We need to talk about pink diamonds

Looking close at a Pink Diamond

You’ve probably already heard about them, and maybe even seen one in real life. So what’s the big deal about pink diamonds? 

Until now, most of my clients have invested in white diamonds, both because you can get a ‘bigger’ diamond for the price, but also because most of us don’t really know much about alternative diamonds, such as pink diamonds. So which diamond should you buy? And which is the better investment? 

Pink diamonds are extremely rare, and it’s only a small proportion of them that are actually worthy of an investment. That is exactly why they make such great investments. 

Pink diamonds have been on the market for a very long time. 40 years ago, they were among the types of diamonds that people avoided and they were sold for far below the price of white diamonds. However, everything changed when the extraction of pink diamonds from the Argyle mine in Australia began in 1983. Surprisingly, diamonds from Argyle are characterized by a higher color saturation in comparison to pink diamonds from other mines, which made them very valuable.

To best understand colored diamonds, imagine a glass of plain water, where you gradually add fruit coloring to it. You want to buy a diamond with as much color in it as possible, without it turning brown or gray. 

Pink diamond
Pink diamond
Pink diamond

The Argyle mine closed two years ago, but there are still pink diamonds entering the market from various countries, including Africa. However, as Argyle contributed to 90% of the pink diamonds on the market, the rest of the pink diamonds on the market are those previously extracted. As a result, it’s predicted that there will be a significant second hand market while there being a growing demand for pink diamonds. Consequently, the price of pink diamonds is forecasted to continue to increase. 

Where do pink diamonds come from? 

It remains elusive as to how exactly pink diamonds become pink. It’s understood that boron plays an important role in making diamonds blue, and many people believe that it’s due to the high pressure and heat that contribute to the formation of pink diamonds that results in their different atomic structure. That would also explain why there are so many pink diamonds with inclusions and why there are relatively few big pink diamonds, as the diamonds are broken into pieces during their formation. Consequently, pink diamonds are normally relatively small, and a pink diamond of 0.3 carats is considered big. A few times a year, bigger pink diamonds of around 5 carats and above are seen at auctions. 

So what should you look for in a pink diamond? 

Rather than going for a large diamond that is slightly pink, then go for a smaller pink diamond that is very color saturated. Naturally, check the clarity of the diamond, as you want to avoid larger visible inclusions. However, small inclusions that aren’t visible to the naked eye are fine and actually completely normal in pink diamonds. In the case of pink diamonds, the color is more important than the clarity. 

Pink diamonds are graded after color intensity, and are evaluated after the following scale: 

Fancy Light
Fancy Intense
Fancy Vivid

Fancy Vivid is the most attractive grade for pink diamonds. 

The actual color is evaluated after both the primary and secondary color. The primary color would be pink, but you can also see Orangy Pink, Purplish Pink, Brownish Pink, etc. 

Certificate for a Pink diamond

Argyle created their very own color scale that went from 1 PP to 9 PP all after the color intensity, where 1 PP is the most intense. Normally, I would recommend that you buy diamonds within the 1 PP to 4-5 PP (applying to the diamonds from Argyle). 

What should you pay?

It’s impossible to get around the fact that pink diamonds are expensive, and they continue to increase in value. We see price increases of around 15-30% ANNUALLY. 

From 2009 to 2019, the value of pink diamonds have increased by 500%. Their price will continue to increase, and as we’ve discussed, will become increasingly difficult to get your hands on. You should expect to pay at least 14.000€ for an investment worthy pink diamonds. 

And just to round up, you should look after the color and clarity in pink diamonds, and most importantly, you should buy a diamond that you like. 

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