What is more rare and beautiful than a beautiful diamond mined out of the Earth’s crust?
Well, the answer is a natural pink diamond. Ues, they are all in rage these days and are greatly sought after. The reason behind the pink colour and the variety in shade is still largely argued in the gemological world. But the most agreed-upon answer is that these diamonds were formed under additional pressure than involved in the formation of normal diamonds. These diamonds are a subcategory of fancy colour diamonds. This refers to the fact that there exist diamonds that also show hints of other colours. The colouration ranges from steel grey, white, blue, yellow, orange, red, green, pink to purple, brown, and black.
The increasing interest and hence the market value of such diamonds is because they are extremely rare. They are mostly found in Australia. Almost 90% of natural pink diamonds are procured from this Southern continent and the Argyle Mine in Western Australia has had the greatest stash. But only 1% of the mined diamonds from this mine are pink. Which proves exactly how rare they are. But they have also been historically found in India, South Africa, Canada, Russia and even Brazil. It is predicted that only 500 more gem-quality diamonds remain in the Earth to be discovered.
Now let’s discuss the price and value of the pink diamond that makes it a lucrative opportunity to invest your money. Many executives are today splashing their money on rare commodities which make the possibilities of returns in the future quite high. These diamonds are one such rarity that is irreplaceable and are found only in limited numbers today. The Argyle mine is also soon going to be closed down in the coming year.
The investment return rate of such diamonds is 15% per year. The key factors that decide the final worth are the rarity and the colour of the diamond. They can be bought from a legalised dealer or store. For an entry-level investment, you will have to invest at least $20,000. Also, other key players of deciding the price of a pink diamond are the dealer and the Auction house that charge a good percentage of profit. However, buying them from certified sources will ensure that the diamonds are independently certified and valued.
Lastly, keep in mind that setting the value and worth of a gemstone is an imprecise science. There are many factors involved in setting the price of the diamond and the yearly returns you can expect from it. Also as the size of the diamond increases, defects and lower colour clarity are well accepted. Again, smaller diamonds with greater colour clarity are greatly coveted. Lighter shades of colour are more easily found than shades of purplish red, red, champagne and pink rose.
When selling a diamond to cash in your returns, you would again have to sign up with a dealer or an auction house. They will charge a commission of anything from 10% to above on the set price from both the buyer and the seller.