What an incredible blog post we have for you here! It is so exciting to see other publications starting to echo what we have been saying for years. These curated articles below discuss the formation of diamonds, the allure of pink diamonds, and the importance of adding diamonds to your investment strategy as a storehouse of wealth and hedge against inflation.
If you are ready to begin your diamond investment journey, please reach out to us directly with any questions or to begin your onboarding consultation.
Why Pink Diamonds Are Fetching Millions at Auction
An important pink diamond ring known as the Eden Rose sold for $13.2 million at last month’s Magnificent Jewels sale hosted by Christie’s New York. Measuring 10.2 ct. (about the size of an oyster cracker), the stone was mounted in a ring within a wreath of petal-shaped white diamonds. It was touted as the most significant pink diamond of comparable size and quality to come to Christie’s since 2012, when the Martian Pink sold for $17 million. The Martian Pink weighted 12.04 cts. and was mounted in a ring by Harry Winston.
A unique feature of Eden Rose is the fact that it displays a highly coveted, seldom seen shade of pink. Many pink diamonds—including those that have likewise fetched millions at auction—can display secondary hues of purple, orange, or gray, but the Eden Rose is singular for the absence of any undertones. It is, as Christie’s describes it, a “pure pink,” rendering it exceptionally rare.
It’s not uncommon for pink diamonds to command twice, even three times, the price of Eden Rose and Martian Pink, making some pinks more precious than modernist art masterpieces. Consider the Picasso painting Homme à la Pipe (1964), which sold for $17.4 million at Sotheby’s London earlier this year. Of course this is an apples to oranges comparison, but there are reports of declining art sales while the fervor for pink diamonds is robust to say the least.
So what makes a pink diamond so valuable? It mostly comes down to rarity. The investment value makes fancy color diamonds irresistible to certain connoisseurs, diamantaires, and investors, who tend to see colored diamonds as a store of value (especially during times of geopolitical turmoil and economic uncertainty).
Death of first-ever super continent created the world's pink diamonds
Pink diamond rings are favored for good reason – the rocks are among the rarest types of jewel on the planet. Unlike other colored diamonds – such as blue and yellow – which are tinted by impurities, these rosy rocks get their color thanks to intense geological processes.
At one point, 90% of all of the world’s pink diamonds were produced at a single mine in western Australia, the Argyle Mine.
Experts were struck by the peculiarity of the site, which wouldn’t have been the first place they’d look for diamonds. This is because the Argyle mine sits on the edge of a continent rather than in the middle, where the precious stones usually emerge. Moreover, diamonds are typically found in kimberlite rock formations, but the Argyle trove features a type of volcanic rock called olivine lamproite, as Live Sciencenotes.
Shortly after the Argyle formation was discovered, experts estimated the age of its rocks to be between 1.1 and 1.2 billion years. However, a new study, published in the journal Nature Communications, last year, revealed that the rocks are, in fact, 1.3 billion years old, putting Argyle right at the start of the breakup of the supercontinent Nuna.
What makes pink diamonds special and where do they come from? Most are dug from a single mine in Australia … which is now closed
Few gemstones are as lustrous and uniquely saturated as the pink diamond. A wonder of nature, pink diamonds were first discovered in India during the early 17th century in the legendary Kollur mine, one of the largest and most productive diamond mines on the Indian subcontinent during the 16th to mid-19th centuries.
Since then, pink diamonds have soared in popularity, and, as a result, have also been mined in South Africa, Brazil, Canada, Tanzania, Russia, and Australia. More than 80% of the world’s pink diamonds originated from the Argyle mine in the Kimberley region of Western Australia up to its closure in 2020, with around 0.1% of the mine’s 20 million carat annual output classified as pink diamonds.
“Natural pink diamonds are found in a variety of different shades from soft pinks, to purplish-pinks, to violets and even extremely rare red diamonds,” explains Sophia Hirsh, managing director of British jeweler Hirsh London. “We love creating jewelry with these incredible gems as they are so complimentary to any skin tone, however, what we love most about pink diamonds is that they are a mystery. Geologists still do not know exactly what makes them pink, although the most accepted theory is that they are formed by geological shifts as opposed to other color diamonds which are formed by trace elements being introduced during the crystallization process. This makes them much more of a natural phenomenon than blue or yellow diamonds. Due to the rarity of natural pink diamonds, they are great investment pieces as well as being beautiful.”
