Natural Yellow Diamonds: A Special Opportunity for Jewelry Retailers

By: Michael Hakimian

One of the reasons why natural fancy color diamonds have so much value is their rarity. Out of each 10,000 carats of diamonds, only 1 carat is considered to be a natural fancy color diamond. Although natural color diamonds are very rare, yellow diamonds are less rare than their Natural Pink, Blue, Green, Red, Purple, and Orange counterparts, as seen below. One of the results of a higher supply and past customer demand have been that natural color diamond dealers have stocked a much higher supply of yellows than any of the rarer natural fancy color diamonds. Although this means that that they are priced less than the more rare color diamonds, this provides a special opportunity for jewelry retailers.

Source: Natural Color Diamond Industry Association (NCDIA)

Although every jewelry retailer would like to sell the most high end of the natural color diamonds, often these stones may be hard to source. Also, even when they are sourced, they may not be able to give many options to show to their customers. Without being able to source or to source enough of a particular stone to give customers options, the chances of making a color diamond sale decline dramatically. No matter how high end the color diamond call is, if the retailer cannot source the stone or be able to give the customer enough options to choose from; the retailer will not be able to make any money if they cannot make the sale.

However, due to their higher supply in the market, calls for natural yellow diamonds have a much higher chance of being sourced. Also, they give a much higher chance for the retailer to be able to source enough to give their customers some options. Consequently, the retailer has a higher chance of making

a sale, and it is only when they make a sale, that they can make money. This is one reason why natural yellow diamonds provide retailers with a special opportunity to make money in natural color diamonds.

Another reason why natural yellow diamonds provide retailers a special opportunity to make money is the fact that yellow Diamonds 3-10 Carats are moving well in the market right now, especially Fancy to Vivid Color. The demand for yellows in these sizes is boosted by Hollywood stars, auctions, and heavy advertising by prestigious jewelry companies. Although not as rare as other color diamonds, these yellows do have a high market value and given that the supply is there, retailers have an opportunity to make a lot of money if they play their cards right. Consequently, retailers should definitely take advantage of the special opportunity of selling natural yellow diamonds.