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Canada Business News and Press Releases
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(EMAILWIRE.COM, January 28, 2011 ) Toronto, Canada - Mercantile Diamond Group Inc. has released their Report #18 on Pink diamonds. The rarest and most sought after of all colored diamonds.
Volume 1, No. 18
PINK DIAMONDS
Pink Diamonds are found only in a few countries of the world, South Africa, Brazil and Australia. They are the rarest and most sought after of all colored diamonds. Exactly what gives a pink diamond its color is largely unknown and the subject of ongoing debate. It is thought that pink diamonds obtain their color as a result of extreme pressure exerted beneath the EarthÂ’s EarthÂ’s surface. As this pressure raises a diamond closer to the surface, it is believed that its structure becomes altered or plasticized, causing fine lines or banding inside the diamond. The closer these lines are together, the stronger the pink color.
Although countries such as South Africa and Brazil have produced large pinks (some as large as 75 carats) the great majority are under 1 carat. Colored Diamonds are usually pastel colored (referred to in the trade as Bubblegum). In fact it was most unusual to find a deeply colored Pink, until the discovery of the Argyle mine in Australia in 1979. This new find of Argyle Super Pinks were smaller in overall size (1 carat+ is rare) but the color was unlike anything anyone had ever seen. Ranging from Intense to Deep and Vivid as well as Red, these stones immediately commanded the attention of the industry and began to establish record prices at auction.
ARGYLE PINK DIAMONDS
Argyle pink diamonds are rare; in fact they are beyond rare and about 20 times the price of equivalent white diamonds. With only an estimated decade of supply remaining in the mine, Argyle pink diamonds become more expensive with each passing year.
The Argyle mine supplies approximately ninety percent of the worlds pink diamonds. Astonishingly, a whole yearÂ’s worth of production of stones over half a carat would fit in the palm of your hand.
They are highly sought after by investors, jewelers and their customers, celebrities, and diamond aficionados.
They are prized by all who possess them and revered for their unique provenance, intrinsic beauty and extreme rarity.
The Argyle Pink Diamond business has its headquarters in Perth, Western Australia, also the location of its state of the art cutting factory. The Perth factory cuts and polishes the finest pink diamonds from the Argyle mine that are then sold each year via an exclusive tender.
ARGYLE PINK DIAMOND TENDER
Beginning in 1984, the more exceptional polished pink diamonds from each year’s production have been sold individually at special auctions known as ‘tenders’. Viewings have traditionally been held in New York, Tokyo, Perth, Antwerp, Hong Kong, London and Geneva. Participation in these events is by invitation only to the world’s leading diamantaires and diamond jewelers.
The tendered pink diamonds have an average size of a bit less than 1 carat. Around 40 to 50 carats in total are sold at these auctions each year. Prices achieved range from US $100,000/per carat to over US $1,000,000/per carat.
To put the true rarity of these special ‘pink’ diamonds into perspective, of every million carats of rough diamonds produced at the mine, a mere one carat is suitable for sale in one of these tenders. Since 1985, more than 750 stones have been offered for sale at the tender at a total weight of almost 600 carats.
Rio TintoÂ’s 2009 Argyle Pink Diamond Tender (Grand Passions), celebrated the 25th anniversary of its iconic offering of rare pink diamonds with its first ever viewing in India.
This latest exceptional collection comprised 43 of the rarest diamonds in the world and was showcased in Mumbai to a select group of Indian diamantaires, collectors and high net worth individuals.
Commenting on the inaugural Mumbai viewings, Jean-Marc Lieberherr, General Manager of Sales and Marketing for all diamonds from Rio Tinto’s mines states, “Presenting the Argyle Pink Diamond Tender in Mumbai is a reflection of the emerging importance of India as a source of demand for colored diamonds.
According to Josephine Archer, Business manager for Argyle Pink Diamonds, “These diamonds are for those that appreciate the truly exceptional and with only 10 years production remaining at the Argyle Diamond Mine, rare pink diamonds will continue to be keenly contested by investors, collectors and diamond experts from around the world.”
