Colored diamonds, with their vivid hues and exceptional rarity, are a work of geological wonder. Unlike D-grade colorless diamonds, these gemstones owe their stunning colors to trace elements or unique geological conditions during their formation. For example, a blue diamond contains the element boron, while a pink diamond results from structural distortions deep within the Earth’s crust.
Colored diamonds are only a fraction of all diamonds mined globally. For every 10,000 colorless diamonds unearthed, only a single naturally colored diamond appears. Within this exclusive category, some colors are rarer than others, making them highly sought after.
As demand for these precious stones grows, so does curiosity about their value. From color intensity and uniformity to size and origin, each trait adds to their desirability and mystique.
What Is a Colored Diamond?
Diamonds come in a variety of hues, from red, green, brown, and nearly every shade of the rainbow. Chemical elements, structural anomalies, or environmental factors during the diamond’s formation within the Earth are responsible for these colors. For instance, nitrogen creates yellow and orange hues, boron produces blue tones, and exposure to natural radiation gives green diamonds their distinctive color. Pink and red diamonds are among the rarest, with their hues believed to be a result of intense pressure altering their crystal structure.
Are All Colored Diamonds Rare?
Some colored diamonds occur more frequently than others. For one, brown diamonds are relatively common. In fact, in an article for Jezebel, writer and editor Dodai Stewart voiced her opinion and said the jewelry brand Le Vian was “brainwashing” consumers to buy brown “chocolate” diamonds just so the jewelry industry could get rid of a common color variety. Nonetheless, brown diamonds continue to sell for their unique and rich colors. The same goes for gray “salt and pepper” diamonds,
Examples of Rare and Popular Diamond Colors
In contrast, pink, blue, green, and red diamonds are exceedingly rare and coveted. As a matter of fact, red diamonds, such as the Moussaieff Red, are so scarce that fewer than 30 certified red diamonds exist worldwide.
Fancy Color Grading: Role of Color in Value
The value and appeal of a colored diamond heavily depend on its color grading, which the Gemological Institute of America (GIA) categorizes under its “fancy color” scale. This system assesses three key attributes of color:
- Hue: The actual color of the diamond (e.g., pink, blue, yellow).
- Tone: The depth of color, ranging from light to dark.
- Saturation: The intensity of the color, where vivid stones are the most prized.
- Distribution: Color consistency throughout the stone.
Let’s talk more about these four attributes below:
Hue: The Type of Color
The hue, or the dominant color of the diamond, helps determine its value. Some hues are rarer and more desirable than others. Red diamonds, as discussed, are the rarest with, less than 30 of them ever discovered. Blue diamonds, such as the Hope Diamond, owe their hue to traces of boron and are among the most valuable. Romantic pink diamonds have also gained immense popularity in recent years, especially following the closure of Australia’s Argyle Mine, which produced 865 million carats of rough diamonds and at least 90% of the world’s pink diamonds.
In contrast, brown and yellow diamonds are more common. Still, their vivid and intense variations still command premium prices.
Tone and Saturation: Vividness and Strength of Color
A diamond’s color intensity directly influences its market value. The stronger and more vivid the color, the more valuable the diamond becomes. For example, a Fancy Light pink diamond will be less pricey than a Fancy Vivid pink diamond of comparable size and clarity.
Intensity grading ranges from “Faint” to “Fancy Vivid,” with Fancy Vivid diamonds commanding the highest prices due to their bold and striking colors. These diamonds exhibit bold, rich hues that appear bright and saturated under natural light. For some collectors and investors, vividness outweighs other factors, such as carat weight, when assessing value.
Distribution: Uniformity of Color
The uniformity of color throughout the diamond, known as color distribution, is another determining factor. The most valuable colored diamonds display consistent and even coloration, with no noticeable patches or fading. Uneven distribution lowers the stone’s desirability and value, even if the hue, tone, and saturation are otherwise impressive. For instance, a blue diamond with a consistent and evenly distributed hue will fetch a higher price than one with areas of lighter or less saturated color.
Importance of Clarity, Cut, and Carat Weight
Clarity is less important for colored diamonds, as vivid hues can mask some inclusions and blemishes. However, exceptional clarity combined with rich color can drive up value.
The cut, on the other hand, can maximize a diamond’s color uniformity by meticulously shaping the stone to highlight its best attributes.
Carat weight significantly affects pricing, especially for rare hues like red and pink. Their value increases exponentially with size.
For a more comprehensive overview of how these factors influence diamond pricing and selection, refer to articles addressing clarity, cut, and carat weight.
Diamond Color Chart from Most to Least Valuable
This table shows the most and least valuable colored diamond hues from top to bottom, along with the reasons for their valuation.
| Color | Reason for Value |
| Red | Rarest color; fewer than 30 certified red diamonds exist worldwide. |
| Gray | Gray “salt and pepper” diamonds are relatively unknown, so the demand isn’t as strong. However, some say they are rarer than blue or pink diamonds. |
| Blue | Contains boron; scarce supply; associated with luxury and historical significance. |
| Pink | Romantic appeal; limited supply, especially after Argyle Mine closure. |
| Green | Natural radiation causes a unique green hue; extremely rare in intense saturation. |
| Purple | Rare and exotic; desirable for collectors due to its unusual appearance. |
| Yellow | More common than other hues but vivid and intense yellows still command premiums. |
| Brown | Frequently found in mines; marketed creatively but generally more abundant. |
Disclaimer: The contents of this table may change based on the four Cs, market trends, increasing rarity, or shifting supply and demand. Always consult a certified gemologist or market specialist for the latest insights on colored diamond valuation before making purchasing or selling decisions.
Should You Buy Colored Diamonds?
Colored diamonds are a combination of beauty, rarity, and investment value. Rare hues have shown consistent value appreciation over the years, which makes them attractive assets for collectors and investors. However, their initial cost is often higher than white diamonds, especially for rarer hues and vivid color grades. The market for colored diamonds is also volatile, as trends and demand shift and diamond alternatives become more popular. Buyers must exercise caution and focus on certified, natural stones with reputable provenance to ensure long-term value.
If you want to invest in a natural colored diamond, consult an expert to evaluate its hue, intensity, and overall quality.
Where to Sell Colored Diamonds at the Best Value in Scottsdale, AZ
For those ready to sell, Biltmore Loan and Jewelry offers competitive prices for rare and valuable colored diamonds. If you’re not ready to part with your diamond, we also have flexible collateral loan options, allowing you to gain funds while retaining ownership of your jewelry. Visit us today for a free appraisal.