Argyle pink diamonds as an investment, good or bad?

The fancy pink colour diamonds found in the Argyle mines of Australia are known as argyle pink diamonds. Argyle mines are in the east Kimberley region of Western Australia. However, this mine has been closed since November 2020. The fancy colour diamonds are extraordinary. Pink colour diamonds are not that easily found and are very rare.

World’s major source of pink diamonds

Argyle mines are known for exceptional quality diamonds and for mining a noteworthy amount of pink and red diamonds. This Australian mine provides nearly worlds 90 % of pink diamonds. However, you will be shocked to know that out of all the diamonds mined, less than 1% of diamonds are pink diamonds. These diamonds are so rare that mine used to auction 40 to 60% of its finest output to a private auction house of 150 buyers. 

Importance of Argyle-certified pink diamonds

 Normally, pink diamonds are expensive only. But when they are argyle certified they are even more expensive. Day by day the prices are increasing. Since the mines are closed their no new supply in the market. Still, there is always a demand for argyle pink diamonds of Australia. And a restricted lot of these diamonds are available in the market for transaction purposes. Some of the biggest argyle pink diamonds are in the museum.

Price chart of argyle pink diamonds

From a price appreciation perspective, colour diamonds are considered as an excellent option. In recent years argyle diamonds have shown impressive growth in prices. In the last five years, they have roughly shown a price increase of 15% to 25% each year.

Impressive growth in the last year

According to the Australian Diamond Portfolio Pink Diamond Index (ADPPDI), the investment delivered up to a 30% average return in the year 2021. Since the mines were closed in 2020, it showed a huge impact next year in the argyle pink diamonds market. In the near future, the scarcity of argyle pink diamonds is going to increase as there is no new supply in the market but the new demand is always there.

Some of the big hits

Argyle pink diamonds above 1 carat are extremely rare to find and therefore are sold at insane prices. Let’s have look at some of the big sales of argyle pink diamonds.

The purple-pink flawless Sakura diamond weighed 15.81 carats. That Sakura diamond was sold for €28.65 million. Giving the magnificent€1.86 million per carat price.

A 12.76 carat that was found in an argyle mine, was estimated to gain at least €9.78 million. However, later they found some issues in the rough diamond and the weight was reduced to 8.01 ct. That diamond known as the Argyle Pink Jubilee was later donated to the Melbourne museum.

As we have already stated above the argyle pink diamonds are doing amazing in the market. It is definitely worth investing in as it looks like they are going to keep this trend up in the future as well.

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