Naturally Colored Diamond Blog

How Black Diamonds are Valued

Posted by Tony Cathaway on 9/2/16 8:00 AM

Black diamonds are one of the rarest diamonds in the world. Whether it is an addition to your collection or looking for an alternative investment, black diamonds have been increasing in demand. Since they’re extremely rare, how valuable are they?

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Just like any investment, the basic business concept of supply and demand comes into play. So what’s the current market for black diamonds? In recent years, the demand for black diamond has substantially increased. Given the fact there are so few natural black diamonds available, the diamond price for these stones has increased. However, valuing these stones can be tricky, as some don’t even consider them true diamonds. Some people look for brilliance or shine in diamonds, whereas others adore the fact that black diamonds exhibit a deep, sophisticated look. One thing is fact, most black diamonds in the market are not natural black diamonds, but treated diamonds.

How Black Diamonds Get Their Color

Colored diamonds are one of the rarest naturally occurring gems in the world. Although black diamonds aren’t as rare as pink or yellows, they are in fact real. So how do they get their color in the first place? Most colored diamonds are formed due to chemical impurities such as nitrogen, hydrogen, and boron. But black diamonds get their colors from millions of tiny inclusions that spread throughout making the diamond appear black. So in reality, black diamonds are actually colorless diamonds with so many internal imperfections that light is absorbed instead of reflected, exhibiting a deep black color.

What Dictates the Value in Black Diamonds? 

There are two ways to look at this. Yes, imperfections in most types of diamond can affect their value. However, there are only a minimal number of black diamonds with this number of inclusions, causing their value to increase. If we look at supply and demand, there are exponentially more normal colorless diamonds than there are colored diamonds, let alone natural black diamonds. It’s important to know that the market also produces a high number of treated black diamonds, meaning they get their color via heat treatments or irradiation. These color-treated diamonds do not hold anywhere near the same value as the naturally occurring black diamonds.

So how much do these naturally black diamonds cost? GIA certified natural black diamonds sell between $1,500 to $3,000 per carat. Colorless, white diamonds that are treated can be bought for as little as $100 - $200 per carat. There’s a clear difference in the value of natural black diamonds and treated black diamonds.

For more reading on black diamonds, see the links below: 

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Topics: Alternative Investments

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