The primary investment appeal of pink-coloured diamonds is their potential for capital gains. Over the past decade pink diamonds have averaged 13.8% growth per annum and crucially, because of their low correlation with movements in traditional financial markets, were not affected by the global financial crisis.
This is an important consideration for investors seeking a diversified portfolio as cross-asset correlations have more than doubled over the past 10 years.
In addition, 95% of the world’s annual natural pink diamond supply is mined from one single source – Rio Tinto’s Argyle Mine in Western Australia. This mine is scheduled to completely cease all mining operations by 2021. This drastic supply shortage, combined with rapidly increasing market demand, has positioned pink diamonds to take their place as one of the best opportunities for medium-to-long-term capital gains.
Disclaimer: Future Vaults Holdings Ltd, its officers, agents, representatives and employees do not hold an Australian Financial Services Licence (AFSL). If you require advice about a financial product, you should contact a properly licensed or authorised financial advisor. Future Vaults has partnered with Australian Diamond Portfolio to provide a seamless process of investing in pink diamonds. Future Vaults receives a referral fee with any initial diamond investment. Future Vaults will not be liable for any agreement a client enters into with Australian Diamond Portfolio.
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