Much more than investment novelty.

Pink diamonds have long been synonymous with luxury and extravagance, as their rare and unique beauty has captured the attention of the world’s wealthiest individuals for centuries. From Hollywood celebrities to royal families, the allure of pink diamonds has been hard to resist.

But in recent years, pink diamonds have also emerged as a promising investment opportunity for those looking to diversify their portfolios and add some glamour to their investment strategies. While many investors may assume that alternative investments lack the same kind of reliability and performance as more traditional options like stocks and bonds, the truth is that pink diamonds have consistently outperformed the market over the past two decades.

In fact, according to research by the Fancy Colour Research Foundation, pink diamonds have seen an average annual price increase of 12.1% since 2005. This outpaces the ASX, which has seen an average annual return of just 9.8% over the same period. Pink diamonds have even outperformed other popular commodities like gold, which has seen an average annual return of just 3.3% over the past 20 years.

What’s more, pink diamonds have proven to be a relatively stable investment even in times of economic uncertainty. During the global financial crisis of 2008, pink diamonds held their value much better than many other types of investments. This is due in part to the rarity and exclusivity of pink diamonds, which makes them a highly sought-after commodity among collectors and investors alike.

Of course, investing in pink diamonds requires a certain level of expertise and knowledge, as it can be a complex and nuanced market. It’s important to work with a trusted and experienced diamond investment firm or broker who can guide you through the process and help you make informed decisions.

One key factor to keep in mind when investing in pink diamonds is the importance of grading and certification. The value of a pink diamond can vary greatly depending on its size, colour, clarity, and other factors, so it’s essential to have a reliable grading report from a reputable laboratory such as the Gemological Institute of America (GIA) or the International Gemological Institute (IGI).

Another important consideration is the rarity and availability of pink diamonds. While demand for these stones continues to rise, the supply of high-quality pink diamonds is extremely limited, and new discoveries are rare. This means that prices for pink diamonds are likely to remain strong and may even continue to increase over time.

Overall, pink diamonds offer a unique and exciting investment opportunity for those looking to add some glamour and sparkle to their portfolios. With their consistent performance and relative stability, pink diamonds can be a valuable addition to a well-diversified investment strategy.