FAQ - FREQUENTLY ASKED QUESTIONS
Q - Are coloured diamonds natural / are
coloured diamonds real?
A - The coloured diamonds sold by The
Coloured Diamond Exchange are 100% real, natural
Q - How do coloured diamonds get their
A - Mother Nature's ability to capture
the "fancy" colours in diamonds only took about
50 Million years - but it was worth it! Trapping
different elements in the carbon during their
formation gives us a rainbow of diamond colours.
Boron causes the blue diamond. Extremely rare -
maybe 1 in 200,000 diamonds will have any trace
of blue. Nitrogen is responsible for the
spectrum of fancy yellows. It's radiation that
usually causes the beautiful, rare and unusual
green diamond, although sometimes it's due to an
over exposure to hydrogen. And it's thought that
stress in the diamond induced by the diamond
material making its way to the surface of the
earth or by tectonic forces causes the very rare
and very popular pink to red diamonds.
More than 300 colours have so far been
identified, and keep in mind that these include
an infinite number of shade and hue
Q - Which coloured diamonds are the
A - Red is by far the rarest colour of coloured
diamonds. There is said to be less than 30 red
diamonds know to be in existence. After red
would be blue and green. Keep in mind though
that all coloured diamonds are extremely rare.
Q - Are coloured diamonds graded the same
way as a colourless / white diamonds?
A - They are graded the same way but with
one difference. One of the "4 C's" is Colour.
Colourless diamonds are graded for their lack of
colour whereas coloured diamonds are graded for
their saturation of colour.
Colourless diamonds are graded alphabetically
from D - Z. The highest grade is "D" for a
colourless diamond. The "D" grade means the
diamond is about as clear and colourless as
possible. For coloured diamonds the grading is
completely different for colour. The highest
grade assigned is the grade of "Fancy Vivid".
This indicates a perfect, deep, rich saturation
Q - What is the system used for grading
the colour in coloured diamonds?
A - As mentioned above, the highest grade
assigned to a coloured diamond is the grade of
The Gemological Institute of America ("The GIA")
developed a standard system that uses nine
categories to grade coloured diamonds. This is a
universal system. The nine categories to grade
coloured diamonds are Faint, Very Light, Light,
Fancy Light , Fancy, Fancy Dark, Fancy Intense,
Fancy Deep and Fancy Vivid.
Q - What makes coloured diamonds such a
popular investment strategy?
A - Ultimately it's basic supply and
demand. Out of 10,000 carats of diamonds only 1
carat will be fancy coloured. Some of the
largest mines in the world are petering out and
being closed. DeBeers closed 3 mines in 2006 and
Australia's Argyle mine, which produces 90 - 95%
of the world's pink diamonds is said to be
finished producing by 2018 - 2020. Once their
production of pinks ceases, supplies will dry
right up. Demands increase every year and
supplies are dwindling. It's a commodity that
Compare what's happening now with pinks to
what's already happened and happening with blue
diamonds. In recent years, the principal mine
producing blue diamonds (The Premier Mine,
formerly the Cullinan Mine) passed its peak
production capacity, causing a significant
decrease in the supply of blue diamonds. This
caused their price to go through the roof!
Additionally, vivid blue diamond auction prices
have been continuously breaking records, a trend
influencing coloured diamond prices throughout
the value chain.
Supply and demand.
Q - What coloured diamonds offer the
greatest profit potential?
SHORT ANSWER: Any Size Argyle Pink
Diamond and Fancy Intense Yellow Diamonds at
least 2.00 carats in size.
LONG ANSWER: Our opinion is that yellow
diamonds may offer great opportunity to a very
broad spectrum of investor but pink diamonds
currently possess a really unique attribute. On
the one hand, high grade yellow diamonds offer
great promise and are considered more
"affordable" than their pink counterpart. Rio
Tinto's Argyle Mine, which produces somewhere
around 90 - 95% of the world's pink diamonds
currently only produces a handful of high
quality pinks each year and is scheduled to
"peter out" over the next 6 or 7 years.
The model of "supply and demand" certainly
suggests pink diamonds could skyrocket in price
once no more are being produced. The past two
decades have shown prices soaring for these
little miracles of nature. With that said, their
potential cannot be ignored...and isn't being
ignored as anything pink is highly sought after.
Yellow diamonds are starting to set all kinds of
records around the world at auctions and offer
great potential as their popularity globally is
tremendous and supply wise, they haven't reached
the level of pinks, blues or greens.
Q - Are coloured diamonds more expensive
than colourless / white diamonds?
A - Yes, generally they are. Natural
fancy coloured diamonds are essentially an
extremely rare mistake of nature. Their quality
is graded and depending on the rarity of the
stone's colour, and/or clarity, and/or carat
weight and/or cut you may find a diamond the
size of your fingernail fetching millions of
Q - Can "The Average Joe" afford a
A - Absolutely! The flexibility in the coloured
diamond market makes it perfect for anyone to
get involved. The spectrum is broad enough that,
for example the very popular coloured diamonds
referred to as "Champagne" and "Chocolate"
(currently available in jewelry stores all over
the world!) can be acquired at costs 50% lower
than white / colourless diamonds of the same
Q - Are coloured diamonds ever used in
A - The combination of rarity and uniqueness has
actually made coloured diamond engagement rings
very trendy. Plus, every so often in the news we
see celebrities being caught by the paparazzi
showing off their dazzling new pink or yellow
engagement rings. Those two colours seem to
dominate that category of jewelry. If you want
to stand out from the crowd, contact one of our
Consultants today about coloured diamond jewelry.