PINK DIAMOND MODIFIERS
Gemstone literature usually indicates that pure pink diamonds are the rarest and most desired, followed by purple pink, orange pink and brown pink. A modifying color that is controversial is reddish pink. Since pink is actually a lighter shade of red, the GIA considers the term redundant and does not put this color on their grading reports. However, Stephen Hofer, author of “Collecting and Classifying Colored Diamonds” disagrees and uses this term when applicable. He says, “You sometimes see elongated marquise shapes with red secondaries. I call them reddish pink.” According to Hofer, if you took away the GIA grading reports and had people tell you which color they believed was the best, the vast majority would choose purple pink. Hofer postulates: “Purple pinks are the most appealing because their tones are darker, giving a more saturated color and the purple gives the stone more character. Furthermore, most people think they want pure pinks, but maybe only 1 percent to 2 percent of all the pure pinks are actually Bazooka bubble-gum pink. Most fall short of the ideal.”
What about orange pinks? Hofer says, “Connoisseurs search for years for these stones because they know how rare these stones really are and that they are desirable.”
Many initially consider brown-pink as less desirable than others but “chianti” colored diamonds can be among the most beautiful of all stones! According to Hofer, “brown pinks are actually rare…especially brownish purple.” And they are still relatively affordable.
They can be beautiful, like cedar wood and many collectors search for these stones to round out a collection.” What is the bottom line? According to Hofer, “You are better off using the GIA grading report as a starting point. Then you need to use your own ‘beauty indicator’ to make a final decision.” One thing is certain though. The number of Pink diamonds of any hue or color are becoming increasingly rare and are increasing in value with each passing year.
December 2009 RARE “VIVID PINK” DIAMOND BREAKS SALE RECORD
Hong Kong (Reuters Life)
A rare, 5-carat vivid pink diamond sold in Hong Kong in December at ChristieÂ’s, for a new world record price, thanks in part to the buying prowess of top Asian jewelry collectors.
The stone, set in a so-called “cushion cut” ring by famed jewelers Graff Diamonds, brought $10,830,719 USD or over 2 million per carat, more than any other diamond has ever received per carat!
At just a quarter the size of the former record-holding pink gem and not quite flawless, the stone’s “vivid pink” is considered near perfect and the auction house had touted it as one of the best colored stones to appear in recent years.
“There are pink diamonds and then there are pink diamonds,” said Francois Curiel, the international head of Christie’s jewelry department. “It is extremely rare for a stone of such top quality to appear on the market with top notes in color, cut, clarity and carat weight. This 5-carat vivid pink gem combined the best of all criteria,” Curiel added.
While the South African-mined diamond isnÂ’t quite rated flawless given minor blemishes, ChristieÂ’s said that could be removed by a minor re-polishing.
ChristieÂ’s has a track record of putting rare polished stones up for sale in Asia, given its confidence in the depth of the Asian market for the worldÂ’s top gemstones and artwork.
“Asian collectors rank among our most important group of buyers…Hong Kong is firmly alongside New York and Geneva as a top center for the best jewels,” said Kate Malin, a spokeswoman for Christie’s in Asia.
Excerpt From “INVESTING IN DIAMONDS”
msn Money September 2009
Your investment in color can pay off handsomely. Pink diamonds, for example, are running out. Rio Tinto recently committed $1 billion to expanding the Argyle mine, shifting to more expensive underground mining, but even this has only extended its life until around 2018. After that, the supply of Argyle pinks will cease. Given that pinks already enjoy a high appreciation rate of around 20 percent a year, it has to be assumed that the sky may well be the limit once the Argyle mine closes.
SUMMARY
For the collector and those interested in wealth accumulation, pink diamonds of less than 1 carat in any color combination represent outstanding potential for asset growth. The key to pink diamonds of ½ carat and greater remains extreme rarity coupled with affordability. Although almost as rare in nature as a 1 carat pink, a ½ carat pink acquisition can be made for considerably less per carat. Appreciation has been consistent for both sizes.
MERCANTILE DIAMOND GROUP INC.
North American Office: Skyway Business Park, 170 Attwell Dr., Suite 650, Toronto M9W 5Z5 Tel. 416-679-1550 Fax 416-679-1552
Mercantile Diamond Group Inc.
David Metcalfe
416-679-1550
info@mercantilediamondgroup.com 
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