When it comes to diamonds, color is one of the key factors that determines quality and value. Diamonds come in a wide range of hues, from colorless to light yellow, brown, pink, blue, green, and more. Blue diamonds are among the rarest and most sought-after, prized for their unique beauty. But are blue diamonds necessarily better than diamonds of other colors? There are pros and cons to consider when evaluating the desirability of a blue diamond.
What Makes Blue Diamonds Rare and Valuable
Blue diamonds get their color from the presence of the element boron within the diamond’s crystal structure. Boron atoms scattered throughout the crystal lattice act as impurities that absorb red light and transmit blue light, conferring a blue coloration. Only a very small number of diamonds contain boron impurities in the right concentrations to produce a discernible blue color. This extreme rarity contributes to the high value of blue diamonds.
Some key facts about the scarcity of blue diamonds:
– Blue diamonds comprise less than 0.1% of diamonds mined worldwide. Major diamond mining countries like Russia, Botswana, Canada, and Australia produce a tiny fraction of global diamond output in blue.
– The most famous blue diamond mines are the Cullinan mine in South Africa and the Golconda mines in India, where some of the most legendary blue diamonds in history were found. These mines are now largely tapped out.
– Very few mines actively producing blue diamonds remain today. The Argyle diamond mine in Australia, which closed in 2020, was the world’s primary source for blue diamonds, supplying over 90% of global production. With Argyle closed, blue diamond supplies are now even more limited.
– Only a handful of blue diamonds over 5 carats are discovered annually worldwide. Their extreme scarcity puts blue diamonds in high demand.
Characteristics of Blue Diamonds
Natural blue diamonds exhibit a range of blue hues, including grayish-blue, violet-blue, and greenish-blue. The most desirable and rarest shade is an intense, even, vivid blue with no secondary color. Here are some key characteristics of different blue diamond color grades:
| Color Grade | Color Description | Rarity |
|---|---|---|
| Fancy Deep | Vivid, intense blue with no secondary color | Extremely rare, highest value |
| Fancy Intense | Very strong blue color saturation | Very rare, high value |
| Fancy Vivid | Rich, full blue color | Rare, premium value |
| Fancy | Medium to light blue | More available, moderate value |
| Fancy Light | Very light blue, nearing colorless | Least rare, lower value |
The more saturated and pure the blue color, the higher the diamond’s quality grading in terms of color. Fancy Deep and Fancy Vivid grades are exceptionally rare and expensive.
The Allure of Blue Diamonds
Blue diamonds possess an exotic, mysterious allure unlike diamonds of other colors. Their extraordinary rarity contributes to their mystique. Blue diamonds also attract attention because of their striking color contrast against popular white metal settings like platinum and white gold.
Some additional factors driving the desirability of blue diamonds:
– Unique color. Blue is associated with qualities like harmony, trust, and openness. The cool tone is very appealing in jewelry.
– Complimentary setting. Blue pops against white metals and can match both silver and yellow gold. The color provides styling versatility.
– Symbol of esteem. Blue diamonds confer status as extremely rare and valuable gems. They signify prestige and refinement.
– Stands out in crowds. A blue diamond grabs attention and makes the wearer feel special. The uncommon color has high visual impact.
– Strong investment. Scarcity ensures blue diamonds hold value well. They have performed solidly as an alternative asset class.
Downsides of Blue Diamonds
For all their beauty, blue diamonds do come with some disadvantages buyers should consider:
| Downside | Description |
|---|---|
| High price | Owing to scarcity, blue diamonds demand a significant price premium over colorless or yellow diamonds. Even small blue diamonds can be prohibitively expensive for many buyers. |
| Limited supply | Very few blue diamonds ever come up for sale. Finding a stone with the right combination of characteristics can require long searches and sacrifice on cut or clarity grades. |
| Tricky to cut | Cutters must exercise great care when polishing blue diamonds to avoid losing any of the precious blue color concentrated in narrow boron bands. Well-cut blue diamonds are harder to source. |
| May fluorescence | Some blue diamonds exhibit fluorescence under UV light, causing their color to shift in hue or intensity. Fluorescence can be an undesirable trait. |
| Durability concerns | Boron inclusions may make a blue diamond slightly more brittle. However, blue diamonds remain very durable for everyday wear. |
While downsides exist, none are serious enough to detract from the exceptional beauty and appeal of top quality blue diamonds to the vast majority of buyers.
