1. Natural YellowDiamonds:A Special Opportunity for Jewelry Retailers
By: Michael Hakimian
One of the reasonswhynatural fancycolor diamondshave somuchvalue istheirrarity.Out of each
10,000 carats of diamonds,only1carat isconsideredtobe a natural fancy colordiamond.Although
natural color diamondsare veryrare,yellow diamondsare lessrare thantheirNatural Pink,Blue,Green,
Red,Purple,andOrange counterparts,asseenbelow.One of the resultsof ahighersupplyandpast
customerdemandhave beenthatnatural colordiamonddealershave stockedamuchhighersupplyof
yellowsthananyof the rarer natural fancy colordiamonds.Althoughthismeansthatthattheyare
pricedlessthanthe more rare color diamonds,thisprovidesaspecial opportunityforjewelryretailers.
Source: Natural Color Diamond Industry Association(NCDIA)
Althougheveryjewelryretailerwouldliketosell the mosthighendof the natural color diamonds,often
these stonesmaybe hard to source. Also,evenwhen theyare sourced,theymaynotbe able togive
manyoptions to showto theircustomers.Withoutbeingable tosource or to source enoughof a
particularstone to give customersoptions,the chancesof makinga colordiamondsale decline
dramatically.Nomatterhowhighendthe colordiamondcall is,if the retailercannotsource the stone or
be able to give the customerenoughoptionstochoose from;the retailerwill notbe able tomake any
money if theycannotmake the sale.
However,due totheirhigher supplyinthe market,callsfornatural yellow diamondshave amuch higher
chance of beingsourced.Also,theygive a muchhigherchance forthe retailertobe able tosource
enoughtogive theircustomerssome options.Consequently,the retailerhasa higherchance of making

2. a sale,and itis onlywhentheymake asale,thattheycan make money.Thisis one reason whynatural
yellowdiamondsprovideretailerswithaspecial opportunitytomake moneyinnatural colordiamonds.
Anotherreasonwhynatural yellowdiamondsprovide retailersaspecial opportunitytomake moneyis
the fact that yellowDiamonds3-10Carats are movingwell inthe marketrightnow,especiallyFancyto
VividColor.The demandforyellowsinthese sizesisboostedbyHollywoodstars,auctions,andheavy
advertisingbyprestigiousjewelrycompanies.Althoughnotasrare as othercolordiamonds,these
yellowsdohave ahighmarketvalue andgiventhatthe supplyisthere,retailershave anopportunityto
make a lot of moneyif theyplaytheircards right. Consequently,retailersshoulddefinitelytake
advantage of the special opportunityof selling natural yellow diamonds.