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Up 30%: Investors flock to Aussie pink diamonds

·Personal Finance Editor
·3-min read
A large pink diamond ring on a persons finger.
Australia produces 90 per cent of the world's pink diamond supply. (Source: Reuters)

With the property market cooling, the stock market dropping, crypto imploding, and the Australian dollar losing ground against the US dollar, it is no surprise that people are looking elsewhere for some type of investment return to grow wealth.

According to diamond expert Craig Leonard, Argyle pink diamonds have become the “darling of the investment world” for many people.

Pink diamonds are rare and Australia is responsible for 90 per cent of the world’s supply of natural pink diamonds.

“Pink diamonds were produced in the diamond mine known as the Argyle Mine, in Western Australia,” Leonard said.

“The mine closed down in November 2020, significantly reducing the number of pink diamonds on the market.”

Leonard said there were some smaller producers in other parts of the world, but the closure of the Argyle Mine drove up the price of pink diamonds due to their increasing scarcity.

“Pink diamonds have always been popular. Throughout history, people have found the pink diamond intoxicating because of its rare colour,” he said.

“Argyle pink diamonds are beyond rare and, since the year 2000, have been increasing in value year on year by up to 28 per cent annually, which is why so many people are purchasing them.”

So, if you’re thinking of getting in on the diamond game, here are some tips and tricks to consider.

Do your homework

“Research is very important and so are customer reviews,” Leonard said.

“Take the time to study information online. Ask questions and talk to others.”

There are only a small handful of credible companies operating in the pink diamond investment space, so be wary of trusting your money with other suppliers.

Understand the value

“Argyle-certified pink diamonds are considered the world’s highest-valued diamonds,” Leonard said.

“Generally speaking, the more intensely coloured pink diamonds fetch a higher price.

“When it comes to clarity, only 0.01 per cent of Argyle pink diamonds are either flawless or internally flawless.”

‘Size does matter’

“When investing in a pink diamond, size does matter. The bigger the better,” Leonard said.

Only 9.66 per cent of all certified pink diamonds from the Argyle Mine are 0.20ct or larger in size.

After you’ve bought one, then what?

Leonard said the best option was to keep it “under lock and key”.

“While we often see images of celebrities swanning around with pink diamonds on their fingers the size of golf balls, the reality is that - like gold bullion - pink diamonds are normally stored in a vault that cannot be accessed by anyone without the key or entry credentials,” he said.

“The idea is to hold the pink diamond for a number of years while it appreciates in value and when you are ready to realise that value, you sell it.”

How much do pink diamonds cost?

Argyle pink diamonds can cost upwards of $30,000.

While that is a whopping cost, Leonard said that because of the dwindling supply, they would increase in value after a number of years.

“The more people invest in an Argyle pink diamond, the greater return they achieve,” he said.

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