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Why Pink Diamonds Could Help Fund Your Retirement

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03 Mar 2017 | No Comments

Retirement funds around the world are looking rosy, thanks to the enigmatic phenomenon of the natural pink diamond. These incredibly rare and desirable gemstones are found in only a few locations in the world and as such, demand is truly soaring. Collectors and investors are busy snapping up the most stunning pink diamonds in Sydney and beyond to line their nest eggs, and here’s why.

 

The Pink Dream

In 13 November 2013 at Sotheby’s in Geneva, a New York diamond cutter won the auction for a stunning 59.60 Fancy Vivid Pink diamond he called the Pink Dream: paying a record US$83.2 million. This was in fact a record price for any coloured diamond – and indeed for any gemstone in the world. This jaw-dropping price reflects the growing and unprecedented interest in the pink diamond as a solid financial investment.

 

The rising value of pink diamonds

Fancy light pink diamonds have increased in value by around 20% year on year on average for the last five years. The status of the Argyle Diamond Mine in Western Australia’s Kimberley region is likely to be driving much of this value. This mine is the home to the most spectacular pink diamonds in the world, which have formed here over millions and billions of years to be brought to the surface in unbelievably miniscule numbers. Just 1% of the diamonds from the mine are pink in colour, and they are so coveted that they are sold by private tender to only a select handful of luxury jewellers and gemmologists each year.

 

Rio Tinto, the owner of the world-famous diamond mine, has announced that the site will be closing in 2019. That means there will soon be a finite supply of these naturally occurring beauties, making the Australian pink diamond about as recession-proof as other rare natural resources such as gold.

 

Pink diamonds for self managed super funds

It makes sense that many are looking to the Australian pink diamond for stable retirement investments, but as with many self managed super fund investments there are some conditions. For a SMSF investment, the pink diamond is not able to be worn or kept at your home and a decision on appropriate storage must be made in order to safeguard your investment. In addition, any sales of investment diamonds to a related party will need to be determined by an independent valuer.

 

What to look for

Unlike colourless diamonds, the single most important factor for selecting a pink diamond is its colour over its clarity. The stronger and more intense the colour of the pink diamond, the higher the value will generally be: often into hundreds of thousands of dollars per carat. If you’ve ever seen a red or purplish red graded pink diamond, you’ll know exactly why this is the case.

 

Vollé Jewellery offers a full range of spectacular pink diamonds in Sydney at our Queen Victoria Building and York Street building studios. Whether you’re looking for a breathtaking addition to your jewellery collection or to your retirement portfolio, visit us today.

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