The New Face of Luxury: Why Smart Collectors in the U.S. Are Betting on Colored Gemstones Over Diamonds
For decades, the diamond stood unchallenged as the crown jewel of luxury. In bridal boutiques, red-carpet moments, and even financial portfolios, white diamonds have long been seen as the ultimate symbol of value and timelessness. But a quiet revolution is underway—especially in the United States—where collectors, investors, and connoisseurs are moving beyond the familiar sparkle of colorless stones to explore a more vibrant, rarer frontier: colored gemstones.
From New York’s Fifth Avenue to private salons in Los Angeles, and increasingly in the portfolios of wealth advisors from Chicago to Palm Beach, colored gemstones are becoming the assets of choice for those looking to combine beauty with value appreciation. These aren’t simply pretty stones—they’re geological miracles with stories, cultural histories, and unmatched rarity. And that’s precisely what’s driving their rise in both popularity and price.
Sophia Hirsh, owner of London’s prestigious Hirsh London, has witnessed the shift firsthand. With decades of experience curating and sourcing exceptional gemstones, she notes that colored stones offer far more than aesthetic value. “People don’t just want something beautiful anymore,” she says. “They want something rare, something meaningful, something no one else has.” She’s not alone in her view—data from top U.S. auction houses show a sharp uptick in demand for investment-grade rubies, emeralds, sapphires, and lesser-known stones like Paraíba tourmaline, spinel, and alexandrite.
In 2023, for instance, a 5.02-carat Burmese pigeon blood ruby sold at Sotheby’s New York for over $3 million—outshining a larger white diamond at the same sale. What made the ruby so valuable wasn’t just its color, but its origin and untreated nature. In an era when many gemstones are heat-treated or artificially enhanced, truly natural stones are commanding top-dollar prices.
The same holds true for Colombian emeralds. Long favored by Hollywood legends like Elizabeth Taylor, these deep green stones are now finding favor among American wealth managers who view them as inflation-resistant, portable assets. A high-quality Muzo emerald over 3 carats with minimal oiling can easily surpass the value of an equivalent diamond. In Palm Beach and Beverly Hills, these stones are quietly being bought, set into custom rings or brooches, and stored as family heirlooms with long-term potential.
But the real growth is happening in the niche corners of the gemstone world—places where the average consumer has yet to look, but where savvy investors already see gold. Take alexandrite, for example. This chameleon-like gem changes from green in daylight to reddish-purple under incandescent light, offering an almost magical visual experience. First discovered in Russia, it is now found in only a handful of deposits globally. And it’s incredibly rare. According to the Gemological Institute of America (GIA), fewer than 1% of U.S. jewelers ever stock top-quality alexandrite.
That hasn’t stopped American collectors from snapping them up. In 2024, a Michigan-based buyer paid $850,000 for a 4-carat Russian-origin alexandrite at auction. The stone’s mesmerizing color change, combined with its geological scarcity, made it irresistible—and a solid long-term investment.
Then there’s spinel, a gemstone long misunderstood and overlooked. For centuries, red spinels were mistaken for rubies. In fact, the famous “Black Prince’s Ruby” in the British Crown Jewels is actually a spinel. Today, collectors are waking up to its brilliance, durability, and vivid color range. In Los Angeles, high-end jewelers now use cobalt blue and hot pink spinels in bespoke engagement rings for clients who want color, rarity, and something truly off the beaten path. In the U.S. vintage market, spinels from Burma and Vietnam are seeing renewed attention—and rising prices.
But perhaps no gemstone has captured the imagination of modern collectors quite like the Paraíba tourmaline. Discovered only in the late 1980s in Brazil, this neon-blue stone seems almost electric. Caused by trace elements of copper and manganese, the Paraíba tourmaline glows with a brilliance unmatched in nature. And its rarity is astounding. Original Brazilian mines were depleted quickly, and although African deposits have emerged, Brazilian-origin stones—especially unheated ones—are still the most coveted.
In 2024, a 2-carat unheated Brazilian Paraíba was purchased by a private U.S. collector for more than $500,000. In Silicon Valley, a tech entrepreneur recently commissioned Hirsh London to design a $1.2 million engagement ring centered on a 3.1-carat Paraíba that had been in the company’s vault for decades. “That stone had never been touched, never circulated,” Sophia recalls. “It was just waiting for the right person.”
And then there are colored diamonds, which have taken the U.S. market by storm, especially since the Argyle mine in Australia—once the world’s primary source of pink diamonds—ceased operations in 2020. Today, pink diamonds command premium prices at auctions. In 2024, a 1.7-carat fancy vivid pink diamond sold at Christie’s New York for $2.1 million, eclipsing expert predictions by 30%. Red diamonds, even smaller than one carat, have sold for over $1 million thanks to their near-mythic rarity.
U.S. buyers are also warming to “chameleon diamonds,” stones that shift from olive green to yellow when exposed to heat or darkness. These gems are rare, visually fascinating, and offer a duality that many collectors love. A Dallas-based real estate executive recently acquired a pair of pear-shaped chameleon diamond earrings, which have since become a topic of admiration in high society circles.
In all of these examples, one theme stands out: colored gemstones are no longer niche. They are now center stage in the global luxury market—and particularly in the U.S., where cultural trends, financial sensibilities, and individual expression are aligning to favor the bold, the vibrant, and the rare.
Sophia Hirsh has one final piece of advice: “Buy what speaks to you, but buy smart. Focus on origin, avoid overly treated stones, and work with someone who understands the difference between beautiful and truly rare.” In today’s world, rarity matters more than ever—not just in price, but in identity. A gemstone, after all, isn’t just an investment. It’s a story, a statement, and a legacy.
As collectors across America shift their attention from the familiar glitter of diamonds to the infinite palette of colored gems, one thing is clear: the future of fine jewelry is not white—it’s alive with color.