Pink Diamonds as an asset
Since 1983, the Argyle Diamond Mine in Western Australia has been virtually the world’s only consistent source of pink diamonds and annually produced over 90% of global natural pink diamonds.
Australian Argyle pink diamonds are the most highly valued in the world and regularly attract prices in excess of 30% over pink diamonds from other locations.
The stable medium to long-term growth of pink diamonds also make them a potentially valuable asset within a Self-Managed Superannuation Fund portfolio.
At a glance, the range of asset benefits include:
Increasing Demand
Strong and increasing global demand now well exceeding Argyle pink diamond supply
Manageable
An easily-transported and manageable asset for passing from generation to generation
Diversity
Pink diamonds provide diversity to more traditional investment portfolios
Low Volatility
Low volatility makes pink diamonds a worthy superannuation fund inclusion
Limited and finite Supply
With the closure of the Argyle mine in November 2020 and in the absence of any other existing consistent sources, there is now a finite supply of Argyle pink diamonds available and it is assumed upward pressure will continue to apply to prices.
Argyle Diamond Performance
Argyle pink diamonds have shown very favourable historical returns, well in excess of precious metals, as well as international and domestic equities. Argyle investment grade pink diamonds provide an attractive investment opportunity, especially due to increased international demand.
Strong international markets for Argyle pink diamonds include Japan, Europe, the US, India and China. All have shown ongoing appreciation for the unique Argyle Pink Diamond shades, as well as their rarity and prestige as collectables for high net-worth individuals.
As an investment asset class, the annual rate of return for Argyle pink diamonds over the past 15 years has been in excess of 10% per annum plus currency fluctuations. Key drivers have been the combination of strong and ever-increasing demand and scarcity of supply (Portable, no Land Tax, no Stamp Duty, no Legals).
Argyle Diamonds Limited confirmed that the 2020 Tender Collection delivered a record result, continuing the double-digit price growth trajectory for their pink diamonds. The 2020 Tender attracted a record number of participants and successful bidders came from eight countries. With the mine closure in November 2020, Argyle pink diamonds continue to demonstrate their impressive value, due to of their rarity and unique provenance.
