Australia is the only consistent supplier of deep pink diamonds, giving it a unique advantage over the rest of the world.
According to the Australian Financial Review, the Argyle pink diamonds have increased on average by 20% every year for the last five years. The best time to buy an Argyle pink diamond was 10 years ago and the second-best time is NOW!
With the argyle mine closed in 2020, there has been an influx of investors looking to purchase pink diamonds through their personal or self-managed super funds.
Here are 7 mistakes clients make when looking to invest in Pink Diamonds.
Diamonds can come with an Argyle certificate and/or a GIA certificate. It is preferable that the stone has both however having at least an Argyle certificate certifying its origin is crucial to investing in pinks. Coloured diamonds with just a GIA certificate can come from anywhere in the world and don’t carry the Argyle premium. Also, the Argyle pink diamond grading system is a lot more detailed, where the GIA system can often span 2-3 Argyle pink diamond grades, which makes purchasing a pink diamond more precise when it comes with an Argyle certificate.
The fancy cut pink diamonds are significantly cheaper than the round diamonds. Which means there is a strong allure to purchase a pink diamond that costs less or gives you a larger size. There is a good reason for this price difference, it is because there is less demand for them. Which means that there will be less demand for them when you go sell them. And anyone who has ever sold a property will tell you, you will get the greatest return when you have a lot of people who want to buy it. It could take you significantly longer to sell a fancy cut pink diamond than a round and you may end up getting less for it than you would, had you invested in a round brilliant cut diamond.
You might think that going a deeper pink would be better – the answer is yes, and no. Deeper pinks are great, but you will have to sacrifice too much in the size to get there. Aiming for a mid-pink to purplish pink is ideal to maximise the size and the return of your pink diamond. Ideally aim for a 4/5 P/PP Argyle pink diamond to get the greatest return on your investment.
You will get a bigger pink diamond if you choose an I1 clarity pink diamond, however it is important to know that an I1 clarity diamond has a detracting effect on the value of the stone in the same way that a VS/VVS has an adding affect. However, an eye clean SI diamond will allow you to put more of your budget in to the colour and the size.
Again, like the fancy cuts, the pink rose (formerly known as the brownish pink – great branding change there on Argyle’s part) The pink rose diamonds are cheaper than the straight pinks as they have the brownish hue and do not increase as much in value. So, while you might get a bigger pink diamond it’s increase in value will be less than half of a deep pink diamond. This category is perfect for the person who would like to wear their pink diamond, rather than leaving it in a safe for investment purposes.
Most pink diamonds are cut to retain the colour, which means that they are often deeper cut. The downside to this is that they often don’t sparkle as much, as the cutter was aiming for weight retention and colour rather than aesthetic beauty. Getting a pink diamond that balances the above criteria with cut is like the icing on the cake and will make it much easier to sell in the future.
Having had the privilege of working in the diamond industry for the last 25 years, there is a lot that I have learnt from the thousands of pink diamonds that I have looked at. What I have found over this time is the perfect sweat spot in buying an investment pink diamond, that will yield the greatest return in the future. I can’t tell you how many times I have seen two pink diamonds with the same paperwork and grading, but the diamonds look completely different. Having an expert on your side, will help you know which diamond is the one that is the best in its class, instead of the one the just scrapped in. The latter could cost you thousands of dollars that you will be potentially be leaving on the table.
If you are interested in investing in pinks, the best step is to book a Pink diamond discovery session to find out if this strategy is suited to you.
