Colored diamonds have been admired for their beauty and value for hundreds of years. Within the last few decades, many types of colored diamonds have been growing in value, but one hue of colored diamond has outpaced all others. Since 2005, pink diamonds have increased in value by an average of 15% per year.
A report by the Israeli Diamond Company from 2014 indicates that colored diamonds have grown by an average of 167% since 2005. Within the last 10 years, diamonds of all colors have continually broken records for sale prices, including superstars like The Blue Moon- a blue diamond, The Cora Sundrop- a yellow diamond, and The Aurora Green- agreen diamond.
But the undisputed star of the last 10 years has been the pink diamond. Auction prices for pink diamonds have seen an average value per carat climb to over $2 million. Amongst the highest sales of pink diamonds are The Vivid Pink, a 5-carat gem which sold for more than $10 million, The Unique Pink, a 15-carat diamond that sold for over $31 million, and The Sweet Josephine, a 16-carat dazzler that sold for $28.5 million.
Investors have taken a particularly fond interest in pink diamonds as a form of alternative investment. Pink diamonds have become a popular option both for their continual growth, as well as their portability. Unlike other commodities like gold that are difficult to transport in large quantities, the most valuable pink diamonds can be carried with ease. Investors also appreciate the stability of colored diamonds, especially pink diamonds. Unlike the volatility of the stock market, colored diamonds have shown steady and exponential appreciation.
The source for the majority of the pink diamonds is the Argyle Mine in Kimberly, Australia. The mine is responsible for 0.1% of the world's diamond production, but produces approximately 90% of the pink diamonds in the world. Rio Tinto, the owner of the Argyle Mine, has announced the forecasted closure of the mine by the year 2018.
With the impending cessation of mining operations at the Argyle Mine, supply is anticipated to drastically drop over the next 5 to 10 years. As this supply dwindles, demand is expected to continue to grow, forcing prices higher and higher. A recent press release by Argyle Diamond Investments states, “In comparison to the 10 to 260 percent uptick in worth of other natural diamonds, pink versions have surged in value between 200 and more than 450 percent over the last decade.”
Whether you are looking to purchase a pink diamond for is beauty or for its ever-increasing value, now is the time to buy. As the production of pink diamonds at the Rio Tinto mine ceases, pink diamonds will be in an even shorter supply. Be sure to take a look at our collection of colored diamonds when considering your next investment purchase.
For more reading on colored diamonds, see the links below:
- Sparkling Alternative Investments for 2017
- Investing in Natural Pink Diamonds: What You Need to Know
- Need To Know: How To Invest In Colored Diamonds
- Do You Have This Alternative Investment Asset In Your Portfolio?