Demand for Blue Diamonds Is Up

Third quarter prices for blue diamonds were up 2 percent, with fancy vivid blue prices up 6 percent

The Fancy Color Research Foundation (FCRF), the Tel Aviv, Israel–based nonprofit that works to promote transparency, fair trade, and ethical standards in the colored diamond industry, reports that demand for fancy blue diamonds is up—and that the upcoming auction of an exceptional blue diamond by Sotheby’s may have spurred the interest.

The FCRF tracks pricing data for yellow, pink, and blue fancy color diamonds in Hong Kong, New York, and Tel Aviv.

Compared to the second quarter of 2015, yellow diamond prices were down 2 percent, pink diamond prices remained unchanged, and blue diamond prices were up 2 percent. Vivid blues, the highest rating for fancy colored diamonds, saw prices go up 6 percent over the previous quarter.

Year over year, blue diamonds were up 3 to 4 percent, with 5 ct. vivid blue diamonds up 11 percent, the highest single-category year-over-year price.

“Demand for blue diamonds may have been magnified by the excitement being generated by the upcoming Sotheby’s auction headlined by the Blue Moon, one of the world’s important fancy vivid blue diamonds,” said FCRF advisory board chairman, Eden Rachminov. “This has caused increased demand against a shortage of fancy blue diamonds.”

The Blue Moon, a 12.03 ct. internally flawless vivid blue, will be auctioned by Sotheby’s Geneva on Nov. 11.