Lahtojoki - Pink Diamonds26 Jun 2023 14:48
What investment class has risen an average of 30% this year, outshining gold, silver, cash and the ASX 200?
It’s not a crypto or memestock, although there are plenty of those floating around.
We’re talking about pink diamonds. According to new figures from the Australian Diamond Portfolio, the value of pink diamonds has soared since 2005, gaining 10-12% pa over 15 years to outpace most traditional investments.
That has only accelerated in the past year since the closure of the Argyle diamond mine in November 2020.
The Rio Tinto operation in WA’s remote Kimberley region operated for 37 straight years, producing around 95% of the world’s supply of pink diamonds.
Over the past 12 months fancy pink diamonds have risen in value by 23%, fancy intense pinks are up 29% and fancy vivid pinks have climbed in value by 39%. In 15-year terms, those numbers are 310%, 367.4% and 413%.
The final tender closed last week, drawing record sales for Rio from select Ateliers invited to bid on the auction, with 19 buyers from 9 countries taking home the final fancy pinks and reds to exit the shuttered mine.
Another buyer, Hong Kong’s Kunming Diamonds, secured all 41 lots on offer of rare violet and blue diamonds from the mine.
Despite accounting for 95% of the world’s fancy pink supply, their rarity is underlined by the fact just those diamonds made up just 1% of Argyle’s rough supply.
Now with Argyle run dry and a secondary market beginning to form, the Australian Diamond Portfolio has launched a “Pink Diamond Index”.
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