yellow colored diamonds, each supported by a GIA certificate. We arranged the information according to fancy grades from Fancy Light to Fancy Vivid, and calculated an average for each. Next, we compared the current price averages with the equivalent averages from April 1, 2012, to retrieve the percentage of change that occurred during the past month.

The results are displayed in Figure 1. What we discovered was that while Fancy Light, Fancy and Fancy Intense grades showed a very slight price increase of 1.04%, 1.25%, and 0.28% respectively, the price of Fancy Vivid yellow actually decreased by 1.99%. The Fancy Vivid results indicated a change in price trends- from a continuous sharp incline during the previous five months to a slight decline over the past month.

What we notice here is that the Fancy Vivid prices behave differently from the other Fancy Yellow grades. This difference may indicate a change in how the market considers Fancy Vivid Yellow diamonds. Is this decline due to an automatic correction of the market to the previous holiday price increases, or is this a first sign of a series of more decreases yet to come?

What is the real story? We shall have to wait and see.

We will continue updating you on these changes from time to time. Stay tuned!

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