INSIGHTS

The Write-Down as Validation – How this development underscores the compelling investment case for fancy color diamonds and signals a profound structural shift in the diamond market.

As we begin 2026, my focus remains on deepening the work at the intersection of wealth preservation, impact, and values-driven investing. This year, I’m expanding our educational initiatives and collaborations for clients and rising next‑generation stewards, enhancing institutional-grade due diligence around A‑rated fancy color diamonds and rare asset classes, and formalizing strategic alliances with trusted advisors and family offices.

Since launching its data collection efforts in 2005, the Fancy Color Research Foundation has documented long-term appreciation across all Fancy Color Diamonds, with an overall increase of 203.37%. As of Q4 2025, Yellow diamonds have risen by 47.4%, Pink diamonds by 390.9%, and Blue diamonds by 241.7%.

Historically, fancy colored diamonds have delivered significantly stronger returns compared to stocks over extended periods.

Investing in Fancy Color Diamonds in 2026 stands out as a strategic financial goal due to extraordinary scarcity, consistent price appreciation, and unique wealth preservation benefits that few alternative assets can match.

For most investors, 10% to 25% of an investment portfolio allocated to long-term Fancy Color Diamonds is considered a prudent and effective range. Investment-grade diamonds are commodities, and as such, provide diversification benefits and act as an inflation hedge over longer holding periods.

We received some great follow-up questions after last week’s article regarding the timing of diamond purchases. There is no right answer to this question - investing in fancy color diamonds before the end of the year versus at the beginning or middle of the year carries strategic advantages primarily tied to market timing, price trends, and annual portfolio planning.

Investing in fancy colored diamonds before the end of the year is especially attractive because their scarcity, rapid price appreciation, and global demand are reaching record highs, particularly in 2025. Prices for rare colors—such as pink, blue, red, and green—have surged by 30–75% in two years, outpacing other luxury assets and inflation-hedging hard commodities.

Year-end tax benefits of buying investment diamonds primarily arise from how diamonds are classified and treated under tax laws, which can differ by jurisdiction.

Following a modest decline in Q2, the index held steady this quarter, with no overall movement across all fancy color diamond categories. Beneath this flat headline, certain sub-categories, particularly within the Pink segment, demonstrated a noteworthy increase. Despite persistent macroeconomic uncertainty, the fancy color diamond market continues to exhibit large pockets of resilience.

FCD Invest President, Rayah Levy, and FCD Invest Executive Vice President, Aleja Seabron, joined the Israel Tech Mission for Women Executives on a memorable journey to Israel, where they discovered the true meaning of resilience.

FCD Invest President, Rayah Levy, attending the 2025 CEO Summit at Liberty University in Virginia.

Social impact investing is an investment approach that intentionally seeks to generate both financial returns and measurable positive social or environmental outcomes. Unlike traditional investing, which focuses solely on profit, social impact investing directs capital toward organizations, projects, or businesses with a clear social mission—such as addressing poverty, improving education or healthcare and access to it, or advancing long-term environmental sustainability.

Wealth preservation managers use a variety of strategies to protect assets from risks such as market volatility, taxes, lawsuits, and...

How are triffs impacting the diamond industry?

Fine Art and Fancy Colored Diamonds are considered effective inflation hedges because they are tangible, non-correlated assets that tend to preserve or increase in value when traditional currencies and financial markets are under pressure.

Investing in fine art and fancy colored diamonds offers a rare blend of enduring value, portfolio diversification, and personal satisfaction—qualities that make these assets especially appealing to discerning collectors and sophisticated investors.

At FCD Invest, we are dedicated to cultivating the next generation of discerning heirs through bespoke education in wealth stewardship. We have proven strategies to both grow wealth and preserve existing wealth. Our holistic approach empowers inheritors to not only preserve their legacy but also to embrace a sophisticated lifestyle as they pursue their philanthropic passions, ensuring their prosperity endures for generations to come.

Women: Strategies for Managing the Great Wealth Transfer

The Fancy Color Research Foundation (FCRF) recently released the 2025 Q2 Diamond Data results.