Investing in fancy-coloured diamonds, especially in pink diamonds, is becoming more popular these days. Aside from being a popular choice for jewellery or accessories, pink diamond investments are also a great choice.
Although many investors are becoming more attracted to pink diamonds, they must’ve done a lot of research before buying as many pink diamonds as they can. And if you’re also looking into the same investment, there are many things you need to know first before buying pink diamonds for investment.
In this article, we’ll discuss some of the basic things you need to know about pink diamonds.
1. Pink Diamonds are Rare
Just like the law of supply and demand, since pink diamonds are rare, which makes their value higher than that of other gems and diamonds. Pink diamonds became rarer due to the closure of the Argyle Mine in 2020.
Since Argyle pink diamonds are known for having high value and good quality, the supply declined when the mine closed. Although many other mines are still operating worldwide, including in South Africa, Canada, and Brazil, they still can’t cover the amount of diamonds that Argyle Mine used to produce. Besides, 90% of the pink diamonds came from Argyle Mine, while the 10% comes from the other mines from the rest of the world.
2. Understand the 4Cs
When talking about pink diamonds, or any other fancy-coloured diamonds, the 4Cs (Colour, Clarity, Carat, and Cut) are always mentioned. The 4Cs are the grading system for pink diamonds, which helps experts identify their overall value. Here are the specific things professional jewellers base the value of pink diamonds on:
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Colour- the intensity of how pink a diamond is, can be one of the most important factors in identifying its value. It ranges from Faint, Very Light, Light, Fancy Light, Fancy, Fancy Intense, Fancy Vivid, and Fancy Deep.
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Carat- the weight of the diamond. A carat of a diamond weighs 0.2 grams, so the heavier the diamond, the higher its carat.
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Clarity- the quality of how the diamond shines or reflects is all about the clarity. In addition, it also considers the external and internal defects, but they don’t have a significant effect on its value.
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Cut- depending on the reflection of the diamond, a professional can easily identify the best cut for it. Some of the common diamond cuts include princess, oval, radiant, and round.
3. Always Look for the Certification
No matter where you buy your pink diamond, it always comes with a certification, unless it’s fake. Besides, the certification comes from a reputable gemological lab, and not the store, so it’s a must. Having a certification is an essential part of buying pink diamonds, especially if they’re Argyle pink diamonds, since it’s needed whether you’re planning to resell or retain ownership.
4. Size Doesn’t Always Matter
Although carat, one of the 4Cs, is an essential factor in identifying the value of a diamond, keep in mind that size isn’t everything. This is specifically true if the diamond is faint pink, since there are many other factors to consider when determining the value of diamonds.
When you encounter sellers who are pushing you to buy big diamonds, they may not be as valuable as one would hope.
5. Buy From a Trusted Source
Argyle pink diamonds are the best choice when investing in pink diamonds. However, even if you’re not buying the specific Argyle pink diamonds, buying from a trusted source is still a must. If this is your first time buying pink diamonds, you can ask for recommendations and check the internet for the go-to pink diamond shop for many people.
6. Think Long-Term
If you’re aiming for a long-term investment, pink diamonds are a great option. They gradually appreciate, but ensure to handle them well. In addition, it’s a good thing to invest in tangible materials once in a while, instead of having everything in digital form.
Although investing in tangible items, such as Argyle pink diamonds, comes with disadvantages, they also have their advantages.
7. Storage and Insurance Matter
As mentioned, keeping pink diamonds can be an overwhelming task; that’s why it’s best to be prepared before buying one. Once you buy a pink diamond, ensure that you already have a bank vault or other secure safe that has reliable locks.
Since pink diamonds are a valuable asset, you should do everything you can to protect them against damage, theft, or loss.
8. Reselling Takes Time
If you’re finally planning to sell your pink diamonds, you should be patient enough to wait for the right buyer. Unlike other assets, pink diamonds and other gems aren’t as easy to sell, even though there’s high demand.
Usually, private sellers, including yourself, aren’t established enough on the market, so you need to work with auctions, private collectors, and shops.
Final Thoughts
Pink diamonds are a great investment, even for beginners. However, there are many things you need to know about these precious pink stones before you start buying them. By considering the tips discussed in this article, you can have a smoother start for your new investment.
ABOUT THE AUTHOR
Aliana Baraquio is currently writing for Musson Jewellers Australia, a rare and enduring jewellery design business that has been providing the finest jewellery for over 40 years in Sydney. Her free time is spent on her phone and new comics to read.
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