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What Determines the Value of the Diamond?

The Gemological Institute of America (GIA) developed the 4 Cs – Colour, Clarity, Cut and Carat Weight. They use this as a benchmark to value a diamond. Previous to this internationally recognized grading system, there were no such standards in place. Hence a value of a diamond was very subjective.

  • Colour

    The GIA developed the D-to-Z colour grading scale 50 years ago to show the range of colour that a diamond has. D represents the colourless spectrum; while the opposite side of the spectrum is Z which represents the light colour end.

  • Cut

    Natural Fancy Coloured Diamonds are unique with graining to show its colours. If your intent is to turn your loose diamond investment into jewellery, then the right type of cut (size and shape) will make all the difference in the value of your Fancy Coloured Diamond.

  • Clarity

    Fancy Colour Diamonds will naturally have graining to them. They generally will not be as clear as a colour-less diamond. However, a low clarity FCD can still be highly sought after. As long as these FCDs have an exquisite face-up colour, they will be in high demand!

  • Carat

    The carat is the weight of the diamond. The bigger the diamond the rarer it is. However, when it comes to investing in loose natural coloured diamonds, it’s better to diversify your portfolio. Hold more variety to ensure that you maximize your short and medium term returns.

How are Fancy Coloured Diamonds Made?

Geologists believe that diamonds are formed in the earth’s mantle (under the continental plate) and delivered to the surface through volcanic eruptions.

For natural diamonds to form, highly organized carbon atoms are placed under extreme pressure and temperatures. The temperature in the earth’s mantle reaches a minimum of 2000 degrees Fahrenheit and squashed under 725,000 pounds of pressure per square inch.

(Source: http://geology.com/articles/diamonds-from-coal/)

Fancy Coloured Diamonds form when a different chemical compound is mixed in with the carbon atom.


Red diamonds are formed when their crystal lattice is distorted and absorbs a particular band of green light. Then during its voyage to the surface, the electron structure changes and causes it to change to a red diamond. This is process is extremely rare and make them an extremely valuable asset.


Natural purple diamonds are said to be the second rarest diamond after the red. The displacement of carbon atoms with the infusion of a carbon atom may contribute to its colour. These beauties only account for 1% of diamond mines found in Siberia.


Natural green diamonds are fairly new to the market and also very rare. Some natural green diamonds will have nickel present in its structure; the absorption of nearby radiation is what makes it green. This process occurs when the diamond is traveling to the earth’s surface. The hue is generally confined to the surface and more towards the yellowish green side. Their attributes are low in tone and in saturation.


A natural orange diamond occurs when carbon atoms are infused with a nitrogen atom. For a true orange diamond, there cannot be any traces of brown, yellow or pink overtones and hues. Fancy orange diamonds are found in the Argyle Mine and in South Africa.


Natural pink diamonds occur when the electron structure of a colourless diamond is changed. This occurrence happens during the voyage from the earth’s mantle to the surface. 90% of natural pink diamonds come from the Argyle Mine in Australia. These fancy coloured diamonds are very rare. Since the opening of the Argyle Mine the size of diamonds and the quality is depleting. The mine is set to close sometime between 2018 and 2020. Fancy Pink Diamonds are in high demand and their value has grown tremendously over the past 10 years. As the mine closes the value will only increase. Natural pink diamonds are also found in India, Brazil and Tanzania.


Natural blue diamonds are extremely rare and they found in Pretoria, South Africa. The blue diamond has a combination of boron, hydrogen and nitrogen. When boron is the dominate trace element, it creates a Fancy Blue Diamond. Intense and vivid blue diamonds are in high demand. Blue diamonds are rarely as saturated and they generally have a hint of gray in them.


Natural Gray Diamonds are formed when a high concentration of hydrogen is in the diamond. Occasionally boron will be found in it too which brings it closer to the blue side. Gray diamonds are considered rare even more so than yellow and brown. However, they are one of the more affordable FCDs and a great alternative to a colourless diamond. Gray diamonds will have a weaker colour saturation and have a more metallic look. However they are very chic. Gray diamonds only account for 2% of the Fancy Colour Diamond production. Gray diamonds can sometimes be called charcoal gray, steel, slate, silver and pigeon diamonds. They are mined globally.


Natural yellow diamonds are formed when nitrogen inclusions are mixed with the carbon structure. 60% of Fancy Coloured Diamonds are yellow or also known as canary. Fancy Yellow Diamonds are in high demand. They are readily available and they have been growing in value over the past 10 years.


Natural brown diamonds are created with nitrogen is in the diamond. This gives a brown diamond a cognac to a chocolate colour look. The brown diamond was very popular in Roman times and found in many rings. It fell out of style until the 1980s. Even though these diamonds are readily available, they are still very valuable as a jewellery item. Out of all the diamonds, natural brown diamond are one of the most affordable.


Natural Black Diamonds are formed when graphite comes in contact with a diamond as well as random clustering. The natural diamond are opaque. Unlike other FCDs they only come in a Fancy intensity. Natural Black Diamonds have grown in popularity over the years. They are relatively affordable and they can be found in Brazil and Central America.


Natural White Diamonds are opaque and not often found in nature. They are a colourless diamond with high concentrations of submicroscopic inclusions. These diamonds are measured by their saturation with their designation of being Fancy. They are rare and extremely valuable. A great investment opportunity for long-term gain!