Fancy-Color Price Index Beats Expectations

FCRF yellow diamonds

Prices of fancy-color diamonds slipped marginally in the fourth quarter of 2020 as stability in the yellow category helped the sector stave off a heavier slump, according to the Fancy Color Research Foundation (FCRF).

“Although 2020 was challenging in terms of logistics and travel, contrary to market expectations, fancy-color diamond prices proved to be resilient, with minor price decreases across the board,” the FCRF said Monday.

The organization’s Fancy Color Diamond Index for yellows inched down 0.3% year on year in the three months ending December 31, while prices for blues fell 1.3%. Pink fancy-color diamonds decreased 0.9%, with the overall index slipping 0.8%.

The 1.50- and 5-carat categories were the strongest for fancy blues, increasing 0.5% versus the previous quarter, while fancy-vivid blues decreased 0.6%, led by soft prices for 1-carat stones in that category. Pinks stayed mainly flat compared to the third quarter, with 2-carat fancy pinks seeing the highest rise, up 1.4%. In yellows, the fancy-intense, 5-carat segment grew 0.8%, and the price for fancy-vivid, 3-carat stones was up 0.7%. Fancy-yellow, 1.50-carat diamonds increased 0.6% during the period.

The FCRF believes prices of yellows will continue to remain strong throughout 2021.

“2020 was a fascinating year; wholesalers and retailers alike had to overcome many logistical hurdles in order to finalize simple transactions, while demand for fancy-color diamonds was solid,” said FCRF advisory board member Eden Rachminov. “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.”

The index tracks prices of yellow, pink and blue fancy-color diamonds in Hong Kong, New York, Geneva and Tel Aviv.

Source: Diamonds.net

Study yields new insight in hunt for rare, valuable yellow diamonds

Yellow diamonds, some with colourless cores

A new study by University of Alberta scientists could help guide the search for rare, high-value yellow diamonds in the Canadian North.

The researchers, led by PhD student Mei Yan Lai, examined the chemical makeup of stones recovered from the Chidliak and Ekati mines in Northern Canada to get a better understanding of how they formed.

“Without this research, we wouldn’t know that two separate formation events occurred, and that the second, more recent event is responsible for the yellow colour,” explained U of A diamond geologist Thomas Stachel.

“The more we know about the origin of these potentially high-value diamonds, the better results for diamond exploration and value creation in Northern Canada.”

Lai said they wanted to understand the origin of the yellow colour in the diamonds from the two deposits.

“Canadian yellow diamonds have never been studied spectroscopically in detail. Our results suggest that the cause is the preservation of unstable single nitrogen atoms preserved inside the diamonds,” explained Lai, who conducted this research as part of her master’s studies in the Diamond Exploration Research Training School under the supervision of Stachel.

The research team determined that some yellow diamonds contain colourless cores, meaning that the yellow outer layers crystallized on top of clearer centres. Lai determined that the yellow diamonds crystallized no more than 30,000 years before the kimberlite eruptions that brought them up to Earth’s surface.

“Our analysis shows that the colourless cores in these yellow diamonds are about one billion years older,” Lai said. “In fact, the carbon isotope compositions and nitrogen concentrations of the colourless cores and yellow outer layers are significantly different, suggesting that they formed in at least two distinct events and involved different diamond-forming fluids.”

The researchers said discovering a potential new source of yellow diamonds in the Canadian North is economically significant, as the previous main source of high-quality yellow diamonds, the Ellendale Mine in Western Australia, was recently shut down.

The discovery of colourless cores in some of the yellow diamonds may also be of interest to the jewelry trade, said Lai.

“Occasionally, rough yellow diamonds lose their vibrant yellow colour after being cut and polished—probably because this kind of diamond has a thin layer of yellow overgrowth on top of the geologically older colourless core,” she said.

The project is a collaboration with Dominion Diamond Mines and Peregrine Diamonds Ltd. Part of the analyses were done at the Gemological Institute of America.

The research is supported by a bursary through DERTS, funded by the Natural Sciences and Engineering Research Council of Canada’s Collaborative Research and Training Experience program.

The study, “Yellow Diamonds With Colourless Cores—Evidence for Episodic Diamond Growth Beneath Chidliak and the Ekati Mine, Canada,” was published in Mineralogy and Petrology.

