Is it a good time to sell an Argyle Pink Diamond?

[pink diamond lover]

Hi Everyone. I have a beautiful Argyle pink diamond. I bought it as an investment many years ago because i knew the mine was going to be closing and the mine produced over 90% of pink diamonds.

Priced have gone crazy, as I expected they would. Would now be a good time to sell? Or, am i best to hang on. The mine has been closed now for almost a year and half. I understand that no one has a crystal ball to answer this question. However, I am hoping there are people on here who would have a better understanding of this than i do.

 

[Nosean]

Depends on how old you are…
Soorry…

I would wait - nice shape, size and very nice color. Clarity is typical Argyle (SI2). Fluorescence, internal graining, Argyle inscription - perfect stone. Enjoy it for a while.

Just my opinion.

 

[pink diamond lover]

thank you for your opinion Nosean. I think it is a very beautiful diamond. I am proud to own it lol. I was all set to sell it.....but now i am not so sure.

 

[Bron357]

My 5 cents.
impossible to say.
might another source be found?
might “tastes and spending choices” change ?
might Lab grown satisfy potential purchasers ?
Investment into gems is fraught with difficulty.
Non divisible (you can’t sell off a bit if you need cash), no income stream plus holding costs (insurance, safe custody fees).
As an alternate investment, should be capped to less than 10% of your total investment portfolio.

 

[pink diamond lover]

Thanks for your opinion Bron357. If another source is found, i have heard it would take about 10 years to get it up and producing. I don't think lab grown diamonds would satisfy potential purchasers. When most people have a lot of money to spend, i think they want natural and have no problem paying for it. If i sold now, i would have made this a very sound investment and I would make more of a profit than i would have if i left it where it was that is for sure.

 

[lilmosun]

My two little pinks aren't as nice/rare as yours but like you, I've gone back and forth between set, sell and hold.

A friend in the industry took them to her diamond dealer and his suggestion was to hold as he felt they would go up in price. So I am doing that for now but may decide to set at some point. BUT I didn't buy these as an investment and whether they go up or down, it's irrelevant to any of my life's plans...they are just fun to have.

As you mentioned, 90% of pink diamonds come from the Argyle mine yet only a small percentage of them are certified as Argyle and those currently demand a huge premium. Will the branding continue to demand as high a premium as marketing goes down? Will the prices for all pink diamonds go up now that the source for 90% of the worlds pink diamonds is closed? And even if it takes 10 years to get a mine going, once announced it would likely have an immediate impact. Keep in mind the Argyle mine closed not because it is out of pink diamonds but because the mining became cost prohibitive. In short, there are a lot of unknowns and holding is not without risk no matter what anyone says.

What is your risk tolerance? What would the impact be if they suddenly dropped in value? The current market price has already factored in the closing of the mines. I saw a Leibish pink diamond link on PS in 2020 for $12,000 and it's still available but at over 3x the price.

If you are looking for some assurance that pink diamonds will outperform other investments and/or be a lower risk investment, I don't think anyone here can give you that. Personally, I would be terrified to have all my savings in one little stone.

Like a high flying stock that you got in early on, it's often hard to predict when to buy and when to sell. Good luck with your decision

 

[Autumn in New England]

I feel like it's always a good time to sell pink diamonds (and never a good time to buy)!

 

[pink diamond lover]

My two little pinks aren't as nice/rare as yours but like you, I've gone back and forth between set, sell and hold.

A friend in the industry took them to her diamond dealer and his suggestion was to hold as he felt they would go up in price. So I am doing that for now but may decide to set at some point. BUT I didn't buy these as an investment and whether they go up or down, it's irrelevant to any of my life's plans...they are just fun to have.

As you mentioned, 90% of pink diamonds come from the Argyle mine yet only a small percentage of them are certified as Argyle and those currently demand a huge premium. Will the branding continue to demand as high a premium as marketing goes down? Will the prices for all pink diamonds go up now that the source for 90% of the worlds pink diamonds is closed? And even if it takes 10 years to get a mine going, once announced it would likely have an immediate impact. Keep in mind the Argyle mine closed not because it is out of pink diamonds but because the mining became cost prohibitive. In short, there are a lot of unknowns and holding is not without risk no matter what anyone says.

