2020 ushers in not only the dawn of a new decade but a significant shift in the supply of the naturally colored diamonds with the closing of the iconic Argyle Mine. The one certainty to expect is that investment portfolios are going to be changing; which raises a question, “how are they going to change?” In this article, we’ll share insight highlighting top alternative investment ideas.
After stressing the advantages of investing in colored diamonds, many of you contacted us and asked which colored diamond category you should invest in accordance to your budget. Since this is one of our most frequently asked questions, we figured it was high time we shed some light on the matter.
Australia’s Argyle Diamond Mine, the source of 90% of the world’s pink diamonds, is scheduled to cease operations in 2020. What can this mean for the pink diamond market, the industry as a whole, and investors. Let’s find out.
In April of 2017, a diamond sold at Sotheby's Hong Kong auction for $71.2 million dollars. At 59.6-carats, it was certainly a large stone, but not nearly large enough to justify its record-smashing winning bid. What made this particular diamond so unique? It was pink.
East Kimberley is a remote region of Western Australia more than 2,000 kilometers from Perth, the state capitol. Open and underdeveloped, there might not seem to be much to recommend this arid region…but under the surface, East Kimberley is home to one of the rarest and most unique treasures in the world: pink diamonds.
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 diamond price has increased by an average of 15% per year.
As investors, you are constantly on the lookout for assets that show the greatest stability and potential for high returns. With the price of diamonds increasing exponentially in the last 2 decades, is there opportunity in investing in these colored stones? Can their prices rise even higher? And if yes, how much higher can they get?
In this article we will be looking at:
- How diamond rarity translates to value
- What we can learn about market demand and the industry by examining the Argyle Tender
- Final thoughts on the future of colored diamond prices
This article has been updated for 2019
Despite occupying such an influential position within the diamond industry and the investment market, all mines eventually “burn out”, and unfortunately the Argyle mine is no exception. Its resources are expected to be largely depleted in the very near future, an estimation that can be further supported by Rio Tinto’s 2013 announcement of ceasing operations in 2020.
Pink, it combines the burning passion of red, with the purity of white, and with Valentine’s Day being just around the corner, what better way to surprise the one you love, than with a beautiful pink diamond.
With a massive 600% increase in value during the last decade however, these gems can be much more than just a valuable gift, they can be an investment. But just like your loved one, no one pink diamond is alike, more specifically; these stones can be categorized into 4 color categories based on their grading. So which one is right for you?