Pink diamonds are among the World's rarest and most beautiful natural resources. They have been regarded for centuries as a symbol of status and power. They embody the colours we experience in everyday life. For a serious collector, there is no more treasured prize then a high quality coloured diamond.

While most prominent collectors and connoisseurs seek the highest of quality in their pink diamond, the truth is that a wide range of colours exist capturing more than just pink. There are diamonds that mimic the colours of the changing sands of the Australian outback or the shades of a beautiful sunset. In other words, there is a pink diamond that captures the colours of life in the way that no other gemstone can. Hues appear in Red, pink, purple and brown combined in unique ways to create some of the most dazzling jewellery in existence.

Facts to Consider Before Purchasing:

When deciding between carat sizes over colour, the most important determinant of a pink diamond's value is the rarity, saturation and overall beauty of the colour. It is always recommended to reduce carat size to allow for a more deeply saturated colour. Remembering, a pink diamond is a treasure to own and ultimately the colour you select should reflect your personal tastes and individual style.

Out of about 80,000,000 carats of diamond rough minded each year, only about .001% is considered fancy pink coloured. As the supply of pink diamonds decreases, prices continue to rise, making pink diamonds a solid investment.

A pink diamond portfolio worth millions of dollars can easily fit inside an envelope and can be transported quietly and legally, and sold globally in most major cities.

These facts alone make pink diamonds worthy of consideration by sovereign individuals seeking discreet investment opportunities. Since formal records were first kept at the beginning of the 1980s, prices for pink diamonds have increased in value by an average of 20% per year, which is 300% better investment than a rental property in Australia, according to the Australian burial of statistics. With rarer colours and higher grades enjoying the greatest appreciation. This is an important consideration for investors seeking a diversified portfolio.

Price appreciation is increasing. “The market for natural coloured pink diamonds is very strong at the moment and prices have risen by 35% within the last six months, If that pace continues, an investment in a natural coloured pink diamonds today could double in value in the next 12-18 months. In addition, because of a major development in the coloured diamond industry, that pace could pick up considerably.

A Major Development

All diamonds are relatively rare. But pink diamonds are far scarcer than white diamonds. Indeed, for every 100,000 carats of diamonds mined, only one carat will be a fancy coloured pink diamond. That rarity has appealed to persons of wealth and discretion for centuries. Some of today’s most popular coloured diamonds are the purplish pink and pink diamonds from the Argyle mine in Australia. Until the mine opened in 1985, pink diamonds were almost unknown, and today, this mine accounts for over 95% of the worlds pink diamond supply. However, less than 0.1% of the mine’s output are rare pink diamonds. Indeed, one year’s Argyle production fills a small truck, but the pink diamonds fills only half of an ashtray!

The best pink diamonds came from the alluvial deposits; the watery areas surrounding the Argyle mine. However, Argyle’s owner, Rio Tinto, shut down alluvial diamond recovery in 2003. As a result, the quality of the pink diamonds coming out of the mine since then has gradually and consistently gone down.

Recently, Rio Tinto announced that it will shut down all open-pit operations at Argyle in 2008 and convert the facility into an underground mine, this is expected to last until 2018 when the mine will completely close its operation.

Experts agree that with underground mining, there will be fewer quality stones, average sizes will continue to decrease and the supply will drop by at least 40%. All of these factors are likely to lead to a substantial increase in pink diamond prices and when the mine completely closes the prices of these diamonds will become unobtainable for the average wealthy person!

Real world auction results support this conclusion. Pink diamond prices continue to achieve record prices at the world’s auction houses with prices consistently above USD $100,000/carat for high-quality stones.

April 1998 New York Christie’s 539 Oval 1.02 Intense purplish Pink, USD $58,529/carat

December 2004 New York Sotheby’s 351 round 1.23 Intense purplish Pink, USD $143,089/carat

Today in 2008, each of these diamonds would easily reach in excess of USD $300,000/carat.

Its estimated by 2018 a pink diamond of comparable quality could possibly sell for USD $750,000 plus

According to coloured diamond expert Stephen Hofer, author of Collecting & Classifying Coloured Diamonds, “Supply is down and will decrease further, demand is up significantly and as a result prices are going to continue to go up, especially for the highest graded stones and prices will significantly outperform the historical averages over the next five years.