How to invest in diamonds

While the FTSE 100 index of companies is up just 10 per cent from where it was a decade ago, over the same period the price of pink diamonds has skyrocketed by an incredible 388 per cent.

Last month, a new record was set when the Pink Star became the most expensive diamond ever sold – auctioned at Sotheby’s for an eye-watering $71 million (£55 million).

But diamonds are not just for millionaire investors. For those who are willing to do their research, investing in the precious stones can make savings sparkle – though investors need to tread carefully.

Tobias Kormind, founder of online diamond retailer 77 Diamonds, says: ‘Diamonds are the next area for alternative investments. People have done wine and art and they are looking for something else.

‘Unlike art and wine, diamonds are portable and using them does not reduce their value – they are meant to be worn.’

While many people might be familiar with traditional white diamonds, it is coloured diamonds that are now catching the eye of experts. Impurities in the rocks in some rare instances lead to a gleaming coloured stone being created. Their price is based on this rarity.

Around one carat of white diamond is produced for every ton of rock mined. With coloured diamonds the production rate is around 0.1 per cent of that.

Most rare are red diamonds – experts do not even know what causes this colour to occur in the stone. Next most valuable are blue diamonds, caused when there is boron in the rock. Pink results from distortions in the stone’s structure, yellow when there is nitrogen present and green when there is radiation.

The price of blue diamonds has climbed 228 per cent over the past decade and yellows by nearly 49 per cent. White diamond prices are up just 3.5 per cent over that period. But there are dangers for investors. Kormind says: ‘Diamonds are not only a store of value but they have outperformed any stock market in recent years.

‘But there are awful stories about people spending their life savings only to find out they bought worthless crystals, so investors must do their research and only deal with a reputable company.’

The ‘five Cs’ of diamonds are carat, cut, colour, clarity and certificate. This last point is crucial to any would-be investor. A certificate from an accredited, internationally-recognised body such as the Gemological Institute of America means a diamond has been independently assessed for authenticity and graded according to its quality.

Any diamond purchase should come with this certificate – not one which is written in-house by the jeweller or dealer.

Each stone should also have a laser inscription corresponding to its certificate – which should be checked by an independent third party.

The other ‘four Cs’ differ in their importance depending on whether they are referring to coloured or white stones.

Clarity refers to how pure the stone is, but this is less important in coloured stones – although you do not want a stone which has obvious marks or inclusions in it.

Carat is the size of the diamond, which can have an even bigger effect on the price when it comes to coloured stones.

While a one-carat white diamond is around four times as expensive as a half-carat white diamond, a one-carat blue stone could be 50 times pricier than one half its size.

But most important is the intensity of colour – a small red stone is more valuable than a large pink one.

The colour of a white diamond is graded D to G, while coloured stones are deemed at best ‘vivid’ and at worst ‘light fancy’.

Kormind says: ‘Without hesitation, this is an example of where size does not matter. The most important thing is the quality of the colour.

‘This can be subjective, but really you want the most vivid colour. With pinks, for example, what you really want is a bubblegum pink.’

Why you should invest in Argyle pink diamonds

From rare Argyle pink diamonds to bottles of whisky, all you have to do is think outside the box.

Finding places worthy of investing your money can be a timely task that doesn’t always reap rewards, unless of course you strike it rich with the ultimate cash cow – but where do you start?

Lucrative luxury investments are on the rise with many executives splashing their cash on rare commodities, including irreplaceable diamonds that are facing exhaustion.

Celebrated for their exquisite beauty and kaleidoscope of pink hues, it is little surprise Argyle pink diamonds are some of the world’s most sought-after gems, not only for jewellery fiends but serious investors too.

The sparkly stones are becoming increasingly scarce as the world’s largest supplier, Rio Tinto Argyle mine in Western Australia, is due to be exhausted by 2021.

invest-argyle-pink-diamonds

Argyle pink diamond ring by Matthew Ely

It is understood that the gems buried deep in the East Kimberley region are raised to Earth’s surface by an intense below-ground pressure, which also forms the unique lattice structure found in every pink diamond.

