Are diamonds an investor’s best friend?
This article originally appeared on Switzer Daily, Small Caps and Livewire Markets.
Pexels Image/Rostislav Uzunov
The local diamond exploration sector has lost its glitter in recent years, but there’s renewed interest in finding the dazzling stones that the ancient Greeks thought were splinters of stars that had fallen to earth.
Underpinning the activity is a looming shortage of better quality stones spurred by pandemic-related supply problems and the backlash against ‘blood’ diamonds (those mined in certain African countries to fund conflicts).
Rough diamond prices are at their highest since 2012.
Supply has also been constrained by last year’s closure of Rio Tinto’s Argyle mine in WA’s Kimberley region, which had operated for close to 40 years.
In The Pink
The below article originally appeared in AusBiz. The original print version of this article can be downloaded here.
Anna Cisecki, Australian Diamond Portfolio Executive Director, counts herself lucky to be involved in the argyle mine story.
Since WA’s Argyle Mine closed in 2020, the value of pink diamonds has sky rocketed. Here Anna Cisecki, Executive Director of Australian Diamond Portfolio, explains why.
Approximately 95 per cent of the world’s pink diamonds were produced at the Argyle Mine in Western Australia. Since its closure in 2020, the price of pink diamonds is rapidly increasing. Anna Cisecki from the Australian Pink Diamond Portfolio says the Australian mine produced the highest quality pink diamonds in the world. Investors are rapidly recognising this. Pink diamonds have displayed value increases every year without fail. Since the Argyle Mine closure, there’s less supply and greater demand.
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