Argyle diamonds are popular for their top quality and exceptional fancy color. These diamonds are best known for covering over 90% of the pink diamonds globally. Argyle diamonds are the most luxurious natural pink diamonds. Generally, its value increases with its color intensity.
Recent reports show that Argyle diamonds have increased in value by 25% per year. For the last decade especially, the prices of these diamonds have escalated by 366%, which makes them a substantial investment. In today’s article, we will talk about the benefits of investing in Argyle diamonds. Read on!
Popular and Pricy
Argyle diamonds are fancy color diamonds, which are recognized globally. Not only are argyle diamonds well-established and popular goods, but their prices also continue to escalate steadily every year.
While this type of diamonds has a distinct color, its prestige and popularity make it more expensive than other types of pink diamonds. That’s why these diamonds are more expensive.
For instance, the average price of a one-carat pink diamond is $140,000 whereas a similar argyle diamond has an average price of $200,000. Remember, the price depends on the quality of the color.
Besides, for the last five years, these diamonds have increased by 25-35% every year, which has allowed people to invest more in them due to higher return on investment (ROI). Some reports even show that investment in argyle diamonds has doubled for the last five years.
Long Term Profitability
Argyle diamonds have a sustained value capacity, and recent studies highlight a further escalation of pink diamond prices for the next 10 to 15 years. The projected increase in prices of argyle diamonds is mainly due to “greater than before” supply and demand.
According to the Australian Securities and Exchange Commission (ASIC), Rio Tinto, an Anglo-Australian multinational mining company achieved the highest profits in 2018. Rio Tinto’s Argyle diamond mine generated over $370 million in revenue in 2018, which was 25% higher than in 2017.
ASIC further highlighted that the registered $370 million was the highest revenue generated by a mining company since 2008. Besides, the operations’ cash flow for argyle diamonds was two times higher than in 2017 and eight times higher than in 2015. Rio Tinto generated higher revenues due to increased sales volumes.
Argyle diamonds last a long time, which means this is an excellent investment and always worth your money because they are more valuable over time than their original price. These can last forever and have substantial “intrinsic value” than other tangible goods like houses and vehicles.
Resistant to Inflation
Some financial experts believe that diamonds lose their value slightly during after a market collapse. However, the majority says that Argyle diamonds are resistant to inflation, financial crisis, and market collapses.
The rarity of argyle diamonds allows them to escalate in value quickly – both due to inflation, as well as increasing demand and limited supply of these perfect gemstones. Even if there is an economic crisis, your argyle diamonds’ value will appreciate over time.
Compared to other physical commodities, such as real estate, silver, and gold, diamonds are inflation-proof. However, to get the most out of your investment, experts recommend buying diamonds with higher color intensity and strength.
Durability and Storage
The small size of argyle diamonds is what makes them stand out in the gemstones crowd. These diamonds take a smaller room compared to gold bullions. For instance, a small argyle trinket costs five times more than gold jewelry of the same size. So, buying argyle ornaments, such as necklaces and bangles are excellent investment options.
Also, Argyle diamonds are small in size means you can store them easily in a small safe. It is an investment you can hold and wear. Therefore, many people recognize the fact that argyle diamonds are a much safer investment than stocks or other digital investments.
Argyle diamonds are the hardest stones on earth, which means they are durable enough to wear off. Not only can you wear argyle jewelry or ornament, but you can also enjoy it for a long time due to its exceptional durability.
Argyle diamonds are durable and smaller in size, which makes them easy to store. The durability of argyle diamonds has ensured that purchasing them as an investment is safe and reliable.
Increasing Market Demand
Rio Tinto is sourcing Argyle diamonds from a mine in Western Australia. There are no other sources of pink diamonds in the world or perhaps no consistent sources have been discovered yet. Experts argue that even if the authorities discover another source of pink diamonds, it would take over 10 years to go through the process of production.
The company will close all its mining operations this year (2020). The supply shortage is drastic, but at the same time, there is an increasing market demand, which makes argyle diamonds some of the most expensive gemstones in the world. Considering this, we won’t be wrong to say that these diamonds have set the stage for the best investment opportunities globally.
That’s the reason argyle diamond investors have recognized their appreciation value, which is between 30 to 50 percent per annum on their diamond portfolios. Considering the rarity of argyle diamonds and the approximate 20 million carats, which are produced from the Western Australia ore, less than 0.01 are categorized as natural argyle diamonds.
Interestingly, this small production of argyle diamonds is over 90% of the pink diamond supply in the entire world. So, the rarity of these diamonds makes them unique and valuable, which means they are worth your investment and over time, they will yield higher ROIs.
Research studies show that each diamond has its own unique characteristics, which can’t be acquired or found in another diamond. Argyle diamonds are unique, rare, matchless, and priceless diamonds on the planet.
Considered the most esteemed diamond globally, these pricy diamonds do not depreciate in value during an economic downfall or market prices. Their price, in general, increase every month. Lastly, argyle diamonds are really worth your investment due to their higher ROIs.