Colored Diamond Prices are being driven higher by investors who are hoping the hot market stays hot, many of whom have been disappointed by returns from other assets, say industry insiders. Over almost eight years, from the start of 2009 to Sept. 30, 2016, the latest recorded data, the price of pink diamonds has increased nearly 180% and sits at a record high. Blue and yellow diamonds are up by around 70% and 90%.
Over the last decade, colored diamonds have surged in value. Buyers have sought them out for their beauty, extreme rarity and investment potential. The best-known pink diamonds, for example, are from the Argyle diamond mine in Western Australia. That mine, which supplies 90 to 95 percent of the world’s pink diamonds, will be exhausted by 2020, and the scarcity has driven up prices.
The luxury index, which tracks colored diamonds as well as jewelry among ten asset classes, including classic cars and fine wine, rose 10 % in the 12 months through September and 63 % in the last five years. Prices of colored diamonds, including eye popping auction prices, rose 142% in the past ten years.
Prices are rising 15 per cent a year because of increasing awareness of rare coloured diamonds, growing demand from China and India and the fact production at the Argyle mine is only guaranteed until 2020.
“Diamonds are forever in that they carry emotions in a timeless manner from one generation to another. Not one natural story is as exciting as the diamond.”
“Men, as well as some women, are increasingly shifting a portion of their assets into diamonds and colored gems as pure investments, attracted by jewelry’s global appeal, experts say.”
“Colored diamonds are continuing to climb in value as the market realizes that the supply is dwindling. The Rio Tinto’s Argyle mine, which produces more than 90 percent of the world’s natural pink diamonds, is expected to be closed in 2020.”
“Luxury investments increased in value at a compounded annual growth rate of 14.58% from $210 billion in 2008 to $362 billion in 2012, according to Wealth Insight’s 2020 Foresight Report released recently in London.”