Over the past 30 years, the demand for pink diamonds has grown significantly, and with it, their value has grown significantly, not only as an additional collectible to jewelry, but also as a viable investment opportunity.
This one-of-a-kind diamond crystal ranks higher than white diamonds, but what exactly makes pink diamonds so expensive?
Pink diamonds are a rare diamond because most diamonds have some similarities in color, including hues such as yellow, brown, and white. The true value of a diamond lies in the intensity of its natural color.
In the case of white diamonds, perfection is achieved when you find a crystal clear gemstone free of blemishes, inclusions and fluxes. A blurring effect that does not cloudiness and produces an excellent color spectrum in light. High-value pink diamonds also require the same clarity and color intensity.
Why Are Pink Diamonds so Expensive?
Pink diamonds are extremely rare and there is only one known source of pink diamonds in the world to be one of these amazing gemstones.
The Argyle mine in Kimberley, Australia, is the only source of these Argyle pink diamonds, which are very expensive due to their rarity and limited supply.
The mine supplies 90% of the pink diamond crystals, which are world-famous for their intense color. Unfortunately, operations around the mine stopped in 2020 as Australia’s resources were said to have been exhausted.
Pink diamonds are formed from carbon similar to white diamonds. The only difference is that these diamonds were formed over millions of years inside volcanic kimberlite tubes.
Pressure is applied and at high temperatures, the carbon particles burn into a glassy diamond structure. The heat, pressure, and time applied to these diamonds can cause wood-like particles to form in their molecular structure. It is these tightly compressed wood grains in diamonds that reflect the pink hue characteristic of pink diamonds.
Through science and technology such as high-pressure, high-temperature (HPHT) processes, impure and imperfect diamonds can be clarified into more striking white grades, and brown contaminated crystals can be converted into a range of colors from pink, blue to green.
A treated diamond has added value because it is more vivid and saturated in color. The process is irreversible and has a permanent effect on the diamond crystal, making it whiter or infusing it with brilliant colors.
Whether you choose natural pink diamonds or more affordable treated pink diamonds, you will still enjoy the experience of pink diamonds. To the naked eye, there is no difference between the two diamonds, in fact, some treated diamonds have greater brilliance than untreated diamonds.
How Much Is a Carat Pink Diamond Worth?
Fancy Vivid pink diamonds certified by gemological institutions are the most valuable in the entire universe. A 1-carat pink diamond crystal can cost between $30,000 and $100,000, depending on the grading criteria for colored diamonds.
In the high-end market of diamond investors and collectors participating in diamond auctions, these pink diamonds sell for between $100 million and $300 million per carat. Now, that’s really shocking.
A fine white diamond is worth just $10,000, which means that a pink diamond is worth three times or at least twice as much as a clear white diamond. The price of pink diamonds is steadily rising month by month, and experts believe that this trend will not end. In a few years, these pink diamonds will be worth much more than they do now.
Are Pink Diamonds a Good Investment?
Yes, pink diamonds are currently a very lucrative investment opportunity. According to the Color Research Foundation, the price of pink diamonds increased by 2019% in the seven years from 2016 to 180.
In diamond investment, one-carat pink diamonds sell for $100 million to $300 million per carat. Due to the imminent closure of the main source of pink diamonds, these prices are expected to continue to rise. Once this happens, the price will definitely skyrocket. If that’s not profitable, I don’t know what it is.
Investment in Argyle pink diamonds has grown by 15% and in certain cases up to 20%. Due to the rarity and uniqueness of pink diamonds, their prices are rising every month. Based on the global diamond trend record over the past 15 years, the value and elite status of pink diamonds will continue to increase.
Another reason to invest in pink diamonds is that, unlike any other asset in the investment market, they are wearable, transportable, and easy to store investments.
At many auctions in the past, pink diamonds have stunned the market with their amazing prices. The last most expensive pink diamond was the CTF Pink Star, which sold for $5.7120 million in a record <> minutes. This is very impressive.
The brilliant pink hue of these rare pink diamonds, such as the “Pink Star”, is derived from impurities that appear during their creation. These impurities may be present in the form of gases such as hydrogen or nitrogen, or in the form of minerals such as boron, which are deeply embedded in the diamond’s crystal lattice.
Verdict
As predicted, pink diamonds are becoming extinct, as can be seen from the smaller size crystals that are now appearing. This is in stark contrast to the larger size crystals that may have been present at the time of their discovery.
This limited nature, increasing demand, and shrinking size suggest that any interested pink diamond investor needs to act now.
If you’re wondering if you want to invest in pink diamonds, this is the confirmation you’re looking for. Pink diamonds are a lucrative business that can bring you millions of dollars in revenue for years to come.
Conclusion
The beauty and magnificence of these rare and almost extinct pink diamond crystals is undisputed. Their value seems to shine brightly and is appreciated by the elite. Their rarity and scarcity continue to spur demand, cementing their expensive price tag.
