Established in the end of 2014, the Fancy Color Research Foundation (FCRF) is based in Tel Aviv, Israel. It is a non-profit organization focusing on promoting ethics and transparency of the fancy coloured diamond wholesale and retail segments.
All the transactional data released by FCRF can be traced back to 2005. Now the foundation’s proprietary research and database are able to serve the members as an education platform and clarify the misconceptions among wholesalers, retailers and consumers.
“I felt there was a great deal of information missing out for the fancy coloured diamond market. I sought to create a platform where industry experts could provide answers to industry practitioners,” Eden Rachminov, founder of FCRF explained to Hong Kong Jewellery for his launching initiative.
Ephraim Zion, member of the board of advisors for FCRF added: “There is tremendous ignorance about the understanding of value and nature of fancy coloured diamonds not only among consumers, but also among wholesalers and retailers.”
Data collected biannually and updated every quarter, FCRF sets a price index with 63 segments, which is comprised of carat size, colour and intensity or saturation levels. The index displays changes in average historical wholesale prices for fancy coloured diamonds.
Rachminov noted: “Our members are allowed to access to our price index, research report and expert analyses and auction information in FCRF official website. We will soon release a rarity calculator and a stone comparison tool, which will be exceptionally valuable products for the diamond industry.”
“In the end, we are going to be the main hub for fancy coloured diamond commercial information,” he added.
According to the foundation’s figures, from 2005 to 2014, for three major fancy coloured diamonds including pink, blue and yellow, each has a year-on-year growth rate over a specified period of time at 18.5 percent, 11.3 percent and 5.1 percent respectively. In terms of total appreciation during the past 10 years, the price of pink, blue and yellow diamonds witnessed an appreciation of 360.3 percent, 161.4 percent and 56.2 percent respectively.
“If we look at how fancy colours have fared in the last few years, it is easy to see the upward trend in this niche,” Rachminov told Hong Kong Jewellery by referring to its diamond appreciation assessment system.
When mentioning China market, he explained: “Fancy coloured diamonds became extremely popular in China after the global economy recession. Since 2010, we’ve seen a substantial jump in wholesale fancy coloured diamond prices and we feel that demand will remain high in the near future.” According to Zion, the price of fancy coloured diamonds remained stable despite the anti-corruption campaign in Mainland China which has badly affected the luxury industry.
Leading brands such as Tiffany & Co, Van Cleef & Arpels and De Beers Diamond Jewellers have registered as FCRF members. Annual membership costs between US$1,800 and US$36,000. Rachminov emphasised: “We seek to increase awareness and confidence for retailers and wholesalers to stock fancy coloured diamonds, as well as provide tools and talking points for the sale process.”
|
Fancy coloured diamond |
CAGR (Jan 05 – Oct 14) |
Total appreciation(Jan 05 – Oct 14) |
| Pink | 18.5 | 360.3 |
| Blue | 11.3 | 161.4 |
| Yellow | 5.1 | 56.2 |
Resource: the Fancy Color Research Foundation (FCRF)
