Investing in red diamonds: do or don’t?

From all natural “fancy coloured” diamonds, the red diamonds are the rarest ones. This makes them highly sought after by diamond collectors. Investing in these coveted and much sought stone can be interesting. Where do the natural red diamonds come from? Why it is interesting to invest in red diamonds? These questions are answered below.


Origin of red diamonds

“Fancy coloured” diamonds exist in 12 different colours, more than 230 colour combinations are distributed across different locations throughout the world. The majority of the red diamonds is 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 are 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 fact, 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 diamond in colour that is found relatively frequent, often has a larger size. Very rare diamonds, such as red diamonds, on the other hand 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 color: “fancy red”. 

Origin of red colour

The red colour is caused by impurities and chemical elements. As with pink diamonds, the red colour is caused by distortions in the crystal lattice. A very large deformation resulting in a bright red colour.

Value of a red diamond

As mentioned before, red diamonds are rare, very rare. Because of this, it results in a high value and hence 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. It is also unclear and uncertain what the quantity of red diamonds is in existing mines. This also results in a steadily rise of the price.

Unlike yellow and pink diamonds, which are purchased by consumers, investors and collectors, especially red diamonds are 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. Who invest in a professional way, 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, then BAUNAT DIAMONDS is happy to assist.