Price Surge for Investment-Grade Diamonds

(IDEX Online) - The investment-grade colorless diamonds that increased most in value over the last three months were 5-carat, H-color, VS1-clarity.

Average per-carat price for such stones rose by 8.4%, from $20,600 to $22,400, according to global data collated by Alrosa.

The second-best performers were 5-carat fancy-cut diamonds, H color, and IF clarity. They increased 7.7%, from $29,800 to $32,100.

Alrosa, Russia's state-controlled miner, is promoting sales of VAT-free investment-grade diamonds to wealthy clients of Russian banks as part of its Diamond Exclusive investment program. Sales surged 40% last year.

"Investment diamonds are traditionally used as a defensive tool and are included in so-called 'Passion Assets,' which make up to 20% of the investment portfolios of high-net-worth individuals," Alrosa said.

The company launched its Diamond Exclusive program in 2019 as Russia's first initiative to sell rare investment-grade diamonds directly to private clients. Investment-grade generally refers to stones that are over 2 carats, D to F color, IF to VS2 clarity.

What started as a niche initiative became a significant revenue stream for Alrosa after G7 nations blocked Russian diamond sales in 2022.

Pic courtesy Alrosa.