Pink diamond collection set to bring in millions with rush to invest after Argyle mine closes

A private collection of rare Australian pink diamonds is expected to fetch up to $ 18 million when it goes on sale next week.

Just months after the Argyle diamond mine in East Kimberley closed, an Australian online start-up is offering the first known public tender for the iconic pink gems which ends on July 1.

The collection of 33 used stones includes a hot two-carat pink, which alone is estimated to be worth $ 2.5 million. CEO Tim Goodman said these gemstones are among the rarest and most valuable in the world to reach the secondary diamond market.

“I’ve been hearing about this collection for years, just whispers in the trade,” he said.

“Obviously the mine had private tenders for its customers, but the public never had the opportunity to buy pink diamonds like these.

“Collection of a lifetime”

Eleven of the stones sold belong to renowned Brisbane collector Diosma Fitzpatrick, 78, who acquired the Argyle roses when production began at the mine in the 1980s.

Mr Goodman, who has a long association with the diamond industry as an auctioneer, said the highest price ever paid for a pink diamond was the 15.81-carat Sakura diamond for 37.7 million of dollars – or $ 49 million in Australian dollars today – in Hong Kong.

A pink diamond can be worth up to 50 times a white diamond of the same weight. (Provided: Australian diamond wallet)

Sydney-based diamond consultant Anna Cisecki said with the closure of the Argyle diamond mine, which once produced more than 90 percent of the world’s pink diamonds, a secondary diamond market is starting to emerge.

“Looking ahead, we feel incredibly optimistic about the outlook for stones and expect a very robust secondary market to emerge in pink diamond trading.

“We can already see it starting with this first public tender, and I’m sure we’ll see more platforms emerge in the near future.”

An investment for the future

Ms Cisecki, who heads investment firm Australian Diamond Portfolio, said that since the Argyle mine ceased production in November, demand had never been higher.

“We’ve had a lot of clients walking through the door over the past six months saying they’ve been thinking about investing for a while, but now it really looks like this last opportunity to enter the market.”

Over the life of the Argyle Mine, the value of the stones has steadily increased, attracting the attention of high net worth investors and self-directed pension fund trustees looking to diversify their portfolios.

An open bank safe door
Many investors keep their pink diamonds in secure vaults for the future.(Provided: Australian diamond wallet)

“Pink diamonds present a very interesting opportunity to transfer some of their money into a tangible asset that has increased in value by more than 10% per year over the past 10 to 15 years,” said Ms. Cisecki.

“Their inflation-hedging qualities and their ability to generate strong long-term returns make them attractive investments in their own right. “

Ms Cisecki said an investment-worthy stone starts at around $ 20,000 and could attract up to $ 3 million for a single carat.

A pink diamond can cost between 25 and 50 times the cost of an equivalent white diamond.

The last roses of Argyle, the blues revealed

five diamonds in different shades of pink and red
These hero stones are featured in the Rio Tinto Argyle 2021 pink diamond offering.(Provided: Rio Tinto diamonds)

At Linneys Jewelery in Perth, David Fardon has witnessed an increase in inquiries about pink diamonds in recent months.

He is one of a handful of jewelers around the world who have access to the Argyle Pink Diamond Tender.

This is a blind auction, where customers are invited to bid on diamonds that have never been on the market before – so rare that all diamonds in the 38-year history of the tender could fit in a wine glass.

Mr Fardon said he was lucky enough to get a glimpse of Rio Tinto’s latest Argyle Pink Diamond Tender collection, which this year includes 70 diamonds from the now closed mine.

“They are like works of art, they are really very unique gems,” he said.

The collection unveiled last month is highlighted by a 3.47-carat diamond, the Argyle Eclipse, the largest intense pink fantasy diamond ever offered in the tender.

Four blue diamonds on a blue background
The last blue and purple diamonds from the Argyle mine are sold as part of Rio Tinto’s final tender.

Also this year, 41 lots of the very last blue and purple diamonds from the mine are also offered.

Mr Fardon said prices for the Argyle Pink Diamond tender have appreciated 500% over the past 20 years, with the final tender set to record further growth.

A lasting legacy

Despite the emergence of an exciting secondary market, Mr. Fardon believes that many collectors would continue to hold onto their investments and heirlooms for a long time.

“People acquire pink diamonds for all kinds of different reasons. A lot of them relate to the emotional values ​​that come with having a beautiful pink diamond that can be used in a beautiful design,” he said. declared.

“With the closure of the mine and the end of production… they will only become increasingly rare and popular with collectors and connoisseurs of jewelry around the world. “

The 2021 Argyle Pink Diamonds tender will be presented in Perth, Antwerp, Singapore and Sydney, with bids closing on September 1.

About Michael Brafford

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