There is nothing better than a diamond that helps evoke the emotion of love and lasting commitment. The fascination for diamonds, since aeons, is due to their radiance and the symbolism of eternal love.
Is it just a symbolic gift of love, or are there other aspects? This article highlights the importance of pink diamonds beyond just being a love symbol.
Worth a fortune
Are you aware that the pink diamond can cost you 20 times more than a white diamond? One carat of pink diamond costs around $ 100,000 to $ 1 million in today’s market. The numbers are crazy, aren’t they?
Very few countries have the fortune to find pink diamond mines within their geography. 90% of the world’s natural pink diamond supply is from the Argyle Mine in Western Australia. Traditionally, pink diamonds find their roots in countries like South Africa, India, Russia, Canada, and Brazil.
Only 1% of Argyle mines production is by pink diamonds, which can help you understand the rarity of this precious stone. Moreover, the cost is so high because only 1 carat out of every million carats of rough diamonds mined is available for sale.
A Beauty to Treasure
The most expensive natural diamond in the market today, barring red, is high-quality pink. The price ranges from $ 10,000 to $ 700,000 per carat, from a less intense to an intense pink diamond. The two vital factors that influence the price of a pink diamond are its carat weight and color intensity.
There are various options that you can have with pink diamonds. It ranges from extravagant necklaces to exquisite rings. If you plan to get one of these beautiful stones, you can take a look at Leibish while shortlisting. Each stone of their collections is unique and has a lineage linking it to Argyle.
2017 saw record-breaking pink diamond prices. The most expensive pink stone sold on record was the Pink Star. This magnificent gem raised $ 71.2 million and is now in Chow Tai Fook’s possession.
Valuation of Pink Diamonds
Color has a strong meaning in the case of colored diamonds, unlike its colorless counterparts. The valuation of pink diamonds varies depending on the color variations of the stone, as they are one of the rarest.
You will find brownish pink gemstones are more affordable compared to purplish pink. While the word ‘affordable’ is in use here, it is in use on a comparative note as the prices are still very high vis-à-vis other gemstones. Pink diamonds that have a vibrant color have a higher valuation.
The degree of pink diamond’s color strength is what determines its price. A 0.5 carats stone can cost $ 50,000 while a 2 carat can fetch $ 500,000. It suggests the exponential nature of pink diamond pricing with the increase in carat size.
The clarity for colored diamonds is not essential like colorless gemstones. Fancy cuts are best suited for pink diamonds, unlike the round of colorless ones. It focuses on the stone’s brilliance and allows its true color to shine through. Shapes like heart, radiant, triangle, cushion, or marquise are best for colored gemstones, as they help conceal any defects. You can choose among these to have the best-suited one for your requirement.
A Good Future Investment?
The pink diamond market witnessed a year-on-year growth in its valuation. The average price per carat of pink diamond in higher standard and quality is between $ 1.5 to $ 3 million per carat. Investors are bullish about the pink diamonds and are keeping a close watch on the reducing Argyle diamond mine production. The scarcity will continue to drive the prices up.
Earlier pink diamonds were in use for engagement rings only. However, the market price appreciation by 20% annually has brought in wealthy investors.
The market now has SMSFs or self-managed super funds and Chinese investors. They are transforming the pink diamonds into an investment tool. The practical considerations of a high return on investment, low-risk, and security guide them to look beyond the romantic sentiment.
Therefore, as you can see, there is a change in mindset among the people as to why they are opting for pink diamonds today. Although purchase does not take place like exchange-traded commodities – gold or silver, the unique opportunity it presents is attracting many.
You can choose this luxurious gemstone over other market investment tools as a low-risk and high-return opportunity. The lowering output of the Argyle diamond mines will only help to appreciate its price in the future.
Information sourced by the author for luxuryactivist.com. All content is copyrighted with no reproduction rights available. Images are for illustration purposes only.