Fancy Colored Diamonds at 30% Plus Below Retail



Having minored in geology at the University of Michigan to include studying mineralogy, I have had an avid interest and fascination in colored gemstones for over 30 years.  In the early 1980's, I began studying the pricing of one carat flawless, D colored brilliant white diamonds, and came to the conclusion that the future prospects for appreciation may be limited due to over-production and the impending dis-inflationary environment initiated by Paul Volcker's tenure at the Federal Reserve .  This long-range forecast turned out to be right on the money as flawless, D colored diamonds are just about at the same level as 1981, selling for about $12,500 per carat; demand at this price level has not kept up with increasing supply.  However, as we entered the post-Bubble New Millennium of the 2000's, I began to do extensive research into Fancy Colored Diamonds, the rarest class of diamonds in hues of pink, red, green, blue, gray, purple, orange, olive, brown, and yellow.  Coincidently, I discovered that colored diamonds were gaining in unparalleled popularity, and public awareness of them was expanding exponentially with the advent of internet diamond sites.  In 1999 alone, the Gemological Institute of America (GIA), the recognized premier grader of natural colored diamonds, noted a 102% increase in fancy colored diamond submissions.  The dye was cast going into the New Millennium.

Due to affordability and relative under-valuation with respect to the other hues of fancy diamonds, I have decided to concentrate initially on natural fancy colored YELLOW diamonds, specifically INTENSE YELLOW and VIVID YELLOW, which are 10,000 times more rare than their brilliant white, colorless counterparts.
  Where the presence of any tinge of color in a brilliant, white diamond is considered a negative, and hence the letter "D" is granted only for the most white of gems, totally devoid of any tinge of color, intensity of coloration is the single most important quality of a Fancy Colored Diamond.  WCM does, unquestionably as clearly depicted on our OFFERINGS page, have access to many other hues of colored diamonds, such as the similarly rare cognac's, browns, ultra-rare greens and the very rare pinks & blues.  We have some of the best industry contacts in the colored diamond trade.  These colored diamonds are naturally much more expensive per carat than Yellow diamonds, except for the Brown hues, but daily increases in demand for tangible assets, specifically fancy colored diamonds, makes marketability of more expensive gems greater and greater.  As investment and collection recognition grows, the liquidity of colored diamonds grows with it, and we expect this trend to continue for many years to come.  

Client requests for a specific fancy colored diamond will be honored, but colored diamonds represent a fraction as small as One One-Hundred Thousandth ( 1/100,000 ) of the total annual diamond production in the world.  Hence, a client could wait a while for a specific colored diamond during a period when prices continue to move upward.  Another aspect of Fancy Colored Diamonds that drew me to this investment area was the fact that prices for Fancy Yellow Diamonds have not declined on an annual basis, year-to-year in any single year since 1970.  In fact, using wholesale selling prices and auction results from Christie's and Sotheby's, annual prices realized have increased from 7% to 12% per annum for the last 32 years.

There is much educational material on the internet pertaining to the 4 C's of diamond buying, but Carat, Clarity, Cut, & Color parameters must be modified to pertain specifically to Fancy Colored Diamonds.  In the case of always buying a One Carat brilliant white diamond, there are very good values in the fancy diamond marketplace today in the 0.50 carat to 1.00 carat weight range, and color intensity or saturation by far remains the single most important criterion for selecting a Fancy Colored Diamond.  The specific color scale for fancy diamonds starts at Fancy, to Fancy Intense, to Fancy Vivid, to Fancy Deep, and finally to Fancy Dark, the most saturated coloration (and also the most out-of-reach from a price/availability standpoint).  As to Clarity, many of the most saturated colored diamonds, in the two highest designations of Fancy Deep and Fancy Dark  have Inclusions under 10 times magnification only; these still "eye clean" gems are hence clarity graded Slightly Included as SI1 and SI2, and even SI3.  Although initial buyer preferences can be for the best of all characteristics with VS2 being the most included level sought, this degree of clarity actually requires magnification under a 10x loupe by an experienced gemologist or gem grader in most instances to observe these minute inclusions ( internal flaws ).  By over-concentrating on a given Clarity Level, prospective buyers can miss opportunities with strikingly colored diamonds that are still "eye-clean", Slightly Included ( SI1 - SI3 ), that is, devoid of readily visible inclusions without a jeweler's loupe.

On to Cut, the Brilliant Round cut that is the traditional favorite for white diamonds does not particularly enhance the internal color reflections of a fancy colored diamond unless the pavilion depth of the gem is shortened.  Radiant, Cushion, Princess and skillful modifications of these cuts are quite popular, while well-cut Emerald, Marquise, and Oval cuts in fancies appear less frequently.  The actual optimization of the particular type of cut to a given rough colored diamond to maximize the presentation of the available internal color can and does vary from the traditionally "ideal" proportions sought for brilliant, white diamonds.  Yet, GIA certifiers still make note with adjectives describing the proportionality of cut as Poor, Medium, Good, and Very Good to address this issue as specifically adapted to fancy colored diamonds.  Note that a non-perfect application of the cutter's tools, creating slightly modified proportions of width, length, and depth from white brilliant diamond standards, are readily compensated for by a finely saturated or unique color emission from the resultantly cut colored diamond.  Richness and uniformity of color is the cutter's goal by attempting to produce very good light return in the gem without a preponderance of washed out areas or "light leakage, a bow tie effect in oval cuts, or overall patchy light return in marquise cuts.

