The global fancy color diamond market faced a challenging 2024, with prices experiencing their sharpest annual decline since the Fancy Color Research Foundation (FCRF) launched its Index in 2014.
According to the FCRF’s latest report released today (January 28), the Index fell 2.2% over the year, reflecting the ripple effects of widespread economic uncertainty. While fancy color diamonds maintained relatively stable performance compared to white diamonds—whose prices plunged by 13.3%—the report underscores a shifting dynamic in the luxury gemstone market.
A Decade-High Drop
The 2024 decline marked the largest annual fall in the Index’s history, surpassing the previous record in 2019 when prices dipped by 1.4%. This setback contrasts with modest growth in 2023 (+2.2%) and 2022 (+3.9%), hinting at broader market challenges.
Yellow Diamonds Take the Hardest Hit
Yellow diamonds saw the most significant price reduction, falling 5.6% in 2024. Blue diamonds dropped by 1.8%, while pink diamonds, typically a standout performer in the luxury market, registered a smaller decrease of 0.8%.
The quarterly figures for Q4 2024 paint a similar picture:
- Yellow diamonds: Down 2.2% (compared to -1.6% in Q3).
- Blue diamonds: Down 0.3% (-0.7% in Q3).
- Pink diamonds: Down 0.8% (-0.1% in Q3).
Market Resilience Amid Broader Volatility
Despite the downturn, the FCRF highlighted the enduring appeal of fancy color diamonds as a specialized asset class. Anshul Gandhi, an FCRF data supplier, remarked, “These results underline the market’s stability and the enduring allure of fancy color diamonds, even in challenging economic conditions.”
Looking Ahead
While the 2024 slump has cast a shadow over the sector, industry insiders remain cautiously optimistic about long-term growth, citing strong demand for unique, non-traditional assets in uncertain economic climates.
As the gemstone market continues to evolve, fancy color diamonds remain a benchmark of resilience and exclusivity, even amid temporary setbacks.
Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.
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