In short, blue diamonds are extremely expensive, typically costing 2-3 times more than high quality white diamonds. But what exactly makes them so pricey? Blue diamonds are one of the rarest diamond colors in existence, desired worldwide for their dazzling hues. Let‘s explore the factors that drive blue diamond value.
Only about 0.1% of mined diamonds possess any noticeable color. Of those, blues rank among the top colors in rarity alongside reds and pinks [1]. Exact statistics are unknown, but experts estimate the probability of finding blue diamonds in mines at 1 in 10,000 [2].
This infinitesimal occurrence gives blue diamonds prestige. In recent years, high profile auction sales have fed demand among investors and collectors. The 14.62 carat "Oppenheimer Blue" sold for a record $57.5 million in 2016 – over $3.9 million per carat [3]. And in 2018, the 18.96 carat "Farnese Blue", previously owned by royalty, fetched $6.7 million per carat [4].
Driving these spectacular prices is a combination of true scarcity and desire for the most saturated hues. Let‘s explore what makes blue diamonds so exceptionally valuable.
What Causes the Blue Color in Diamonds?
Diamond color comes from minute irregularities in their atomic structure formed during crystallization deep in the Earth‘s mantle. The high pressures cause structural defects and incorporation of trace elements that allow absorption and transmission of visible light wavelengths, creating color.
For blue diamonds, the element boron present during formation is key. When boron atoms replace carbon atoms in the diamond‘s crystal lattice structure, it allows red light to be absorbed and blue light to transmit, creating a blue coloration [5].
The more boron present, the stronger the blue color saturation. Intensely saturated blue diamonds indicate very high boron levels during formation – an extremely rare occurrence that makes these diamonds so precious.
Blue Diamond Value Factors
Like all diamonds, blue diamonds are evaluated and priced based on the 4Cs:
- Color
- Cut
- Clarity
- Carat Weight
But the most heavily weighted factor by far is color – specifically color saturation. Here‘s an overview:
Color Depth
Vivid and intense blues are far pricier than faint or light shades. Within blues, the most saturated royal blue hues are considered the pinnacle and priced accordingly.
Clarity
The clarity grade (assessment of imperfections) does impact value. But even lower clarities in blues can fetch higher prices due to the rarity factor.
Cut Quality
Cut enhances color presentation and brilliance. But given their scarcity, blue diamonds in less-than-ideal cuts still demand heavy premiums.
Carat Weight
While weight matters, vivid blues over 1 carat are exceedingly rare. Even blues under 1 carat can hit astounding price milestones based on saturation.
| Diamond Color | Price per Carat |
|---|---|
| D-colorless white | $3,200-18,000 |
| Faint blue | $3,500-9,000 |
| Fancy light blue | $15,000-30,000 |
| Fancy intense blue | $50,000-80,000 |
| Fancy vivid blue | $80,000-$3.9 million+ |
This table demonstrates the immense premium fancy vivid blues command over whites – well over 200 times higher price per carat!
Why Invest in Blue Diamonds?
For diamond connoisseurs, blue diamonds represent the pinnacle. Possession represents untouchable wealth and access. Yet investing in blues also comes with risks to weigh.
The Case For
- Extremely rare: suppy is virtually static
- Prestige: owned by royalty throughout history
- Increasing demand: high profile auction sales drive lust
- Portable asset: easily stored and liquidated
The Case Against
- Subjective color value: blues aren‘t favored by all
- High retail markups: low resell value
- Small stones: large blues over 1 carat are virtually unheard of
- Treatments lower value: some blues are artificially colored
As an investor, blues should be considered a speculative alternative asset, much like art or collectible cars. Appreciation depends on perception among the wealthy.
But for diamond lovers, a fancy vivid blue possesses emotional significance beyond investment potential. Even a half-carat blue of the finest saturation represents unmatched magnificence.
Evaluating Blue Diamond Quality
Given the extremely high value of blue diamonds, assessing quality factors is critical for an educated purchase.
Judge Color Saturation
The intensity of blue is everything. Faint and light blues are affordable. Medium to vivid saturation commands the steepest premiums. Royal blues with slight purple secondary hues are considered the pinnacle for connoisseurs.
Review Certifications
Lab certification from GIA or AGS provides critical assurances of natural origins and no treatments. Verify ratings of the 4Cs as well as commentary on the color distribution (evenness of blue tones).
Examine Cut Quality
Cut has a major impact on light performance and color presentation. Well-cut cushions, ovals and rounds maximize blue sparkle.
Consider Provenance
Pedigree and documented history can significantly influence value. High profile diamonds with royal lineage achieve added cachet at auction.
Compare Prices
Rarity means fewer price comps. But comparing diamonds of similar characteristics helps gauge appropriate valuations.
Buy the Best Within Budget
Given the stratospheric high end pricing, focus on acquiring the most vivid blue possible for your budget, even if that means lowering standards for size or clarity.
Are Blue Diamonds Worth the Price?
In the end, blue diamonds cost multiples above top quality white diamonds due to their unparalleled rarity. For the average consumer, lower priced fancy yellow or pink diamonds offer similar beauty at a more accessible price point.
But for serious diamond connoisseurs, no other natural diamond possesses the intrigue and investment potential of a flawless vivid blue. While too expensive for many buyers, record auction sales demonstrate that among the world‘s elite, blue diamonds are worth the premium price in exchange for such a singular asset.
Yet investing in blues is highly speculative. For those simply seeking an exquisite diamond, excellent cut whites and colored diamonds offer comparable brilliance at a fraction of the cost.
Ultimately, while they demand sky-high prices, blue diamonds‘ extraordinary rarity and mystique for collectors justify the astronomical prices paid by those seeking the absolute pinnacle.