Finally, the Color criterion for brilliant white diamonds must be abandoned in favor of the GIA Master Color Set of fancy colored diamonds to ascertain what level of intensity exists in a certified fancy colored diamond.  Hence, from weakest coloration to strongest, GIA assigns the designation of FANCY, FANCY INTENSE, FANCY VIVID, FANCY DEEP, and FANCY DARK; Fancy Light is also used as the faintest designation of coloration.  As in the colors of the rainbow, there are many modifying colors found in nature due to traces of nitrogen, boron, hydrogen, or structural anomalies.  In the fancies we will be offering initially, these naturally occurring impurities can create a deep yellow diamond (canary), brownish-orange diamond (cognac) or an orange diamond where reddish hues have combined with yellow hues.  The dominant color is always listed last, as in Brownish-YELLOW. 
Personal tastes come into play in actually selecting which combination of colors one desires in a Fancy Colored Diamond, but rarity and hence, price, should always be defining factors in guiding this selection.  Investment interest and affordability, which spells "liquidity" upon resale, leads WCM to concentrate on the Fancy INTENSE and Fancy VIVID degrees of coloration for acquisition.  Thus, we will be foregoing the vast majority of Fancy or Fancy Light designated gems since their rarity is not nearly as great, with the exception of Fancy Light Pink which is the second most rare coloration at any saturation level.  

As in investments in all assets classes, one must address the issue of resale before entering into any transaction ($5,000 minimum transaction value)All of the Fancy Colored Diamonds that will be offered for sale by Wexford Capital Management are priced to clients in such a manner as to be able to appraise or retail at least 30% above original client cost.  Hence, clients will have purchased at approximately 30% below jeweler's bottom-line "retail" pricing.  Such an appraisal must be performed by a certified gemologist, preferably certified by GIA, Gemological Institute of America.  It is quite possible that WCM Fancy Colored Diamonds will retail or appraise substantially more than 30% above WCM's Offer Price, to as much as 50% above, but we strive to be conservative in all representations to clients.  We feel strongly that Fancy Colored Diamonds offer excellent appreciation potential in the 5 to 10 year time horizon we see enfolding ahead.  At a minimum, even in a truly deflationary environment and with hundreds of years of history as our guide, a Fancy Colored Diamond would hold its rare, intrinsic value while most other assets whither.  Otherwise, we would never have done the extensive research over many years to find honest, reliable, and economic sources for investment-quality Fancy Colored Diamonds in order to offer these very rare gems to investors and collectors, our valued clients.  Each diamond will be reviewed by an experienced gemologist/ colored diamond broker in addition to being accompanied by a GIA Colored Diamond Grading Report.  The original GIA report accompanies all WCM shipments of Fancy Colored Diamonds.

Please visit the pages of our certified colored diamond website to learn more about fancy colored diamonds and don't hesitate to contact David Young at 877-855-9760 or at to discuss this fascinating and potentially rewarding tangible asset area.  Alternative assets are looking better and better by the minute as the traditional landscape around us sees storm clouds brewing.  Prices will move even higher once the investing public realizes the historic risk in traditional financial and real estate assets today.


Jewelers Vigilance Committee Member

Fancy Yellow 8.24 carat Radiant Cut Colored Diamond RING

Intense Yellow 2.91 carat Round Brilliant SI1 Colored Diamond RING

Vivid Blue 1.76 carat Emerald Cut SI2 Colored Diamond Ring

Orangey Pink 0.61 carat Radiant Cut VS2 Colored Diamond Ring

Intense Yellow 7.73 carat Radiant Cut VS1 Colored Diamond Ring



Information on Broker, Wexford Capital Management



WCM's Principal, David W. Young withdrew the Company's Registered Investment Advisor status with the S.E.C. and the Virginia Division of  Securities in May of 2005 and no longer offers  discretionary or non-discretionary managed accounts of any asset class receiving continuous supervision of assets.  WCM's principal, David W. Young, was a Registered Investment Advisor (RIA) in good standing from October, 1985 to May, 2005.  Furthermore, the company does not engage in any fee-based or compensatory provision of financial advice.  The brokering of tangible assets sales via U.S. Rare Coins, Precious Metals Bullion, and Fancy Colored Diamonds is the sole business of Wexford Capital Management.


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Wexford Capital Management
David W. Young, President
113 Brenton Court
Stephens City, VA  22655-4819
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