Finding a product and place to invest your hard-earned money can be a difficult task. It does not always reap benefits and rewards. Moreover, most people do not even know where to start and are scared that they might lose all their cash on an unworthy investment. Lucrative luxury investments have seen a rise in recent times as many people are eager to spend all their money on these rare commodities. These commodities also include precious, irreplaceable diamonds.
While it may not necessarily be a new wave, coloured diamonds have always gained people’s attention as an investment product. People all over the world, especially in recent times, have now begun investing their money in coloured diamonds. This is because their rarity makes them a stable enough purchase. Since only a single diamond in every ten thousand comes out coloured, the market can’t crash by any means.
Among all coloured diamonds, pink diamonds are the most popular as they are the rarest and become rarer by the minute. Their prices have been doubling every 6-7 years since the 1970s. The unrivalled hues of this diamond make it rare and more desirable.
The biggest supplier of natural coloured pink diamond in the world is the Argyle Mine in Australia. The East Kimberley region stores gems that are buried deep and are raised to Earth’s surface by an intense pressure that is formed below the ground. This makes up for the unique lattice structure found in every pink diamond. Argyle produces more than 90% of the world’s pink diamonds. It opened in 1983 and since then, over 800 million carats of rough diamonds have been extracted from these mines.
Unfortunately, this mine only has a limited lifespan. Industry experts now suggest that the mine will be completed depleted within the next few years. The experts were able to extend the mine’s life span till 2021 after switching to underground operations.
The diamond market follows the same laws of supply and demand as any other market. When the Argyle mines shut down, the supply of pink diamonds would be way too limited. This will lead to pink diamonds beings a strong investment opportunity that will offer capital gains in the medium to long term. Argyle pink diamonds have already escalated in their value by about 13.8 per cent each year. This makes it a study investment.
Apart from the stability in their values, all coloured diamonds as loose stones have witnessed an increase in popularity as a tangible investment. This could be because they can be stored and moved easily and are a wearable investment.
Companies that are dealing with investment-grade stones offer competitive prices along with the best quality. Investors need to learn more before purchasing these stones as often the diamonds only match a specific setting. They could also be hiding various imperfections and not have the ideal cut, clarity and saturation. Loose stones are a viable investment as in the case of liquidation, they are easy to sell as opposed to diamonds that are set in a piece of jewellery.