06 Jul 2023

Brand New Year. Same Old Story!

The clock has officially ticked over into the new financial year, with July often marking the point where investors reassess their portfolios, looking at what assets to trim, as well as which ones to buy.

Inevitably, it also marks the time where market commentators issue a plethora of news updates, many hoping to highlight ‘the next big thing’ that investors should be chasing.

From our perspective, despite it being a new financial year, it’s going to be largely the same story when it comes to the key drivers of financial markets, as well as property and commodity prices, with the risks and opportunities for investors essentially unchanged.

And that story, at a high level, is as follows:

  • Interest rates will soon peak.
  • Inflation will ease, but remain higher than forecast.
  • Financial assets are overvalued.
  • Recession risks are building.

We highlight why the above backdrop will continue to favour pink diamonds in detail below.

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15 Jun 2023

Time to get greedy

In just over two weeks, we will officially be halfway through calendar year 2023.

So far, it’s been something of a mixed bag for investors, with inflation still problematic, the economy slowing down, interest rate rises hurting people with a mortgage, housing in the doldrums for the first part of the year, and the Australian dollar falling.

On the flipside, equity markets have been very strong (indeed too strong as we highlight below, given how greedy everyone appears to have become) and housing has begun to recover, for now at least.

Most importantly for our readership, niche assets like pink diamonds have continued to stay strong in price, with the performance of pink diamonds in fact boosted by the decline in the value of the Australian dollar vs the US dollar.

Below, we highlight why of all the things we’ve mentioned above, it’s the continued strength in the pink diamond market that we are most confident about.

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08 Jun 2023

Follow the smart money

Interest rates are rising, inflation is high, and pink diamonds are performing strongly – the more things change the more they stay the same as the saying goes, with 2023 looking to be a carbon copy of 2022 when it comes to the major factors driving the market.

In this week’s market update, we look at a key share market indicator that highlights the dangers that exist in the market today, and should act as encouragement for investors to diversify some of their wealth.

We also look at the latest local news, most notably the interest rate hike delivered by the Reserve Bank of Australia (RBA) earlier this week, the challenges it poses, and why pink diamonds are an asset offering positive opportunities in this environment.

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01 Jun 2023

Tailwinds for pink diamonds strengthen

It’s hard to believe that it’s already June, and that 2023 is almost half way complete.

Despite the year continuing to throw up no shortage of challenges for investors, so far it has proved relatively smooth sailing, with traditional assets like shares creeping higher, while the real estate market has largely stabilised, after months of sharp price corrections, especially on the east coast.

While it will never get the attention that more traditional assets get, the pink diamond market has also proved resilient. While turnover has been more modest than in the previous two years, prices for these unique and discrete assets remain well supported.

This has been driven from both ends of the spectrum, from the absolute scarcity of stock on the supply side, and the demand drivers that continue to strengthen.

This week saw more evidence of the tailwinds driving demand, and why they are unlikely to dissipate anytime soon, with inflation rates in Australia rising to 6.8% in the year to end April, up from a 6.3% reading in the year to end March.

The result, which is part of a global problem (more on this below) shocked most forecasters, and demonstrated clearly that:

  • While inflation may dissipate somewhat in the months ahead, it is proving sticky, and will likely remain a problem for years to come.
  • Interest rates will have to keep rising for some time, something we may see in Australia as soon as next week from the Reserve Bank of Australia, despite the obvious headwinds those higher interest rates pose to the housing market and to the broader economy.

These developments, which are part of a global phenomenon, will only further support pink diamonds in the fullness of time.

Below, we discuss this as well as the diversification benefits of pink diamonds, which will likely again come to the fore shortly.

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25 May 2023

More records for pink diamonds

It’s been a quiet few weeks in investment markets, with volatility dying in the short-term, and most markets moving higher in 2023 so far, even if they aren’t generating much excitement amongst investors.

Despite the bounce in asset prices that we’ve seen this year, the risk in broader markets, and in the economy, continues to grow, with signs aplenty that the United States, and likely most of the developed world, is headed for a recession later this year, or perhaps in 2024 at the latest.

Typically, recessionary periods see huge spikes in market volatility, and rising demand for genuine safe havens and alternative hard assets.

That’s certainly what we saw when the Global Financial Crisis (GFC) hit some fifteen years ago, and again during the COVID-19 pandemic between 2020 and 2022.

