Amid the media-hype surrounding impending recession, stock market crash, and housing market collapse, it can be difficult to know which way to turn when it comes to investing. We often see a mass ‘cash-out’ as investors feel it’s safer to hold onto their money rather than make ‘risky’ investments.
Investors looking to minimize exposure to share markets, or the increasingly fragile property market, may be better looking at pink diamonds, rather than cash, as a long-term safe haven.
Pink diamonds have historically held their value during periods of market turbulence and can be a savvy path to diversifying an investment portfolio, as more traditional assets such as stocks, bonds, gold, cryptocurrency, and property become increasingly unpredictable.
Let’s dive into the benefits of investing in pink diamonds.
#1 – Consistent Growth Year-on-Year
Cash in the bank might be paying 3-4% in nominal terms right now, but you are going backward in real terms, with this situation set to continue for years to come.
By contrast, pink diamond prices have been delivering 10-15% price growth per annum for the better part of two decades, with this growth accelerating since the Argyle mine closed in 2020.
To further add to this, pink diamonds have delivered very strong long-term returns (circa 600% in the past 15-20 years).
#2 – Demand for Pink Diamonds Has Never Been Higher
Over 90% of the world’s annual natural pink diamond supply was mined from one single source: Rio Tinto’s Argyle mine in Western Australia.
The mine, in operation since the early 1980s, ceased operations in November 2020 due to an exhausted supply. This means the number of pink diamonds is finite and, as supply becomes increasingly constricted, more and more people are looking to purchase and hold pink diamonds. This only exacerbates the shortage in supply, and makes the remaining pink diamonds more valuable and a savvy investor’s choice.
#3 – Easy to Store, Transport and Pass on
As well as being extremely durable, Diamonds are compact and easy to store, even after considering adequate security. It is easy to keep a diamond for years and pass it down through the generations.
Pink diamonds are a perfect means of wealth transfer, not requiring the maintenance, upkeep, or administration of assets such as property, cars, and artwork, with pink diamonds it’s easy to store a million-dollar asset in a safe in your home.
#4 – Pink Diamonds Are Beautiful and Enjoyable to Own
Unlike many traditional asset types, such as cryptocurrency and stocks, pink diamonds are tangible. You are able to hold, admire, display and even wear them.
This means, not only can they make a savvy investment, they are a stunning, luxurious, and rare possession for yourself and your family to enjoy, lasting multiple generations and creating an heirloom that holds the legacy of your family history.
Investing in pink diamonds can be a smart move – they appear to be recession-proof, are in high demand, are easy to keep and transfer, and can make an exquisite family heirloom.
Add to that, pink diamonds have the same currency convertibility worldwide, they do not require any registration, making them bankruptcy-proof and independent of government laws, and the benefits of investing in pink diamonds seem to be limitless.
What Makes Pink Diamonds So Special?
Pink diamonds get their color from a natural occurrence of boron within the diamond’s crystal structure. The level of boron present in the diamond determines its shade of pink.
The vast majority of natural pink diamonds come from the Argyle Mine in Western Australia. Argyle is the only mine in the world that produces significant quantities of pink diamonds, and it is scheduled to close in 2020. This means that the value of pink diamonds is likely to increase as they become increasingly rare.
Pink diamonds are a great investment for anyone looking to add value to their collection. The unique beauty of these stones is sure to draw attention from collectors and investors alike, making them a wise choice for those looking to make the most of their portfolio.
If you’re interested in learning more about pink diamonds or investing in this precious gemstone, contact us today. We would be happy to help you get started on building your collection today. What do you think? Will you consider investing in pink diamonds?