The Rising Value of Color Diamonds and Gemstones
While colorless diamonds are relatively plentiful, color diamonds are a rare freak of nature. The FCRF (Fancy Color Research Foundation) puts the relative rarity of color diamonds into perspective. Out of 33 million rough carats recovered, on average, only "fragments of a percent are fancy color diamonds," it says. Most of those will never go through GIA labs for grading. They are simply too small. Diamonds that do make it through the grading process, according to FCRF, represent about 3% of all rough submitted to GIA labs.
This acknowledged rarity within the fancy color diamond world had kept prices for these goods stable or even surprising auction houses with spirited bidding driving the prices beyond expectation.
A good time to invest in pink, blue, or yellow diamonds? Fancy colored stones will never go out of style, with distinctive shapes capturing increased interest
“We’re seeing increased interest in colored diamonds – especially in distinctive shapes,” says Céline Assimon, CEO of De Beers Jewelers. “High jewellery is still an investment category, like couture or art. There is value in the design and craftsmanship but also in the materials used, which should be the finest – the best of the best. It’s a constant in how this category has grown over time, catering to a discerning clientele,” she adds.
All high jewellery can be considered a form of investment, with prices for these one-of-a-kind designs starting at around $200,000. When you take into consideration a highly sought-after, rare, vividly colored diamond, then “investment” takes on a whole new meaning. This is where the smart money is – even banks invest in these geological rarities.
The value of natural-colored diamonds rose 77% between 2010-2019 according to the Fancy Color Research Foundation. Fancy pink diamonds led the index during the decade, increasing in value by 116%, while the value of fancy yellow and fancy blue diamonds rose by 21% and 81% respectively.
The steep rise in the value of pink diamonds seen in the last decade is partly attributable to Chinese buyers entering the market. “The year 2010 marked a landmark in this segment,” says Miri Chen, CEO of FCRF. “Since then, prices have steadily increased year after year due to unprecedented demand for fancy colored diamonds from the Chinese market. It’s believed that a third of fancy colored diamond buyers worldwide are Chinese.”
How Rio Tinto Is Framing Diamonds as Works of Art
At the close of last summer, invites to a very exclusive party started to land in the inboxes of the world’s top diamond dealers, jewelers, and private collectors. The sender was Rio Tinto, and the event was the launch of The Art Series.
While the title might suggest that the miner was breaking into a new industry, it was in fact a new concept for selling fancy-colored diamonds. The invite-only tender, also known as the Beyond Rare Tender, was a collection of 87 rare polished diamonds, including pink and red specimens from the Argyle mine in Australia, and yellow ones from Diavik in Canada. Besides 11 matched pairs and 30 single stones, there were seven grouped sets called “Masterpieces,” which came with accompanying bespoke artwork.
Rio Tinto Minerals chief executive Sinead Kaufman has described the Beyond Rare Tender as “a new chapter for Rio Tinto’s diamond business, and a testimony to the ongoing demand for highly collectible natural diamonds.”
The demand is certainly there. While the diamond market has softened in general, prices for pinks have remained protected, according to dealers. And prices for rarer red diamonds have increased 25% since 2020, reports dealer Leibish & Co.
Still, The Art Series is not just about catering to preexisting demand; it’s also about stirring it up and adding value. By presenting colored diamonds as art in this way, it is encouraging us to view such stones as we might a piece of serious art: as an investment-grade collectors’ item that we also enjoy in the moment for its beauty.
Shining Bright: The Allure of Pink Diamonds in Pop Culture, Fashion & Art
Pink diamonds are among the rarest gems on Earth, commanding awe and high prices in equal measure. Their scarcity, combined with the intense process required to form their unique color, positions them at the pinnacle of luxury and desirability.
Beyond their physical allure, pink diamonds carry deep symbolic weight, representing love, luxury, and a level of exclusivity that few other items can match. This blog delves into the significant impact pink diamonds have had on pop culture, fashion, and art, showcasing their enduring appeal and how they continue to influence trends and inspire creativity across these vibrant domains.
Pink diamonds have left an indelible mark on pop culture, fashion, and art, symbolizing more than just opulence; they embody the intersection of rarity, beauty, and ethical consciousness in today’s society. Their journey from the depths of the earth to the pinnacle of luxury showcases a fascinating evolution of value, from mere physical allure to symbols of love, exclusivity, and ethical responsibility. The enduring appeal of pink diamonds reflects a societal shift towards valuing not only the aesthetic and rare but also the sustainable and morally sound. As these gems continue to inspire creativity and captivate imaginations, they also mirror our collective aspirations for a world where luxury and responsibility coexist harmoniously.
Please email FCD Invest at info@fcdinvest.diamonds to discuss your personalized long-term investment strategy. For more information on Fancy Color Diamonds as an investment, please visit our Fancy Color Diamond informational page linked here.
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