15 Dec

The word is spreading

With just over a week to go until Xmas 2020, things are beginning to quiet down in financial markets, with most investors looking forward to a break, after what has been a year none of us will ever forget.

In late January or early February of next year, we will publish a more detailed look at the state of play in investment markets and in the economy, detailing the many reasons why pink diamonds remain an investment of choice for astute looking to sensibly balance risk and return in the years ahead.

For now, we think investors in this boutique asset class should be more than satisfied with what has taken place in the pink diamond market 2020, especially given the disruptions caused by COVID-19.

For despite those headwinds, the pink diamond market has largely done what we’d expect it too. It has provided much need portfolio diversification, inflation protection, and perhaps most importantly, capital stability.

All of these factors have helped investors navigate an incredibly volatile time in the global economy and in financial markets.

Just as importantly, it is ending this year on a very strong note, with the closure of the Argyle Diamond Mine in November 2020 already kickstarting a pick up in the prices of these rare stones.

This is a trend we expect to remain in place for much of the next decade, especially as investor awareness about the unique supply/demand profile in this space continues to grow.

Beautiful pink diamond

The word is spreading

There has been significant media attention regarding the release of the 2020 Argyle Pink Diamonds Tender; “One Lifetime, One Encounter”, and the closure of the Argyle Diamond Mine this year, all of which has helped to build the profile of pink diamonds as an asset class.

At Australian Diamond Portfolio, we are proud to have played a small part in spreading the word ourselves, through regular communications like our weekly “In the Loupe” articles.

The launch of the Australian Diamond Portfolio Legacy Collection has also helped raise the profile of the whole industry, as well as helping illustrate the fact that as an asset class, pink diamonds are available to all Australians.

Last week we were asked to contribute to an article published in the Australian on the subject of pink diamonds, and the robust investment case for this truly rare asset class.

Titled “Last of its kind is a shining investment”, the article focused on a handful of key items that are important for potential diamond investors to be aware of, including:

  • Just how much more valuable pink diamonds are relative to white diamonds, with pinks at a minimum 15 times more valuable than a white diamond, assuming the same carat size
  • How demand for Argyle pink diamonds has picked up noticeably this year
  • Why the closure of the Argyle Diamond Mine will ‘reset prices for pink diamonds’, with the value of the stones set to increase notably

Our comments centred on the recent launch of our Legacy Collection, and the opportunity it provides to a wider range of Australians. As we explained to the journalist writing the article, “The collection was specially curated to include pink diamonds in a price range accessible to a wider audience. We want to spread awareness about this incredibly rare Australian stone and enable as many people as possible to experience it. Now is the last opportunity to become one of the few people in the world to own a pink diamond.”

There is no doubt that when it comes to investing in pink diamonds, the word is spreading. This can only bode well for prices in the years to come.

If you would like to read the article (subscription required), you can do so at the following link.

Beautiful pink diamond

Merry Xmas from Australian Diamond Portfolio

Before we finish off our last report for this year, on behalf of myself and the entire Australian Diamond Portfolio team, we want to wish all of our clients, and regular readers of our ‘In the Loupe’ market updates a very Merry Christmas, and a Happy New Year.

Given the challenges that this year has posed for us all, we hope that you get to spend a well-earned break with loved ones, and we wish you the very best as we head into 2021.

Australian Diamond Portfolio will be closed from 5pm on Wednesday December 23rd, with the office reopening on Monday the 11th January.

We will be intermittently monitoring email across the break, but if you do have any enquiries you’d like attended to this side of Christmas, we would encourage you to get in touch by early next week at the latest.

We would be more than happy to discuss our investment options, and the range of beautiful pink diamonds that are available in our Legacy Collection.

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.

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