Both of these periods were of course also opportune times to be holding pink diamonds, for not only did pink diamonds not suffer the violent correction that the share-market did, but also rocketed higher once liquidity was injected into markets in an effort to help them stabilise.

With the pink diamond market setting more price records, the same scenario looks to be playing out again.

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17 May 2023

Past performance and future performance – the outlook for pink diamonds

One of the most common phrases that you will hear in the investment world, and one that is entirely true by the way, is that past performance is no guarantee of future performance.

Assets that at times soar in value, like cryptocurrencies, often then turn around and crash, with paper profits that at one time looked life changing, turned to dust. On the flip side, other markets that may have suffered, sometimes for years, end up turning a corner and outperforming other assets.

As a result, while it’s critical to pay attention to past performance, it’s even more important to analyse the prospects of a particular asset.

We delve into this topic, and why it’s relevant for pink diamonds below.

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02 May 2023

No news is good news

Today’s market update touches on two key themes relevant for the pink diamond market, and for investors in this asset class.

The first theme is the news flow, or lack thereof, when it comes to the pink diamond market today, and why this is reminiscent of the other periods in market history where pink diamond prices surged.

Secondly, we look at the historical ability of pink diamonds to act as a sanctuary or safe haven for investors in tough times, and why more and more economic data suggests that these safe haven qualities will be more valuable than ever going forward.

Read on for more below.

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20 Apr 2023

Commodity indicators and pink diamonds

One of the attractive features of the pink diamond market is the lack of volatility.

While other asset classes, from shares to commodities to cryptocurrencies jump around in price daily, pink diamonds take the slow but steady approach.

While this is actually helpful for investors in this market, who have enjoyed 10%-15% per annum annual returns over the long-run with essentially no drawdowns, it can mean that there are long periods where pink diamonds are essentially out of the news.

This can be a good thing in our view, for while the news flow as regards pink diamonds has been slow of late, the underlying fundamentals remain as strong as ever.

In this week’s market update, we look at several factors that will impact pink diamond demand going forward, and the interplay between them.

These include the outlook for inflation, and for interest rates, two factors which have dominated financial market headlines for much of the last year.

We also look at the ratios for various other commodities, how they are trending, and the implications for asset markets going forward.

Combined, we think they help illustrate why the outlook for pink diamonds remains so strong, and why this niche asset class remains poised for years of outperformance going forward.

Read on below to find out more.

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14 Apr 2023

Hard assets and tough times

On behalf of the entire Australian Diamond Portfolio team, we hope that you had a lovely and relaxing Easter break with friends, family, and at least one (or maybe more) chocolate Easter bunnies.

From our perspective, it’s hard to believe that we are already almost half way through April, with 2023 almost one-third complete.

What had started as a relatively calm year from an investment point of view has changed dramatically in the last month, with the collapse of several banking institutions across the United States and Europe leading to huge volatility in financial markets, and the beginning of a scramble for hard assets.

Pink diamonds have been a beneficiary of this trend, given their tangibility, scarcity, and history of outperformance through periods of market stress. However,  transaction volumes, both in Australian and overseas, remain somewhat subdued, based both on what we are seeing directly at Australian Diamond Portfolio, and the feedback we are getting from global trade partners.

This is in many ways is to be expected given the broader economic environment, though it’s important to note that prices for pink diamonds remain incredibly strong, which evidences the wealth protection and diversification these assets offer to investors.

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04 Apr 2023

2023 Pink Diamond Investment Guide released

This week, we are proud to release Australian Diamond Portfolio’s updated 2023 Edition of the Pink Diamond Investment Guide.

This annual publication, which contains a treasure trove of detailed insights for new clients, experienced pink diamond investors, or those curious to know more about the pink diamond market, is one of the most widely read publications in the Australian pink diamond market.

  • With updated performance figures for pink diamonds, and an array of assets, the latest Australian Diamond Portfolio Pink Diamond Investment Guide also features updates about:
  • Several key reasons to invest in pink diamonds, from the opportunity to earn outsized gains, to inflation protection and hard asset protection.
  • An introduction to investment grade pink diamonds.
  • The process of investing in physical pink diamonds.
  • Australian Diamond Portfolio’s unique seven step investment process.

We hope you enjoy reading our updated guide, and look forward to any questions or comments that you may have.

The team at Australian Diamond Portfolio are also on hand to assist should you wish to enquire about investing in these unique, rare, beautiful, and profitable assets.

 

Download Investment Guide

The 2023 Pink Diamond Investment Guide

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