Are You Considering Investing in Pink Diamonds?

The rare Australian Argyle pink diamond is known for its exquisite colour and beauty, making it the most esteemed diamond in the world. Pink diamonds are a very popular investment right now, and for good reason. If you’re considering purchasing a pink diamond for yourself or a loved one, you won’t regret investing in pink diamonds as many financial institutions are noting them as the #1 alternative investment.

The Argyle mine in The Kimberley is the world’s sole reliable source of pink diamonds with only 50-60 of all mined diamonds produced yearly being pink. Only one in ten thousand diamonds have the colour, and less than 1% of those coloured diamonds are pink.

With Pink Diamonds representing only 0.03% of the global annual production of diamonds and the Argyle mine anticipating closure, investing in pink diamonds is increasing in its priority.

What to Know Before Investing in Pink Diamonds

1. Your Pink Diamond is Properly Certified

Before finalising your investment in pink diamonds, you must ensure that the diamond is properly certified. The most reputable diamond certifications are distributed by GIA – The Gemological Institute of America and AGS – The American Gem Society. These two grading houses are trusted due to their strict grading criteria and proven consistency of their grading methods. These certifications outline the various elements of the diamond, such as its colour, clarity, length, width, and cut. These elements all work together to form the total value of the diamond.

2. The Colour Composition of Your Pink Diamond

investing-in-pink-diamonds-colour

 

Pink Diamonds are graded on two factors, their colour, and their intensity. The grade of a pink diamond greatly impacts the value, making it an essential piece of information when considering a pink diamond investment.  Of the limited number of pink diamonds in the world, only a few are solely pink in colour. It’s more common to have a diamond which is a combination of pink, a secondary colour, and (sometimes) a third. So, how do you know what colour composition your diamond is? It’s simple… The way it’s displayed on its certificate is fairly indicative of its actual colour composition. For example, you can have a brownish pink diamond, or you can have a brown pink diamond. In this example, you can assume that the latter option has a higher quantity of brown contributing to the colour of your pink diamond.

3. The Colour Intensity of Your Pink Diamond

pink-diamond-suppliers-argyle-jewellersColour intensities for pink diamonds range from faint, very light, light, fancy light, fancy, fancy intense, fancy deep and fancy vivid. The value of the diamond increases along with the colour intensity, making it essential to know before entering a pink diamond investment. Because there is a large range of possible hues of a pink diamond, grading the colour intensity of a pink diamond is a complex procedure that requires specially trained eyes. To learn more about the Characterization and Grading of Natural Colour Pink Diamonds, click here.

 

4. Is Your Pink Diamond Natural?

Natural pink diamonds are valuable as they are naturally depleting. When considering a pink diamond investment, you must ensure that your diamond is created naturally and not chemically manipulated in a lab. If you purchase a colour enhanced diamond that has been altered to appear pink, you are not investing, you are simply making a purchase. Because the colour of diamonds can always be altered, the factor of rarity is missing from the gem, therefore reducing the value of the stone. Colour enhanced diamonds are not considered that different to cubic zirconias, so beware of counterfeits on the market. To avoid purchasing below-grade quality diamonds, always research a trustworthy source, or shop your pink diamonds from Argyle Jewellers.

5. What Does The Closure of the Argyle Mine Mean For Me?

Image taken from: https://www.fcresearch.org/

 

The Argyle mine is anticipating closure by the end of this year (2020). This means that the already rare Argyle pink diamonds will become rarer and potentially finite. The rarer these diamonds become, the higher the value becomes. Since 2005, the value of pink diamonds has increased by an unmatched 5x that of other coloured diamonds. If this trend is to continue, the value of pink diamonds will make the gem unattainable by most people. This is why the intricate and exceptionally rare pink diamond is gaining so much investor attention.

6. Should You Invest in a Loose or a Set Diamond?

investing-in-pink-diamonds-argyle-jewellersFor those seeking a long-term pink diamond investment, purchasing a loose Australian pink Argyle diamond has the benefit of being able to analyse it to see if there are any inclusions, unwanted colour hues, or scratches. Of course, it’s important to consider the use for this diamond. Pink diamond engagement rings remain a long-term investment, regardless of it being set in jewellery.

For more information, or to browse our available options for investing in Pink Diamonds visit Argyle Jewellers or download our free investment guide.