Natural colored diamonds have lately gained popularity as celebrities and the elite connoisseurs fancy them much more than before. Currently color seems to have become the fascination in high-end jewellery.

How often have you been smitten by a black diamond? How often has a pink diamond radiated your dreams? How often has a yellow diamond whispered a love saga to you? How often have you considered brown diamonds an alternative to the colorless goods? Probably, the answer to these multiple questions is single and that is- Not often, or may be Never! Many diamond lovers have always fancied colorless diamonds while natural colored diamonds have just begun to fascinate people on a relatively larger scale. The visibility of these gemstones is now much more than before. The recent upsurge is due to the increasing awareness and resultant craze amongst the fashion-conscious. However, we may never see a day when color becomes as popular as colorless. Apart from other reasons, rare availability of colored diamonds is one strong reason for them not competing with colorless diamonds. Some globally celebrated jewellery brands have crafted brilliant pieces with natural colored diamonds. Certainly the initiative has lifted spirits of the colored diamonds trade. The story below takes you through the beautiful world of natural color diamonds.

Evolution of New Cuts :

Natural Colored diamonds occur in smaller quantities, yet enough to sustain the market demand. These diamonds initially followed the similar cuts of their colorless counterparts. It was only in 1970s that new cuts evolved exclusively for colored stones. An extract from the Gems & Gemology in review of colored diamonds states, "By the mid 1970s, New York manufacturers such as Stanley Doppelt and Henry Grossbard were devising variations on basil Watermeyer’s 1971 Barion cut, a square mixed cut whose step crown and modified-brilliant pavilion improved brilliance and increased yield over the traditional step cut. Their assumption was that their increased scintillation from the mixed cut would better disguise inclusions, resulting in a more pleasing appearance. But as both Doppelt and Grossbard eventually discovered their experimental proportions and facet variation also strengthened the face-up color of light yellow and other yellow diamonds. "Eventually with success of the new cuts more people ventured into cutting yellow diamond rough and interestingly it turned out to be a profitable venture. These cuts intensified the color appearance of diamonds, which indeed is very important to fetch good prices.

Discovery of the Argyle Mine :

It is widely known that the discovery of the Argyle mine in Western Australia in late 1970s added to the availability and subsequently to the popularity of natural colored diamonds. The mine, which is exclusively owned by Rio Tinto, continues to dominate the market in supply of champagne, cognac and pink diamonds. Rio Tinto Diamonds supplies rough diamonds from its three mines- Diavik in Canada, Argyle in Australia and Murowa in Zimbabwe. The production of colored diamonds from the Argyle mine comprises predominantly champagne and cognac diamonds with a small (less than 1%), but very valuable share of the pink signature gemstones. Through its 100% ownership of the Argyle mine, Rio Tinto produces around US$150 million worth of rough champagne diamonds annually. Argyle produces more than 90% of the world’s pink diamonds-this is about 50,000 carats of pinks from the 30 million carats of rough produced by the Argyle mine. Jean- Marc Lieberherr, GM, Marketing Rio Tinto Diamonds reveals, "Rio Tinto produces some 20 million carats of rough colored diamonds per annum. The world’s appetite for colored diamonds grows and Rio Tinto, through its ownership of the Argyle mine, continues to dominate supply of these gems to a widening range of discerning consumers." Rio Tinto is probably the only mining giant that claims its 50% revenue from colored diamonds, "The majority of the Diavik and Murowa productions are colorless diamonds. In 2006 these two mines produced slightly more than 10 million carats, worth some US$493 million. So, about half of the revenue from the Rio Tinto diamond mines comes from colored diamonds and the other half from colorless gems," adds Jean- Marc Lieberherr.

High Profitability Margins :

Majority of the diamond dealers who predominately trade in colorless diamonds also carry small quantities of color diamonds following the increasing popularity, demand, awareness and high profitability margins that natural colored diamonds command, "Profitability margins are much greater in colored diamonds as compared to colorless ones as not many people are manufacturing them. Also it requires immense effort to create a market for these gemstones. Marketing, promotion and spreading awareness are major tasks a colored diamond manufacturer has to undertake," tells Pratish Mehta, CEO Diacentre. Adding to the explanation Jean- Marc Lieberherr details, "Based on our experience with champagne diamonds, more and more manufacturers and retailers are using them as part of their standard offerings, as an entry point into the colored diamond market. In the case of our pink diamonds, their rarity premium is reflected in the consistently strong prices. Today fancy colored diamonds command the highest per carat prices of any gem." While Ajay Jakhotia of Kunming Trading Co. offers a nearly different viewpoint, "The risk in natural colored diamonds trade is quite high. Given that kind of risk factor, the profit margins are not very good."

Color v/s Colorless :

However, colorless diamonds have undoubtedly been the preference for ages. White diamonds are considered an investment while natural colored diamonds, specially colors like browns are viewed as inferior. "Colored diamonds (Browns) are rarer than colorless diamonds still they are easily available and are comparatively low priced as they do not appeal much. The mindset of the people has been conditioned since ages to consider white diamonds more valuable while colored ones have been considered lesser," comments Pratish Mehta. Nevertheless, the recognition has been achieved as people have realized that natural colored diamonds too possess same brilliance and fire just as their colorless counterparts. Moreover, the beauty and precision of colored diamonds can often be awe inspiring. If used well they can safely prove to be masterpieces. US, Europe, HongKong and Japan continue to be the leading consuming markets for natural colored and fancy colored diamonds.

