Yahoo Finance ‘Rarest’: The diamonds set to fetch six figures at auction
The pink diamond is one of the rarest diamonds in the world and, subsequently, perhaps a good investment - if you can afford it.
On Sunday 30 August, Lloyds Auctioneers and Valuers are auctioning off some luxury jewellery pieces, and two items in particular are set to fetch hundreds of thousands of dollars.
“We expect that this Argyle pink diamond necklet and loose Argyle pink diamond that is just under one carat will each sell for six figures due to the closure of the Argyle mine, and the interest we’ve had in the necklet so far from both Australian and International investors,” Amanda Benson, head of fine art and antiquities at Lloyds Auctions said.
Pink diamonds originating from Western Australia are considered to be the rarest of them all, representing less than 0.1 per cent of all diamonds. In fact, the Argyle mine’s entire annual production of pink diamonds would fit in your hand.
With Rio Tinto’s Argyle Mine in Western Australia touted to close at the end of this year, investors and speculators worldwide are driving up the price of available diamond stock.
In 2018, a Pink Legacy diamond went under the hammer for nearly $70 million, setting a world record price.
According to Wealth Partners, pink diamonds as an investment class have an annual rate of return in excess of 15 per cent per annum.
“The key drivers of the price increase has been a combination of the demand for pink diamonds and the scarcity of supply,” the firm stated.
However, like any investment, there are risks: “Prices may fall if buyer interest wanes, the supply of stock for sale increases or new sources of pink diamonds are found. You could also have your diamonds stolen or just misplace them.”
“We expect there to be some fierce bidding come auction day in a couple days time in the bid to win these unique, highly desirable and collectable pieces,” Benson said.
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