What is your risk tolerance? What would the impact be if they suddenly dropped in value? The current market price has already factored in the closing of the mines. I saw a Leibish pink diamond link on PS in 2020 for $12,000 and it's still available but at over 3x the price.

If you are looking for some assurance that pink diamonds will outperform other investments and/or be a lower risk investment, I don't think anyone here can give you that. Personally, I would be terrified to have all my savings in one little stone.

Like a high flying stock that you got in early on, it's often hard to predict when to buy and when to sell. Good luck with your decision

I heard that the mine closed because it had exhausted it's supply. I wasn't looking for assurance that pink diamonds will outperform other investments.....If i sold today it would have FAR exceeded most other investments in the market. I do agree that having all your money in one thing is very stressful.

What i was looking for was advice from maybe diamond specialists who have a good understanding of the market and let me know their opinion. I have a buyer and the sale is about to be finalized and i was just having some second thoughts about whether or not this was a good decision to sell right now.

 

[Nosean]

In my opinion the best to sell your diamond is if you find a vendor and sell it on a commission basis.

Takes a bit time but you know what you will get and want, the vendor needs no money to buy it and gets his share if sold.

But if you find somebody who buys it and you are happy with the deal everything is fine.

 

[pink diamond lover]

In my opinion the best to sell your diamond is if you find a vendor and sell it on a commission basis.

Takes a bit time but you know what you will get and want, the vendor needs no money to buy it and gets his share if sold.

But if you find somebody who buys it and you are happy with the deal everything is fine.

I have someone who will put it in a public blind auction. They did the first public blind auction (copying Argyle's private blind auction) and it was a huge success. I think that is the way i will go unless someone has an opinion and shows me it would be a good idea to hold on a few more years .

 

[CaseyLouLou]

I have someone who will put it in a public blind auction. They did the first public blind auction (copying Argyle's private blind auction) and it was a huge success. I think that is the way i will go unless someone has an opinion and shows me it would be a good idea to hold on a few more years .

Will the minimum bid price be high enough that you will be satisfied if the bidding doesn’t go as expected? Doesn’t end up at the predicted price? This sounds risky.

 

[LilAlex]

Wasn't this topic discussed in detail on your other recent thread?

In a word: yes. Maybe hurry; if the stock market continues in this direction, even the rich will start to sour on frivolous purchases. The booming stock market plus pandemic stay-at-home-ism made gem prices soar in the first place. Plus, inflation will start to cool down soon so there will be less pressure from the gem-equivalent of the gold bugs (the "hard asset" crowd).

If I had one, would I sell it now? No, but solely because it would be a colossal pain in the neck and I do not immediately need the cash. Consequently, I would probably leave it rattling around in the safe deposit box until I am too addled to remember it.

All this is just my opinion which is about about as valuable as asking me if royal is prettier than cornflower...

 

[AllAboardTheBlingTrain]

I heard that the mine closed because it had exhausted it's supply. I wasn't looking for assurance that pink diamonds will outperform other investments.....If i sold today it would have FAR exceeded most other investments in the market. I do agree that having all your money in one thing is very stressful.

What i was looking for was advice from maybe diamond specialists who have a good understanding of the market and let me know their opinion. I have a buyer and the sale is about to be finalized and i was just having some second thoughts about whether or not this was a good decision to sell right now.

I am not a diamond expert. I do think however, that you have a buyer, and you’ve ridden the appreciation high enough that you can afford to take this money and diversify into safer investments.

this is assuming you have a buyer who is going to do a final sale on a fixed price.

If you’re planning to sell by auction, only do so if the reserve/min bid price less hammer fees is something you’re happy to walk away with. There’s no guarantee you’ll receive anything higher than that, and you will still be on the hook for fees which will cut into the min bid.

 

[Karl_K]

I heard that the mine closed because it had exhausted it's supply.

The easy supply, it was time to go underground and they decided not to make the investment.
A diamond pipe is shaped like a funnel.
The top part is wide and you can take it off by pit mining but once you get down to the narrow part you have to start going underground.
There have been many cases of stopping at that point.
There are likely a lot of diamonds there but they are expensive to get them out.
The average price per ct for Argyle rough was low overall. Browns gained a little popularity which helped some but not enough.

