The Source

The Argyle Diamond Mine, located in the Kimberly region of Western Australia and has been in operation since 1985.  Over the last 30 years the Argyle mine has produced approximately 90% of the world’s pink diamonds. At first glance that appears like a lot, but pink diamonds represent a mere .001% of the mine’s total annual production. A year’s worth of pink diamonds varying in size and quality would barely fill a tea cup.  The finest quality Argyle diamonds from each year are assembled to create a Tender. Only the most esteemed diamond dealers and jewelers can preview this exclusive collection which is auctioned off through a silent bidding process.

It is no secret that the Argyle mine is winding down production and could close as early as 2020.  Dealers, jewelers, investors, and connoisseurs are left to speculate what the market for pink diamonds will look like once 90% of the world’s supply of pink diamonds is lost forever.  Over the last decade one thing has been constant; bids for tender diamonds have risen dramatically every year. What is also well known is that values for pink diamonds have been on a upward tragectory for well over a decade.  we know for sure is, Argyle tender elicit larger bids and the annual collection is valued in the millions. 

Color diamonds are tremendously more rare than white diamonds. According to the Gemology Institute of America 1 in every 10,000 white diamonds mined will be considered a color diamond. It is this rarity that continues to drive the prices for all color diamonds higher. This does not mean that all color diamonds rise at the same pace. Collectors, connoisseurs and even investors all seek rarity. The rarer a color diamond is the higher its value.

Quality = Rarity = Value

Understanding what makes an investment-grade color diamond is easy. Investment-grade diamonds have two synonymous qualities; quality for  one and rarity for another. What makes for quality? The strongest color, the best clarity, the right proportions and of course size. Color diamonds exhibiting the finest qualities are by nature incredibly rare and this is why they are so valuable. It is this search for value that drives collectors and savvy investors.

Results

Color diamond investing continues to grow as an alternative to traditional stock and real estate portfolios. Popularity of color diamonds in general is on the rise. More stars are seen on red carpets wearing color diamonds and more high-end jewelry stores are promoting them. It is not just the world of fashion and media that have taken notice of color diamonds it is also the investment world.

Color diamonds are tremendously more rare than white diamonds. According to the Gemology Institute of America 1 in every 10,000 white diamonds mined will be considered a color diamond. It is this rarity that continues to drive the prices for all color diamonds higher. This does not mean that all color diamonds rise at the same pace. Collectors, connoisseurs and even investors all seek rarity. The rarer a color diamond is the higher its value.