Celebrity Associations :

Color has been fascinating and often adorns celebrities who showcase its rainbow frequently at the Academy Awards and Cannes movie festivals. Jean- Marc Lieberherr reflects upon the profile of buyers of colored diamonds, "The most recent market research shows that the retail consumer finds colored diamonds as appealing as whites. Champagne diamonds are typically purchased for fashion, not an investment, by financially independent, style conscious women. Champagne diamonds have often been associated with status, good taste, romance and the finest things in life. The ultimate consumers for Argyle’s pink diamonds are mostly collectors, high nett worth individuals and diamond connoisseurs." %% Much public attention was attracted when actor Ben Affleck gave a 6 carat pink diamond engagement ring to actress/singer Jenifer Lopez. Similarly, Halle Berry was wearing a 5.54 ct Pumpkin diamond when she accepted her Best Actress Oscar in 2002 stimulated popularity of colored diamonds. She followed this at the Golden Globe Awards by wearing a blue diamond pendent and ring. While the presence of colored diamonds at such top events is not a new occurance, the attention that now surrounds these gems is unprecedented.

Effective Promotion Gave a Boost :

There have been several efforts that have accentuated colored diamonds globally. Argyle move to associate browns with elite gave the gemstone a big elevator. From the early 1990s Argyle targeted its advertising at the large customer bases in the US and Japan, creating an alluring image for brown diamonds by connecting them with festive and sophisticated tastes. A key aspect of the campaign was associating the diamond’s broad range of colors with "champagne" and cognac". Jewellery design contests featuring Argyle’s champagne and cognac diamonds raised further awareness and high profile designers began using them in their creations. Prior to this, such extensive marketing efforts were typically limited to white diamonds. Creating such positive association for a product long ignored was a significant innovation, and its impact continues.

Exhibitions, auctions and brand associations have further enhanced the popularity of colored diamonds, "Even with the occasional exhibition of colored diamonds from royal and state collections, historically there were few opportunities for the public to see significant numbers of colored diamonds. Fortunately, over the course of the last century a handful of enthusiastic promotion have brought them to the attention of broader audiences. For example, Alan Bronstein’s and Harry Rodmans’ Aurora Collection consisting of 296 colored diamonds was exhibited at the American Museum of Natural History from 1989 to 2005. Their Butterfly of Peace Collection, developed over a twelve year period was on display at the Houston Museum of Science from 1994 to 1996 and the Smithsonian Institution in 2004 and 2005, reports Jean- Marc Lieberherr.

NCDIA- International Promotional Body :

In 2003 the Natural Color Diamond Association (NCDIA), an international trade organization, was established. To date, the NCDIA has sponsored fashion shows in conjunction with high profile media events, and has launched a website to help consumers and diamond professionals alike to better understand colored diamonds. %% The Natural Color Diamond Association (NCDIA) attended the 68th annual AGS Conclave April 26-29th in Denver, Colorado as a grand sponsor, and host of the fashion show produced by Vogue Magazine for the second consecutive year. NCDIA made a splash at the event by showing a stunning selection of pink, blue, yellow, brown and multi-color natural color diamond jewelry from eleven of its members including Scarselli, Dehres, Martin Flyer, Le Vian, Novel Collection, Uneek, Maidi Corp, Michael Werdiger, Diatraco, LJ West Diamonds and Amgad. All of the jewelry was displayed during the four day conference and worn in the fashion show produced by Vogue Magazine.

In addition to the fashion show, NCDIA introduced a new education program for retailers, How to Sell Natural Color Diamonds. The seminars were presented by Diane Warga-Arias and the sales training program will be made available at no cost for NCDIA members in a CD and booklet format. All of the seminar attendees completed a survey which revealed that natural color diamonds are a growing product category for retailers and are becoming an increasingly important component of their inventories. 90% of the attendees revealed that they were positively influenced by the seminar and over half of the attendees were planning to immediately implement the strategies presented. 53% said their customers are interested in natural color diamonds and they wished to have more in their inventory. 51% were interested in learning more about natural color diamonds, but needed easily accessible resources.

The education program includes a series of three sales meetings designed for a manger to train their staff which will include a Leader's Guide power point presentation, Associate Self Study Workbook and an Associate Meeting Workbook. %% The first meeting is an introduction to natural color diamonds which includes basics such as the primary colors of diamonds, origin of color, geography of color and an explanation of how natural color diamonds are valued.

Recent Increase in Popularity :

Pratish Mehta comments on the popularity spiral of colored diamonds over the last 5 years, "World class brands like Chopard and Harry Winston have designed magnificent creations with colored diamonds. Their efforts and deep interest have wooed high segment population to patronize colored diamonds. People are more confident about colored diamond jewellery. In the preceding 5 years, awareness about colored diamonds has increased up to nearly 400%. Promotions are emerging stronger and are being effective. They are increasingly being acknowledged as a viable alternative to colorless ones." Ajay Jakhotia adds, "In last few years natural colored diamonds have picked up as their visibility has increased. We participate in all the trade shows and events. Similarly other companies are also promoting colored diamonds in several ways due to which people have started taking interest in them." %% Colorless diamonds have always dominated the show, probably because they have constantly been bestowed with superior promotion and attention. The collective industry has made efforts for decades to place colorless diamonds on a superior throne. Natural colored diamonds have lately been widely identified by the consumer, and are already making rounds. The journey has just begun. Surely there is much to wait and watch!