The remote Australian mine is responsible for more than 90 per cent of the global pink diamond supply. Since it opened in 1983, more than 800 million carats of rough diamonds have been extracted.

The sparkly stones are becoming increasingly scarce as the world’s largest supplier, Rio Tinto Argyle mine in Western Australia, is due to be exhausted by 2021.

The natural wonders have always been one of Earth’s most valuable jewels, shimmering with hues of purple-pink to blue violet and fiery red tones. Each shade offers an enchanting opportunity for jeweller Matthew Ely to create distinct pieces – including the oval Argyle pink and white diamond ring, which features a breathtaking 0.20 carat Argyle pink diamond surrounded by a twin halo of pink and white diamonds – that will only increase in value as well as desirability.

Argyle pink diamonds have escalated in value by 13.8 per cent per year, proving to be a sturdy investment.

If you don’t have a penchant for sparkly gems, here are other unusual investment avenues to consider.

Whisky

A rare single malt Scotch can be more valuable than many of the planet’s most precious commodities. Whisky outperformed both the oil and gold indexes in 2017, according to Rare Whisky 101’s Apex 1000 Index.

Gold

In the past three decades, the price of Earth’s valuable metal has increased by 335 per cent, outperforming stocks and bonds and ensuring gold continues to be a safe investment choice – even through times of economic or political upheaval.

Africa

Foreign countries have begun investing their money in the continent, leading it to become the most profitable region in the world. In fact, six of the world’s 12 fastest-growing countries are in Africa.

Investing In Color Diamonds

Investors in today’s market are looking for the right opportunities in which to invest in the hope that they will bring abundant returns. Although no one can predict the future, we all have the capability to focus on the solid facts available which are based on any asset’s past performance and current market demands.

Unfortunately, the more conservative stocks and bonds don’t produce the results today that other asset classes potentially hold. Furthermore, some of the more popular alternative investment opportunities available are not tangible and subject to many constraints which make them less attractive. The upward trajectory of fancy color diamond prices over the past few decades has been interrupted infrequently by very minor corrections. Even during the Great Financial Crisis of 2008, fancy color diamonds outperformed almost every other asset class.

However, the best way for one to objectively quantify which investment opportunities have exhibited the highest returns in comparison to all other major assets in the market is to compare them. Here we describe which points to focus on in order to present the results of our comparisons.

Comparing the Most Common Assets in the Market

Since our goal was to bring relevant and accurate data to our readers, we made sure to focus on the very same topics your everyday average investment seeker may investigate. We first noted what we felt the most traditional and alternative investment options may be. After many comprehensive hours of research, we managed to collect ROI statistics and the historical price performance for bullion, precious metals, major currencies, U.S. inflation, general stocks & bonds, colorless diamonds, and of course natural fancy colored diamonds.

After assessing the information we acquired, we compared the most relevant topics to one another, and to be perfectly honest were actually pleasantly surprised with the results.

Although, Leibish & Co. has been in the trade for a long time and fully acknowledges the investment potential that colored diamonds hold, it was exciting to see how well colored diamonds performed compared to other major asset classes. As a result of their rarity, natural colored diamonds are quite different than any other asset in the market. However, in order to prove the potential we needed to come as close as possible to a comparison of apples to apples, so to say.

Colored Diamonds Compared to Other Assets such as Precious Metals, Stocks, and Currencies

In order to ascertain what the most common investment trends are, as well as acquire their historical price performance, one can simply browse through the most popular financial websites. However, none of the websites we found presented a graph that compared the data between one to another.

In the following graph, Leibish & Co. presents Fancy Intense Pink Diamonds larger then 3.00cts, Fancy Intense Yellow Diamonds larger then 5.00cts, a 1.00ct colorless round diamond, US inflation, Gold, the Dow Jones Industrial Average, Platinum, and $ per Euro over a 12 year period since the very beginning of the 21st century through to 2012.

