The value of colored diamonds never went down and will never go down
Colored diamonds are the most sought-after diamonds. Coming in a variety of gorgeous shades, including the graceful cognac, the magnificent violet-blue and the romantic, quintessentially feminine pink, colored diamonds are as beautiful and valuable as they are rare.
The rarest and most valuable diamonds
Only one in every ten thousand diamonds mined turns out to be a colored diamond. And of these colored diamonds, only a handful of the rarest are found each year. As a rule, we can say that the rarer a diamond is, the higher its price will be.
Since colored diamonds are the rarest among rare stones, they are always very valuable. Colored diamonds command exorbitant prices and their value can range into hundreds of thousands and even millions of dollars.
Some colored diamonds are found in a larger quantity than others. For example, the elegant yellow diamonds are considered one of the more attainable colors. Blue, purple or pink stones are considered relatively rarer and hence more valuable.
Their rarity of some colors can be seen in the fact that there are only about 30 red diamonds that exist in the world today. These include the Argyle Everglow, the Moussaief Red Diamond, and the Hancock Red diamond. Diamonds are sold for extraordinary prices at the annual elite events such as the Argyle Diamond tender as well as the ones organized by Sotheby’s and Christie’s.
Rapid price increase of colored diamonds in the recent past
In the decade before 2017, the price for colored diamonds increased an average of 122 per cent. With some colors, the price appreciation is even more dramatic.
The rare pink diamonds have reportedly increased in value by 40 percent in the last year alone. This was a sharp increase over previous price increases, and it is predicted that this upward trend in the value of colored diamonds is set to continue into the future.
There is one big reason for this. About 90 percent of pink diamonds are extracted from the Argyle mines. This is a mine in Western Australia and as well being responsible for a majority of the pink diamonds in the world. It has also produced a large number of high quality of the colored diamonds in the market.
Decline in Supply
Argyle is slated to close in the year 2020. This is due to declining production if quality diamonds, while the cost of extracting them is increasing. In fact, it is said that that there are just 150 pink diamonds left to be extracted from the deep darkness of the mine.
After next year the production of high-quality pink diamonds for which Argyle is known will come to a sharp closure. Moreover, the world will also see a big decline in the other quality natural colored gems entering the market.
Forecasted Price Increase
The price of colored pink diamonds is thus set to skyrocket. And it has been forecasted that colored diamond prices will also see a sharp upward incline.
This is because, with the closure of Argyle, the largest supplier of colored diamonds in the world will cease operations and supply. There has been no new discovery of the volcanic pipes that push the ancient embedded diamonds from deep in the Earth’s crust out to near the surface. Without these colored stones yielding kimberlite pipes, we have no hope of extracting the diamonds hiding deep beyond our reach in the Earth.
Rise in demand
Diamonds enjoy more popularity than at any time in history. The European and American market is going strong with every girl expecting diamonds on her engagement ring.
Moreover, the demand in emerging markets is set to explode as a rising middle class looks to emulate western traditions of marriage with diamond-encrusted wedding and engagement rings in addition to traditional jewelry .
The demand in colored diamonds worldwide sees a sharp spike every time a Hollywood star, a celebrity or a member of Royalty in the public eye are seen to be wearing their own colored diamonds.
Past price increases of colored diamonds
Colored diamonds were always a high-value investment. Being snapped up at exorbitant prices whenever they were available. These diamonds were then resold with tremendous increases in price.
For example, the Hancock Red diamond garnered great publicity when it was sold by the descendants of Warren Hancock for a 6500 percent profit. The diamond was sold by Christie’s in 1987 for $880000 while it had been bought for in the 1950s for double figures. Since then the price of diamonds has increased, and the most extraordinary diamonds have prices going into the millions of dollars.
Conclusion
The price of colored diamonds has always been high. With prices sometimes ranging into the millions, colored diamonds are seen not just as a luxury possession or an everlasting token of love but also as an investment option.
With their gorgeous and exquisite facades and rarity value, coupled with high demand and low supply, color diamonds are set to become more valuable with the course of time.
So, now is the perfect time to get your hands on color diamonds.
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