Diamonds – those most precious, twinkling gemstones found hidden amongst the earth’s surface – have captivated every society on the planet for centuries.

Renowned for their stunning clarity and brilliance, the more ‘traditional’ diamonds like white or colourless cuts have long been a favourite for engagement rings and fine jewellery. Their pink-hued counterparts, however, are imbued with an enchanting blush tone and rapidly steal the spotlight for loving gifts, investment portfolios, and priceless collections.

In this article, our specialists at Pink Kimberley Diamonds explore the differences between pink and traditional diamonds, shedding light on their unique characteristics, origins, and how these factors influence their value.

The origins of these stunning pink marvels are remarkably focused, primarily traced back to one pivotal location — the Argyle mine in Western Australia.

The Argyle mine, nestled in the remote East Kimberly region, was once a thriving source of these exquisite gems. It was here that the first significant discovery of pink diamonds took place in the 1980s, revealing a treasure trove of these beautiful stones to the world. In fact, the mine produced over 90% of the global supply, earning it an undisputed reputation as the world's most significant source of pink diamonds.

As you immerse yourself in the unique aura of these gems, it becomes clear that their origin is more than just a geographical point. It's a compelling narrative of rare geological circumstances that took over a billion years to create these wonders. The conditions under which pink diamonds formed are incredibly specific, contributing to their rarity.

The tale takes a dramatic turn with the closure of the Argyle mine in 2020. This event has intensified the allure of pink diamonds as their primary source is no longer operational. The future supply of these blush-toned gems is shrouded in uncertainty, adding a new level of intrigue to their story.

Diamonds are formed deep within the Earth's mantle under high pressure and temperature. Traditional diamonds, often referred to as white diamonds, owe their clear appearance to the absence of impurities in their carbon structure. These sparklers, admired for their classic, versatile aesthetics, have become a symbol of love and commitment.

Most coloured diamonds take on their unique hues after trace elements like sulphur or nitrogen mingle with carbon atoms during the formation process.

This isn’t the case with pink diamonds. Impurities don't cause their captivating colour, but rather a phenomenon that disrupts the diamond's crystal lattice, selectively absorbing light to project a delightful pink shine. Unlike their traditional siblings, over 90% of pink diamonds have been sourced from one location – the Argyle mine in Western Australia, placing them squarely within our Australian heritage.

While the Argyle mine was still in operation, less than 1% of its annual 15 – 20 million carat yield was deemed ‘pink’. Despite a limited number in circulation, the striking palette of these diamonds, ranging from gentle blush to deep rose and vibrant red, is adored by investors, collectors, and lovers across the world. They are considered unique treasures of Australia, with quality far exceeding pink diamonds sourced from other sites across Brazil, India, Borneo, and South Africa. This uniqueness, as well as the closure of the Argyle Mine, have sparked a frenzy in the international diamond market, fuelling demand and escalating the pink diamond value.

Pink diamonds have always been an exclusive segment, attracting buyers seeking unique pieces, and they continue to gain popularity as the most expensive certified jewel. Their increasing scarcity and rising value make them appealing for portfolio diversification in a way that traditional diamonds just cannot replicate. In fact, the pink diamond cost regularly sits at multiple times that of comparative traditional diamonds.

As demand continues to outpace supply, Australian pink diamonds stand firm as a testament to natural rarity and extraordinary value.

In the radiant world of diamonds, pricing is a critical factor that guides buyers' choices. The established benchmark for traditional diamond pricing is the universally recognised 4Cs model:

·      Cut

·      Clarity

·      Carat

·      Colour

A diamond's cut affects its brilliance, while clarity measures the number of flaws or inclusions. Carat refers to the weight, and hence, size of the diamond, and colour grades the presence or absence of any hue that could affect the stone's overall brilliance.

In the case of traditional diamonds, the absence of colour is most desirable. The more a diamond approaches a pure, clear state, the more valuable it becomes, pushing up the cost of completely colourless stones. Based on these characteristics, prices can range from a few hundred to tens of thousands per carat.

Pink diamonds don't play by the same rules. Colour is not a detractor but a valuable asset for these blush-hued beauties. Instead of being valued lower due to their colour, pink diamonds see a dramatic hike in their value because of it. And not just any shade of pink; the deeper and more intense the pink, the more valuable on the pink diamond price chart. These stones are also graded based on their hue, tone, and saturation of the colour pink.

Finally, the rarity of pink diamonds will impact their cost. With far less available supply, the value on the pink diamond price chart continues to increase year-on-year, with some Argyle pink diamonds fetching upwards of $1,000,000 for under a carat.