Colored diamonds are revered for their rarity and elegance by adding a pop of color to everyday jewelry. Although there are many different colors of diamonds, it is very rare to find a truly vivid natural colored diamond. With the lack of availability for good quality, natural colored diamonds, the values are much greater than those for color-enhanced diamonds. This makes naturally colored diamonds great for borrowing money against because they have a greater liquid value.
How treatment affects value
The most common treatments for color-enhancing diamonds include surface coating, irradiation, and high pressure high temperature (HPHT). Generally, color-enhanced diamonds are brown or yellow in their original state, and may have several internal flaws. These treatments, if yielding the desired result, can hide these flaws by changing the diamonds’ appearance. Of course, there is always the chance that treatments can worsen the flaws or create new ones.
Not only are enhancements becoming more common, but lab-grown diamonds have gained popularity as well. As the price of natural colored diamonds has gone up, many people have turned to lab-grown colored diamonds as a more affordable option. Over time, lab techniques for diamonds have advanced to increase carat weight because the price for natural colored diamonds goes up with the size and color intensity, making lab grown diamonds a more inexpensive option. A lab grown diamond may have a value as little as one-tenth (1/10) of that of a natural. However, this is another reason natural colored diamonds are great to borrow money against. Their rare attributes, whether it be carat weight or color intensity, make them fervently sought after for greater values.
An example of the price difference between color-enhanced and natural colored diamonds would be this canary yellow, color-enhanced diamond. Capetown Capital Lenders bought this diamond ring for $7,500, and would have loaned the same amount. Had the diamond been naturally colored this canary yellow, our seller could have borrowed or sold this to us for up to $75,000. That’s ten times the amount of the color-enhanced diamond!
Have a colored diamond?
If you are curious about the value of your colored diamond, fill out our no-obligation Sell Your Diamond form or Asset-Based Loan form. Capetown Capital Lenders can get you funded up to $1,000,000 in as little as 24 hours, whether you want to borrow against your diamond or sell it. You can also schedule to visit our Atlanta location.