Source: miragenews

POZ Minerals to Bid for Ellendale Mine

POZ Blina yellow diamonds

Only a year ago, very few in the diamond industry would have heard of POZ Minerals. But the company, better known as a phosphates producer, is trying to build a portfolio of projects in Western Australia that could make it a niche supplier of fancy-yellow diamonds.

POZ announced Tuesday that it was bidding for the Ellendale mine after the state government’s call for investors in the asset last week. While POZ already owns the adjacent Blina mine, it hopes to combine the two assets and solidify its position in the fancy-yellow category, Jim Richards, POZ chairman, explained in an interview with Rapaport News Monday.

Owning both “would result in economies of scale and efficiencies in exploration and development and would be a major step towards building a branded diamond-mining company producing the fancy yellows for which Blina and Ellendale are justifiably famous,” the company added in a statement it released Tuesday.

Richards believes the company is a front-runner in the Ellendale bid, given that it already has four mining leases at Blina and since POZ is the only miner in the area with such a license. It also already has a deal with Bunuba Group, the native titleholder for both the Blina and Ellendale land.

Ellendale comes with some history, however, after former owner Kimberley Diamonds ran up bills and a list of creditors that forced it to close the mine in 2015. That, despite a lucrative supply agreement with luxury jewelry Tiffany & Co. for its fancy-yellow diamonds.

Richards is hoping to reestablish that partnership and forge new ones with other retailers. Ellendale’s yellows have a consistency few other mines can achieve, he explains. Meanwhile, POZ is in talks with retailers in Australia and abroad for similar offtake agreements and branding of yellow diamonds from the Blina mine.

POZ is still in a testing phase at Blina and is looking for investors, or to partner with “an experienced mining company,” before production can proceed. Testing shows that fancy yellows account for about 7% of Blina’s production, while white stones make up 18%, 46% are off-white diamonds, and 29% brown. Of those, 93% are gem content or near-gem content, Richards noted.

A parcel of stones from the mine was valued at an average price of $389 per carat, with the fancy-yellow diamonds estimated at approximately $3,391 per carat.

Image: Blina mine yellow diamonds. Credit: POZ Minerals

Source: Diamonds.net

Yellow diamond yielding mine back on the market

Fancy Vivid Yellow Diamonds

The Liquidated Ellendale mine in Western Australia, known for its fancy yellow diamonds is back on the market.

The Ellendale mine claimed to have yielded around half of the world’s supply of rare yellow diamonds during peak production.

Ellendale mine is located 120km east of Derby was also the main supplier of fancy yellow diamonds for luxury jewelry retailer Tiffany & Co.

Canary Diamond

vividly bright-yellow fancy colour diamond

A Canary Diamond is a highly sought-after type of fancy yellow diamond known for its rich, intense yellow hue. These diamonds get their vibrant colour from the presence of nitrogen, which absorbs blue light and allows yellow to be the dominant visible colour.

Key Features of Canary Diamonds:
Intense Yellow Colour

Unlike lower-grade yellow diamonds, canary diamonds exhibit a deep, pure yellow shade with strong saturation.
The term “canary” is an unofficial trade name used to describe Fancy Intense Yellow or Fancy Vivid Yellow diamonds, the highest-quality yellow diamonds.
Rarity and Value

Fancy yellow diamonds make up only a small percentage of mined diamonds, and the Fancy Vivid Yellow variety (the purest canary shade) is even rarer.
Their value depends on colour intensity, carat weight, clarity, and cut.
Grading by the GIA

The Gemological Institute of America (GIA) classifies yellow diamonds into different intensities:
Faint Yellow
Very Light Yellow
Light Yellow
Fancy Light Yellow
Fancy Yellow
Fancy Intense Yellow (Canary Diamond Category)
Fancy Vivid Yellow (Most Valuable Canary Diamonds)
Famous Canary Diamonds

The Tiffany Yellow Diamond (128.54 carats) – One of the world’s largest and most famous canary diamonds, owned by Tiffany & Co.
The Allnatt Diamond (101.29 carats) – A renowned Fancy Vivid Yellow diamond.
Investment Potential

Due to their beauty, rarity, and growing demand in the luxury jewelry market, high-quality canary diamonds are considered an excellent investment.