Notable Blue Diamonds
Some of the most legendary diamonds in history have been precious blue gems. A few record-setting blue diamonds include:
– Hope Diamond – This 45.52 carat antique pear-shaped diamond was found in India and exhibits a rare Deep blue color. It is displayed at the Smithsonian Natural History Museum.
– Wittelsbach-Graff Diamond – Originally 35.36 carats when discovered in India, this cushion-cut diamond was recut to 31.06 carats to enhance its Blue color grade. It sold in 2008 for $24.3 million.
– Oppenheimer Blue – The largest Vivid Blue diamond ever auctioned, this 14.62 carat emerald cut diamond fetched over $57 million in 2016, setting a record $4 million per carat price.
– Blue Moon of Josephine – Discovered in South Africa in 2014, this cushion-shaped 12.03 carat Internally Flawless diamond sold in 2015 for $48 million.
These and other historic blue diamonds have achieved both record prices and fame over the centuries, solidifying blue diamonds as the pinnacle of rarity and intrigue among colored diamonds.
Are Blue Diamonds a Good Investment?
For individuals or investors with sufficient capital, blue diamonds can be an excellent investment:
– **Scarcity** – With extremely limited supplies, particularly of diamonds over 1 carat, blue diamonds are a true scarce commodity predicted to rapidly appreciate.
– **Demand growth** – More buyers are entering the market for rare colored diamonds, especially in Asia. Demand is broadening.
– **Consistent price gains** – Auction records have been consistently set in recent decades as blue diamond prices outpace other asset classes.
– **Safe haven asset** – Diamonds have historically demonstrated low correlation to stocks and stability during market volatility. They provide portfolio diversification.
– **Enduring value** – Diamonds’ permanence and intrinsic worth retain value over centuries. Blues have among the highest retention of initial cost.
However, blue diamond investing also carries risks requiring consideration:
– **High buy-in cost** – Substantial upfront investment required, with diamonds over 1 carat often running into seven or more figures.
– **Liquidity challenges** – Much narrower secondary market compared to colorless diamonds. May take time to find buyers.
– **Subjective valuations** – Grading of color, clarity, and cut are not as standardized as with whites, creating some pricing ambiguity.
– **Counterparty risks** – Potential for fraud exists in the colored diamond market, requiring reliance on trusted suppliers.
For investors comfortable with the high monetary outlay and limitations, blue diamonds offer an alluring opportunity for portfolio growth, diversification, and intrinsic value preservation uncorrelated to broader financial markets. However, they require sufficient expertise and care to navigate their unique investment profile profitably.
Blue Diamond Engagement Rings – Pros and Cons
Beyond investing, blue diamonds also make distinctive, stunning choices for engagement rings and other fine jewelry. Here are some benefits and considerations when selecting a blue diamond for an engagement ring:
**Pros**
– Unique and eye-catching color suits bold, distinctive personalities.
– Rarity and expense conveys commitment – budget is no concern.
– Cool blue hue complements complexion and manicures.
– Matches both white and yellow metal bands giving flexibility.
– Stylish for art-loving recipients who dislike classics.
**Cons**
– Much higher cost than equivalent size colorless diamond.
– Color may be polarizing – some prefer conventional whites.
– Smaller blue diamonds may look disappointing to some. Need 1 carat+.
– Limited supply and selection. Desired cut/clarity combo may be unavailable.
– Requires added care around pools, cleaners, etc. to avoid damage.
The glamour and intrigue of a blue diamond ring ultimately comes down to personal taste. For those with the budget who value captivating originality and exclusivity, they can make ideal engagement rings that will be treasured forever.
Conclusion
Blue diamonds inhabit a pinnacle occupied by few other gems. Their spellbinding beauty coupled with extreme rarity place them in constant high demand. For individuals or investors able to access them, blue diamonds offer allure and enduring value retention beyond almost any other luxury asset. Yet they also come at a steep cost with some limitations to consider. Ultimately the opportunity to own one of the world’s most precious substances must be carefully weighed against the tremendous financial outlay and responsibility required. Though elusive, for those able to acquire a blue diamond responsibly, what awaits is a literally priceless treasure promising enjoyment, significance, and legacy for generations to come.
