Pink Diamond facts – the FAQ’s for a sparkling investment

Pink Diamond facts – the FAQ’s for a sparkling investment
PUBLISHED 17/04/2023

What’s simply talk, and what are the real Pink Diamond facts? In the same way as a Hollywood superstar can generate a lot of chatter, the sheer glamour and dazzling rarity of Pink Diamonds can get tongues wagging, too.

To get one important fact straight right from the start, yes, Pink Diamonds represent high performance investments that have proven their worth across decades of market ups and downs. Increasingly, they’re sought after for investment portfolios right across the range, from jet-setters to smart family investors overseeing a self-managed super fund. So let’s take a moment to run through some Pink Diamond facts – some practical, some historical and some that you may find surprising.

Kimberley, Kimberlite?

Anyone who’s done some homework on Pink Diamond facts will know that 90 percent of the Pink Diamonds in the world were sourced from the Argyle mine in Western Australia. Dig just a bit deeper – pardon the pun – and you’ll find that Pink Diamonds are sourced from within areas called ‘Kimberlite pipes’, where the gems were formed underground through immense pressure and heat. So that’s where the Kimberley region in Western Australia takes its name from, right? Actually, no. The Kimberley was named way back in the late 1870’s by a surveyor, honouring the First Earl of Kimberley and Secretary of State for the British colonies.

Not always in the pink

Western Australia’s Argyle mine is synonymous with the finest Pink Diamonds in the world – that really is one of the Pink Diamond facts you can trust. However, many people take this as meaning that the Argyle mine produced only Pink Diamonds. In fact, the Argyle mine produced far more common brown diamonds than it did precious Pink Diamonds.

More than counting carats

While Pink Diamonds are on average far more rare, and hence more valuable than white or colourless diamonds, like all diamonds, price per carat can vary widely. This is dependent on colour, clarity and many other factors as determined by expert gemmologists. Prices per carat for Pink Diamonds can begin from around AU$8,000 all the way up to and beyond half a million dollars.

The value of paper

One of the Pink Diamond facts most important for potential investors is understanding the value of ‘paperwork’ – the records that demonstrate the certification of a pink diamond, identify it and prove its provenance. In comparisons of two otherwise equivalent stones, the gem that lacks paperwork will always have a significantly lower value. This is because in the worldwide Pink Diamond trade, as in any trade of precious commodities, stones from questionable sources can occasionally sneak in. These untraceable gems might have been unethically sourced at best, and at worst might even have played their part as illicit currency in terrorism or arms trade. Needless to say then, there is no room in an investment portfolio for stones of unknown origin.

Much more than investment novelty

Dazzling glamour surrounds Pink Diamonds, there’s no doubt about it. Investing, by comparison can lack the same kind of sparkle. So it’s only natural that every now and then investors at every level get a hankering to add something different to their portfolios. Something with more flair than, say, stocks and bonds. Often it’s assumed that investments outside of the norm will routinely underperform in comparison to more popular choices, but Pink Diamond facts say otherwise. Over the past two decades, Pink Diamonds have consistently outperformed the ASX, as well as other commodities such as gold. What’s more, Pink Diamonds have a history of weathering the storm well during tough market times, strongly retaining their value. For investors looking for some glamour in their portfolio, Pink Diamonds deliver it, along with sparkling investment performance.

Putting ‘Super’ into Self-Managed Funds

One of the Pink Diamond facts that is less well known – but very well received – is the fact that Pink Diamonds are 100 percent allowable within a Self-Managed Super Fund in Australia. Of course there’s ‘allowable’ and then there’s ‘affordable’, but the other piece of good news is that investment quality Pink Diamonds at entry level can come in for as little as $25,000. That’s a value that many SMSF owners find manageable, and of course Pink Diamonds have an established reputation as a proven investment performer, another asset sure to make them welcome in any SMSF.

In summary – be sure to be guided by an expert

“A part of the charm of Pink Diamonds is the mystique that has always surrounded them”, says Pink Diamond Capital Director, Eric Kariuki. “Of course mystique is a virtue in the world of fashion, but it’s somewhat less welcome in the world of investing. Investors, understandably, always want to know precisely what they are getting for their money and what they can expect from it. And that’s where I come in.”

A certified Gemmologist, Mr Kariuki has the expertise and experience to navigate the world of Pink Diamonds and identify the perfect gem for each investment need. He’s also impeccably connected to the global Pink Diamond trade. “With a finite number of Pink Diamonds available at any given time, it is a huge advantage to know the community well and to understand who is selling, who is buying and what is available. Good connections with reputable people help guarantee a streamlined service in purchasing, secure transport, storage and sale. They are also a doorway into a world of certified Pink Diamonds whose provenance is traceable all the way back to the mine where they were first found. This provenance is the only sure pathway to performance and peace of mind in a Pink Diamond investment.”

Pink Diamond Capital hosts regular free educational events for investors. To register for such an event or simply to make an appointment to speak with Pink Diamond Capital Director Eric Kariuki about your needs, simply click here.