Yes, yellow diamonds are naturally yellow. Like other natural coloured diamonds, they are formed naturally within the Earth's mantle under high pressure and temperature conditions. The yellow colour in these diamonds is caused by the presence of nitrogen atoms in the diamond's crystal lattice structure. The nitrogen atoms absorb blue light, which gives the diamond a yellow hue. The intensity and saturation of the yellow colour can vary depending on the amount and arrangement of nitrogen in the diamond.

More than 50% of the world’s fancy yellow diamonds come from the Ellendale mine in the west Kimberly region of Western Australia. Since the 1980s, this region in WA has been a huge source of natural yellow diamonds.

Generally, yellow diamonds are less expensive than some other fancy coloured diamonds, like pink or blue, but the price can still range from a few thousand to tens of thousands of dollars per carat. A 1-carat yellow diamond with a lighter, more pale colour and lower clarity might cost around $3,000 to $5,000, while a 1-carat vivid yellow diamond with high clarity and excellent cut could be worth tens of thousands of dollars or more.