It’s been another solid quarter for rare coloured diamonds, with the Fancy Colour Research Foundation (FCRF) releasing their Q3 2019 diamond index data last week.
Overall, pink diamond prices were steady, with the highest performance seen amongst fancy vivid pinks, particularly 1 and 3 carats fancy vivid pinks, which rose by 1.6% and 1.7% respectively.
Whilst not enormous gains for one calendar quarter, these price increases do translate to gains of approximately 7% per annum in USD terms, a very solid return in the difficult investing environment we find ourselves in.
Pink diamond prices were also substantially more resilient than other parts of the diamond universe, with yellow diamonds falling by 1.5% for the quarter, with losses of approximately 5% over the last year.
This performance discrepancy is one of the key reasons why Australian Diamond Portfolio focuses its efforts on the pink diamond market.
Our decades of experience in the industry, and the pending closure of the Argyle Diamond Mine give us confidence that pink diamonds, and pink diamonds alone are the sector of the rare coloured diamond market that offers the best return potential for our clients in the next decade.
Cash Ban Coming?
One of the interesting developments taking place in Australia right now is the discussion around limiting the use of cash in day to day commerce. Under a proposed law, called the “Currency (Restrictions on Use of Cash) Bill 2019” which looks like it may well get the legislative go ahead, all cash transactions between businesses and individuals would be limited to $10,000, with a range of punishments for those who breach this limit.