What’s driving pink diamond prices up and why it’s the best time to invest.
Diamonds have been valued for centuries for their beauty and rarity. Today, these gemstones fetch high prices regardless of colour. Among the most expensive ones are coloured diamonds such as pink diamonds. With their beauty and rarity, pink diamonds almost always demand high prices. Those of exceptionally great quality can reach astronomical values.
Pink diamonds have consistently fetched high prices over the years. The past few years even saw an increase in their value. As a result, some smart investors have chosen to invest in pink diamonds. Their money has since grown because of the increase in price. If you are looking to invest your money, this route may be for you.
What Makes Pink Diamonds So Expensive?
Diamonds are among the most expensive gemstones and among them, the pink ones are among the priciest. There are two main reasons for these: pink diamond supply and demand.
- They’re rare: Pink diamonds are extremely rare. According to statistics, out of thousands of diamonds mined annually, only a few are pink diamonds. Of these, only a few dozen natural pink diamonds are of marketable value, a further testament to their rarity. Synthetic pink diamonds are much more common but are less valuable.
- They’re in high demand: Pink diamonds have an almost ethereal quality to them, and this makes them popular. Pink diamonds are highly sought-after for jewellery and supplies rarely meet demands. As a result, these gemstones are much more expensive compared to others.
Not all mined diamonds are good enough to be used in jewellery, however. Only a small fraction of all pink diamonds makes it into jewellery. This further increases the prices of these gemstones.
Factors that Affect Pink Diamond Prices
The 4Cs (colour, carats, clarity, and cut) used for grading colourless diamonds are also used for pink ones. These 4Cs, among other factors, affect pink diamond prices. Of course, a diamond cannot just excel in one quality and demand a high price. The most valuable ones excel in multiple qualities. Some of these qualities include the following:
1. Is it natural?
Technological advancements have allowed us to create synthetic pink diamonds. They look highly similar to natural pink diamonds but are much less expensive. Make sure to take the origins of the diamond into account if you are looking to purchase or invest.
Even pink diamonds come in a variety of colours. These range from light hues to bright pink colourations. Naturally, some colours are more prized than others. Grading a pink diamond based on colour seems simple, but other considerations come into play. Some of these include the following:
- Hue: This refers to the colouration gemstone itself, based on a spectrum of diamond colours.
- Saturation: This refers to how the pink colouration is distributed throughout the stone.
- Tone: This refers to how light or dark the colouration is.
The most valuable pink diamonds are the ones with pure pink or purplish-pink hues. Similarly, the more intense the pink colouration is, the higher the price becomes. A combination of the different desirable qualities in a pink diamond will demand the highest price tags.
A process to enhance the colouration of diamonds has also been discovered. Pink diamond enhancement allows these stones to exhibit more desirable colourations. For example, those with lighter colours can be laboratory-enhanced to exhibit a more vivid pink hue. Enhanced pink diamonds, however, are far less valuable than unenhanced stones of the same quality.
Diamond clarity checks for any inclusions within the gemstone itself. Flawless pink diamonds or those with minimal inclusions are rare. These fetch high prices, especially if the other qualities of the diamond are favourable.
Sometimes, the colour of a coloured diamond obstructs these inclusions from view. In these cases, the prices remain high.
Like all gemstones, the cut of a pink diamond plays a role in determining its value. Those with more intricate diamond cuts will naturally have a higher price tag because proper symmetry and the polish of a diamond cut allow it to appear more luminous. A poor cut, on the other hand, will likely result in a less-brilliant product.
The first enquiry that most people have when buying a diamond is about the carat weight. It refers to how heavy the diamond is, and is a good indicator of size. Of course, the bigger the pink diamond, the more expensive it is.
Most natural pink diamonds fluoresce when placed under UV light, and it can be a good indicator of whether it is natural or synthetic. If a pink diamond fluoresces, then it may be priced higher than one that doesn’t.
Pink Diamond Price Trends
Pink diamonds have steadily increased in price over the past decade. Regardless of individual diamond quality, pink diamonds have seen price increases across the board. In fact, pink diamonds are now roughly 116% more valuable compared to their price ten years ago.
This trend is projected to continue because of the scarcity of pink diamonds. Supplies are even expected to decrease. This is because the world’s largest source of pink diamonds will cease to operate this year. From an investor’s perspective, now would be a great time to invest in pink diamonds.
Invest in Pink Diamonds Today
Pink diamonds are among the rarest and most beautiful of their kind. These almost always demand high prices and recent trends show that these values remain high. If you are looking to invest your hard earned money, you might want to consider pink diamonds as a smart choice, given recent trends and future projections.
At Argyle Diamond Investments, we will be happy to discuss with you everything you need to know about investing in these precious stones. Our company is highly experienced and well-known across Australia. Our tried and tested systems in place ensure efficiency and stability amongst our investors. Contact us on (02) 4927 0000 or 0416 813 210 to schedule a time for us to discuss the details.