Diamonds Are Forever And So Is Your Investment Portfolio

Diamonds are not just pretty jewels to be set in a ring or a necklace. Just like a diamond ring carries a weighted commitment with it, the same commitment is offered when investing in diamonds. Among diamonds again, pink diamond research is a must for prolific investors.

You might argue that there are multiple options to invest, so why look at diamonds? Diamonds, especially pink diamonds, are a prime choice for investment due to their potential for capital gains. It is attested by the fact that the value of pink diamonds has grown by an average rate of 13.8% per year. Traditional financial markets can be affected by the global financial crisis, yet, pink diamonds have remained insulated from such adverse effects, over the course of 10 years.

As per David Bennett, worldwide chairman of Sotheby’s International Jewellery Division, fewer than 0.02 percent of diamonds submitted at the Gemological Institute of America every year are pink ones. This rarity gives pink diamonds a value almost 10 times the price of colourless diamonds. Even among coloured variants, pink diamonds still hold their coveted position of being the rarest. Some of the more popular pink diamonds include the Pink Star sold for 261 million dirhams, the Graff Pink worth 169.5 million dirhams and the Fancy Light Pink by Harry Winston sold for 47 million dirhams.

So, what things can you consider when you wish to invest in pink diamonds? To state the obvious, your funds are the first. Then you need to dive into pages of pink diamond research. As with diamonds of all varieties, the colour, the cut, the clarity and the number of carats affect the rate and resale value. In short, the 4 Cs of diamonds. In the case of pink diamonds, however, colour takes the cake. The hue can be described in a combination of four words, light, fancy, intense and vivid, the last being the highest grade. In coloured diamonds, it is often seen that there is a secondary tone or colour that can affect the primary colour of the diamond in various degrees. Similarly, pink diamonds have also been described as having an orangey pink or brownish pink colour. The testing of such colours and gradient is also a subjective process, which makes this even more complex. Generally, single colour pink diamonds are costlier than larger two-colour pink diamonds. There can be a big price gap between a fancy vivid and a fancy intense pink diamond. It is the primary reason the flawless fancy vivid Pink Star fetched such a price at the auction in April 2017.

But diamonds are not going extinct. You would say new mines are being discovered regularly, so why the rush? The world’s primary source of pink diamonds, the Argyle mine in Australia will stop its operations in 2020. Supply of pink diamonds is going to be cut short in a major way and prices will keep increasing. So, the need of the hour is to act now and start investing in pink diamonds.