Data to be understood from the graph above includes the following:

  • Prices paid for Fancy Intense Pink diamonds larger than 3.00 carats have appreciated in a consistently straight path over a 12 year period, with a 443% gain
    • In 2003, a 3.58ct Fancy Intense Pink Pear shaped stone was sold for USD115,000/carat
    • By late-2007, a 3.86ct Fancy Intense Pink Oval shaped diamond was sold for USD390,000/carat
    • In late-2010, a 4.59 carat Fancy Intense Pink was sold for an amazing  USD625,000/carat 
  • Prices paid for Fancy Intense Yellow diamonds larger than 5.00 carats showed an impressive 350% appreciation between the years 2000 and 2012.
  • Although other assets have improved, and some significantly over the period of time, none can compare to the performance of colored diamonds.

Diamonds to Diamonds – The Appreciation of Colored vs. Colorless

Almost every woman you know wears a diamond ring on her finger, and most have become quite acquainted with the basic information required to asses a stone, the 4Cs. However, how many of those consumers have looked into the past price performance of these stones? Leibish & Co. therefore collected the data from the Rapaport Report, which is the jewelry industries standard for the pricing of natural colorless diamonds. We then put the numbers to the test.

The chart below compares the increase in price over the course of 5 and 10 years of Colorless stones and Fancy Color Diamonds. The stones compared were:

  • 0.50ct Colorless Round compared to a 0.50ct Fancy Intense Argyle Pink
  • 1.00ct Colorless Round compared to a 1.00ct Fancy Yellow
  • 3.00ct Colorless Round compared to a 3.00ct Fancy Light Pink

As one can clearly see, the difference between the two is quite drastic:

While the 0.50 carat Colorless stone had a price increase of only 10% over a ten year period, which is a respectable appreciation, the 0.50 carat Fancy Intense Pink Argyle diamond had a 375% price increase over the same period.

The 3.00 carat colorless diamond showed a 130% incresae over the 10 year period while the 3.00 carat Fancy Light Pink diamond appreciated at 318% during the same period. Even the 5.00 carat colorless stone, which showed the highest increase of colorless diamonds over a ten year period of 159% could not compare.

The charts above provide empirical proof that over a twelve year period, fancy color diamonds display much stronger performance characteristics than any of the other major alternative investments in the market.
 
Economists in today’s volatile market are searching for a balanced risk vs. ROI. People prefer tangible investments that help protect against inflation and alternative paper assets. Hard asset commodities such as Gold and Platinum have been a successful venture over the past several years but have also shown extreme volatility. Furthermore, as a paper commodity it is difficult to move, cannot be concealed, and directly connected to the credit markets and other paper assets like ETFs or other such funds.

General Advantage Points


Natural fancy colored diamonds are internationally recognized well established goods. They are extremely portable, and therefore easy to transport from one place to another. They have shown an impressive long-term price growth and serve a multi-function asset class as beautiful diamond jewelry and great investment pieces alike. They demonstrated excellent value retention and are an extremely private asset.


Rarity


Colored diamonds are among the rarest natural gemstones on earth. Only in various different mines around the world are colored diamonds found, and even those are only produced less than 0.1% in comparison to colorless stones.


Diamonds found in Rio Tinto’s Argyle Diamond Mine, for example, are globally recognized among the world’s finest diamonds. They are so rare that it is known as one of the most valuable and investment worthy stones in the market.

Market Demand


In the 20th century, it was almost unheard of to source a natural colored diamond, and therefore it was only the most rich or famous individuals that purchased these products. However, with time the manufacturing process improved, the Internet opened marketing and exposure of the product, and more of the general public showed keen interest to colored diamonds. Furthermore, when the most famous celebrities began displaying their colored diamond jewelry in public, colored diamonds were quickly adapted to the most common fashion trends.


Price Performance


Since colored diamonds are such a private asset the only way to accurately measure the public price performance is from the realized results of the world’s largest auction houses, Sotheby’s and Christie’s.

Since 2007, over 15 price records have been broken all by fancy colored diamonds, such as “highest price per carat ever paid at auction” and “highest price paid for any diamond and any jewel sold at auction.”

Conclusions


Fancy color diamonds are the most concentrated and portable form of wealth on the planet. They have proven themselves over time to be the strongest asset class around. They have outperformed all other major assets including stocks, bonds, gold, silver, and platinum. Colored diamonds, simply put, offer much greater potential results than other investment opportunities.

