Opportunity for long-term outsized returns
Fancy Colored Investment Diamonds offer exponential sustainable long term growth opportunities. Many of the significant mines producing rare color diamonds are near the end of their production lives so that as supplies become more restricted, with an ever-increasing diminishing supply and increased demand, prices for these rare colored diamonds continue to grow. It’s not only the growth that individuals love about Fancy color Diamonds but its unique nature of them being non-correlated to financial markets. Many individuals always turn to fancy color diamonds as a form of diversification and a haven for wealth protection in geopolitical uncertainty.
Global demand for diamonds outstripped supply by 7 million carats per year in 2020, driven by emerging markets like China and India, partly caused by these economies adopting the Western practise of giving diamonds as celebratory gifts. As a result, buyers are interested in the fancy colored diamond market because the supply-demand curve grows with very little new supply.
Basic Economic of Supply & Demand
Rough-diamond supply and demand the next decade
Observe the last ten years and see consistent price increases with the ever-future demand for diamonds. We will see continued price increases into the next decade. Supply dwindling, and no significant diamond discovery since 1997 and curtailed exploration since the 2008 financial crisis, no new mining sources to add to supply in the next 5 to 10 years. Therefore, the demand-supply gap will widen in the medium to longer term. The result will be a continued increase in the price of polished diamonds over the next decade.
One such mine to help investment diamond buyers! Argyle
Rio Tinto’s Argyle mine produced 90% of the world’s pink and closed in November of 2020. They were the world’s most extensive Champagne, Red and Violet Diamonds supplier. However, the supply of pink diamonds was limited to a few handfuls of new polished stones per year. A mere one carat was suitable for sale for every million carats of rough diamonds produced at the Argyle diamond mine.
Closure Announced
The announcement from Rio Tinto that the Argyle mine ceased all mining operations in November 2020 continues to cause a flurry of interest amongst investment-grade diamond buyers. There have been no recent discoveries of viable mining opportunities to replace this unique mine. If a new mine were to be found, it would take approximately ten to fifteen years to produce diamonds to sell to consumers. This closure positions the pink diamonds from the Argyle mine as an excellent opportunity to offer significant returns in the medium term.
Learn more and download our Fancy Color Investment Diamond Guide.
The time to invest is now
90% of the world’s fancy color pink diamond supply came from the Argyle mine in Western Australia, which ceased all mining operations in November 2020.
Due to the closure, buyers are hurrying to buy pink diamonds from Argyle as they see an average appreciation of between 10-25% on their investment-grade diamonds every year.
The cut off of supply and rapid increase in market demand has positioned pink diamonds as one of the best opportunities for the medium term.
