Red diamonds are the rarest of all natural “fancy coloured” diamonds. This makes them highly sought-after by diamond collectors. Investing in these coveted, rare stones can be interesting. Where do the natural red diamonds come from? Why is it interesting to invest in red diamonds? Find out below.
Red diamonds: To invest or not to invest?20 Jul 21
Origin of red diamonds
“Fancy coloured” diamonds exist in 12 different colours, and more than 230 colour combinations are distributed across different locations throughout the world. The majority of red diamonds are mined in the Argyle diamond mine in Australia. Not only red, but also pink, purple, blue and brown diamonds are found in this area. A large quantity of these coloured diamonds is also found in Brazil, Russia and India.
Red diamonds vs coloured diamonds
Coloured diamonds all differ from colourless (or white) diamonds because of their colour. Apart from this common trait, all coloured diamonds are totally different. Each coloured diamond has its own characteristic and its own unique colour. Because each colour variation is rare, each specific colour category has a different value. A relatively common coloured diamond often has a larger size. However, very rare diamonds, such as red diamonds, tend to be smaller when they are discovered. Like many other coloured diamonds, red diamonds can be found in one pure colour or a secondary colour such as purple, brown or orange. Coloured diamonds can be found in different colour intensities, except the red diamond. This one is found in only one colour: “fancy red”.
Origin of red colour
Impurities and chemical elements cause the red colour. As with pink diamonds, the red colour is caused by distortions in the crystal lattice. A very large deformation results in a bright red colour.
Value of a red diamond
As mentioned before, red diamonds are rare - very rare. Because of this, it is highly valued and hence comes with a higher price. In recent years, the interest in coloured diamonds and, more specifically, the interest in investing in coloured diamonds increased exponentially. This creates a growing demand for these natural coloured gemstones. In addition, it is unclear how many red diamonds there are in existing mines, which results in a steady rise in price.
Unlike yellow and pink diamonds, which consumers, investors and collectors purchase, red diamonds are particularly interesting for investors and collectors. A pure red diamond, which is most coveted, is hard to source and – if they are available - they are sold for sky-high prices. So, anyone who invests professionally will not be disappointed when a red diamond is added to their investment portfolio.
If you have specific questions about investing in red diamonds or other diamonds, BNT Diamonds is happy to assist you.