15 Dec

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.

Pink diamonds continue to perform

As we’ve highlighted across the course of the year, there have been three or four key themes that have come to the fore when it comes to pink diamonds in 2023, all of which will likely continue to influence this market as we head into the new year.

The most challenging of these themes has been lower liquidity in the pink diamond market. Higher interest rates and higher inflation, as well as a rebound in traditional assets like shares and real estate (despite the growing headwinds the economy is facing) have acted as a handbrake in terms of total turnover in the pink diamond market. Crucially however, prices have remained strong, as in other periods where liquidity is more subdued, a point we will address below.

Less focus from the media on the pink diamond market has also been a factor. This lack of media attention is understandable given the broader economic environment, with skyrocketing increases in rents and property prices, higher inflation, the challenges people are facing with higher mortgage repayments, as well as a surprising bounce in the share market dominating the landscape.

It’s also fair to say that since the closure of the Argyle mine in 2020, the pink diamond market itself has generated less stories in and of its own right; though, when these stories do come, they are overwhelmingly positive, as per the below headline about the recent Rio Tinto Beyond Rare Tender, which we originally shared last week.

For those that missed last week’s update, it’s worth reiterating that there have also been incredibly strong auction results of late, with diamonds continuing to sell for 30-40% above pre-auction estimates.

This is a good segue into the last, and we would say most important theme that has been evident in 2023: the continued strong performance, and price growth that we are seeing across all categories of pink diamonds.

Yes, the speed of that growth has eased from the rapid price increase we saw in the 18 months to 2 years after the Argyle mine closed in late 2020, but it is still price growth, with pink diamonds continuing to protect and grow wealth.

And yes, while other assets have dominated media and investor attention in 2023, pink diamond prices have still gone up, and they’ve still continued to diversify portfolios, provide inflation protection, and bring a tangibility to portfolios that is hard to replicate with most other commodities.

Thank you from Australian Diamond Portfolio

On behalf of the entire team at Australian Diamond Portfolio, we would like to thank you for your continued support in 2023.

It is hard to believe that we’ve now been in business for just over a decade, with our success and growth entirely driven by the relationships we’ve built with our wonderful clients over the past ten years.

That has continued this year, and it has been wonderful to work with so many of you, both existing and new clients, and we are delighted to see that pink diamonds are continuing to serve their unique role in your investment portfolios.

Long may that continue, with the outlook for these rare and beautiful assets remaining as strong as ever, as we’ve highlighted in these updates across the course of this year.

We hope that you get to put your feet up over the next month and enjoy quality time with friends, family and loved ones over the Christmas and New Year holiday period, before returning refreshed for another year full of challenges and opportunities in 2024.

The team at Australian Diamond Portfolio itself will be taking a well-earned break, with our offices in Sydney closing on Friday 22nd December and reopening on Monday 8th January.

We will be monitoring email intermittently over this period (you are welcome to send enquiries through to [email protected] and we will reply as soon as possible). You can also leave us a message by calling 02 9238 2727.

Once again, a very Merry Christmas and a Happy New Year from the Australian Diamond Portfolio Team.

As always, we hope you’ve enjoyed this week’s edition of “In the Loupe” and we look forward to any questions or comments you may have.


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