When pondering a pink diamond investment, there’s a lot to consider. And once you come to understand the basics of why pink diamonds represent a better investment than colourless diamonds, you might find yourself asking “What makes a pink diamond pink?”
First things first – investment value
In case you have only just begun your journey into a pink diamond investment, let’s touch briefly on why pink diamonds deserve to be in your investment portfolio. Firstly, pink diamonds are incredibly rare, and appreciate steadily in value. They have outperformed virtually all comers over the last 20 years, well and truly shading the ASX and making gold look positively dull. Their value has also historically held up well to the sort of global market fluctuations that can significantly affect other investments. Pink diamonds are relatively easy to trade, simple and safe to store, and are allowed as part of any Self-Managed Superannuation Fund in Australia.
What makes them pink, and why should it matter?
So if you’re considering a pink diamond investment, you might well be wondering why the way in which pink diamonds attain their colour should matter to you. It all comes down to provenance, what’s natural, what’s not…and how factors such as these can significantly affect the value of your investment.
Natural diamonds are formed deep within the earth through a process involving immense pressure, heat and time. During this process, which also creates a gamut of ordinary clear diamonds as well as a variety of less desirable colours, a tiny percentage of gems have their crystal structure distorted in a way that gives them a pink hue. This colouration can vary from very light to quite deep and dark. While the vast majority of pink diamonds are given their colour due to distortions in their crystal structure, a tiny percentage of them become pink through the presence of nitrogen being present in the diamond as it is formed. Although these processes each create pink diamonds, the resulting gems differ slightly in their look – in ways that can generally only be spotted by qualified and experienced Gemmologists.
Where do natural pink diamonds come from?
The short answer to this question might be ‘Not many places’. Most of the high quality, traceable, certified pink diamonds on the world market originated from the Argyle Mine in Western Australia. That mine is now closed. While there are still pink diamonds being mined in a few locations globally, their quality and traceability are rarely on par with the Australian gems. If pink diamond investment is your focus, certified gems with origins and ownership that can be reliably traced all the way back to the mine are vital. As a uniquely portable form of wealth, untraceable pink diamonds have been known to sneak into ethically bankrupt areas such as arms trading in support of terrorism. If both ethics and a sound investment are important to you, the unquestionable provenance of the pink diamonds you are considering should be paramount.
Can pink diamonds be created artificially?
There are several different methods by which pink diamonds can be ‘grown’ in the laboratory. These can involve the irradiation of lab-created diamonds containing nitrogen, the use of a process called ‘chemical vapor deposition’ applied during the growth of a diamond, and finally, the addition of silicon during the growth process and exposing it to UV light. Needless to say this is very much a condensed summary of the processes used, but all of these methods can create pink diamonds of varying hues.
In common with virtually all ‘manufactured’ gems, pink diamonds that have been created in a laboratory carry a small fraction of the value of naturally formed gems. This said, to the eyes of a layperson they are very difficult to distinguish from the bona fide article. Much like mined pink diamonds of unknown origins, lab-grown gems have no place in a pink diamond investment portfolio.
Safely navigating pink diamond investment
Pink diamond investment is a specialist niche that calls for specialist people to give expert guidance. Having discussed some of the ways by which pink diamonds are not ‘all created equal’, you might be tempted to assume that pink diamond investment is a realm fraught with pitfalls. However, with the right people on your side, it’s straightforward, safe and quite fascinating.
Erick Kariuki, Director of Pink Diamond Capital, is an experienced, expert Gemmologist who has seen pink diamonds of all kinds through his loupe across the years. “Provenance and certification carries paperwork, and that’s one level of security”, he says. “The other is knowing exactly what you’re looking at, matching the story to the stone, as it were. For me, the satisfaction in helping people with pink diamond investment comes not just through offering expert guidance, but though sharing the stories associated with the stones. Perhaps the only way a high-performance investment can gain an extra level of value is through the fascinating path of its origin. In every way, it’s the antithesis of an investment in something such as ordinary commodities.”
The best way to gain an understanding of Pink Diamond investing is via a free Private Consultation with Eric Kariuki himself. Mr Kariuki is a qualified gemmologist and an expert in valuing, procuring and trading in Pink Diamonds. To enquire about a one-on-one Consultation, simply click here.