However, as it is more difficult to liquidate than other more common investments, it is important to understand that colored diamonds should only be considered for long-term investments. Similar to an exquisite piece of art, finding the buyer may be more difficult and take more time, but the potential returns will be appreciated. Fancy Colored Diamonds exhibit characteristics that any other asset class can only dream about emulating.

Investing in Argyle Pink Diamonds

Pink diamonds Investment

Standing in the display room at Kununurra’s Kimberley Fine Diamonds, is an exhibit that represents the nearby Argyle Diamond Mine’s total annual production of rare pink diamonds.  Actually pink diamonds are so rare that they count for only one tenth of one per cent of the Argyle mine’s yearly production. In general, colored diamonds are so uncommon that for every 10,000 white diamonds mined, just one is naturally colored.

It is time to give diamonds as an investment some critical thought. 

In recognizing this simple truth, it is quite surprising that investors are not yet fully aware of the incredible opportunity colored diamonds present. More often, when investors think of assets the terms stocks, bonds, mutual funds and even gold come easily to mind: especially in the uncertain market of recent years. However, one investment that is growing in demand, yet is often over-looked, is diamonds: specifically rare natural colored diamonds

Why Invest in Fancy Colored Diamonds?

In 2008, the world experienced an economic crisis, stocks failed and entire nations went bankrupt. This led many investors to shift their attention to alternative, safe haven and portable investments: something easily observed in recent auction trends. 

Auction houses such as Christies and Sotheby’s have seen a steadily growing interest in specialty items such as unique art, rare wines, and not surprisingly, fancy color diamonds (FCD). In fact, FCDs have been consistently breaking record prices on yellow, blue, pink and other rare colored stones.  It would seem that as the economy fell into a slump, the demand for fancy color diamonds actually rose. 

As a result, Argyle pink diamonds are being purchased as investments at an increasing rate, which has helped to swell prices.

So, why did that happen?

The lesson of the recent economic downturn is not to put all of your eggs into one basket: none of us can afford to lose everything. While traditional assets present a fast turnaround there is a lot of risk involved.  However, if a portion of wealth is allocated elsewhere, that diversity may leave investors with something to hold on to…just in case stocks fail. 

It is even better when that allocation has the potential to surpass its buying price. Collectibles and portable assets such as FCDs provide this option; hence, the growing interest that over time promises high returns. Evidence of this can be seen in the soaring prices generated by the recent Rio Tinto 2012 Argyle Pink Diamonds Tender.

Why not just any diamonds? 

There is no denying that small white diamonds make beautiful engagement rings. Yet, as an asset, they loose ground when compared to the performance of Fancy Color Diamonds. Because Fancy Color Diamonds are increasingly rare, they do well at retaining their value: this makes FCDs extremely impressive as an investment option. 

The scarcest of all Fancy Colored Diamonds are red stones with only about 30 known pieces existing today. Red diamonds have a great track-record when it comes to performance at auction. 

• In 2001, Sotheby’s sold 0.70 oval Purplish Red for $178,777 per carat

• In 2005, the same auction house managed to sell another Purplish Red of 0.91 carat SI1 for $616,000 per carat. 

That is almost half a million dollar difference in 4 years!

Another very rare colored diamond that has performed well is the blue, which has also experienced big price increase over time. 

• In 1999, a round, 4.77 carat Deep Blue sold for $259,226 per carat at Christie’s. 

• In 2001, Phillips sold a 3.95 carat of old European cut Fancy Deep Blue diamond for $420,698 per carat. 

• In 2010, Christie’s auctioned a 2.88 carat of a heart-shaped Fancy Deep Blue for $579,000 per carat. 

As exciting as this is, it is only the tip of the iceberg. 

Today’s most watched for FCD at auction is the Pink Diamond. Not only is it the hot ticket item among serious diamond enthusiasts, it is the favorite of the fast growing Asian market. Furthermore, recent years have seen highly sought after Pink diamonds become the prized possessions of Nouveau Riche Indian and Chinese collectors. Still more have found a home in Japan: currently the most established market for pink diamonds. 

