Of the 20 million carats of rough diamonds that are produced annually, less than 0.1% are pink. Argyle pink diamonds are rare; in fact they are beyond rare. With just an estimated decade of supply remaining in the mine, as time passes the Argyle pink diamond becomes evermore precious.
LIMITED SUPPLIES
Although the Argyle mine supplies approximately 90% of the world's pink diamonds, astonishingly, a whole year's worth of production of stones over half a carat would fit in the palm of your hand. The larger rare violet diamonds would barely fill a teaspoon. Hence, they are highly sought after by investors, collectors, jewelers and their customers, and celebrities. They are prized by all who possess them and revered for their unique provenance, intrinsic beauty and extreme rarity.
Some Argyle pink diamonds never even make it into a jewelry setting - rather, theyare purchased by collectors and held as an heirloom for future generations.
LIMITED PRODUCTION
On the supply side there are structural constraints that will limit the production of rare pink diamonds and contribute to a widening demand overhang:
A steadily declining mineral reserve base, compounded by limited exploration success and relatively high barriers to entry.
The chances of any future mine discovery replicating the unique properties of the Argyle Diamonds Mine, is extremely low.
Currently there are no other pink diamond mines or deposits, and even if another deposit of pink diamond-bearing ore is discovered, it takes on average 10 years for a mine to proceed from discovery to production.
Inventories of diamonds are at historically low levels with significant stockpiles reduced to working capital levels over the past decade.
On the supply side there are structural constraints that will limit the production of rare pink diamonds and contribute to a widening demand overhang:
A steadily declining mineral reserve base, compounded by limited exploration success and relatively high barriers to entry.
The chances of any future mine discovery replicating the unique properties of the Argyle Diamonds Mine, is extremely low.
Currently there are no other pink diamond mines or deposits, and even if another deposit of pink diamond-bearing ore is discovered, it takes on average 10 years for a mine to proceed from discovery to production.
Inventories of diamonds are at historically low levels with significant stockpiles reduced to working capital levels over the past decade.