03 Aug 2017

Sotheby’s EST 1744: A Diamond Is Not Forever

A career gemologist, Anna Cisecki has held some of the most precious stones ever unearthed. As Executive Director of Australian Diamond Portfolio, she’s teaching investors to recognise their true value.

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Beautiful, enigmatic and impossibly rare, pink diamonds have become one of the most sought-after and valued assets in the world. And, it’s not by chance that investors seeking to diversify their portfolio are looking at these special little pink gems. Statistics published by the Fancy Colour Research Foundation (FCRF) confirm rare intense and vivid pink diamonds have experienced an incredible average annual growth of more than 14 per cent since 2005, a total price appreciation of more than 485 per cent.

“Pink diamonds have outperformed practically all investment classes as consumers and investors continue to view them as a long-term safe investment option, an effective hedge against inflation and a unique opportunity to create value and gains in a portfolio,” Ms Cisecki said.

“Changes in the world economy are helping to fuel demand for investment diamonds while the supply squeeze is further driving price growth.”

The Rio Tinto-owned Argyle Diamond mine in Western Australia is the only significant source of ultra-rare pink diamonds in the world, producing almost 95 per cent of global supply.

However, in less than five years it will be time to say goodbye to one of Australia’s most famous natural resources. After more than four decades of production, Argyle’s supply of pink diamonds is nearing exhaustion and the mine’s life is drawing to a close in 2021.

But this is news which comes with a silver lining for investors and firms such as Australian Diamond Portfolio with its boutique team of specialised investment diamond advisors.

Ms Cisecki believes much of the reason for Australian Diamond Portfolio’s success has come because of the need for a specialist investment firm to simplify the investment process around pink diamonds.

“Rare pink diamonds are not just the realm of the uber-wealthy; investors of all types and levels of the market are getting involved from small private retail investors and wealth managers to financial advice groups and family offices.

“The fastest growing segment of our client base is SMSF trustees. They come to firms like ours because they value our ability to source the best available stones on the global market. We also provide the full end-to-end solution from sourcing to storage and insurance with our high-security vaulting partners, ongoing valuations and eventual resale. These are important considerations when investing in this highly lucrative space.”

Given the ongoing uncertainty in global financial markets and the demonstrated return potential, pink diamonds are indeed an asset class that every investor should be looking at.

In another decade the pink diamonds from Argyle will emerge as the new Faberge egg – the thing legends are made of.

 

Source: Sotheby’s EST 1744 Magazine, Page 30 

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