The asset class

Colored diamonds, with the full picture

We focus on the top of the natural colored diamond market: rare stones with a documented story. We see them as an alternative store of value: rare, durable and portable. They also carry real risks. Here are both.

Why they're rare

Natural color comes from conditions during a diamond's formation. Nitrogen produces yellow, boron produces blue, and distortion of the crystal lattice produces pink. The Argyle mine in Australia, long the main source of pink diamonds, closed in 2020.

The top of the market

The stones we list sit at the very top of the market, where a documented story can move the price. In 2024 the Eternal Pink, a 10.57-carat Fancy Vivid Purplish Pink, sold for $34.8 million at Sotheby's, a record for its color grade. In June 2025 the 10.38-carat Marie-Thérèse Pink sold for $14 million at Christie's, nearly three times its high estimate, on its documented royal history.

The top of the market can stall too. In November 2025 a 10.08-carat Fancy Vivid Pink estimated at about $20 million was withdrawn from Sotheby's Geneva sale, and Phillips withdrew a 6.95-carat pink estimated at about $9 million the same week.

As a store of value

From 2005 to 2025, the Fancy Color Research Foundation (FCRF) index rose 203% across all colors: 391% for pink, 242% for blue and 47% for yellow. Pink and blue kept well ahead of inflation. Yellow didn't. In 2025 the FCRF index slipped 1%, while natural white diamond prices fell sharply.

Annualized return from the start of 2005 To end of 2024 To end of 2025 0%3%6%9%12% Pink diamonds (FCRF)8.3%7.9%Blue diamonds (FCRF)6.4%6.0%All colors (FCRF index)5.8%5.4%Yellow diamonds (FCRF)2.1%1.9%Gold9.3%11.5%Silver7.6%11.9%Platinum0.3%4.2%Copper5.4%6.5%Nickel0.6%0.4%US home prices3.6%3.5%US bonds2.8%3.0% Inflation 2.6% a year

Past the dashed line, an asset gained purchasing power. Metals jumped in 2025: gold rose 65%, silver 144% and platinum 125% that year. Sources: FCRF via Rapaport and FCRF Q4 2025 report (end-2024 levels derived from 2025 changes); gold and silver, London prices on Dec 31, 2004 ($438 and $6.82) and Dec 31, 2025 (about $4,310 and $72), with end-2024 prices derived from 2025 gains (BullionVault); platinum, December 2004 average of about $853 (USGS) and spot prices of $902.74 (Dec 31, 2024) and $2,033.23 (Dec 31, 2025) via Fortune; copper and nickel, IMF global prices, December monthly averages, via FRED; US home prices, S&P Cotality Case-Shiller US National Index via FRED (prices only, no rent); US bonds, total return of the AGG aggregate bond fund via Chartrow; inflation, CPI-U annual averages via the Minneapolis Fed. Past performance doesn't predict future results.

The FCRF index covers a broad range of colored diamonds, not just the top stones we list. Past performance doesn't predict future results. Indexes built from dealer prices and auction results can understate how much prices swing.

How other stores of value compare

  • Gold and silver. The strongest over this period, at about 11.5% and 11.9% a year. Much of that came at the end: gold rose 65% and silver 144% in 2025 alone. Measured to the end of 2024, silver returned about 7.6% a year.
  • Platinum. About 0.3% a year from 2005 to 2024, well below inflation, then up 125% in 2025.
  • Copper and nickel. Copper returned about 6.5% a year and nickel about 0.4%. Both are industrial metals, so their prices follow construction and manufacturing demand.
  • Real estate. US home prices rose about 3.5% a year. Owners also collect rent or use the home, but pay upkeep, taxes and transaction costs.
  • Bonds. US aggregate bonds returned about 3.0% a year, including interest, and lost 13% in 2022.
  • Stocks. A growth asset, not a store of value. The S&P 500 returned about 10.7% a year, with large drawdowns along the way.

Other collectibles

Collectible indexes cover different periods, so they can't share the chart. Here's what each shows.

CollectibleWhat the index shows
Colored diamonds (FCRF)Down 1.0% in 2025. Up 203% since 2005
Fine art (Artprice100)Down 8.3% in 2024, up 11.2% in 2025. It moves closely with stocks, with a 0.88 correlation to the S&P 500 since 2000
Fine wine (Liv-ex)About 25% to 30% below its 2022 peak at the end of 2025
Trading cards (PWCC 500)Up 855% from January 2008 to October 2022, against 175% for the S&P 500

What to weigh

  • Diamonds pay no income. Any return on a diamond share depends on a future sale.
  • Prices for similar stones vary between dealers and auctions.
  • Lab-grown colored diamonds are widely available and cost far less. Natural value depends on grading and provenance. What lab-grown means for colored diamonds
  • The wider diamond market has been weak. De Beers' rough-price index fell 25% in 2025.
  • Even top stones can fail to sell at auction, as the withdrawn lots above show.

We don't publish return projections. How steady colored diamonds have been, and what lab-grown meansRead all risk factors

Sources