Smart in Every Way

Why should I buy coloured diamonds for my portfolio?

  • How are the prices doing at auctions?
  • Where do pink diamonds come from?
  • What is making the diamond market grow?

Pink diamonds are the rarest in the world and therefore also the most expensive. Experts expect the value of coloured diamonds to continue to rise during the forthcoming years, so it would definitely be a smart investment. How can I make such an investment on a smaller scale? How do they respond to the market?

How are the prices doing at auctions?

The ‘Argyle Pink Diamonds Tender’ collection has been going under the hammer for astronomical amounts every year. The diamonds are named after the location they were found and go for a great deal of money as a result of their rare pink and fancy red colours. The increasing demand for these coloured diamonds has added to their value too, as the growth of the stock is negligible.

The pink and red diamonds are not the only ones becoming rarer as a result of the decreasing number of mines. The blue diamond is also incredibly rare and has experienced a huge boost in recent years as a result of its unusual natural tint. Two record-breaking diamonds were pink and blue in 2017.

Where do pink diamonds come from?

The pink Argyle diamonds come from the eponymous mine in Australia. This is just about the only known place on earth where pink and red diamonds can be found. The demand for diamonds from Rio Tinte’s Argyle mine has therefore been growing for years, which has led to sensational sales prices, which are still continuing to rise. They are much more valuable than colourless diamonds, but also much harder to sell. Buying coloured diamonds is therefore certainly not a smart choice for everyone.

Even other, less rare, coloured diamonds will continue to increase in value. However, it is important to choose the right colour and the right grading when you want to buy coloured diamonds. After all, these are the most important aspects of your unique investment.

What is making the diamond market grow?

The increasing prices are mainly down to the enormous demand from the BRIC countries. The growing Indian and Chinese economies have particularly boosted global diamond sales. They are at the number 1 spot where diamond consumption is concerned and are growing the fastest too. A mere 30 operational mines would remain worldwide. Diamond giant De Beers has estimated the chance of finding a new, exploitable diamond mine at 1%. Plus it would take another 10 to 12 years for any such new mine to be usable. The growing demand, combined with the declining supply, is continuing to push prices up.

How can I find out more about investing in diamonds? Where can I buy the right coloured diamond? Ask BAUNAT DIAMONDS’ diamond experts for advice about the right price-quality ratio for your portfolio.

Author: Inge Boonen
Source: BAUNAT

With this article, BAUNAT strives to inform you thoroughly about investing in diamonds. No investment can be guaranteed to be without risk or fully according to your expectations. That is why we recommend to research the risks and aspects of investing in diamond properly to ensure that you make the right choice for your portfolio.

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