The Argyle Mine of Western Australia is to date the leading producer of the most spectacular pink diamonds worldwide. Indeed over 90% of today’s pink diamonds come from this mine: now famous for its Annual Pink diamond Tender. 

Although Argyle Mine owner, Rio Tinto does not disclose prices, it is speculated that together these rare diamonds have a value exceeding $65 million.  What Tinto does say is, “As a basic rule of thumb, a pink diamond is worth about 50 times more than a white diamond.”

What makes Argyle Pink Diamonds so elite? 

Perhaps the following comment made by chief commercial officer of Rio Tinto Diamonds, Jean-Marc Lieberherr, says it all. 

“These rare Argyle diamonds provide the escalating intrinsic value of an investment and are destined for the exclusive echelons of the world’s most sophisticated collectors.” 

Yet, there are more reasons:

1. Argyle’s unique pinks are more intense than most pink diamonds originating from other mines.

2. The high prices Argyle’s Annual Pink Tender commands.  The 2012 tender saw intense bidding for the 56 single pink diamonds (two reds) and 19 blue diamonds. Highlights of this event were:

a. The Argyle Siren, a 1.32-carat Purplish Pink diamond with square radiant cut 

b. The blue Argyle Elektra 

3. Supply and demand is the final reason Argyle diamonds are so special. 

c. Recent predictions state that the Argyle mine has a life expectancy of less than a decade. 

d. Experts believe that the mine will cease production by 2018. 

Thus far, no new mines with a comparable product exist. Regrettably, even if a new source of pink diamonds were found tomorrow, it will take at least 10 years to bring it to full production. 

How To Invest In Pink Diamonds?

For eight years the devastating banking crisis of the United States, which has dragged in a dangerous vortex practically the whole world and has ensured that each citizen would develop a strong and growing distrust in the financial world , and especially in banks.

This is the reason why a growing number of investors are facing different investment methods, such as gold, silver and pink diamonds. These are luxury products, they are difficult to find, and therefore more stable and maintain their value, through purchase over time. These are the so-called safe havens; they buy value, especially in times of crisis, when they are the only safe investments to fall again.

Of course, investing in gold or pink diamonds is not the same one that will carry out the bank bonds. Here the terrain becomes more complex, full of traps and with many things you should know before you start in these sectors.

The pink diamonds have always fascinated humans for its beauty and rarity, and the distinguishing feature that give their owners. Owning a diamond means living in luxury, being part of the elite. But what about the investment? It is possible to make investments in pink diamonds, autonomously, choosing this option is not prudent unless advised by experts in the field, and ready to risk a lot, through credit institutions or trading platforms that offer this possibility.

History, origin and formation of pink diamonds

According to the story, the pink diamonds were originally recognized and mined in India; here they were found in alluvial deposits along the rivers Krishna and Godavari. The pink diamonds were used to adorn the religious icons; therefore, it is very likely that they were already known and considered valuable about 6,000 years ago.

A famous sacred text of India, written at the beginning of the third century, describes strength, regularity, and brilliance, the capacity of zero metals and a good refraction capacity as the desirable qualities of a diamond. The ancient Indian city of Golconda was for centuries until the mid-nineteenth century the main center of the production and sale of pink diamonds, so much so that its name became synonymous with wealth.

The pink diamonds arrived only later in our ancient Rome and India there are clear references about their use as engraving tools. The popularity of pink diamonds has increased considerably since the nineteenth century due to the increase in supply, the improvement of cutting and polishing techniques, and the growth of the global economy and also thanks to successful innovative advertising campaigns. Once the story is mentioned it is important to go figure out as you go to form this precious stone.

The production areas are, in fact, different from each other as more or less in width and capable of producing a more or less pure diamond, this depends on the type of soil formation and the part in question of the mantle. Pink diamonds originate in the mantle of the Earth, where there are conditions of high pressure necessary for their formation. It is believed that the pink diamonds found on the surface come from a depth that is between 150and 225 km.

The crystals are brought to the surface, embedded in a rock that contains both olivines called Kimberlite, volcanic eruption through ducts. This gives rise to the chimneys of the primary diamond deposits. Later, through erosion, the Kimberlite can crumble, releasing secondary diamond deposits, usually alluvial.

