It’s been another interesting week in financial markets, with inflationary threats continuing to build, commodity prices getting crunched, and cryptocurrencies collapsing, with many having now dropped by close to or in some cases more than 50% in the last month.
Whilst all those factors support the investment case for pink diamonds, our latest market update rightly focuses on the incredibly exciting news that Rio Tinto have released the very last Argyle Pink Diamond Tender.
Below, we cover news about the Tender, and what the impact of this Tender, and the closure of the Argyle Diamond Mine more broadly means for pink diamonds, and the investment opportunity they offer.
The Journey Beyond
Last Tuesday the 18th May, Rio Tinto unveiled their final ever Argyle Pink Diamonds Signature Tender. Titled The Journey Beyond, the 2021 Tender is made up of 70 diamonds in total, and weighs 81.63 carats, with a record number of these diamonds larger than 1 carat in size.
Of these, the headline act is the Argyle Eclipse, the largest ever Fancy Intense Pink diamond ever offered via the Tender, which weights 3.47 carats. There are four other hero diamonds offered in this year’s Tender, including:
- A 1.01 carat radiant shaped Fancy Red diamond known as the Argyle Boheme.
- A 2.05 carat radiant shaped Fancy Intense Pink diamond known as the Argyle Solaris.
- A 2.03 carat square radiant shaped Fancy Deep Pink diamond known as the Argyle Lumiere.
- A 1.79 carat square radiant shaped Fancy Vivid Purplish Pink diamond known as the Argyle Stella.
Patrick Coppens, General Manager of Sales and Marketing for Rio Tinto’s diamonds business who has been involved throughout the history of the Argyle Pink Diamonds Tender (it has been running for 38 years) said, “The Argyle pink diamond story has continued to enthral throughout the years following the remarkable discovery of the Argyle mine in 1979. The final Tender collection of these beyond rare diamonds will be keenly sought after as heritage gemstones of the future, coveted by collectors and connoisseurs from around the world.”
Alongside the Argyle Pink Diamonds Tender, Rio Tinto are also offering 41 carefully curated Argyle Blue Diamonds. Titled Once in a Blue Moon, this collection weighs 24.88 carats in total.
The 2021 Argyle Pink Diamonds Tender will be showcased in several cities around the globe in the coming months, with bids closing by early September.
In the past week we’ve noted a definite uplift in interest from prospective clients interested in acquiring a pink diamond for their portfolio. We in part attribute this to the positive media coverage about the Tender, which has helped reinforce the incredible opportunity pink diamonds offer investors.
We will of course be watching the results of that Tender with interest and will report any news through to our clients at Australian Diamond Portfolio.
What happens next?
Back in 2019, Australian Diamond Portfolio produced a special report in anticipation of the then pending closure of the Argyle Diamond Mine. The report looked at the importance of the Argyle Diamond Mine to the overall diamond industry, starting with the history of the mine, and how it grew to become responsible for up to 90% of the global supply of pink coloured diamonds produced in any given year.
Importantly, the report highlighted why the mine’s closure would likely kickstart the next great bull market run in pink diamonds.
The report also looked at the building risks in equities, real estate, bond market and cash, and why from a diversification perspective, the rationale for investing in pink diamonds was stronger than ever.
You can access that report here.
Two years on and we’d say that report has aged very well, with prices for pink diamonds beginning to pick up noticeable. And whilst some of the facts and figures obviously need updating given how much has happened in the global economy and in financial markets since, the key messages from that report should still resonate with astute investors.
As we highlighted at the time, pink diamonds offer a unique opportunity for investors to protect and grow wealth in the decade ahead, as the risks in expensive financial products, expansionary monetary policy (read low interest rates and money printing), and an increasingly limited supply of these truly rare assets combine to propel pink diamond prices much higher in the years to come.
If anything, we’d say the events of the past two years, most notably the emergence of COVID-19, and the impact it has had on the global economy, only make the key messages from that report stronger today.
As always, we hope you’ve enjoyed this week’s edition of “In the Loupe” and look forward to any questions or comments you may have.