IN COLLABORATION WITH
Rare and Collectable
Argyle Pink Diamonds
“In another decade the Argyle Pink Diamond will Emerge as the new Faberge Egg. The thing jewellery myths are made of.” Vivienne Becker, Jewellery Historian, 2015
1%Pink diamonds represent less than 1% of the total diamonds mined per annum
The Argyle mine in Western Australia is responsible for 90% of the worlds total natural Pink Diamond supply
90%
Pink diamonds can attract 20 times higher than their white equivalent
20Times higher
With the Argyle mine set to close in 2020, the demand will out weigh the supply
Why Invest?
Pink Diamond Assett Class
In summary, the Pink Diamond Investment Fund is a tailored investment solution for Wholesale Investors to participate in the capital growth prospects of this alternative investment asset class whilst participating in regular coupon payments.
The Pink Diamond Investment Fund will consist of Argyle Pink Diamonds, predominantly with provenance certification, and other opportunistic notable coloured diamonds. The fundamentals underpinning the anticipated performance of this Fund include:
- Historical returns well in excess of precious metals, international and domestic equities;
- Limited and finite supply of Argyle Pink Diamonds with the impending closure of the Rio Tinto mine (2021/22);
- Continued and growing International demand for consumption of Argyle Pink Diamonds
- Anticipated Investor patience for long term returns in light of the regular coupons at 4% p.a
Limited and Finite Supply
The Argyle mine, in production since 1983 is unmatched in the sheer quantity and quality of the pink diamonds it has produced over the years, yet pink diamonds represent less than 1% of total diamonds mined per annum. Due to economic viability of continued mining, Rio Tinto Geologists have forecast that the mine is expected to cease production in 2021- 2022.
When Argyle does close, the global supply of wholesale pink diamonds is projected to substantially reduce in the absence of other existing consistent sources of pink diamonds. Like all assets, the diamond valuations follow the laws of supply and demand. This closure further underpins the investment grade pink diamond as an investment opportunity worthy of consideration.
Rio Tinto’s Argyle diamond mine in Western Australia is the only consistent source of pink diamonds and produces over 90% of the world’s annual natural pink diamond supply.
Wholesale Argyle Diamond Performance
Historical returns of Pink Diamonds, referenced from a variety of sources, compare very favourably to traditional asset classes as illustrated in the graphs below. It should be noted however that investments in listed assets have different trading volumes, liquidity and diversification characteristics to privately traded Pink Diamonds.
Cut and polished Argyle Pink Diamonds sold from Argyle have demonstrated sustained price growth when compared to the S&P 500 index. The indexed graph in Figure 1 was sourced from Argyle Pink Diamonds who engaged Gemdax Consultants, an independent consulting company specialising in diamond industry research and analysis, to provide an indexed comparison of the S&P 500 index to the price growth in Argyle Pink Diamonds (of at least 0.15ct) sold by Argyle in the 15 year period from 2000-2015.
This is a reflection of the historical increasing demand for pink diamonds as an investment asset class. Investors should note that past performance is no guarantee of future performance. Investors are encouraged to make their own investigations into the likely performance of the Fund and its underlying assets.
Investment Options
An investor has a number of options to participate in the performance of this asset class.
Option 1
Acquire investment grade stone(s) directly as a retail investor and hold them for a sufficient investable period;
Option 2
Access exposure to a portfolio of select stones acquired at wholesale prices and traded to optimise portfolio valuation growth and liquidity to enable the payment of Fund General Coupon of 4% p.a. and further returns at the maturity of the investment period.
Crucial to a successful exposure to this asset class is the capability, connectivity to international networks and cost efficiency in managing the asset. The Pink Diamond Investment Fund has been structured to appeal to investors across all tax structures, including self-managed superannuation funds, foreign residents and Australian corporate and individual Investors.
The Pink Diamond Investment Fund structure combines attributes to deliver Investors with expert knowledge, networks and track record in trading Argyle Pink Diamonds, direct access to participate in the exclusive Argyle Tenders through access to Select Atelier License with the financial and operational rigor achieved with Trustee oversight.
Anticiated Investor Patience
The Pink Diamond Investment Fund has been structured to capitalise on the divergence of the supply curve, with the closing of the Argyle mine in 2021-2022 and the demand curve, with the growing appetite in international markets for the increasingly rare pink diamonds. To enable Investor patience the fund is structured to distribute a total 4% p.a coupon paid in 3 instalments. The Final Coupon and return of capital distributed upon maturity is projected for 2027
Comparison of Investment options
Investors who choose to invest in pink diamonds could do so via the Pink Diamond Investment Fund or may own them direct. Using a nominal value per $100,000, the table illustrates the difference in acquiring through the Fund as compared to owning direct.
