With the expolsion of interested from investors to buy up the last of the Argyle diamond mine pink diamonds a word of warning needs to be followed as to the quality of diamond that you purchase.
With the dwindling number of pink diamonds in the market place and the seemingly growing number of diamond merchants and jewellers selling pink diamonds. The quality of pink diamonds being sold for investment by some sellers means that a less educated buyer can often be coerced into buying a jewellery grade pink diamond leaving them with an Argyle pink diamond that is not really of an invest grade that will most likely be impossible to sell or will not see the growth that the buyer was expecting.
It is also important to note that there are also a number of pink diamonds being sold as Argyle diamond that are either not Argyle certified or registered which are in much lower demand especially in Australia and do not hold the premium price of an Argyle diamond. If there seller cannot provide proof of Argyle origin then even if the pink diamond is an Argyle it cannot be sold as an Argyle branded diamond and is considered less valuable.
There are number of investment businesses that are advertising that they can supply investment grade Argyle pink diamonds direst from a gemologist but many of these investment business are not part of the jewellery industry or even have any association with the Argyle diamond mine. Simply advertising the sale of pink diamonds does not always mean the seller has the connections, authority or skill to provide true investment grade Argyle pink diamonds to an investor which is why due diligence is always recommended with any purchase.
Each investor will have their own specifications to what quality pink diamond is going to suit their needs but there are a few very simple rules to follow when making sure the pink diamond that you are looking to purchase will be suitable for investment and be a saleable asset.
Size – For single stones only buy a diamond that is certified by Argyle 0.15ct or greater and a GIA certification is a bonus but not essential.
Argyle now fully certifies quality diamonds to as low as 0.08ct each but an individual diamond can be quite difficult to sell so diamonds under 0.15ct are better purchased as a pair or set to give greater sale potential.
Colour – For first time buyers ONLY buy either a P (pink) or PP (purple pink) colour grade diamond as any PR (pink rose) PC (pink champagne) or BP (brown pink) diamonds can be much more difficult to sell and much harder to assess the correct price as they can be as low as 70 % less than the price of a genuine pink diamond.
Clarity – The clarity of pink diamonds of traditionally very low and in smaller or more common diamonds a VS or SI diamonds is much more sought after but at the top end colour and size diamonds a P1 clarity often becomes necessary and is more acceptable but avoiding a P2-3 clarity diamond is recommended in most circumstances.
Probably the most important question to ask to seller of the pink diamond that you are going to buy is if they have a buy back policy and if they are willing to buy back the diamond they are selling and at what time you will see profitability from the diamond. Many jewellers will not have these answers and will also sell the diamond at the full retail price which will reduce your profitability as the resale of a pink diamond will always be at the wholesale price.