In addition to the classic colourless diamond often seen in engagement rings, there are also several coloured diamonds. Blue, yellow, red, pink, purple and green, but also black and brown diamonds can be found in jewellery as well as in the investment sector. Due to their scarcity, coloured diamonds are ideal lucrative long-term investments. This article talks specifically about brown diamonds, where we clarify how the price of brown diamonds is determined.
What determines the price of brown diamonds?
16 Jul 21
What is a brown diamond?
Just as any other, coloured diamonds and coloured gemstones such as rubies, sapphires and emeralds, brown diamonds are counted as a rare gemstone. They can be found on different continents, but usually derive from the Argyle mine in Australia, which is also the only pink diamond mine, and recently shut down due to depleted reserves.
Among coloured diamonds, yellow and brown are the most prevalent. Brown diamonds acquire their colour, just as red and pink diamonds, due to a deformed crystal lattice, as opposed to blue, yellow and purple diamonds that acquire their colour as a result of a chemical reaction. Brown diamonds occur in different colour gradations, ranging from champagne and cognac, to chocolate. Their brown hue lessens their lustre somewhat compared to colourless diamonds, or light-coloured diamonds.
Why are brown diamonds so special?
In line with a smart marketing strategy, the brown diamonds extracted from the Argyle mine were dubbed champagne diamonds, which saw an immediate rise in their popularity. The opulent allure of this new designation underpins the special significance of brown diamonds. As such, champagne diamonds symbolise love, energy and a strong spirit. The romantic symbolism renders brown diamond a special gemstone, and thus an investment with emotional value.
What is the brown diamond carat price?
Just as is the case with all other diamonds, the price of brown diamonds is determined on the stone’s value, which in turn depends on its 4 Cs. Coloured diamonds are also known as ‘fancy colour’ diamonds and are graded somewhat differently to colourless diamonds. On the whole, for coloured diamonds it can be said that the value of the diamond increases in line with its intensity in colour. The exact opposite is the case with colourless diamonds. The value of these white diamonds rises the less colour is present.
The carat price for brown diamond therefore, differs per stone. A higher carat mass does not necessary mean a more expensive brown diamond. The quality and colour intensity are the determining value that drives the price of the of brown diamond. The diamond price is also impacted by economic forces, as well as the prices adopted by the jeweller from whom you buy your brown diamond. Because we buy all our diamonds directly from source at BNT Diamonds, with no intermediaries, we can always guarantee the best price-quality ratio.
Why invest in brown diamonds?
If you have a bigger budget at your disposal, investing in coloured diamonds or gemstones is always a good idea. After all, natural coloured diamonds are far rarer and thus more valuable. Even if the brown diamond is more prevalent among coloured diamonds, it is and remains, a rare variant.
Due to its champagne hue, corresponding designation and romantic symbolism, a brown diamond is a popular choice of gemstone. The price of brown diamond is lower than exceptionally rare, coloured diamonds, such as red and pink diamonds. This degree of affordability also explains the popularity of brown diamonds.
An investment in coloured diamonds proceeds a little differently than an investment in commercial colourless diamonds. The latter are often used in jewellery and are usually typified by high demand. This commercial aspect is also the biggest downside to colourless diamonds when it comes to investment: you see, they are greatly impacted by economical and political factors. In comparison, coloured diamonds are often sought by collectors and traded via auction houses. They are less dependent on economic factors and are often lucrative in the long-term. Because an investment in coloured diamonds occurs within a specific market segment, such an investment will entail significantly more risk.
Brown diamonds straddle both market segments. The relative scarcity on the one hand and popularity of this gemstone on the other, make brown diamonds a smart investment choice.
What can brown diamonds be used in?
Should you choose to invest in brown diamond, you can opt to set your investment in a piece of jewellery. Brown diamond combines superbly well with colourless diamonds in a ring, pendant or in earrings. The halo setting is the most popular for a piece of jewellery with a brown diamond. With colour gradations ranging from light brown and champagne to cognac and chocolate brown, they also complement various skin tones. At BNT Diamonds you always have the option to have your investment set in a piece of jewellery.
Are you looking to invest in brown diamonds? The experts at BNT Diamonds are on hand to provide expert advice. Get in touch to make an appointment at one of our showrooms.
With this article, BNT Diamonds 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.
