07 Mar 2024

The Australian case for pink diamonds

This week’s market update builds on recent publications, which have looked at how investors can use their superannuation to invest in pink diamonds, as well as recent rulings from regulators that, prima facie, make it easier for Australian investors to gain exposure to pink diamonds as an asset class.

We’d like to thank readers who have sent through feedback and/or questions – as it is clearly a topic of interest.

To that end, this week’s article focuses not so much on how local investors can buy pink diamonds, but rather why, with a look at some factors specific to Australia that are encouraging investors to include these assets in their portfolio.

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22 Feb 2024

Superannuation, the ATO, and pink diamonds

This week’s market update has a distinctly local focus, looking at using superannuation to invest in pink diamonds.

Based on the feedback we regularly receive, this is a subject that we know is of huge interest to our client base, which is no surprise given that superannuation is in many cases becoming the largest financial asset most Australians are building.

Below, we discuss the trends in the superannuation space, along with a statement released by the Australian Taxation Office (ATO) regarding purchasing pink diamonds inside a SMSF.

Please do note, the following is for informational purposes only, and does not constitute financial advice, either general or specific. You should assess whether the information is appropriate to your individual financial circumstances before making an investment decision.

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15 Feb 2024

Cheap money to fuel pink diamond market

It is halfway through February, and it feels like the year is now properly “up and running” with people back from their holidays, and investors, including those that buy pink diamonds, looking at all markets, and working out what to do with their portfolio this year.

So far, what they would be seeing is a slowdown in the local property market, and minimal movement in the stock market, with the ASX -1% since the start of the year.

They would also be reading news that suggests we have likely seen the peak in interest rates globally (Australian rates may go a fraction higher, though even this is uncertain), and central banks likely to cut rates substantially as we approach the second half of 2024.

Should this come to fruition, it will have bullish implications for pink diamonds, as we discuss below.

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08 Feb 2024

Five factors driving pink diamonds in 2024

It’s hard to believe that it is already February.

We hope that you had a wonderful and relaxing holiday period with family, friends and loved ones, and are now fully re-energised to take advantage of the opportunities this year will bring.

On behalf of the entire Australian Diamond Portfolio team, we look forward to serving you again in 2024, which we believe is shaping up as another wonderful year for pink diamond investors.

We touch on some of the reasons why we have such an optimistic view of the pink diamond market below, with future versions of these market updates delving into these factors in more detail in the coming weeks and months.

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15 Dec 2023

Thank you from ADP as diamonds keep delivering

This will be Australian Diamond Portfolio’s final market update for the year, with the year fast drawing to a close.

As we highlight below, 2023 has been another very pleasing year for the pink diamond market, with investors in these assets continuing to see growth, despite the many economic and financial market challenges that have been faced across the course of the year.

This is something we expect to see carried over into the new year and beyond, with the natural scarcity of these assets, combined with their sheer beauty, and growing demand all contributing to continued price growth.

We touch on these issues below, as well as give our heartfelt thanks to all our clients at Australian Diamond Portfolio who make this job so very enjoyable.

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11 Dec 2023

The pink diamond world is buzzing

It’s hard to believe we have already reached December, with Christmas now just two weeks away, and a New Year fast approaching on the horizon.

This time of the year is usually the perfect time to take a break, spend time with loved ones, and recharge ahead of another year that will no doubt bring further challenges, as well as opportunities for all of us, including in the investment world.

To that end, many Australians will be saying a silent thank you that the Reserve Bank of Australia (RBA) decided to keep interest rates on hold at their meeting last week, with the local cash rate still sitting at 4.35%.

While this is good for anyone with a mortgage, it is too early to pop the champagne, as rates may still go higher in early 2024. It also poses an ongoing challenge to one of the other great threats that investors are facing today: inflation, and how to protect and grow wealth in an environment where the real value of many of our assets, and the savings that we have in the bank are being eaten away.

Enter pink diamonds. Not only are they tangible, beautiful, stable and proven performers over the long-term, they are also trusted inflation hedges with a strong history of protecting purchasing power in environments like the one we face today, where consumer prices are rising at a rapid pace.

And, as we will highlight below, the outlook for pink diamonds, and the support underpinning this market is only strengthening, with results from the recent Rio Tinto pink and red diamond tender blowing the market away.

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01 Dec 2023

Volatility, price records and pink diamonds

Christmas 2023 is now officially less than a month away, with the calendar ticking over to December today.

And while we hope all of our clients will get plenty of time for relaxation, as well as quality time with family, friends and other loved ones, there are still investments to consider, risks and opportunities to weigh up, and portfolios to manage, both over the next month, and as we look forward to 2024.

From our vantage point, we’ve been more than satisfied with the performance of pink diamonds this year, with the market continuing to see price growth, the pool of potential investors continuing to grow, and the rationale as to why you’d invest in this niche asset class only strengthening as we approach the new year.

We discuss this in more detail below, looking at a market warning sign we should all pay attention to, and news that highlights the support that the pink diamond market is seeing today.

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24 Nov 2023

The price of perfection

We’ve often stated that pink diamonds are like a piece of art, crafted by nature over millions of years.

We were reminded of that when we came across a recent article in The Sunday Times. Provocatively titled, “Red diamonds are not forever”, the article discussed the majestic beauty of these truly rare assets, with one jewellery connoisseur noting that valuing pink diamonds was like pricing, or valuing a piece of art.

The article also noted how pink diamonds have outperformed many stock markets over time, and how resilient they are in the face of adversity, with one commentator noting that when it comes to assets like cars, wines, paintings or pink diamonds, if you “buy the best of the best there will always be customers for that, regardless of recessions.”

We couldn’t agree more, with the long-term case for pink diamonds looking as safe, as strong, and as important as ever as we head toward the festive season and another new year.

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09 Nov 2023

The tangibility of pink diamonds

With less than two months to go in 2023, this year has on the whole been very kind to investors, even as higher interest rates and cost of living pressures cause challenges in the broader economy.

In this week’s update, we touch on returns across investment markets this year, the risks that continue to build, and how that may impact asset markets as we head toward the new year.

We also look at the many factors that support investment into pink diamonds, from their tangibility and beauty, to the diversification benefits they bring a portfolio, and their and inflation-hedging qualities.

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06 Nov 2023

Three tailwinds to spur diamond demand

In this week’s article, we look at three factors we expect will support the pink diamond market in years to come.

We also look at why investors and would-be investors in pink diamonds will need to be patient, with the two-speed market (which we referred to in our most recent update a few weeks ago) likely to continue for a while.

Interest rates, inflation and currency markets

For many Australians with debt, especially those under the age of 35, the last two years must have felt very strange. For the first time in their adult lives, interest rates have gone up.

Indeed, not only have they gone up, but they’ve risen at one of the fastest rates that we’ve seen in decades, with the Reserve Bank of Australia (RBA), hiking rates from just 0.10% in May of 2022 to 4.10% by June 2023, a time period of just over one year.

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