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Figure 1 (Click to enlarge)

  With yellow prices, it's all in moderation

By Guy Borenstein, FGA
June 20, 2013


Yellow is considered to be the most common color among the gem-quality diamonds, including the fancy color ones. In most cases, the yellow color is pure, uninfluenced by any moderator. But the presence of an additional moderator may significantly influence the value of the stone, positively or negatively, depending on the color of the moderator. Green or orange moderators generally add to the value of the stone, while brown or gray moderators have a negative impact on the diamond's prices.

For an experienced gem trader, these facts are clear and make sense. However, few actually know just how much influence each moderator has upon prices. In other words, by how much does a green moderator upgrade a yellow diamond's value and by how much does brown downgrade it?

For this month's price trends article, we looked into the influence each moderator has on the price of yellow diamonds in order to understand the extent of these price variations. With the help of GemePrice™'s database, consisting of more than $200 million worth of GIA-certified yellow colored diamonds currently available on the Internet, we performed a thorough analysis of the available data, and compared the various possible moderators to a similar pure yellow diamond (which we marked as the baseline of 100 percent) to understand their effects on the price.

The results are shown in Figure 1.

As expected, green and orange moderators generally tend to add value to the base price. However, when we take a closer look at the results, we are able to see a profound difference in the moderators' influence between the paler and deeper tints.

The price of a greenish-yellow diamond hardly exhibits any moderator influence at all and remains comparable to that of a similar pure yellow one. The green moderator, however, adds significant value. A green-yellow graded diamond's price may be upgraded by as much as 30 percent.

Equivalent results are evident for orange moderators. They appear, however, to add more value to the price compared to their green counterparts. While an orangey-yellow diamond is priced approximately the same or very slightly above a pure yellow diamond, an orange-yellow one is offered at approximately 50 percent higher in price.

The brown and gray moderators, which are considered less attractive tints to begin with, significantly downgrade the yellow diamond's value. Their influence on the price begins with their very presence in the stone, regardless of their intensity. Brownish- and Brown-Yellow colored diamonds are offered at roughly 30 percent and 60 percent discounts respectively against comparable pure yellow ones. Gray and grayish moderators have a more moderate influence, cutting the price by about 20 percent.

Although the price behavior above is expected, the results provide an understanding of the intensity of each price variation in the presence of different moderators. For green and orange moderators, an upgrade in value occurs only when the moderator is prominent. For brown and gray, the downgrade in price is more sensitive and reacts even to the slightest tint.

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