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The Four Cs of Fancy Color Diamonds and A Guide for Your Color Diamond Investment

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Diamond Envy guides customers on the most important characteristics while buying fancy color diamonds. About one in every 10,000 diamonds is born with a natural color, making fancy color diamonds extremely rare.

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» While the price of these stones is influenced by the 4 Cs, far more important is the intensity of their primary color and how well it's distributed throughout the stone.

These diamonds come in a rainbow of colors, from blues and pinks to greens and reds. Some, like chameleon diamonds, even change color. As a group, these diamonds are extremely rare and have continually appreciated in value, making them an excellent investment.

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All fancy color diamonds sold at Diamond Envy are certified by the Gemological Institute of America (GIA), one of the most respected independent diamond grading laboratories in the industry.

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This report authenticates the diamond's natural color and other unique characteristics of the stone (while your eye authenticates its inimitable beauty).

They are also graded according to the 4 Cs, but there are some notable differences (as compared to colorless diamonds) which we'd like to bring to your attention:

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Color:11• Fancy color diamonds may have only one primary color, or hue, such as blue, pink, green, red, etc. Sometimes, they will have a secondary color, such as yellowish-orange, purplish-pink, etc.

• GIA uses eight primary hues (red, orange, yellow, green, pink, blue, violet and purple) to designate color. When you factor in secondary hues, GIA's grading system has 27 colors (or color combinations) in total. If a diamond does not have a secondary hue, it is appreciably more valuable.

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Color:11• Unlike colorless diamonds (which are graded on a D to Z color scale), fancy color diamonds are graded by their color and its intensity. The intensity, or saturation, scale almost describes what you feel when you see these stones, and it runs as follows: light, fancy light, fancy, fancy intense, fancy deep, fancy dark and fancy vivid.

• The more intense the color, the more rare and valuable the diamond will be, making it one of the most important considerations in buying a fancy color diamond.

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Cut22• Fancy color diamonds are cut to accentuate color, as opposed to colorless diamonds, which are cut to emphasize brilliance.

• As a result, fancy color diamonds often appear in shapes other than round, since shapes that are squarer tend to optimize the way color appears in a stone. As the song goes, sometimes it's actually hip to be square.

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Carat33• After color, carat weight is the most important consideration in a fancy color diamonds.

• It's rare to find natural color diamonds in especially large sizes, so prices rise exponentially the larger the diamond is. In this case, size not only matters, it means big bucks.

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Clarity44• In the realm of fancy color diamonds, clarity is the least important consideration. Because natural flaws in the diamond tend to be obscured by the stone's color, a diamond with a vivid primary color that's visibly included may still end up extremely rare and valuable.

• With fancy color diamonds, you should focus on the rarity of the color, the intensity and tone of the color, and the size of the stone, in that order, to determine its inherent value. Of course, don't forget to keep your eyes wide open since you're likely looking at one of nature's most beautiful creations!

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Fancy Color Diamonds as an Investment:Diamonds comprise an investment asset class all on their own due to their distinctiveness and rarity. Nature produces very few fancy color diamonds (only one in 10,000 diamonds has a natural color, with red, blue, pink, green and orange being exceptionally rare).

Diamonds in general are a diminishing resource whose supply relies on the discovery of new sources. Given how unlikely it is that a major diamond deposit will be discovered in the near future, the price of fancy color diamonds, the rarest of these rare stones, is likely to continue to rise, exceeding the performance of traditional investments and serving as a hedge against inflation. Plus, there is no investment that's more beautiful to look at or wear.

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The global market for diamonds is projected to grow to over $230 billion by 2015, with China and India leading the charge. Because of recent financial upheavals, marked by falling stock markets and devalued currencies, investors have turned to "hard assets" such as diamonds and gold as a store of value.

Since supply of fancy color diamonds is increasing at a far slower pace than demand, their prices have understandably skyrocketed. Because of their rarity, fancy color diamonds are worth much more per carat than their colorless counterparts.

A natural red diamond weighing half a carat might be worth over 30 times more than a comparably-sized colorless stone. Over the past four decades, wholesale prices of fancy color diamonds have never decreased. As an asset class, fancy color diamonds are thoroughbreds when it comes to long-term appreciation.

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For Help or to Order (888) 983-9588International Calls: +1 (646) 653-8988

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