Natural pink diamond investments: All you need to know

Pink diamonds are perhaps the most coveted of all colored diamonds. For the past 30 years, the source of most of these diamonds has been the famous Argyle mine in Australia. Natural pink diamond prices have consistently generated some of the highest auction price tags. In this article, Arpège Diamonds looks at some of the elements that contribute to the investment potential of these beauties.

Admiration of Argyle's Natural Pink Diamonds

The admiration for natural pink diamonds has grown steadily over the past decades. They have been considered one of the most beautiful and precious diamonds in the world and their immense rarity has caused an exponential increase in value in today's diamond market.

Appreciation over the years

It is worth mentioning that the 24.7-carat "Fancy Intence Pink" diamond broke the record for the most expensive diamond sold in November 2010 at Sotheby's auction in Geneva, reaching a remarkable $ 47 million. Additionally, pink diamonds with a lower carat range have also enjoyed respectable appreciation rates over the last decade.

The importance of the Argyle mine

A staggering 90% of these gemstones are produced by the Argyle mine in the Kimberley region of Western Australia. In addition to owning the majority of the global pink diamond market, this mine also has a reputation for producing diamonds with a unique "bubble gum" pink hue, unmatched by any other worldwide.

How will the rarity affect the price of Argyle Pink Diamonds?

Although its magnificent appearance plays an important role, this exponential appreciation is most likely attributed to the laws of supply and demand. Therefore, we must understand the impact that the rarity of this product has on its value in today's market.

It should be noted that pink diamonds represent only 1% of the stones mined. However, supply is expected to decline further in the coming years, as Rio Tinto has forecast mine closure for 2020. The impending closure, coupled with steady (or even increasing) demand will undoubtedly lead to price fluctuations positive.

Another factor came to light during an analysis of Argyle Tender for the period between 2010 and 2015. In these 5 years, prices have experienced a 300% increase compare to the previous tenders. Initially it was believed that this was also due to the exponentially high quality of the product over the years; but this was not entirely true. The stones had proven to be proportionally smaller, especially compared to two decades ago; further supporting the planned cessation of Argyle's mining operations in the near future.

Finally, when business stops, so will your annual tenders, and therefore the opportunities to grab these truly unique stones. However, this potentially translates into an even greater escalation in the value of the pink diamond to homeowners in the years to come, as well as reduced chances of depreciation.

The verdict

The verdict is as follows: Having gained a better understanding of the value of pink diamond in today's market, it would appear that investing in the above would be advantageous. However, the increasingly finite nature of these stones, coupled with the increased demand for and declining size, clarity and vibrancy of color, as well as quality, suggests immediate action. So if you are wondering when would be the "ideal" time to invest; the answer may be "now". Get in touch with Argyle Diamond Investments today!