The yellow diamond sector is poised for growth in 2021, with prices likely to improve from a relatively low base last year, according to the Fancy Color Research Foundation (FCRF).

Overall, prices of fancy colour diamonds were down by 0.8 per cent in 2020 despite an extremely challenging year due to Covid-19 restrictions. Prices dipped by a measly 0.1 per cent in the fourth quarter of 2020, reflecting continuously improving demand.

FCRF Advisory Board member Eden Rachminov commented, “Wholesalers and retailers alike had to overcome many logistical hurdles to finalise simple transactions, while demand for fancy colour diamonds was solid. I expect 2021 to be a bullish year for yellows. Their current price is relatively low, and I think that a price increase is inevitable.”

According to latest FCRF data, prices of pink diamonds remained unchanged in Q4 2020, with the fancy and fancy intense categories rising slightly. The 1- to 1.49-carat and 2- to 2.99-carat segments saw 0.4 per cent and 0.6 per cent increase, respectively, while the 2-carat fancy pink category was up by 1.4 per cent.

Fancy blues rose by 0.2 per cent while the 1.5- and 5-carat segments saw a 0.5 improvement in prices. Overall, prices dipped by 0.5 per cent in Q4, led by the vivid category with a 0.6 per cent drop. 

Yellows proved more stable, with the 3-carat segment seeing a 0.4 per cent upturn. The fancy intense 5-carat segment grew by 0.8 per cent and the fancy vivid 3-carat group rose by 0.7 per cent. 

In 2020, the yellow category decreased by 0.3 per cent, pinks by 0.9 per cent and blues by 1.3 percent. The vivid category in all colours and sizes were more stable, shrinking by 0.4 per cent. The intense category was down by 0.9 per cent while fancy diamonds saw a 1 per cent decline.

FCRF tracks pricing data for yellow, pink, and blue fancy colour diamonds in major global trading centres such as Hong Kong, New York, Geneva and Tel Aviv.