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When White Diamonds Won’t Cut It

If there is a holiday gift almost guaranteed to make a recipient swoon with joy, it is a diamond. But while such stones remain appealing as jewelry, the value of certain colored diamonds has increased while traditional white diamonds have fallen.

Diamond dealers are talking about pink, blue and red diamonds as investments, citing a recent track record of double-digit returns. This new interest in such rare gemstones can make a holiday gift 10 to 20 times more expensive than a similar, high-quality white diamond. Yet there are others in the trade who question whether these stones will pay the dividends people imagine in the Christmases to come.

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