Searching for worthwhile investments is quite a daunting task. It’s risky and doesn’t always reap the rewards. Fortunately, some investments are worth jumping on, like pink diamonds.
If you’re interested in venturing to the jewellery industry, you’ve come to the right place. Read on to know more why pink diamonds can help boost your finances.
Pink diamond vs white diamond – what’s the difference?
One of the most common questions in the industry is: are naturally coloured diamonds pricier compared to their white version? The answer is quite complicated – yes and no.
Coloured diamonds are rare. Less than 0.1% of the diamonds extracted from mines are coloured. However, many of these pieces are more affordable than white diamonds. That’s not the case for pink diamonds; in fact, they are considered to be one of the most valuable gemstones.
You may think that the colour pink is ordinary, but it isn’t. Most women have white diamonds in their jewellery collection, but the pink ones are rare.
Where do pink diamonds get their colour?
Experts at the Gemmological Institute of America (GIA) performed a gemmological analysis of pink diamonds. They examined approximately 90,000 pink diamonds submitted to the GIA from 2008 to 2016.
The experts concluded that the colour of 99.5% of the pink diamonds analysed is due to distortion of the crystal structure. It’s not because of trace elements like nitrogen that gives a yellow colour or boron for blue colour.
A pink diamond is composed of only carbon, just like a white diamond. Trapped pieces of carbon are changed by extreme pressure and heat into a glass-like diamond. A pink diamond was subjected to stronger pressure, heat, and time.
This process turns the diamond crystals into grain-like wood. The grains are packed in such a manner that only pink light can enter and shine through the diamond.
What makes a pink diamond a good investment?
The diamonds normally extracted from mines are either yellow, brown, or white. The stone’s price is more expensive if it has an intense colour. In the case of white diamonds, the lack of colour increases the value.
Fancy Vivid pink diamonds are the most expensive stones with prices ranging from $30,000 to $
100,000 each carat. Most of the pink diamonds come from only one origin in Australia, the Argyle Mine. They provide 90% of the world’s supply of pink diamonds.
Unfortunately, the Argyle Mine’s operator Rio Tinto decided to shut it down after 37 years of operations. The costs to keep it running increased as the mine deepened. They were also not able to locate a viable alternative source of diamonds despite searching for decades. This ultimately led them to make the difficult decision of ending their role as a huge producer of diamonds.
The value of pink diamonds is expected to skyrocket with the last pieces mined on November 2020. The value of these rare gems steadily increased before the closure. It defied the crests and troughs of economic cycles. It caught the attention of rich investors who want to expand their portfolios.
Sinead Kaufman, the managing director for operations of Rio Tinto, further explains a pink gem’s value. He said that the pink diamond’s value increased by 500% over the last 20 years.
Anna Cisecki, a diamond broker in Sydney, predicts that the prices will increase further after the mine’s shutdown. She said that a shock move is not expected since the market already knew the mine’s closure. However, the effects of the dwindling supply will be felt significantly in 1-2 years.
Things to remember when purchasing pink diamonds
Buying your first pink diamond might be quite overwhelming. Some are not experienced enough to know how to select the best. Here are some important reminders to take note.
1. Always look for GIA certification.
All fancy-coloured diamonds are submitted to a GIA grading laboratory. These undergo extensive analysis to ensure that the diamonds and their colours are of natural origin. GIA gives a certificate of authenticity to document this.
Some vendors can process synthetically coloured stones because of the scarcity of the naturally coloured ones. Diamonds manufactured in the laboratory are cheaper in value even if they have the same chemical structure.
Whether you buy your gems in a physical or online store, always ask for a certificate of authenticity. GIA is known to be strict and consistent in issuing the certificates. You cannot go wrong with them.
2. Scrutinising the colour of the pink diamond
You need to scrutinise the gem you’re buying. Having the pink colour is not enough. There are also other factors to consider, such as saturation, hue, and tone.
The hue is the diamond’s visible colour. The primary hue is pink, but there can also be secondary hues such as orange and purple. Secondary hues that enhance the diamond’s colour increase its value.
The tone will tell you how light or dark a fancy diamond is. Diamonds that have a definite tone are more preferred than those who don’t have a discernible primary colour.
This is the intensity of the pink diamond’s colour. Diamonds with higher intensity are pricier.
3. Checking the carat weight
Big pink diamonds are rare. If you want a 0.3 to 0.4-carat diamond, prepare to shell out a lot of money to buy it.
The last pink diamond tender has already been scheduled.
Argyle Mine already reached the end of its life. Based on the 2020 production, there will only be one remaining pink diamonds tender in 2021. The tender will be entitled “One Lifetime, One Encounter” as a tribute to the mine’s closure. Around 62 diamonds with a total of 57.23 carats are up for grabs.
According to Rio Tinto, it will take them five years to dismantle and decommission the mine. They will also begin the rehabilitation of the land.
Lay Your Hands on These Rare Pink Diamonds with Argyle Diamond Investments
Argyle Mine already closed its doors, so it is expected that many investors will be waiting in line to secure one of the highly-coveted pink diamonds. If you are planning to expand your portfolio, getting one of the last Argyle gems is the best way to do so.
Argyle Diamond Investments can help you do so. We have a beginning-to-end pink diamond investment solution. Call us today, and let’s discuss your biggest investment to date.