Whilst the attention of most market participants was focused on the US Presidential Election, and to a lesser degree the meeting of The Reserve Bank of Australia last week, a much more important development for pink diamond investors was taking place in the Kimberly Region of Western Australia.
After almost 40 years, the Argyle Diamond Mine has finally shut its doors.
This market update looks into the closure of the Argyle Diamond Mine, and the implications it will have for pink diamond investors going forward.
We also look at the launch of the Australian Diamond Portfolio Legacy Collection, which has already attracted a huge level of interest from pink diamond investors, and those looking for a perfect gift for loved ones in time for Christmas.
The end of an era!
The day we have long been waiting for in the pink diamond industry has finally arrived, with the Argyle Diamond Mine shutting permanently last week.
It truly marks an end of an era, with the Mine responsible for producing more than 90% of the world’s pink diamonds since Rio Tinto, the mine operator, took over production duties in the early 1980s.
As a gemmologist and diamond specialist, one can’t help feeling a twinge of sadness as this truly incredible era in pink diamond production comes to an end.
As an investor on the other hand, I’m incredibly excited, for obvious reasons. The closure of the Argyle Diamond Mine is likely to serve as a catalyst for the next round of substantial price growth in these unique assets, which have already increased in value by more than 10% per annum over the past 15 years.
As we highlighted in an interview with the ABC last week: “Pink diamonds have out-performed virtually all of your traditional asset classes over the past 10 to 15 years. They’ve done better than the stock market, property, precious metals and really do present a very stable asset class.”
Whilst there are no guarantees, we expect that the outperformance that pink diamonds have delivered in the past fifteen years will only strengthen in the coming decade.
After all, the laws of supply and demand can’t be ignored. With hardly any more new supply coming to the market in the years ahead, the price of pink diamonds will become a pure story of demand.
As more and more investors gravitate toward this unique asset class, they will need to pay ever higher prices to get their hands on these truly rare and beautiful investment stones.
The opportunity is obvious for all those astute investors looking to protect and build wealth in the decade ahead.
The start of a Legacy!
Over the past week, Australian Diamond Portfolio has proudly launched The Legacy Collection. The Legacy Collection is a set of carefully curated pink diamonds selected by our expert gemmologists that celebrate the legend that is the Argyle Diamond Mine.
These pink diamonds, which will typically range in price from $1,0000 to $10,000, should be seen as an accompaniment to the investment diamonds we specialise in sourcing for our clients at Australian Diamond Portfolio.
The Legacy Collection are the perfect gift for that special someone. They serve as the ultimate memento and also represent a unique way of capturing a piece of Australian history, now that the Argyle Diamond Mine has ceased mining operations.
We’ve been delighted with the interest that we have seen in the product range so far, with multiple media outlets covering the launch. As an example, we have included a link to a story published by 7 News here.
As always, we hope you’ve enjoyed this week’s edition of “In the Loupe” and look forward to any questions or comments you may have.