Naturally Colored Diamond Blog

Why are Pink Diamonds a Great Alternative Investment?

Posted by Tony Cathaway on 7/1/16 8:00 AM

In today’s highly volatile market, pink diamonds have become the treasure asset of choice for investors who are seeking to expand their portfolio. Pink diamonds have solidified themselves as a wise-investment option due to their continual year-over-year appreciation of approximately 15%. Investors have also taken a liking to pink diamonds because, despite their huge value, they are small enough to be easily transported.

 Innovative_Concept_for_Selling_Pink_Diamonds_1-2.jpg

Record-Setting Prices

Sales of pink diamonds in 2014 indicated that a fancy vivid pink diamond averaged about $600,000 per carat, a fancy intense pink diamond averaged nearly $450,000 per carat, and a fancy light pink was fetching approximately $320,000 per carat. Prices per carat have nearly doubled since then, even through the global economic crisis, due in part to the increase in demand for these very uncommon treasures. These astonishing prices per carat are motivating high net worth individuals to invest their millions into these treasure assets.

In the last two years, pink diamonds have continued to break record after record, driving the average price per carat to upwards of $2 million for some classes of the colored beauties. The Unique Pink, a 15.38-carat was sold by Sotheby’s auction house in May 2016 for an astonishing $31.6 million. Another notable pink diamond is the famous “Graff Pink”, a 24.78-carat fancy intense pink diamond sold by Sotheby’s in November 2010 for $47.5 million.

Ultimate Convenience  

The fact that these pink diamonds are small and portable, yet carry such a tremendous value is another factor that is driving investors to this market.  Many tangible assets such as paintings, gold, and real estate cannot be easily transported the same way a pink diamond can be. Essentially, millions of dollars in investments can be carried in one’s pocket or on one finger. Aside from being a great movable asset, pink diamonds are highly durable. Diamonds are known to be the hardest natural element on earth and therefore can survive nearly any circumstance, while not requiring much maintenance.

The Uncertain Future of Pink Diamonds

Pink diamonds are experiencing an outpouring of interest by investors since the Argyle Mine in West Australia temporarily closed in 2013. During this time, the Argyle Mine which is the only significant source of pink diamonds, was changed from an open pit mine to an underground operation. This modification is expected to extend the life of the mine, but only for a few more years. By 2020 the Argyle Mine is anticipating their diamond production to cease. Pink diamonds are a natural resource that are in limited supply, thus driving both their demand and value.

Final Words

Alternative investments like pink diamonds allow their owner the opportunity to enjoy their beauty while growing in value, unlike traditional stocks and bonds. Now is the time for investors and collectors to get their hands on these ultra-rare pink diamonds from the Argyle mine. As demand exceeds supply, the prices of these diamonds will inevitably rise and in return yield substantial dividends to investors.

For more reading on alternative investments, see the links below: 

 

treasure-asset-alternative-investing-guide

Topics: Alternative Investments

Arpege_CTA

Colored Diamond Insights

It's like your own knowledge repository!

The world of naturally colored investment diamonds and jewlery is fascinating! 

Auction prices hitting new heights, stars and entertainers wearing new fancy colored diamonds, and backstories on some of the most iconic colored diamonds of all time. 

You won't want to miss one of our insightful posts!  Sign up to receive a notice every time we add a new piece of content.

Subscribe to Email Updates