Goodbye to Pink Diamonds?

The most significant mine for pink diamonds is shutting its entryways. In remote Western Australia, the Argyle mine is home to 90% of the pink diamonds on the planet, and is the 4th largest diamond mine in the world. This mine creates the absolute rarest pink and red diamond jewels.

Sadly, the mine is set to close at the end of 2020. As the mine has gotten deeper, extraction costs have risen to the point where it’s no longer tenable to maintain the mine. This situation presents a danger to the primary stock of pink and red diamonds.

However, the interest for pink diamonds isn’t diminishing.

It comes at an unfortunate time in the diamond market, as the demand for pink diamonds has steadily risen as interest has grown. The Argyle provided the market with large quantities of these colored diamonds, over 865 million carats per year since it was initially opened. Presently, it’s down to 150 carats of the last regular pink-shaded diamonds.

Their finds include the 6 “hero” stones discovered as part of the 2018 Argyle pink diamond collection, which are among the rarest diamonds in the world.

Dark colored diamonds account for more than 75% of the volume of the Argyle mine. They have lower esteem, making the mine perhaps the greatest supporter of the worldwide oversupply of “modest” diamonds. This flooding of the market caused prices to decrease, making for a disruption in the market for this quality of stone. Other diamond providers have responded by eliminating generation volume. It helped them check the oversupply and keep prices higher for diamond shoppers and investors.

In any case, the end of the Argyle mine may propel diamond prices higher, a market that has seen values diminish since 2011. And for people who love pink diamonds, it’s a sad day for the availability of these diamonds.

Pink Diamonds found in the Argyle Mine
Pink diamonds are among the rarest diamonds on the planet

 

The costs of the pink diamond have ascended by 300% in the most recent decade. This is a result of the limited inventory a set number of mines delivering them. With plenty of demand for pink diamonds continuing to be high, coupled with their rarity, it leads to higher prices.

With the closing of this important pink diamond mine, there is speculation that prices will continue to rise, or at an even faster rate.

Ordinary diamonds are framed from carbon that is warmed and vigorously packed. The process is only slightly different for pink diamonds. A diamond needs to encounter a lot of increasingly warmth, weight, and time to change precious stones into grains. This is where the conditions for the pink variations come in. These stones are packed firmly to make just pink light fit for infiltrating and radiating through the diamond. This entire procedure is sporadic, and the providers are restricted.

The Argyle mine was the main pink diamond mine with a consistent stock. With no evenhanded wellspring of normal pink diamonds, the diamond market will confront a deficiency. Late reports show the costs for the Argyle-created pink diamonds have risen an amazing 500% since 2000. Specialists and industry insiders currently state that the cost of a pink diamond will increase to an incredible $1M to $3M per carat.

The increase in cost is likely at least partially due to the planned obsolescence of the Argyle diamond mine, but of course prices have risen steadily for the past decade regardless.

The pink diamonds from the Argyle mine are held in higher esteem than those of comparable quality from smaller mines in Russia or South Africa.

pink diamond mine
Shutting of the Argyle mine will cause changes to the pink diamond market.

 

With the imminent end of the Argyle mine in sight, people interested in pink diamonds should give serious thought to how prices might change in the coming years. Many purchasers are attempting to gobble up the constrained stock in anticipation of an increase.

In 2002, Ben Affleck proposed to Jennifer Lopez with a 6.10 carat extravagant serious pink diamond ring, setting off a pattern in hued diamonds. The investment in that diamond proved to be much better than their investment in that relationship.

As far back as world records of diamond costs have been recorded, the absolute biggest and rarest pink diamond jewels have sold for $50M – $70M. At the coming sale at Sotheby’s in New York on the 10th of December, the most noteworthy items include a few of the uncommon and wonderful Argyle Mine pink diamonds.

Do you have a pink diamond to sell? Visit one of our diamond buyers or submit a diamond quote request today to see how much you could get for it!