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Pink diamonds sparkle for super-rich

Wednesday, May 10, 2017 - 01:42

Not only are rare coloured diamonds fetching record prices at auction, analysts say demand for pink stones in particular is soaring across the board. Sara Hemrajani reports on the growth of this increasingly popular alternative investment.

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You're looking at the world's most expensive diamond. This vivid pink stone, called the 'Pink Star', fetched a record $71.2 million at auction in April. It was hailed as a one of a kind, but other rare coloured diamonds are attracting interest as well. Those in the industry say they're soaring in value. SOUNDBITE: Tobias Kormind, Managing Director, 77 Diamonds, saying (English): "They are priced so high because they are so rare, we find so few of them per year. So we don't know what's coming next. You know, we may get surprised but the likelihood of finding any kind of significant quantity anywhere is so remote." Diamonds can come in a variety of shades, including yellow and blue. But it's the softer, romantic colour that seems to have caught investors' attention the most. SOUNDBITE: Tobias Kormind, Managing Director, 77 Diamonds, saying (English): "Pinks have returned about 300 percent over the last 10 years, while blues performed about 200 percent, and the reason for that is, I think, there's just greater demand. Even though there's a larger supply, there's greater demand for the pinks than they are for the blues." And with concerns that deposits at the main pink diamond mine in western Australia are running low, prices could rise higher still. According to the Fancy Color Research Foundation, vivid pinks have shown an average annual increase of more than 14 percent since 2005. That's making them a popular alternative investment - and a sought after fashion accessory for the super-rich.

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Pink diamonds sparkle for super-rich

Wednesday, May 10, 2017 - 01:42