Often, we get a question are pink diamonds a good investment. Pink diamonds are among the world’s most coveted gems and have proven to be a valuable addition to investment portfolios. Their rarity and affordability make them a stable and secure form of wealth preservation, especially in the face of global market volatility.
With the closure of the Argyle mine in Australia, these irreplaceable gems are becoming even more rare. They have also become a sought-after investment opportunity, as a disproportion in supply and demand has driven prices upwards. Before investing in pink diamonds you must follow the below things.
Rarity
With only a few gems produced each year, pink diamonds are among the rarest and most valuable gemstones in the world. They are most often sourced from Australia, where the world famous Argyle diamond mines produce small, intensely colored pink diamonds.
The rarity of pink diamonds has prompted many jewellery buyers to turn to coloured gems as investments. As a result, they are now the fastest growing asset class in the global financial market.
The main factor affecting the value of a pink diamond is the color, but clarity can also make a difference. As a rule, pink diamonds have less noticeable inclusions than white diamonds. However, it is still important to look out for eye clean stones that do not contain any blemishes or scratches.
Size
Pink diamonds are a rare and exotic sight. They are the only coloured diamonds mined in Australia, and are sourced from the Argyle diamond mine.
Pinks can be found in a wide range of sizes, shapes, and hues, making them a versatile choice for jewellery design. They can also be a valuable addition to an investment portfolio.
The price of pink diamonds increases with their carat weight and color intensity. This is because the color in a diamond is determined by its tone, saturation, and hue.
In the GIA’s color scale, a primary hue is pink (P), purplish pink (PP), or pink rose (PR). A number then describes the level of intensity of that hue.
Because pink diamonds are so rare, they often command high prices. This makes them a good investment for those looking for a unique and hard asset. Moreover, they are often used to hedge against inflation. The increasing demand for pinks has pushed prices up by 10-12% per annum in the past 15 years.
Clarity
Pink diamonds are known for their exceptional color, making them an attractive choice for engagement rings. As a result, they have increased in value over the past few years.
Clarity plays a smaller role in the value of pink diamonds than in yellow diamonds. According to GIA, only 7% of fancy pink diamonds achieve the rare clarity grade of Flawless or Internally Flawless.
A significant number of pink diamonds are also found with inclusions on their surface. These are typically called ‘internal flaws’ and require a close inspection under a loupe to identify.
Like all diamonds, pink diamonds are graded based on the four C’s of carat weight, color, clarity and cut. Although the 4C’s are a useful tool for understanding diamond prices and valuation, they don’t cover all aspects of a diamond.
The hue, saturation and tone of a pink diamond are also considered. Hue is the primary tint of the diamond, while saturation refers to the amount of color distribution. Tone describes the lightness or darkness of a stone’s true pink hue and varies between gems.
Colour
Pink diamonds are among the rarest and most expensive in the family of fancy colour diamonds. The cause of their beautiful colour is still debated, but most believe that pink diamonds undergo plastic deformation during their formation.
The hue, tone and saturation of a diamond are three key characteristics determining its value. A diamond with top grading in all three categories is considered exceptional.
As a rule, more saturated diamonds are more valuable than less-saturated gems. The intensity of a diamond’s colour can be graded as faint, very light, light, fancy light, fancy intense, fancy deep and fancy vivid.
Pink diamonds can be a great investment as they increase in value over time, just like other natural colored diamonds. However, it is important to note that pink diamonds are rarer than other natural colours so they will need a significant amount of time before they appreciate significantly.
