Red diamonds are some of the rarest and most valuable diamonds in the world. But why exactly are they so expensive compared to other colored diamonds and colorless diamonds? There are several factors that contribute to red diamonds commanding such high prices.
Scarcity
The biggest reason red diamonds are so valuable is their extreme rarity. Diamonds get their color from impurities in their molecular structure. Most diamonds contain nitrogen impurities which make them yellow or brown. Diamonds with no impurities are colorless. Other colored diamonds like blue, green, pink etc get their hues from the presence of boron, hydrogen, or radiation exposure respectively during formation.
But red diamonds belong to an elite class of their own. Their red color comes from a lattice defect in their crystal structure at the atomic level, which is extremely rare. Only a handful of natural red diamonds have ever been found, with the largest recorded red diamond weighing less than 5 carats. This scarcity drastically inflates their value.
Difficulty in Production
Not only are red diamonds scarce in nature, they are also nearly impossible to produce artificially. Other colored diamonds like yellow, brown, blue etc can be produced in labs fairly easily by controlling impurities and treatments. However, the structural defects that cause the red color in diamonds cannot be replicated in a lab reliably. There is no known process to mass produce red diamonds synthetically.
Their rarity also makes red diamonds incredibly hard to find and mine. Specific geological conditions are required for these diamonds to form naturally. Very few red diamond deposits have been found so far. The Argyle mine in Australia produced over 90% of the world’s natural red diamonds before it closed in 2020. With the closure of Argyle, the supply of natural red diamonds has become even more limited, further driving up prices.
High Demand
Extremely limited supply coupled with strong demand pushes red diamond prices sky-high. Red diamonds are considered the pinnacle of rarity even among fancy color diamonds. Collectors and diamond connoisseurs covet these stones for their exclusivity and investment value. Museums and private collectors compete at auction to purchase the few red diamonds that come up for sale each year.
Red diamonds are especially sought after in Asian markets like China and India where they hold cultural significance of love and prosperity. As the wealthy populations in these countries grow, demand for rare red diamonds also rises. At auctions, anonymous ultra rich buyers are often willing to pay record sums to acquire these precious stones.
Prestige and Investment
Owning a red diamond signifies immense prestige and status. They are the ultimate collectors item. The possession and display of such a rare diamond displays extreme wealth. Red diamonds are considered safe investment assets as well due to how rarely they come up for sale. Their value steadily appreciates over time.
In 2017, the 59.6 carat CTF Pink Star was sold for $71 million at auction. In 2020, a 14.83 carat fancy vivid purplish-pink diamond fetched $26.6 million. These enormous prices reflect the cachet and investment value placed on ultra rare colored diamonds. Red diamonds being the rarest command the highest prices per carat – often in excess of $1 million per carat.
Grading Factors
Like all diamonds, red diamonds are graded by the 4Cs – carat, cut, clarity and color. The GIA and other gemological institutes have special protocols for grading colored diamonds. Some key grading factors that influence red diamond prices are:
- Carat – Larger carat diamonds command exponentially higher prices. Size is especially important for red diamonds due to their rarity in sizes above 5 carats.
- Intensity of Color – Vivid and pure red diamonds are more valuable than lighter pinkish reds.
- Clarity – Flawless or internally flawless red diamonds are exceptionally rare and expensive.
- Cut Quality – Precise cuts enhance the sparkle and vitality of these diamonds, optimizing light return.
Based on these factors, the highest grades of red diamonds in large sizes can sell for $2-3 million per carat at auction. In 2015, Sotheby’s sold a 2.09 carat fancy red diamond for a record $5.09 million per carat – over $10 million for that single diamond!
Famous Red Diamonds
Some of the most famous red diamonds demonstrate their legendary status and value:
- The Kazanjian Red Diamond – At 5.05 carats, it was the world’s largest red diamond for over 60 years after its discovery in the 1920s. It was last sold in 2007 for an estimated $3-4 million.
- The Moussaieff Red – At 5.11 carats, this trilliant cut diamond reclaimed the title of world’s largest red diamond when it was unveiled in 2003. In 2001, the same owners had paid around $8 million for the smaller 2.47 carat Hancock Red diamond.
- The De Young Red – At 5.03 carats, this modified round brilliant cut diamond was exhibited at the Smithsonian in 2005 alongside the Hope Diamond. It was sold in a private sale for an estimated $10 million.
- The Red Cross Diamond – This canary yellow cushion cut diamond of 205.07 carats sold for $14.2 million in 1918, equivalent to over $270 million today accounting for inflation.
Historical Significance
Red diamonds are steeped in history, metaphor, and legend. References date back over 2000 years to magical Indian diamonds with names translating to “dewdrops of blood” or “glowing coal”. In ancient times, red diamonds were associated with royalty, passion, fire, and bravery. Owning one signified great fortune, power, and protection.
Their rarity made them the ultimate romantic gesture and wedding gifts among kings, emperors, and nobles who could afford them. Red diamonds came to symbolize enduring love in literature over centuries. The diamond as a “stone of invincible” also connects red diamonds to themes of vitality and health.
Red diamonds maintain this rich heritage today. Give one to your beloved, donate one in their name, or invest in one for your heirs – a red diamond will always be incredibly meaningful and retain its value for generations to come.
Notable Characteristics
Let’s summarize some of the key qualities that make red diamonds so exceptionally valuable:
- Extreme rarity – less than 30 identified natural red diamonds, extremely scarce in sizes over 2 carats
- Cannot be synthesized reliably – structural defects cause red color, which labs cannot replicate
- Prized by collectors for prestige – ultimate display of wealth and status
- Safe long term investment – value steadily appreciates as supply runs dry
- Cultural significance – associated with love, passion, royalty since antiquity
- Flawless clarity – very few natural inclusions or blemishes
- Vivid saturation – pure red without secondary hues like purple or brown
- Selling for millions per carat – broke $5 million per carat record in 2015 sale
These unique traits make red diamonds the “Holy Grail” of the diamond world. Their unmatched rarity and desirability catapults their value into a league of their own. It’s easy to see why collectors become obsessed with these phenomenal red stones.
Conclusion
Red diamonds command astronomical prices due to the perfect storm of extremely limited supply and nearly insatiable demand. Their unparalleled rarity arises from unique structural conditions that cannot be replicated artificially. This elevates red diamonds to a class of their own in prestige and investment value. Throughout history and across cultures, red diamonds have represented love, passion, and power – cementing their status as the ultimate stone for kings, emperors, and connoisseurs.