Very small pink diamonds, usually less than 0.3 mm in diameter, are found in many meteorites that fall on Earth. Some researchers believe that the impacts of large meteorites, which occurred millions of years ago, may have produced some (or many) of the pink diamonds found today, but there is no evidence to corroborate this hypothesis.

The carbon-14 method is not effective for dating the diamond, since it is limited to the carbon of biological origin. They are ineffective for this purpose, always due to the chemical purity of the diamond, also the geochronology techniques. Geologists, however, believe that most of the discovered pink diamonds, that is, those that form in the mantle and reached the surface, are formed between about 1 and 1.6 million years ago

Investing in Natural Pink Diamonds: What You Need to Know

Pink diamonds are perhaps the most coveted of all the colored diamonds. Over the last 30+ years, the source for most of these diamonds has been the famous Argyle Mine in Australia. Prices for natural pink diamonds have consistently generated some of the highest auction price tags.

Admiration of Argyle’s Natural Pink Diamonds

Admiration for naturally occurring pink diamonds has seen a steady increase during the last decades. They have been deemed to be one of the most beautiful and precious diamonds globally and their immense rarity has caused an exponential value increase in the present diamond market.

Appreciation Throughout the Years

It is worth mentioning that the 24.7 carat “Fancy Intence Pink” diamond broke the record for the most expensive diamond sold in November of 2010, at Sotheby’s Geneva auction reaching a remarkable $47 million. Further, pink diamonds with a lesser carat range also enjoyed respectable appreciation rates during the past decade.

The Importance of the Argyle Mine

An astounding 90% of these precious stones are produced by the Argyle mine in the Kimberley Region of West Australia. In addition to holding the lion’s share of the pink diamond market globally, this mine also has the reputation of producing diamonds with a unique “bubble gum” pink hue, unrivaled by any other worldwide.

How Rarity Affects the Price of Argyle Pink Diamonds

Although their magnificent appearance plays a great role, such exponential appreciation is more likely attributed to the laws of supply and demand. We must therefore understand the impact this product’s rarity has on its value in the present market.

It should be noted that pink diamonds count for only 1% of stones mined. However, supply is expected to dwindle even further in the upcoming years, as a closure of the mine has been forecast for 2020 by Rio Tinto. The impending closure, coupled with a steady (or even increased) demand will undoubtedly cause positive price fluctuations.

Another factor came to light during an Argyle Tender analysis for the period between 2010 and 2015. In these 5 years, prices experienced a 300% increase compared to previous Tenders. Initially it was believed that this was also due to exponentially heightened product quality throughout the years; but this was not entirely true. Stones had shown to be proportionately smaller, especially when compared those of 2 decades ago; further supporting the predicted cessation of Argyle mining operations in the near future.

Finally, as business comes to a halt, so will its annual tenders, and thusly opportunities to get hold of these truly one of a kind stones. Nonetheless, this potentially translates to even greater escalation of pink diamond value for owners in the years to come, as well as, reducing chances for depreciation.

The Verdict

The verdict is this: having gained a better understanding regarding pink diamond value in the current market, it would seem that investing in the above mentioned would be advantageous. However, the increasingly finite nature of these stones, coupled with heightened demand, and diminishing size, color clarity and vibrancy, as well as quality, suggests immediate action. So if you are wondering when would be the “ideal” time to invest; the answer may be “now.”

Texas Woman Finds 3.72 Carat Yellow Diamond in Arkansas Park

A last minute idea for a fun family trip turned into a priceless experience for one Texas woman, after finding a rough yellow diamond in an Arkansas state park.

According to media reports, Miranda Hollingshead of Bogata Texas was visiting Arkansas’s Crater of Diamonds State Park when she stumbled upon a 3.72 carat yellow diamond.

“I was sitting in the shade, watching a YouTube video on how to find diamonds. I looked over at my kid for a second, and when I looked down, I saw it mixed in with other rocks,” said Hollingshead in a park press release.

According to the park it is the largest registered diamond found since March of 2017 and the largest yellow diamond found since 2013.

“Every diamond found at the park is beautiful in its own way, and this one is certainly no exception,” said Park Interpreter Waymon Cox in the written statement.

