COVID-19 and its impact on the global economy has been a boon for rare gemstone mining, including that of pink diamonds. It has caught the interest of investors keen to secure tangible assets while they're gaining value relative to a limited supply. And pink diamonds are always very much in limited supply.
Prior to Covid, the mining industry had something of a rough ride in recent years. In November of 2020 Western Australia’s Argyle mine, arguably source of the world’s finest quality pink diamonds, shut down after 37 years of operation. This marked a critical moment in time for diamond connoisseurs worldwide, as the mine was the source of up to 90 percent of the world’s annual supply of pink diamonds. Needless to say, reduced supply doesn’t mean demand has dropped – quite the opposite. Demand has risen, and along with it, pink diamond values.
Despite the turmoil caused by the COVID-19 pandemic, high value luxury goods have increasingly caught the attention of investors. Pink diamonds in particular have come into focus, as investors gravitate towards adding items to their portfolios that have shown both stability and high performance in past decades. During periods of market unrest in the recent past, pink diamond valuess have proven themselves virtually unaffected by any temporary turmoil, while some more traditional investments have dropped sharply in value.
At up to 50 times the value of white diamonds, pink diamond values mean that the stones occupy the upper echelon of luxury investments that offer solid growth and stellar performance. In fact, pink diamonds have routinely outperformed the ASX many times over in Australia throughout the past 20 years. And it’s worth noting that in amongst all their inherent glamour and prestige, pink diamond values mean that the gems represent attractive and practical investing even for those simply wishing to diversify their self-managed superannuation, seeing as pink diamonds are allowable as part of any private SMSF in Australia.
Beyond those focused on SMSF’s, the closure of the Argyle Diamond Mine has prompted investors of all kinds to carefully consider pink diamond values. There is so much more to pink diamonds than merely glamour. Their inflation-proofing traits and ability to attract consistent returns on investments can make them the cornerstone of any progressive investment portfolio.
Pink diamond values equate to rarity and quality, thus it is truly astonishing to consider that of all the world’s pink diamonds, only 0.1% that were produced annually in the past were Argyle diamonds. Of course, with the Argyle mine now closed, diamonds from the mine are quite literally a finite resource. While there are pink diamonds from other reputable sources that represent excellent investments, those from the Argyle mine that regularly become available to investors are without doubt the best of the best.
As the world continues to live with Covid, we are reminded on a regular basis that what it brings into our lives is instability and uncertainty. While today these are something we have learned to work around in life and in business, unpredictability is something we all try to rule out of our investments. Small wonder then that pink diamond values to continue to rise and that pink diamond today have become highly sought after by investors. They are one of a select few choices available today that offer both significant growth in value as well as proven stability, even amidst market uncertainty.
Should you want to discuss the advantages of pink diamonds as an investment in your portfolio, we invite you to register for one of our education seminars, or request a private consultation.
