Confused by the diamond certificate?Have you ever looked at a diamond certificate and had no idea what all the numbers and percentages mean? Don’t worry, you are not alone. Starting out can be a bit daunting, not only do you have to find the ring that she likes but you need to make sure the rock you are putting your hard earned cash into is going to be worth it. The first thing that you are probably familiar with, if you have been paying attention to her subtle hints or done even just a little research is this thing called the 4C’s. They are Cut, Colour, Clarity and Cut Grade. The big question is which one is the most important? You can see my short video series here.
Is only talking about how well the diamond is cut – which ultimately means how much it is going to sparkle. It is that twinkle that her friends will see from across the room. Tip – Aim for an Excellent cut grade. Diamonds like a Passion8 diamond sit in the top 1% for diamond cut and will outsparkle normal excellent cut grade diamonds.
Is only talking about how white the diamond is. This is talking about the body colour of the stone and has nothing to do with the colour. The colour grade starts at D and goes down to Z. Tip – Aim for the top 3 colour grades – D, E, F. Any colour that is G in colour or lower will pull a lot of yellow.
Is only talking about the natural inclusions you can see with a 10x magnifying lens. Tip – Aim for eye Clean SI clarity. As everyone’s eyesight is different make sure you look at the diamond with a lens before purchasing it. Looking at the plot on the diamond certificate will not tell you how good or bad the inclusion is.
Is only talking about the physical size that you see. While this might seem like the most important to some ladies, it isn’t if it is coming at the expense of quality. Smaller more perfectly cut diamonds will actually have the same diameter as larger average cut diamond. Tip – Always go for a diamond that is slightly smaller of better quality. After all, do you want a diamond that looks better or one that weighs more? So now that we have that sorted, let’s look at what all the percentages mean. I wish it was as simple as looking at an excellent cut grade. The truth is the goal posts have widened significantly in the last 5 years. Today more and more diamonds are falling into the excellent category than ever before. 
In a recent price comparison on diamond certificates, I found as much as a 28% price difference between two identical diamonds (based on their paperwork). Both stones had been graded as a triple excellent cut grade. So it is vital to make sure you have a cut specialist look over your diamond. Just like going to a heart surgeon instead of a GP when you need specialist surgery, a diamond cut specialist will be able to show you where your diamond sits in the cut spectrum. Tip – Aim for a 57% table percentage – It will give the diamond more dispersion. (The blues, reds and yellows) If you want to make the best-informed decision on how to pick a stunning diamond and design a ring that will really blow her away – you can learn more about how to choose the perfect diamond by getting a free copy of the international award winning book and Amazon best seller – Rock Her World here.
Billionaire investor Warren Buffett famously stated that “diversification is protection against ignorance.” At the moment it seems pretty hard to make money in most of the usual asset classes. Many of the most historically reliable investment vehicles, such as shares or property have failed to deliver spectacular results in the last few years. But you don’t have to be a billionaire like Warren Buffett to start investing in pink diamonds. The Pink diamonds have been increasing by 20%-30% every year for the last 5 years, which is a return that many fund managers would envy. What we have found is that the price of the investment pink diamonds has at least doubled over the last 5 years. Every year I go to buy pink diamonds I am always amazed at how much they have increased. Of course, it would be remiss of me if I did not mention that this is not legal or financial advice and you should seek your own advisor that can determine if this strategy is right for you. Clients today are looking to acquire Pink diamonds not just in their personal names, but in other investment vehicles such as a Self-Managed Super Fund (SMSF). Whatever your reason, whether it is diversifying your portfolio, saving for your own retirement or looking to acquire a family heirloom, The Pink Diamonds can be a solid investment.
There are 5 main reasons contributing to the year over year price increases.
1. In 2013 Argyle Transitioned from an above ground mine to an underground mine. The Argyle mine and processing plant operate 24 hours a day, 365 days of the year. All of these factors contribute to increasing running costs, which have an inflationary pressure on the rough cost of Pink diamonds. Furthermore, with underground mining, there is always the risk of a fatal accident which could see the mine close earlier than expected.
2. The kimberlite pipe where Argyle diamonds are found looks similar to a funnel. As they move further down the pipe, they are finding fewer and fewer diamonds. This leaves less rough to be cut into the desired round brilliant cut diamonds, which are in the highest demand.
3. Similar to the above point, as they find less and less diamonds the number of high quality deep pink diamonds they are finding is getting less and less. This is causing the deep pinks to increase at a faster rate than the mid – light pinks.
4. The demand for pinks is ever increasing. With this stunning Australian product attracting more and more attention, locally and internationally, more clients are seeking them out, not just for investment, but for personal use as well.
5. Projected end date. With the well-documented end date of 2020 predicted by Argyle, there is a finite timeframe in which to acquire them. While no one has a crystal ball, the prediction is that they could increase markedly after this end date, or when the mine is exhausted.
There are 4 main colour grades when it comes to classifying Pink diamonds. Purplish Pink, Straight Pink, Pink Rose and Pink Champagne. The colour scale ranges from 1 -9, with one being the deepest pink diamond and 9 being like a decaf, skinny soy latte (or as I call it a ‘why bother’) Almost all pink diamonds have a primary colour and some have a secondary colour. Sometimes this secondary colour can give a little extra kick to the diamond. In the Purplish Pink scale, the purple hue can make a pink diamond look one shade deeper on the straight pink scale. So a 4PP pink diamond can sometimes look like a 3P. In the case of the Pink rose, it is often a brownish undertone that gives the diamond its stronger colour. A good tip when looking to buy a loose pink diamonds is to turn them upside down in a white sleeve to see the secondary colours.
If you are looking for Investment Pink Diamonds the ideal range that I recommend is to aim for a 4P or 4PP to a 5P or 5PP. This allows for capital appreciation and can still be an affordable entry point, not just for you, but the purchaser you wish to sell the diamond to down the track. While deeper pink diamonds might be rarer and also appreciate in value at a greater rate, the number of potential buyers down the track will be less. Budget permitting, if a portfolio of pink diamonds is something that you would be interested in the minimum amount that I recommend would be $100,000. The aim here is to put together a selection of diamonds that will allow you to sell certain portions of the portfolio at a future point in time if you so wished. That way you can either neutralise the initial investment or greatly reduce it, while still leaving a portion of diamonds to further increase in value.
If you are ready to take the next step in your pink diamond investment journey, please feel free to contact me for complimentary 10 min pink diamond investment call or request our Investment Pink Diamond report. Alternatively, visit us in our Queen St Mall Diamond boutique to see a selection of pink diamonds for yourself. About Karl
His international award-wining book, ” Rock Her World” is available now. If you would like help, in choosing the perfect diamond and would like an amazing experience around jewellery there is a lot of great information in “Rock Her World” Karl believes that choosing a piece of jewellery should be a phenomenal experience, and over the last 21 years has helped more than 5800 clients choose a special piece of jewellery that tells their story. Come and experience their brand new diamond boutique in the Queen St Mall.
