Over the past 30 years, Natural Fancy Colour Diamonds (NFCDs) and pink diamonds, in particular, have outperformed virtually every other listed index and commodity. Whether the Argyle diamond closed or not, if production were to continue at current levels, demand would still exceed supply by a considerable margin.
Auction results confirm the strength of coloured diamonds both historically and in the current market, with many breaking auction house records for the highest prices per carat ever paid at auction for any diamond or gemstone.
The above table shows returns over the past 10 years offered by pink diamonds priced in Australian dollars, outperforming those achieved by every other asset class represented.
Returning more than 10% per annum for the past decade, they have more than doubled their return on cash (% return for 10 years ending 2014 – 4.8%) and outperformed returns on retail superannuation investments (% return for 10 years ending 2014 – 6.2%).
To further bolster investor confidence, over the past 30 years, there have been no recorded dips in the average wholesale price per carat of investment quality precious stones. Prices have only ever been recorded as moving in an upward trend, with some doubling in just 4 or 5 years.