Who Buys Diamonds? Large Diamond Buyers Get Tickled Pink
A 360 percent growth rate over the last nine years is nothing to scoff at.
Fancy colored diamonds, pink in particular, have seen an unprecedented, steady rise in value over the last 30 years – and they show no signs of slowing down. The price of these stones increases with the intensity of their hue, with fancy light pink diamonds currently fetching $320,000 per carat, intense pink 450k and vivid pink at 600k. (More fancy color diamond pricing here)
Referred to as a “treasure asset,” fancy colored diamonds beat every other item in this classification, which includes other material objects like fine art, antiques and coins.
The wealthiest of the wealthy have been investing in pink diamonds, as this is an asset that has not only been gradually appreciating, but has another appeal altogether. Unlike, for instance, a Dow Jones stock, a diamond is a physical asset, that can be simultaneously enjoyed while it earns. A bright pink diamond is the perfect embodiment of this concept: it brilliantly stands out from the crowd and lets the world know just how deep one’s pockets are.
According to Neil Duttson of Duttson Rocks, a U.K. diamond vendor of the highest end who caters to the rich and famous, “People are loving them as an alternative investment,” as reported by the publication The Telegraph. He further quipped “My business has gone mad with pink diamonds.”
One of the factors that has contributed significantly to the “rise of the pink” is simply scarcity. The discovery of a fancy colored diamond is random and quite erratic. Petra Diamonds states that there are a mere 30 working mines right now across the entire globe, and DeBeers suggests that the likelihood of discovering a new mine is at 1 percent. Adding to this is the fact that Rio Tinto’s Argyle mine in Australia (which is the leading pink diamond producer) publicly stated that they will be shutting down operations in 2019. This has lead to a mad scrabble to stock up on whatever pink diamonds are available.
A variety of international celebrities, such as Mariah Carey, Jennifer Lopez, Anna Kournikova, Blake Lively, Kate Middleton, Paris Hilton, and, of course, Kim Kardashian, have proudly sported fancy pink diamonds of the highest caliber. This diverse assortment of free promotional advertising for the fancy pinks hasn’t hurt their popularity either.
If all of this cumulative, empirical evidence is not enough to convince one of the astounding value of fancy pink diamonds, consider the fact that the world record for the highest jewel of any nature ever sold at auction belongs to The Graff Pink, in 2010. This gorgeous and gargantuan 24.78 carat stone brought in 30 million British pounds (that’s over 47 million U.S. dollars), at the Geneva chapter of Sotheby’s.
coming soon: “Gold and Diamond Buyers: Who’s Beating Who? “