Linde notes that future price increases will depend, as always, on demand, but there’s no reason to think the luxury industry would lose its appetite for the pink stones, either to wear in jewelry or as an investment piece.
Future Supply
Rio Tinto will continue to tender its pink diamonds until the mine closes in 2020, says Alan Chirgwin, the company’s vice president for sales and marketing. But jewelers are already starting to look elsewhere. “The thing about Argyle is that it’s the only consistent source of pink diamond supply,” Chirgwin says. “We see pink diamonds arise from time to time from other operations, but none produce in a consistent way like Argyle.”
There are lab-grown pink diamonds as well, but the synthetic ones cost about 50% less in retail and about 80% less in wholesale, Linde says.
As technology improves, it’s possible to artificially develop increasingly larger pink diamonds. But West, the New York diamond dealer, says, “It’s not about what it looks like. It’s the rarity that gives it the value.”
An Auction Item
The Argyle closing is expected to bring renewed attention to pink diamonds at auction as buyers snap up limited supply.
“These are collectibles, and there is an investment value considered,” West says. “Especially in Australia, they have pink diamonds in people’s portfolios for their retirement funds.”
In its Magnificent Jewels sale on Dec. 10 in New York, Sotheby’s will include two pink diamond items. A Fancy Red 1.38-carat diamond mined at Argyle is expected to go for $1.8 million to $2.8 million, while a pair of earrings from Harry Winston with pear-shaped Fancy Light Brown-Pink diamonds weighing 12.41 and 11.15 carats is estimated at $600,000 to $800,000.
This article was provided by Bloomberg News.