Colour and rarity are two factors that affect the average cost of pink diamonds.
The pink diamond is extremely popular in the fashion world and never fails to make eyes turn. Top designers, celebrities, collectors, and affluent families cannot resist their romantic and feminine colour. Have you ever wondered how much it takes to own a 1-Carat pink diamond? Read on and find out how much pink diamonds on average and why.
What Makes a Pink Diamond So Expensive?
A pink diamond is pricey, mainly because of two things: colour and source. A complex process produces the pink-coloured diamond in select locations around the world.
The pink diamond is one of the most prestigious coloured diamonds. You usually see rich celebrities wearing these diamonds, which are also highly coveted in popular auction houses.
The main attribute that dictates the price of pink diamonds, just like any fancy coloured diamond, is the colour. In white diamonds, the lack of colour is the most valued attribute. In fancy-coloured diamonds, having a stronger hue increases their value.
The Argyle mine estimates that a fancy pink diamond is 20 times more expensive than a white diamond having the same quality. A light pink diamond, meanwhile, is much cheaper than a fancy pink diamond.
It would seem that the pricing scale for coloured diamonds does not follow a linear pattern. The price increases exponentially depending on the diamond’s intensity and colour. The pink colour is evaluated using a scale of nine levels:
- Faint pink
- Very light pink
- Light pink
- Fancy light pink
- Fancy pink
- Fancy intense pink
- Fancy vivid pink
- Fancy deep pink
- Fancy dark pink
A “faint pink diamond” pertains to a bright and pastel shade. A “fancy deep pink diamond” pertains to a strong and deep pink shade.
The purity of colour is a big consideration in pink diamond prices.
Most gems have at least one secondary colour but pure diamonds are quite rare and valuable. The stone becomes more expensive as the strength of colour or intensity increases.
Regular pink diamonds are already expensive, but certified Argyle pink diamonds are worth so much more. A 1 carat regular fancy pink diamond can be sold from $140,000 to $180,000, depending on its quality. A similar Argyle stone easily sells for at least $200,000. This exquisite 1.02 carat intense pink diamond costs $193,000. Compare that to a 1.01 carat intense pink Argyle pink diamond that costs $447,178. The price difference is significant.
Fancy pink diamond to fancy intense pink diamond prices
The increase in price from a fancy pink diamond to fancy intense pink is less dramatic. A 0.35 Carat Fancy Purple Pink gem costs $14,100 (that’s around $42,000 per carat) as compared to a 0.33 Carat Fancy Intense Purplish Pink gem that sells at $18,250 (around $54,000 per carat).
Fancy intense pink diamond to fancy vivid pink diamond prices
The increase in price from Fancy Intense Pink to Fancy Vivid Pink is quite huge. On one hand, a 0.59 Carat Fancy Intense Purplish Pink diamond is sold at $59,100 (around $120,000 per carat). On the other hand, a 0.62 Carat Vivid Purplish Pink Diamond is sold at $260,500 (around $500,000 per carat).
The secondary hue of the diamond also affects pricing. A purple secondary hue slightly decreases the value of the gem. Setting a fixed budget before starting your search will help you narrow down your choices.
2. Pink diamond sources are limited.
Pink diamonds are quite rare and are sourced in select parts of the world, including mines in Russia, Tanzania, Brazil, South Africa, and Canada. The biggest cache is in the Argyle mine in Western Australia, which dominates the market by generating around 90% of the world’s supply.
Unfortunately, the Argyle mine announced in 2019 that it would be stopping its activities by the end of 2020. They supplied more than 865 million carats of rough pink diamonds ever since they started operations in 1983. Their source for economically viable jewels is about to be exhausted. They are now down to the remaining 150 carats of polished pink diamonds.
The owner of Argyle mine, Rio Tinto, has no plans on doing another underground expansion because it is too costly. You will need enormous pressure to create diamonds. The jewels can only form at depths ranging from 120 to 150 kilometres underneath the earth. Consequently, extracting the diamonds will be harder and more expensive. It will come to a point when the expenses for extracting the jewels will outweigh the profits.
The Most Expensive Pink Diamonds Ever Sold
Jewellery auctions always create noise in the industry. Bidders will battle it out to bid on the most exquisite gems ever produced. If you’re looking to invest in diamonds, you’d be glad to know that pink diamonds never fail to rake in a lot of money. The most expensive pink diamond ever sold is the 59.60 carat CTF Pink Star at a Hongkong auction in April 2017. A famous jeweller named Chow Tai Fook purchased it at $71.18 million (around $1.2 million per carat).
The CTF Pink Start came from De Beers Mine in Africa. The oval mixed-cut pink diamond is the biggest internally flawless, fancy vivid pink diamond evaluated by the Gemmological Institute of America.
Prices of Pink Diamonds Will Continue to Increase for the Years to Come
Pink diamonds showed continuous growth in value over the years. These gems have an average price of $1.5 to $3 million per carat, and collectors and investors are monitoring the increasing values. Demand will surely skyrocket as the supply runs out with the expected closure of the Argyle Diamond Mine.
Not only do these pieces make great additions to a jewellery collection, but they are also profitable investments. They have shown significant growth in value in the past three decades, and experts do not expect for this to stop.
Let Argyle Diamond Investments Help You Find the Best Investment Deal.
It will only be a few months before the Argyle mine shuts down. Buyers are now exhausting all means to lay their hands on the highly coveted jewels. Impostors will also be in the prowl to take advantage of the high demand. Get in touch with us at Argyle Diamond Investments and we will help you secure an authentic gem.