It’s hard to believe that we are almost half way through 2022, with the end of June and the end of the current financial year hitting next week.
And while there have been some positive signs on the economic front, the most notable of which is a multi-decade low in the unemployment rate, there have also been a range of headwinds, with ballooning inflation rates making cost of living pressures an everyday reality for more and more Australian households.
And while COVID-19 restrictions have by and large been lifted in Australia, the pandemic is still causing issues, particularly in our most important trading partner, China, which has seen parts of the country locked down for large parts of 2022.
Turning to financial markets and it’s fair to say that, so far, 2022 has been a disaster for most investors whose portfolios are concentrated in traditional asset classes.
Stock markets globally have fallen, with the ASX 200 down almost 15% (global markets have done even worse), while cryptocurrencies have been obliterated, culminating in the price of Bitcoin falling below USD $20,000 at one point in the last few trading days, eliminating almost all the gains that date back to the end of 2017.
Pink diamonds are one of the few asset classes that have prospered throughout this period, with our Australian Diamond Portfolio Pink Diamond Index (ADPPDI) suggesting the overall market grew by approximately 15% in the first nine months of the calendar year.
We expect this outperformance will continue, for while we’ve seen some calm return to the markets in the past few trading days, and a short-term bounce wouldn’t be unexpected, there are major warning signs continuing to bubble away.
These warning signs, which we’ll touch on below, only reinforce the reasons why investors may wish to consider looking at hard assets, such as pink diamonds, as we head into the new financial year.
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Pink diamonds lead market as prices rise by 20%
Australian Diamond Portfolio is proud to release the second annual edition of our proprietary Pink Diamond Index (ADPPDI).
Built using price data provided by our global supplier for more than 14,000 pink diamonds from the Argyle Mine, the ADPPDI offers unparalleled insight into the performance of the pink diamond market.
The results from the ADPPDI demonstrate that in the year to end June 2022, pink diamond prices surged higher, increasing by approximately 20% on average.
This price increase, which follows on from the strong gains seen in the previous financial year, is particularly impressive given the challenges other asset markets have faced in the last twelve months.
The fact that pink diamonds have continued to see strong price growth demonstrates the continued demand for this truly beautiful, and genuinely scarce asset class. This is particularly evident in Australia, with demand from individual investors and SMSF trustees soaring in the last financial year.
Our latest ADPPDI report contains detailed information on:
As the report makes clear, we think the future remains very bright for pink diamonds, with this market continuing to offer great investment potential.
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If you would like to discuss the report and its findings, or how Australian Diamond Portfolio can help you access the pink diamond market, please don’t hesitate to get in touch.