How far can you take pink diamond investing? While hero diamonds and tender stones occupy the dizzy heights, there are Argyle certified pink diamonds available in a far more accessible investment range, and their performance and growth remain absolutely dazzling.
How relevant is the Argyle-certified pink diamond tender to the average investor? And what should investors know about hero diamonds? The world’s most exclusive diamonds might not make it into your own portfolio, but they help benchmark prices right across the pink diamond market.
How far can you take pink diamond investing? There’s no limit, or so It seems. Eric Kariuki, Director of Pink Diamond Capital, insists that pink diamonds are a surprisingly accessible investment. But that doesn’t mean he can’t relate a few tales about events at the very highest end of the market. Just such an event took place recently when an Australian partnership took advantage of an opportunity to purchase a collection of hero diamonds.
The pink diamonds at the heart of the Argyle tender process are the stuff of legends, having taken on the name ‘tender stones’. But just in case you thought stones of such stratospheric value couldn’t be bettered, there is in fact one more significant rung on the Argyle-certified pink diamonds ladder. It is occupied by the ‘hero diamonds’ – the very rarest and finest stones taken from the Argyle tender collection. The best of the best, literally.
At tender stone level, the individuals lucky enough to get a shot at the best of Argyle certified pink diamonds tend to occupy the high end. Every tender stone carries truly eye-watering value. It’s value that increases significantly year-by-year, too. Argyle-certified pink diamonds have grown in value seven-fold over the past two decades. Hero diamonds have increased in value as much as 10 times.
The pairing responsible for the latest big hero diamond deal is jewellery legend Margot McKinney and portfolio manager Ben Cleary. Leveraging contacts and connections collected over a sparkling career, in 2021 Ms McKinney latched onto the information that the very last hero diamonds produced by the Argyle mine were about to go to tender. With the tender process, as previously mentioned, an incredibly exclusive event, McKinney and Cleary nonetheless managed to negotiate a deal to purchase a selection of hero diamonds before the tender took place. It’s hard to overstate the value of this head-start deal snagged by the duo, operating as the Kimberley Syndicate.
At Hero Diamond level, every stone bears a unique name of its own – Argyle Thea Radiant, Argyle Red Heart, Argyle Imperial Violet Shield. Suitably ‘Hollywood’ names for ultra-rare diamonds. Now in the keeping of McKinney and Cleary, these diamonds and more besides are destined to have their value further enhanced by being placed into the sort of jewellery designs normally associated with royalty.
Examples such as this go a long way towards demonstrating that the sky really is the limit where the value of pink diamonds is concerned. And while it might be tempting to think that pink diamonds are well beyond the reach of the average investor, Eric at Pink Diamond Capital, begs to differ.
“Hero diamonds and tender stones play an important role in establishing the value of pink diamonds at every level – including Argyle certified pink diamonds in value ranges far more accessible to more investors. Investment grade pink diamonds can easily be sourced from $25,000, but their growth in value is assured by ongoing low supply and ever-growing demand. What’s more, pink diamonds are a permissible asset within Self-Managed Super Funds in Australia. They’re also a tangible asset that’s easily stored and managed and they’ve shown amazing historical performance in recent decades. Investment pink diamonds routinely outperform traditional investments and retain their value strongly, even during times of significant market downturn. In amongst the stories of glamour, it’s worth remembering that in terms of performance and practicality, pink diamonds represent a very wise choice for any investor seeking to build or diversify their portfolio.”
So while the world is dazzled by the deals done at the very top end of the diamond market, it shouldn’t distract those working on their retirement funding from learning more about pink diamonds as an investment. Just a glance at their growth over the past two decades – during which Argyle investment grade pink diamonds have outperformed the ASX many times over – is quite an eye-opener.