Few gems in the world are as mysterious or as coveted as pink diamonds. Most of us will only get to see them on television, in photos, and read about them. Either way, we all understand that they are very rare and therefore, considered extremely valuable to distinguished pink diamond investors. Below, we outline five reasons that distinguish pink diamonds rarity against other stones.
Very few places in the world have pink diamonds
Pink diamonds can be sourced in various mines around the world, such as in India, South Africa, Canada, Russia, and Brazil, but 90 percent of them were produced by the Argyle mine, located in Kimberley region in Western Australia. The Argyle mine ceased operations in 2020, but of the total mining production during its years of operation, pink diamonds only made up approximately 0.1 percent of the output. The amount of pink diamond produced annually in the world could fit in the palm of your hand- simply put, they are just that rare. Since the closure of the Argyle mine, pink diamond mining has become a rarity in itself, making the desirable coloured stones themselves even more sought after.
Pink is not a common diamond colour
Australian pink diamonds are extremely rare due to their distinct pink colouration. Once they have been mined, the stones are classified according to the intensity of their pink colouration, hue, and saturation. Most pink diamonds are classified using the Argyle grading scale which distinguishes diamonds by how close to a pure pink colour they view.
The closer to pure pink colouration the diamond views as, the more expensive it’s likely to be. So, a pure pink diamond is considered significantly rarer and more expensive than a rose or purplish pink diamond. Due to their natural formation, no two pink diamonds look the same, making them even more rare and mysterious.
Geologists are not sure what causes the pink colouration in the diamonds. The common consensus is that the diamonds are exposed to so much pressure during formation process, that it could affect the structure of the stone itself, causing the pink colour. The amount of pressure will dictate the hue and saturation of the individual stone.
Pink diamonds are small
Australian mined pink diamonds, and indeed pink diamonds worldwide, are not known for being large in size and scale. It is very rare to mine a pink diamond that exceeds 20 carats. One of the biggest pink diamonds worldwide is the “Williamson Pink,”, a 23.6- carat pink diamond, which is currently in the custodian of the British Royal family.
Even though pink diamonds are small in carat size when compared to their stone counterparts, they are considered one of the rarest stones available, even with their small size.
The diamonds are one of a kind and expensive
Due to their rarity, the prices of pink diamonds surpass those of colourless diamonds or brown diamonds by far. The cost of the Argyle diamond will depend on how vivid the pink colour is, its shape, clarity, and the cut. One fact that is known is that pink diamonds are one of a kind stones and no two pink diamonds look the same.
Worldwide, there have been many beautiful one of a kind pink diamonds mined and sold.
- In November 2020, a purplish pink diamond named, “The Spirit of the Rose,” was auctioned for $26.6 million in Geneva. According to Sotheby’s, this is the most expensive purplish-pink grade diamond ever sold. The gem was discovered in a mine in north-eastern Russia in 2017.
- The most expensive pink gemstone that has even been sold was a 59.60 carat pink diamond that sold at an auction in Hong Kong in 2017 for $71.2 million. The expensive price tag was due to the pink diamonds enormous size and pink grade classification.
- The second most expensive diamond was called the Princie Diamond, a 36.65 fancy intense pink diamond that was sold for $39 million. Pink diamonds mined from the Argyle mine come with an Argyle certificate assuring of their quality.
There is no more supply
The Argyle mine, which produced 90 percent of Australian pink diamonds, closed in 2020. This has increased the rarity of pink diamond worldwide. People who own one now literally hold a piece of Australian history and a great investment.
Notably, pink diamonds have appreciated in value by up to 500 percent over the past decade. With the closure of the Argyle mine, prices have sky rocketed as demand for the beautiful pink stones increases while supply diminishes. They are an extremely good investment to make, particularly if you want to diversify your portfolio.
Choosing the right evaluator for your pink diamond investment
Whether you are a first time investor or an expert looking to diversify your portfolio, pink diamonds are a smart and long term investment. Once you have researched your pink diamond options, ensure you have it evaluated and certified by industry experts to guarantee its authenticity.
The rarity of pink diamonds overall, their decreased supply and increased demand means that in years to come, pink diamonds will be the star of your investment portfolio. Get in touch with your industry experts, IGL today, to get your pink diamond certified.