India’s rich tussle for Argyle pink diamond because mines are not forever

India’s super rich are rushing to grab an Argyle pink diamond before the primary source of rarest pink diamonds in the world for the last four decades, Rio Tinto’s Argyle mine in Australia closes down operations by the end of the year.

Diamond traders said demand for Argyle pink diamonds has shot up by three times among high net worth Indians compared to last year.

“Argyle pink diamond is a true love for diamond connoisseurs across the globe,” said Darshit Hirani, owner of Mumbai-based P Hirani that only deals with coloured diamonds. “In India, there are business families and high net worth individuals from places like Mumbai, Bengaluru and Hyderabad who are aware of the rarity of Argyle pink diamond and they are keen to own one. It is a collector’s item.

Investment-wise it has a lot of value too. Every year, the price of Argyle pink diamond has witnessed a double-digit growth. And once the availability dries up, prices will shoot up further,” he said.

The price of Argyle pink diamond starts at $15,000 a carat and can go up to $1 million depending upon the size and clarity.

Fugitive Indian diamond merchant Nirav Modi was one of the major buyers of Argyle pink diamonds that he had used in his jewellery brand.

For almost 40 years now, the Argyle diamond mine in Kimberley, Western Australia has been producing about 90% of the world’s most coveted pink diamonds.

The mine holds an invitation-only annual Argyle Pink Diamond Tender in which it showcases its best pink, red, and even blue stones from the preceding year.

Its closure is anticipated to disrupt the global diamond market, and the value of coloured diamonds will likely skyrocket as supply falls, traders said.

“Consumers are mostly well aware that this is a good product to purchase. Diamonds continue to enjoy their admiration as an investment,” said Milan Chokshi, who owns Moksh

Jewellery, a diamond jewellery brand that provides its customers information about the dwindling supply pipeline to repose their faith in diamonds. “When mounted in well designed and manufactured jewellery, it not only has investment value, but also artistic and emotional value,” he said.

Not only the Argyle diamonds, natural diamonds will get rarer as days go by as no new mines are coming up, traders said.

Source: economictimes