Fancy colored diamonds are among the most rare diamonds in the world. The inimitable look, the deepness of their intense colors, and their shapes are what sets them apart from the rest. However, is the rarity of each color that makes these so valuable where only one of about ten thousand diamonds mined is a colored diamond of gem quality. These are some of the attributes that drive investors and collectors towards such precious stones. In addition, pink diamond prices continue to rise and promise a significant return on investment for those considering investing outside of the traditional investment options.
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Pink Diamond Prices Rise Quickly
A pink diamond owned by a South Florida couple has gained media attention in recent months due to its impending sale. The diamond will land on the auction block at Christie’s in April 2016. It is a unique 10-carat cushion brilliant cut, fancy intense purple-pink gem that has the potential to sell for $8 to $12 million thanks to gemologist that discovered its true value.
The South Florida man purchased this diamond in 2007 for $2 million as a gift for his wife. While the purchase was not for investment purposes, the diamond’s value has appreciated exponentially, which led the owners to decide to put it up for auction.
The couple enjoyed the gem for the better part of a decade as a part of their exquisite jewelry collection, but had no idea of its worth in today’s market. During a jewelry appraisal for insurance purposes, the couple discovered just how much the value of the fancy pink colored diamond had appreciated. The gem was originally valued at $4.7 million, however after confirmation from a diamond specialist, its owners learned that the diamond would draw over $8 million in today’s market.
Fancy intense pink diamonds of over a carat have become the most rare of all, which explains the Florida diamond’s 500% appreciation in less than ten years. This exceptional return on investment illustrates the true potential that a colored diamond can have as an alternative investment.
The Argyle Mine in Western Australia is the world’s number one producer of pink diamonds. Unfortunately, the joy won’t last long as this mine is expected to cease production by 2020. The impending closing has led to a rapidly escalating demand by savvy investors and wealthy individuals around the world.
Pink diamond prices have generally been known to increase about 20% per year. A pink diamond purchased for $2 million will increase to a value of about $10 million in five years. Seeing the potential for appreciation in pink diamond prices is the reason why more investors and wealthy individuals are looking to the purchase colored diamonds as alternative investments. This 10 carat pink diamond beauty is certainly one for the record books, not just for its sales price, but for the speed with which its value increase.
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For more reading on investment windfalls, click the link below:
- Red Diamonds: An Alternative Investment Windfall
- Investing in Natural Pink Diamonds: What You Need to Know
- Pink Diamonds Show Largest Growth of Colored Diamonds