Crater of Diamonds State Park is a unique experience and is one of the only places in the world people can search for real diamonds. The 37-acre property is an ancient diamond bearing volcanic pipe. The park regularly plows the field to loosen the soil and help along the natural erosion process.

Cox noted that recent rainfall may have helped Hollingshead with her unexpected discovery.  “Much of the ground where Ms. Hollingshead found her diamond is made of unweathered volcanic rock. When it rains, flowing runoff often leaves loose gravel, and sometimes diamonds, on the surface in these areas,” she said.

Officials said that so far this year 319 diamonds have been registered at the part, weighing a total of 63.49 carats. Of those 13 diamonds have weighed at least one carat each.

In total, over 75,000 diamonds have been unearthed at the Crater of Diamonds since the first diamonds were discovered in 1906 by John Huddleston, a farmer who owned the land long before it became an Arkansas State Park in 1972.

The property is also where the nation’s largest diamond was discovered in 1924; the rough diamond and was named Uncle Sam, weighing at 40.23 carats.

Source: kitco.com

The Argyle Group Look to Continue Expansion into Asia

Ever since our inception, one of the main goals for the Argyle Group was to target Asia-Pacific audiences where rare gems and diamonds are rapidly growing markets. This was one of the deciding factors in our decision to open our Singapore office in 2016.  Asia-Pacific has emerged as a key growth region for the jewellery and rare gem industry, registering one of the fastest regional growth rates in the world at 10 per cent. With the gold market experiencing a fair amount of volatility right now, rare gems are an increasingly attractive investment for investors looking to diversify their portfolio. Pink diamonds in particular, have experienced a massive growth in prices, rising by over 10% per annum. It is these figures that have inspired the Argyle Group’s plans to expand further into Asia over the coming months.

Meet and Greets

We are certainly not the first company to appeal to Asian audiences with jewellery house giants Christie’s and Auction pioneers Sotheby’s regularly hosting rare gem auctions in Hong Kong. As the aesthetic value of coloured diamonds continues to gain popularity, the Argyle group are keen to further expand into Asia and the Middle East with South East Asia a leading priority.

We are currently offering meet and greet appointments aimed specifically at Asian Investors. Simply let us know the city in which you would like to meet by filling out our quick sign-up form here, and we will arrange a time and a place that suits you. For more information on the Argyle Group and our Argyle bonds please visit our website at  www.theargylegroup.co.uk

The Spirit of the Rose: Alrosa’s Pink Diamond Poised to Earn Over $60 Million

A 14.83-carat pink oval diamond, cut from a rare 27.85 carat clear pink rough diamond mined in 2017 by Russia’s Alrosa could earn more than $60 million when it goes up for sale in November. Named The Spirit of the Rose (“Le Spectre de la Rose”) as a tribute to a legendary short Russian ballet that premiered in 1911, the preparation and cutting process was performed at the “Diamonds ALROSA” cutting factory in Moscow, and it will be the most expensive stone ever polished in Russia.

According to the Gemological Institute of America (GIA), the diamond is of Fancy Vivid Purple-Pink color, Internally Flawless clarity, Excellent polish and Very Good symmetry, and is one of the largest pink diamonds in the world. It took a whole year for Russian cutting masters to turn the unique rough diamond – the largest of its kind ever found in Russia – discovered in at the Ebelyakh deposit in Yakutia into its polished form. The oval shape ensured that the diamond would be of the maximum possible size, and the dozens of facets emphasize its gentle, rose-petal color. Prior to the recovery of the rough stone, named “Najinsky”, Alrosa’s largest pink gem had weighed 3.86 carats.

The diamond miner has siad several times this year that it is aiming to become the leader in the international market for colored diamonds, last February giving a preview of its collection of large colored diamonds, with the star of the show being The Spirit of the Rose. “Pink diamonds among the blue ones are considered to be the rarest and most precious of all,” said Yury Okoyemov, Deputy CEO of Alrosa said at the time, “and the size and clarity of this specimen make it one of the best to be discovered anywhere in the world in recent years. I am sure that this diamond will be the most expensive in the history of Russia’s gem cutting industry.”

