Last week we shared an article that appeared in both The Financial Review and in Bloomberg, which looked at the pending closure of the Argyle Mine, and why it will likely kick-start another leg higher in the pink diamond market.
This week we wanted to share some findings from a recently published update from Knight Frank, whose regular Luxury Investment Index highlights the performance of a range of boutique assets favoured by High Net Worth investors the world over, from whiskey, to wine, to cars, coins, art, watches, stamps, furniture, and of course, coloured diamonds.
The recent Knight Frank update, which focused on the performance of coloured gemstones, noted the strong rise in these gemstones, which had outperformed the broader jewellery market.
The report also highlighted the strong performance of diamonds, and included the following chart, which shows the growth over 10 years in a range of luxury investment assets, including coloured diamonds.
As you can see, coloured diamonds as a whole have had an excellent decade, more than doubling in value in the ten years to end Q1 2019, with total growth of 113%, or approximately 8% per annum.
Pink diamonds, which are our speciality at Australian Diamond Portfolio, have of course outperformed the broader coloured diamond market, with returns of over 12% per annum since 2005, a return that would make them the second highest performing asset on the chart above.