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KULSEN & HENNIG
DOMINIK KULSEN

Nature's Brilliant Colours
Newsletter No. 29 02/2017
It’s that time again!

Come visit us at INHORGENTA MUNICH 2017 (February 18 – 21)
Once again this year, we would love an opportunity to present our colourful range of Natural Fancy Coloured Diamonds to you in person.
We cordially invite you to visit our stand at INHORGENTA MUNICH 2017. Come and see the quality and captivating beauty of our diamonds for yourself. We would be happy to advise you personally and take the time for an in-depth discussion. If you would prefer to make an appointment beforehand, please feel free call us at +49 (0)30 400 55 930 or contact us by email at info@kulsen-hennig.com.
We look forward to your visit! You can find us in Hall C1, Stand 309, Row C
New Colour Card for Natural Fancy Coloured Diamonds
Natural Fancy Coloured Diamonds have become an integral part of jewellery design today. As a matter of fact, for many jewellers, working with these exceptional stones has become a great way to stand out from the competition.
With this in mind, we have once again prepared a new colour card for you, our customers.

This year’s colour card is the newest in our series of colour cards, available for yellow, orange, pink, gray, champagne and mixed-coloured diamonds, and has been designed as support material for successful commercial communication.
Pricing Natural Fancy Coloured Diamonds
One of the key questions concerning Natural Fancy Coloured Diamonds is pricing.  The pricing system for coloured diamonds is considerably more complex than the one typically used for colourless diamonds. There are, however, two distinct factors that determine the price of a Natural Fancy Coloured Diamond: one is rarity and the other is the beauty of the stone in question.
The rarity of a Natural Fancy Coloured Diamond is determined by its colour, the most important price-determining feature. Particularly rare colours like pink or blue are more valuable than more common colours like, for example, brown or gray.
The more intense and beautiful the hue, the rarer and more sought-after the diamond becomes. Furthermore, the size of the stone is crucial. The larger the diamond, the rarer and more valuable it is. In addition to the colour and size, the cut of the diamond also plays a role. A brilliant round cut is less common than other cuts for larger Natural Fancy Coloured Diamonds. This results in a significant increase in price when compared to a similar stone with a different cut.
Matching pairs of stones are also more valuable due to their rarity. Because of the wide colour spectrum of Natural Fancy Coloured Diamonds, there are very few stones possessing the same colour, size, and shape. The larger the stone and the rarer the colour, the more difficult it is to find a corresponding equivalent.

The beauty of the stone is determined by the subjective impression of the observer. "Fancy White" or “milky” diamonds, for example, are just as rare as yellow or gray diamonds. Despite this, however, they are much cheaper because they are perceived as being less beautiful because of their lack of brilliance, resulting in lower demand.
Based on our experience, Natural Fancy Coloured Diamonds can be generally divided into 3 different price groups:
Price group 1:
White (Milky); Brown (Champagne C1-C7); Gray

 
Price group 2
:
Olive Green; Yellow; Orange with secondary colours


Price group 3:
Pink; Green; Orange; Blue
 
Price
Colour
The price indicators that are typically used for colourless diamonds can rarely be applied unchanged to Natural Fancy Coloured Diamonds. Apart from the rarity and the beauty of a Natural Fancy Coloured Diamond, there are still other factors that influence the price. The following four examples illustrate just how complex pricing Natural Fancy Coloured Diamonds can actually be:

Cut: Especially true for larger stones, cuts that are optimal for colourless diamonds are not the best choices for coloured stones. When cutting colourless diamonds, care is taken to show as little colour as possible, whereas for Natural Fancy Coloured Diamonds, the exact opposite is true. The most appropriate cut will intensify the stone’s colour.

Fluorescence: In colourless diamonds, fluorescence indicates a reduction in quality. In Natural Fancy Coloured Diamonds, however, if and how fluorescence effects a diamond’s value will depend on each individual stone. As long as the fluorescence remains in the “faint” to “medium” range, it will have little or no influence on the price of the stone. Only fluorescence in the “strong” to “very strong” range would influence the price. If a yellow diamond, for example, shows very strong blue fluorescence, the stone’s value will decrease. If, however, the colour of the fluorescence coincides with the colour of the diamond, the value of the stone may actually increase. Thus, if a yellow diamond shows yellow fluorescence, or a green diamond green fluorescence, the brightness of the colour will in fact be intensified in natural sunlight or ultraviolet light.
 
Differences in colour intensity within a colour designation: The colour designations for Natural Fancy Coloured Diamonds describe a colour range. Therefore, one diamond may be “Fancy Yellow” in colour, bordering on “Fancy Light Yellow”, whereas another stone can also possess a “Fancy Yellow” colour, but this time bordering on “Fancy Intense Yellow”. This variation can lead to price differences, even among diamonds with the same colour grading.

Clarity: For Natural Fancy Coloured Diamonds, clarity is less important than other features, as long as the inclusions do not interfere with the brilliance of the stone. This is especially true for larger diamonds possessing rare and intense colours.
Book Recommendation:
Eden Rachminov - The Pricing Architecture
For those particularly interested in the subject of pricing, we recommend a recent and very interesting book on the topic of “Pricing Guidelines for Natural Fancy Coloured Diamonds”.

The Pricing Architecture by Eden Rachminov tackles this complex subject using a clear and structured system and explains through different steps how various factors impact the value of Natural Fancy Coloured Diamonds. The book is especially suitable for readers who work with larger single stones in the high-price range.

The Pricing Architecture is available in English via the following link:
 
You will receive our next newsletter in summer 2017.

Earlier editions of our newsletter may be found in our newsletter-archive.
KULSEN & HENNIG GbR I POB 54 01 20 I 10042 Berlin (Germany) I T +49 (0)30 400 55 93 0
www.kulsen-hennig.com I info@kulsen-hennig.com
DOMINIK KULSEN AG I POB 2033 I 8401 Winterthur (Switzerland) I T +41 (0)52 212 24 40
www.dominikkulsen.com I info@dominikkulsen.com
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