What are the factors determining the price of blue diamonds when it comes to investments?

What are the factors determining the price of blue diamonds when it comes to investments?

  • What are blue diamonds and why are they so special?
  • How much do blue diamonds cost?
  • Why invest in blue diamonds?
  • Are you looking to invest in blue sapphires or blue diamonds?

 

Blue diamonds not only look enchanting, they are also a strategic investment choice for anyone looking to invest in coloured diamonds. They are extremely rare and command a high price per carat. This article explains how the price of blue diamonds relates to their value, as well as how to get started investing in blue diamonds for profit.

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What are blue diamonds and why are they so special?

Blue diamonds are 100% natural diamonds which come in various shades of blue, ranging from light blues and greenish blues to dark blue and blue with a purple tinge. Blue diamonds are not colourless ones treated to achieve a blue colour, but ones which are naturally coloured blue.

As with other coloured diamonds, this colouring is brought about by the presence of a chemical, in the case of blue diamonds, this is due to the chemical element boron. However, the blue colouring in this blue diamond should not be confused with the gemstone sapphire, which is a variety of the mineral corundum.

Blue diamonds are found in only a few mines in the world, the most important of which is the Cullinan mine in South Africa. Blue diamonds were also mined at the Argyle mine in Australia, the largest producer of pink diamonds, which was recently closed down due to depleted resources.

How much do blue diamonds cost?

Although, coloured diamonds are actually a combination of pure diamond with an impurity in the form of a chemical, they are still considerably more expensive than colourless diamonds with a high clarity. This is partly due to the fact that coloured diamonds are extremely rare, and partly because demand for these coloured varieties is increasing.

This trend can also be seen with blue diamonds. They are mined in a very limited number of sites and are, therefore very scarce. This makes them very popular with collectors and private buyers. This is especially the case when it comes to blue diamonds with an intense blue colouring. Other hues such as light blue diamonds and darker varieties are also popular, however, their value could be affected if the blue is too light or too dark. The colour and colour intensity of coloured diamonds is recorded accurately on diamond certificates from a reliable laboratory such as GIA, IGI or HRD, using a scale ranging from "faint" to "fancy vivid".

Along with the colour and its intensity, clarity is another important element for determining the value and price of blue diamonds. Clear diamonds are the most valuable of all. Ultimately, the number and type of inclusions determines the clarity score for blue diamonds. Beyond this, the carat weight and cut quality and shape also influence the value and price of blue diamonds.

The price of blue diamonds, therefore depends on the value of the diamond, but also on the economic climate and the diamond dealer where you are purchasing it from. The average price of a 0.5 carats light blue diamond is USD 26,280. However, you pay a lot more for deep blue diamonds which could reach an average of USD 75,000 for 0.25 carats.

Why invest in blue diamonds?

Investing in blue diamonds can be a profitable business if you considered it carefully. Unlike colourless diamonds, which have huge commercial appeal, blue diamonds are a niche market and are often traded through specialist auction houses. To get the most from investing in blue diamonds, you should seek advice from an expert such as the specialists at BNT Diamonds.

Investing in blue diamonds can be profitable in the long term, due to their scarcity. The scarcity of these diamonds has only increased over the years, which led to a significant increase in demand but with limited supply. Investing in blue diamonds is also a good strategy so you should consider them as addition to your investment portfolio.

Are you looking to invest in blue sapphires or blue diamonds?

Coloured gemstones have risen in popularity in recent years and this trend is also seeing increase in demand for coloured diamonds or other high-quality coloured gemstones.

However, the price of blue diamonds may be out-of-reach for some investors. Especially if you don’t have a huge budget. Investing in blue sapphires can be a good alternative. Blue sapphires fall into a lower price bracket and are often chosen as an investment. Nonetheless blue sapphires are not as secure investments as diamonds and therefore, could be considered as a high risk investment. You can read more about the pros and cons of this type of investment, in our blog post on investing in blue sapphires or blue diamonds.

BNT Diamonds makes investing in gemstones and diamonds accessible to everyone. Since we purchase all our diamonds directly at source, we can always guarantee the best value for money. Are you interested in investing in blue diamonds? Seek objective advice from our experts. Get in touch or speak directly to our team on +32 3 201 24 90.

With this article, BAUNAT strives to inform you thoroughly about investing in diamonds. No investment can be guaranteed to be without risk or fully according to your expectations. That is why we recommend to research the risks and aspects of investing in diamond properly to ensure that you make the right choice for your portfolio.

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