Understanding how pink diamonds are priced per carat
Over the past couple of decades, the price of pink diamonds per carat has soared. They are some of the most popular options for investors and high-value clientele. The mobility and value of a pink diamond give it a guaranteed return of investment.
What makes pink diamonds expensive is not only their inherent beauty. It is also their rarity and value that make them some of the best investments out there. So, how much are pink diamond prices per carat? Here’s what you need to know.
Understanding Diamond Pricing
When pricing diamonds, whether it is pink or a different colour, there is a basic principle to it. In the world of natural diamonds, the rarity is everything. When it comes to determining value in general, a rarer diamond is a more expensive diamond.
There is no linear scale when it comes to determining the price of diamonds. Every diamond has its unique features and colour. The rates will depend only on the rarity of the single diamond in question.
The Rarity of Pink Diamonds
Pink diamonds are so expensive because they are rare. They are some of the most precious of their kind on Earth, with only a few locations producing them. As little as 0.0001% of all diamonds mined on the planet are pink.
The location that mines the biggest volume of pink diamonds in the world is the Argyle Mine in Western Australia. As many as 14 million carats of diamonds undergo mining and processing in their facilities. At 0.0001%, that amounts to as much as 1400 carats per year.
With the Argyle mine supplying 90% of all pink diamonds in the world, that rarity becomes staggering. What multiplies this value is the mobility of pink diamonds in the market. There are also other parameters that affect the value of diamonds even further.
While some items have expansive values, many have little to no market mobility at all. Quality diamonds, in general, are easy to sell and have a ton of value in any market. Pink diamonds have more mobility, not on the public retail market, but in upper-class markets.
Parameters for Rarity in Pink Diamonds
Several major parameters can impact the price of pink diamonds. Whilst everything boils down to rarity, these are factors that affect rarity itself:
- Carat weight
For a pink diamond to have better value, it needs to be natural. Natural pink diamonds are the ones with good value. While artificial diamonds are becoming more readily available, they will never attract the same value as natural pink diamonds.
Quality large, weighty diamonds are much rarer than their lighter counterparts. Diamond carat refers to the weight of a diamond, equal to 200 milligram or 0.2 grams. Diamonds, anywhere between 1 to 3 carats, are lower in value than heavier diamonds.
If you’re looking to invest in pink diamonds, know that heavier single gems would command higher returns. In turn, those would require higher investments. Lighter, lower carat pink diamonds are more mobile investments but have relatively lower returns.
In any diamond, clarity is a crucial component. The quality of a diamond ability to shine, or how well it reflects light have significant effects on its value. Together with internal and external defects, they can affect the final value for your pink diamond.
Pink diamond clarity can be graded as Flawless, VVS1, VVS2, VS1, VS2, SI1, SI2, and I1, I2, I3 using the GIA grading scale. Other diamonds may be graded on an International scale too. Argyle diamonds use the GIA scale replacing I1 – I3 with P1, P2 or P3. A flawless or VVS1 grade is rare, with VS1 or VS2 grading among the more commonly available.
Colour intensity is crucial in a diamond. More intensely coloured pink diamonds fetch a higher price on the market compared to lighter coloured diamonds. GIA grades the colour intensity for pink diamonds, from least to greatest, as:
- Faint pink
- Very light pink
- Light pink
- Fancy light pink
- Fancy pink
- Intense pink
- Vivid pink
From this scale, the final three are the most valuable pink diamonds, making them worth the investment as they are auction-quality gems.
Argyle grades their own diamonds using high to low, 1 to 9 numerical scale with a colour descriptor of Purplish Pink, Pink, Pink Rose and Pink Champagne, which scales in reverse from 3 to 1, with 3 as the most intense colour. However, GIA grades Argyle diamonds that have not met the grading standards of Argyle, so it is worth thoroughly considering any potential purchase by looking at the other aspects such as clarity, cut and symmetry.
Cut and Shape
Among the crucial aspects, although with the least value impact in colourless diamonds, the cut and shape of a pink diamond will affect the value because a correctly chosen shape can intensify the colour while retaining carat weight. Many rare diamonds, upon processing, will go through the quality work of expert artisans. It’s nearly unheard of for rare diamonds, more so pink diamonds, to get into the hands of amateur polishers.
Diamond cuts and shapes should provide symmetrical shapes, accentuate, and deepen a coloured diamond’s colour. It should present a bigger visual impact than its actual weight and stay polished to a dazzling shine.
How much are pink diamonds per carat?
So, how much are pink diamonds per carat? The pricing depends on the variety of factors listed above. For the pink diamond, the GIA intensities commonly presented for valuation are:
- Fancy Light Pink
- Intense Pink
- Vivid Pink
While pink diamonds with lower total carats cost far less than their counterparts, quality Fancy Light Pink diamonds attracted around $300,000 in 2014; Intense Pink diamonds go from anywhere between $450,000 to $600,00; Vivid Pink diamonds in the market sell for as much as $600,000 to $1.75 million per carat. The record for the highest per-carat price for pink diamonds ever sold comes at $2.1 million.
The annual price increase for the Fancy Light Pink variety alone goes at 15% annually. There are even steeper, higher-valued investments held in banks. The curve for the growth of pink diamond prices makes it worth a second look.
Get the Best Price Per Carat for Pink Diamonds Now
Now that we know the price per carat of pink diamonds, does that make them a good investment? The answer is yes.
Find a diamond investment that you can trust and a pink diamond investment opportunity that can give you guaranteed returns. You want to make sure that your investments are in the right place. You want pink diamond investments that are not only high value but mobile too.Talk to a pink diamond specialist to find out what are the options you have on the market. We’re sure that you’ll get something that fits the returns that you are searching for.