When Giants Stumble: Why De Beers' $2.3 Billion Write-Down Confirms the Case for Investment-Grade Fancy Color Diamonds

When Anglo American announced it would write down the carrying value of De Beers from $4.1 billion to $2.3 billion, my phone started ringing. Clients, colleagues, and prospective investors all wanted the same thing — my perspective. And I understand why. When the most recognized name in the diamond industry reports a group net loss of $3.74 billion, an EBITDA swing to a negative $500 million, and a rough-price index that dropped 12 percent on core goods, the instinct is concern. But for those of us who have spent our careers in the natural fancy color diamond segment, the reaction is quite different. What happened to De Beers is a confirmation of what we have been saying for years: not all diamonds are the same, and the market is finally being forced to acknowledge it.

The White Diamond Reckoning

The De Beers write-down was driven by a convergence of structural forces — lab-grown substitution eroding the white diamond market, global oversupply, weak Chinese demand, and broader macroeconomic uncertainty. The rough-price index fell approximately 25 percent when accounting for large discount deals negotiated to move excess inventory. Revenue for 2025 rose a modest 6 percent to $3.49 billion, but this was against a backdrop of collapsing margins and a business model that had relied on controlling supply in a market where supply can now be manufactured. Lab-grown diamond prices have fallen dramatically since 2018, and with them, the perceived uniqueness of colorless stones has eroded irreversibly.

What Makes a Fancy Color Diamond Investment-Grade?

This is the question that separates educated investors from casual buyers — and it is the question that every client of mine learns to ask before we proceed with any acquisition.

Not all fancy color diamonds are equal as investment assets. The Gemological Institute of America (GIA) grades fancy color diamonds on three primary axes: hue, tone, and saturation. But within that framework, the details are everything. Primary hue — the dominant color — drives baseline value. Pink, blue, red, green, and orange command the highest premiums. But the secondary hue modifier dramatically impacts pricing. A pure pink with no modifier commands a substantial premium over a "brownish pink" or "orangy pink" of equivalent weight.

Saturation grade is measured on the GIA intensity scale: Faint, Very Light, Light, Fancy Light, Fancy, Fancy Intense, Fancy Vivid, and Fancy Deep. For investment purposes, Fancy Intense and Fancy Vivid stones represent the institutional standard. But even within those grades, what I call the inner-grade — where within the saturation tier the stone falls — is critical. A high Fancy Intense is a different asset than a low Fancy Intense, and an experienced evaluator can distinguish between them.

Beyond the GIA certificate, undertone — the subtle color sensation in the stone's body — affects visual appeal and market demand. Face-up appearance, how the stone presents when viewed from above, drives collector interest. Provenance matters enormously: a pink diamond with documented Argyle origin (the Western Australian mine that produced roughly 90 percent of the world's pink diamonds before closing permanently in November 2020) commands a 25–40 percent premium for Fancy Intense stones and 40–70 percent for Fancy Vivid stones, with exceptional material exceeding 100 percent premiums. Treatment status is non-negotiable — natural, untreated stones command the highest premiums, while heat-treated or irradiated stones are worth substantially less. And GIA certification is the gold standard; lesser certifications reduce confidence and liquidity.

At FCD Invest, every stone we source is evaluated against all of these criteria — not just the GIA grade on the certificate. This is what our "A-rated" designation means: the highest acquisition standards across hue, saturation, inner-grade, undertone, provenance, treatment status, and certification.

The Write-Down as Portfolio Signal

For the sophisticated investor building a multi-generational portfolio, the De Beers write-down is not just industry news — it is a signal about asset allocation. It confirms the permanent bifurcation between commoditized white diamonds and finite natural fancy color diamonds.

Fancy color diamonds represent less than 0.1 percent of all diamonds mined globally, according to GIA research. Since 2005, the Fancy Color Research Foundation (FCRF) has documented appreciation of 390.9 percent for pink diamonds, 241.7 percent for blue diamonds, and 47.4 percent for yellow diamonds. The overall Fancy Color Diamond Index has risen 203.37 percent in that period, with a compound annual growth rate of approximately 5.7 percent over 20 years. During the 2008 global financial crisis, pink and blue diamonds declined approximately 10 percent — compared to equity market declines of roughly 40 percent — demonstrating genuine non-correlation with traditional financial markets.

For investors considering estate planning and generational wealth transfer, investment-grade fancy color diamonds offer distinct advantages: portability, privacy, a tangible asset that maintains value across economic cycles, and a holding that can be structured within trusts, LLCs, or family office frameworks. They complement — not replace — traditional holdings, fine art, and real estate within a diversified multi-asset strategy.

Past performance does not guarantee future results. Fancy color diamonds are long-term investments with a recommended minimum holding period of 7–10 years.

Please see the 3-part series that was sent to our clients here:

De Beers Article 1

De Beers Article 2

De Beers Article 3

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Please email FCD Invest at info@fcdinvest.diamonds to discuss your personalized long-term investment strategy. 

For more information on Fancy Color Diamonds as an investment, please visit our Fancy Color Diamond information page linked here.

Written by Rayah Levy, FCD Invest President

As President of FCD Invest, Rayah oversees strategy, client engagement, and the firm’s Due Diligence Division. She brings extensive experience in fancy color diamond and fine art investments, financial markets, transaction structuring, and institutional risk alignment, ensuring every engagement meets the standards of banks, investors, and counterparties.