The Future of Pink Diamonds After The Argyle Mine’s Closure

The Argyle Diamond Mine, located in Kimberley, WA is owned by Rio Tinto, and had been producing 90 percent of the world’s supply of pink diamonds for three decades.

It all began when the man who discovered the mine in 1979 was standing at the beautiful landscape when he discovered a rough diamond on an anthill next to him. The Argyle Diamond Mine began mining operations in 1983 and became recognised internationally for producing pink diamonds of the best saturation, which is the reason Argyle diamonds achieve such a high premium (especially if they are accompanied by an argyle certificate) in comparison to the remaining 10% found in other mines Worldwide.

In fact, over the past twenty years, the value of pink diamonds has risen by 500 percent, largely due to demand and the closure of the mine.

Why Are Pink Diamonds Special?

Why Are Pink Diamonds Special?

Rarity. A very small percentage of the diamonds that are mined today are pink and most of them came from the Argyle mine.  The mining company also produces brown, yellow, and white diamonds, but Only 0.01% of the diamonds they mine are pink, and of that, only a further 0.01% are intense pink or higher.

Pink diamonds are graded on a scale of pink: Fancy light pink, fancy pink, fancy intense pink, fancy deep pink, and fancy vivid pink. The richer the diamond color, the more elusive it is.

Because of the rarity and beauty of pink diamonds, their price surpasses those of regular colorless diamonds. The diamonds are mostly cushion or pear-drop shaped; a round pink diamond one is extremely rare indeed.

It is also very difficult to find a pair that matches in hue and saturation.  So, if you find such a pair, it is one of very few pairs in existence.

Australian pink diamonds have stunned the world. Nothing like these diamonds has been found anywhere else. Unlike blue and yellow diamonds, where chemical inclusions and variations in heat and pressure cause the colour, no one knows exactly why the diamonds are pink, but scientists believe that it is due to a distortion of the crystal lattice under huge amount of heat and pressure.

One thing is clear, however:  Pink diamonds are highly sought after by the public and diamond collectors alike, especially now that the Argyle mine has closed.

The Closure of The Argyle Mine

The Argyle mine closed in November 2020 after exhausting its reserves that were present for 36 years.  The closure will have a huge impact on the diamond industry because the Argyle mine was one of the top five producers of Diamond in the world.

According to the owning company, Rio Tinto, decommissioning and rehabilitation of the mine will take five years before they hand it back over to the traditional owners. They expect the mine to fill with water and become a lake, which will become part of the surrounding landscape.

The Argyle mine is responsible for 99% of Australia’s diamond production. The Merline Diamond Mine, another Australian mining company which produced blue diamonds, produced the remaining one percent of diamond production, but the Australian Government shut the Merline Diamond Mine in 2019.

Ellendale Mine was operational from 2002-2015, producing about 50 percent of the world’s yellow diamonds, before it closed in 2015, although it restarted operations in 2019.

So, in light of the diamond mining landscape, it is clear the closure of the Argyle mine will be a turning point for the Australia’s diamond industry and will reduce Rio Tinto’s diamond production by up to 75%.

Why Invest in Pink Diamonds?

Why Invest in Pink Diamonds?

Unlike standard diamonds, Pink Diamonds have appreciated in value in the last ten years. Since 2000, the price of Argyle pink diamonds has increased by 500%. Given that Argyle mine is no longer supplying diamonds, and the fact that there is no expectation that any new mines will produce them soon, the prices are expected to grow exponentially.

For these reasons, investment in pink diamonds through a broker such as Argyle Diamond Investments is an attractive prospect, especially considering that the available supply is reducing while the demand is continuing to grow.

It is crucial to speak to your broker for independent investment information as always, and, before you invest in pink diamonds, you should understand that the buying and selling of diamonds relies on the presence of the right buyer, which can take time – if you want to sell at all.

A pink diamond investor is likely to hold on to their purchase for a minimum of three to five years to realise the potential financial appreciation that Pink Diamonds offer. Whatever your reason for investing, one thing cannot be denied: Pink Diamonds are timelessly stunning and ooze a rarity that develops inherent value year upon year. For more information about how to make Argyle Pink Diamonds a part of your portfolio, collection or jewelry, connect with a trusted, discreet and professional broker such as Argyle Diamond Investments by clicking the link, or you can call them on 02 4927 0000.

Argyle Diamond Investments Pty Ltd are Australia’s largest supplier of Australian certified pink diamonds and have exclusive use of the Australian Pink Diamond Analytics program. This program is a data driven decision maker that tracks and statistically analyses the rarity, financial growth and value of all investment grade pink and blue diamonds. With this valuable information, Argyle Diamond Investments Pty Ltd can offer all clients an investment grade pink from $5,000AUD up. But, the highest growth diamonds, are the larger, stronger colour pinks starting from around $20,000AUD plus.

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