Two-speed market for pink diamonds
It has been another eventful week for investors, with 2023 looking like it will end with renewed volatility in a range of asset classes.
This volatility, and the need to both protect against it, as well as the need to find fresh avenues to generate growth in a portfolio, have been some of the key drivers of pink diamond demand over the last few years.
The volatility in asset classes is best seen in global share markets, which are again beginning to sell-off, after a stronger than expected start to the year.
In the United States, the S&P 500 is down 6% in the last month, while the ASX 200 in Australia is down by a similar amount, and now back below 7,000 points, a level it first reached back around 2007.
Oil prices have also moved sharply higher, last trading near $90 per barrel, which is one of the key reasons that inflation is not falling as fast as we’d all like, with recent data suggesting prices in Australia were rising by 5.2% per annum in the year to end August.
Meanwhile interest rates also remain at problematic levels for most households, with the likelihood that this will get worse before it gets better. This was made clear last week by the Reserve Bank of Australia.
Despite keeping interest rates steady at 4.10% at their meeting last Tuesday, they warned of the likelihood that they may raise rates further before the year is out, specifically noting that, “Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe.”
We delve into the challenges investors and households are facing, and their likely impact on the pink diamond market, below.
The Argyle Legend Lives On
We are almost into the final two months of 2023, with market volatility picking up again, geopolitical conflict a front-page news item again, and the twin challenges of higher inflation and higher interest rates continuing to spark investors to ask the most important question of all…
What should I do with my portfolio?
Given the broader economic and financial market backdrop, combined with the unique supply and demand fundamentals underpinning the pink diamond market, we believe that this niche asset class remains a go-to solution for at least a portion of any portfolio.
This week, we are delighted to share some news from the pink diamond industry itself which highlights the enduring legacy of these assets, and why their investment potential remains undiminished.
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