It’s been almost a year since the Oppenheimer Blue diamond, weighing 14.6 carats, sold for $57.5 million. Christie’s managed the auction and sold the rare blue diamond for nearly $4 million per carat. This is the most valuable blue diamond ever sold.
The year 2016 has been called the year for the rare colored diamond. Colored diamonds have seen a steady increase in value over the past decade, making them one of the most valuable hard assets that a solid investment portfolio can possess.
Fancy Vivid Pink and Fancy Light Blue diamond have been the focus of international attention over the past two years because of the high prices they sold for. However, historical data shows that rare diamonds may be worth more in the future.
The price of pink diamonds rose by nearly 180 percent between 2009 and 2016. It currently stands at a record-setting high. Both blue and yellow diamonds are also gaining in value with their respective prices rising by 70% and 90%, respectively.
Fancy colored diamonds are coveted assets in many countries because of their universal appeal and luxury. These exclusive fancy colored diamonds can be easily transported and have a high value making them a valuable hard asset.
As the supply of rare colored diamonds becomes less plentiful, the demand for these diamonds will increase. Only 0.001% of all diamonds are considered “fancy”, and even fewer qualify for the “vivid” designation, which refers to a high-saturated hue.
The Pink Star Diamond is an example of a rare fancy vivid rose diamond.
Paragon International Wealth Management, which is based in Toronto, says that there are very few mines that can produce fancy colored diamonds. They specialize in the investment and acquisition of fancy colored diamonds.
These fancy colored diamonds are rarer and more valuable than their less well-known white counterparts.
Paragon International Wealth Management notes that for every 10,000 white diamonds, only one natural colored diamond can be found. This makes natural colored diamonds very rare and is ideal for investment.
It is easy to see why fancy colored diamonds are so popular when you consider that only one fancy-blue diamond is mined every year and there are only 20-30 fancy reds.
The situation will get worse if the famous Argyle, an Australian diamond mine located in East Kimberley closes within the next 24 months. The Argyle mine, which is responsible for approximately 90 to 95 percent global supply of pink diamonds and the largest known significant source of them, is the last remaining substantial source. The rapid decline in supply and rising mining costs have caused the Argyle mine to close in 2018. This will make the rare pink diamonds found there even more valuable.