The GIA also stated that the stone is the biggest fancy vivid purple-pink diamond they have ever certified. “A large fancy vivid purple-pink, internally flawless, with perfect visual characteristics such as this one, enters the market literally, once in a generation,” said Eden Rachminov, chairman of the board of the Fancy Color Research Foundation FCRF). He said the Spirit of the Rose may be one of the most expensive pink diamonds ever, saying it could fetch between $60 million and $65 million. “Its beauty overcomes the important pink diamonds sold at auction in the last decade and its retail price should exceed €60 million.” 

According to Alrosa spokeswoman Evgeniya Kozenko, the Spirit of the Rose will be the most expensive stone ever polished in Russia. The company has not yet decided how it will sell the gem, via auction or otherwise, but set the sale date for November this year. Previously, Sotheby’s Auction House set the record for a gem price in 2017, selling the 59.6-carat Pink Star diamond for $71 million (€64 million). The Oppenheimer Blue diamond sold by Christie’s Auction House a year earlier ranks second at $58 million (€52 million).

Rio Tinto Reveals One of Final Collections for Argyle Pink Diamonds Tender

Rio Tinto has unveiled the collection of diamonds on sale at what may be one of its last tenders of the world’s rarest pink and red diamonds, as the life of the Argyle mine in Western Australia is winding down. The mine produces more than 90 percent of Australia’s diamonds, and is one of the only known sources of pink diamonds in the world.

The Argyle Pink Diamonds Tender is an annual event, which is so exlusive and the diamond so rare they never reach the open market. This is the first time in the 35-year history of the Argyle Pink Diamonds Tender – the first edition of which was in 1984 – that the collection has been launched on Country, in what’s considered to be one of the most exclusive diamond sales in the world. that the collection has been launched on Country, in what’s considered to be one of the most exclusive diamond sales in the world. This year’s collection features 64 diamonds weighing in at 56.28 carats in total, including three fancy red diamonds. The most coveted of those diamonds is the Argyle “Enigma” (pictured), a 1.75-carat fancy red diamond, only one of three of its kind weighing more than 1.5 carats to be produced from the mine in 40 years. 

Rio Tinto copper and diamonds chief executive Arnaud Soirat said with fewer than 150 of these extremely rare tender stones left, it was a historic moment for collectors, the company, and its employees. “Only one per cent of Argyle production is made of colored diamonds every year,” he said. “And out of this we are taking the top 50–65 colored diamonds, putting them together in the tender.” Over the past 20 years the value of Argyle pink diamonds sold at the tender have appreciated 500%, outperforming all major equity markets. Mr. Soirat said these results were a reflection of the supply of these extremely rare diamonds becoming even more scarce and more valuable. “If you want to have an idea of the price you can look at the reserves of auctions every year; the best diamonds are sold in Geneva so typically of this quality from Argyle they would attract several million dollars per carat,” he said.

While Rio Tinto does not release the prices achieved at each year’s tender is kept secret, the company said the collection in 2018 reached double-digit price growth – including the sale of the most valuable diamond in the tender’s history. The Argyle Muse, a 2.28-carat fancy purplish-red diamond, was sold to an anonymous buyer, with an estimated price of anywhere between $14–21 million.

The 2019 Argyle Pink Diamonds Tender collection, titled “The Quest for the Absolute” comprises six hero diamonds:

Lot 1: Argyle Enigma™,1.75 carat modified radiant Fancy Red diamond

Lot 2: Argyle Amari™, 1.48 carat heart shaped Fancy Vivid Purplish Pink diamond

Lot 3: Argyle Elysian™, 1.20 carat modified cushion shaped Fancy Vivid Pink diamond

Lot 4: Argyle Verity™,1.37 carat oval shaped Fancy Vivid Purplish Pink diamond

Lot 5: Argyle Opus™, 2.01 carat round shaped Fancy Intense Pink diamond

Lot 6: Argyle Avenoir™, 1.07 carat oval shaped Fancy Red diamond

The 2019 Argyle Pink Diamonds Tender is being showcased in Perth, Hong Kong and New York, with bids closing on 9 October 2019.