Why would I choose a pink diamond investment for my portfolio?

  • How have pink diamonds been doing in the market?
  • Which other coloured diamonds are smart investments?
  • What should I mind when buying a pink diamond?

Investing in coloured diamonds instead of the colourless variety might be even more lucrative in the current diamond market. They are even rarer than colourless diamonds, and some colours are rarer still than others. Why would I opt for a pink diamond investment? Which other colours can I choose?

How have pink diamonds been doing in the market?

For years, pink diamonds have been exceedingly coveted in the diamond market, which is why they belong in the smart investor’s portfolio. Not only are they one of the rarest types of all coloured diamonds, 90 to 95% of the global supply stems from the Australian Argyle-mine, which is closing in 2020. The anticipated scarcity has skyrocketed prices for pink diamond investments, even at lower quality and colour gradings.

Which other coloured diamonds are smart investments?

Although all coloured diamonds are rare, some are found more often than others. As with most economic activity, supply and demand have a major influence on pricing here as well. Most commonly found of all coloured diamonds are grey, brown and some hues of yellow. Although just as beautiful, they make for poorer high-end investments because of their prevalence. Intense and vivid yellow, along with orange diamonds, are rarer and more valuable making them better suited for a portfolio. Purple, violet, green and blue belong to the same category as pink: rare and very coveted worldwide.

Most record-breaking diamonds of recent years were pink and blue, but none of them as scarce and priceless as red diamonds. They are by far the most expensive diamond colour. Also stemming mostly from the Argyle-mine, they will grow exceedingly rare after it closes in 2020.

What should I mind when buying a pink diamond?

When choosing a pink diamond investment, the most important factor is colour. Although other qualities such as clarity are also assessed, they are not nearly as important for coloured diamonds as they are for colourless. GIA distinguishes 7 different hues of pink: faint, very light, light, fancy light, fancy, fancy intense and fancy vivid. The latter is also often referred to as fancy deep or fancy dark. A different grading system using 9 subcategories often wielded is the Argyle colour grading system. Although the colours are studied by world renowned experts, they are far more subjective than the traditional 4 C’s. Moreover, coloured diamond demand is more sensitive to trends than colourless diamonds.

Where can I choose a pink diamond investment that fits my portfolio? Where can I expect proper guidance in finding the perfect diamond for me? Contact the diamond investment experts at BAUNAT DIAMONDS for the perfect hue.

Author: Inge De Wee
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.

START TO INVEST See our selection of loose diamonds

Related

  • Why should I invest in diamonds rather than gold?
    Am I better off investing in diamonds or gold? Which raw material would be the best addition? Discover it with BAUNAT DIAMONDS.
  • Alternative: invest in diamond
    To invest in shares is not without risks. There are good alternatives that fluctuate much less in value: one can invest in diamond, art or wine. They not only yield a nice profit,...
  • Gold and diamonds as a good investment
    Just a few years ago gold was not very profitable, but now it has become a good investment. The gold price has reached its highest peak in three months making gold a safe haven for...
  • Buying loose diamonds? A worthwhile investment!
    Although gold is still one of the favourite investments, we have noticed a surge of interest in loose diamonds for investment the recent years. Do you want more information about...
  • Diamond as an investment, is it a good idea?
    The benefits of a diamond for investment are numerous: they are portable, the market is separate from traditional markets and the market is still rising. Diamond is a good...

Most popular