WHAT ARE COLORED DIAMONDS?
Extremely rare and beautiful, these gemstones are among nature’s most unique creations. Diamonds are formed when carbon atoms bond deep beneath the earth’s surface. Colored diamonds obtain their hue when additional (non-carbon) trace elements are present during that process. The Gemological Institute of America (GIA) recognizes 27 different hues of natural colored diamonds (there are also various degrees of saturation), with the rarest and most valuable being reds, blues and pinks.
For every 100,000 carats of colorless diamonds mined, only one single carat will be a natural fancy colored diamond, and this quantity is steadily shrinking. Colored diamonds are valued at 100 to 1,000 times the price of colorless stones.
The small and ever-diminishing world supply, combined with a recent surge of buyer demand, is resulting in dramatic annual value increases.
Several diamond mines have shut down or are scheduled to do so – including the Rio Tinto Argyle Mine in western Australia, which produces 95% of the world’s pink diamonds – in the next few years, and there have been no recent new mine discoveries.
Even if a new consistent source of diamonds was discovered today, it would take at least 15 years for a new mine to go from the initial surveying stage to diamond production. This is very unlikely, as the current technology available for discovering new mines has not proven successful.