Pinks Show Strongest Price Growth

RAPAPORT... Prices of pink fancy-color diamonds outperformed other majorcolor categories during the second quarter, the Fancy Color Research Foundation(FCRF) said. Prices of pinks rose 0.4% quarter on quarter for the threemonths ending June 30, according to the FCRF, which released its quarterlyFancy Color Diamond Index (FCDI) last week. By contrast, prices of blue fancy-color diamonds declined0.3% compared with the first quarter, while yellows slid 0.8%, theorganization said. The overall index for fancy-color diamonds slipped 0.1%. The fancy-vivid-pink category saw a price increase of 1.3%. Within that division, 2-carat fancy-vivid pinks rose 2.8%, while thoseweighing 3 carats climbed 2.6%. However, prices of 1-carat pink diamonds dropped 0.7%, with 1.5-carat stones falling 0.2%. The rise in pink prices is likely attributable to mediacoverage surrounding the upcoming closure of Rio Tinto's Argyle mine inAustralia, which is famous for its pink diamonds, noted Alan Bronstein,president of the Natural Color Diamond Association. While blue diamonds weighing between 1 and 3 carats sawincreases, the overall price was dragged down by a 0.9% decline in the8-to-10-carat category, FCRF explained. The downturn in prices of yellow fancy-color diamonds wasled by a drop for stones weighing 1 to 3 carats, with 1-carat yellows falling2.7%. However, prices of 8-carat fancy-yellow diamonds increased 2.1% in thesecond quarter, compared with a decrease of 4.8% in the first three months ofthe year. The weak demand that has persisted in the market overall is also likely affecting prices of colored diamonds, the FCRF said. "The recent price declines in the white goods created anoverall negative psychological effect on all diamonds," explained FCRF advisory board member Eden Rachminov. "This is probably thereason we also witnessed a decline of 0.1% in the Fancy Color Index." The index tracks prices of yellow, pink and blue fancy-colordiamonds in Hong Kong, New York and Tel Aviv. Image: Pink and yellow fancy-color diamonds. (Fancy Color Research Foundation)