 

[fredflintstone]

Hi Everyone. I have a beautiful Argyle pink diamond. I bought it as an investment many years ago because i knew the mine was going to be closing and the mine produced over 90% of pink diamonds.

Priced have gone crazy, as I expected they would. Would now be a good time to sell? Or, am i best to hang on. The mine has been closed now for almost a year and half. I understand that no one has a crystal ball to answer this question. However, I am hoping there are people on here who would have a better understanding of this than i do.

All depends on if you bought it full retail or not. You won't make a profit selling back into the industry.

If you can find a private buyer, maybe??? That can take a while.

I really don't keep up with the prices of Diamonds, colored or not, but unless you truly have a remarkable stone (intense to vivid) with a little size to it, there are plenty of pinks on the market,

 

[fredflintstone]

I have someone who will put it in a public blind auction. They did the first public blind auction (copying Argyle's private blind auction) and it was a huge success. I think that is the way i will go unless someone has an opinion and shows me it would be a good idea to hold on a few more years .

Don't do that.

 

[pink diamond lover]

Will the minimum bid price be high enough that you will be satisfied if the bidding doesn’t go as expected? Doesn’t end up at the predicted price? This sounds risky.

The minimum bid price is high enough that i will be satisfied if it doesn't go as expected.

 

[pink diamond lover]

Wasn't this topic discussed in detail on your other recent thread?

In a word: yes. Maybe hurry; if the stock market continues in this direction, even the rich will start to sour on frivolous purchases. The booming stock market plus pandemic stay-at-home-ism made gem prices soar in the first place. Plus, inflation will start to cool down soon so there will be less pressure from the gem-equivalent of the gold bugs (the "hard asset" crowd).

If I had one, would I sell it now? No, but solely because it would be a colossal pain in the neck and I do not immediately need the cash. Consequently, I would probably leave it rattling around in the safe deposit box until I am too addled to remember it.

All this is just my opinion which is about about as valuable as asking me if royal is prettier than cornflower...

lol LilAlex. Thank you for your opinion!

 

[pink diamond lover]

All depends on if you bought it full retail or not. You won't make a profit selling back into the industry.

If you can find a private buyer, maybe??? That can take a while.

I really don't keep up with the prices of Diamonds, colored or not, but unless you truly have a remarkable stone (intense to vivid) with a little size to it, there are plenty of pinks on the market,

The prices have gone up enough that i will make a good profit if it even sells for the minimum price. I love that there is the possibility that it would sell for more than the minimum and the commission they are asking is reasonable. My stone is intense and i feel it is a beautiful stone.

 

[pink diamond lover]

Don't do that.

Can you give me a good reason why i shouldn't do this? I am not very knowledgeable when it comes to this stuff. That is why i am asking on here .

 

[pink diamond lover]

The easy supply, it was time to go underground and they decided not to make the investment.
A diamond pipe is shaped like a funnel.
The top part is wide and you can take it off by pit mining but once you get down to the narrow part you have to start going underground.
There have been many cases of stopping at that point.
There are likely a lot of diamonds there but they are expensive to get them out.
The average price per ct for Argyle rough was low overall. Browns gained a little popularity which helped some but not enough.

I didn't know this. Thanks so much for the information!

 

[pink diamond lover]

I am not a diamond expert. I do think however, that you have a buyer, and you’ve ridden the appreciation high enough that you can afford to take this money and diversify into safer investments.

this is assuming you have a buyer who is going to do a final sale on a fixed price.

If you’re planning to sell by auction, only do so if the reserve/min bid price less hammer fees is something you’re happy to walk away with. There’s no guarantee you’ll receive anything higher than that, and you will still be on the hook for fees which will cut into the min bid.

I have taken into consideration all the costs and minimum bid and will come out of it with a decent profit. Much more than where my money was before that is for sure. A few years ago, I put this stone out there and was deeply disappointed with what i could get for it. This makes me want to jump at this opportunity.

Many things are starting to happen in the market now that the mine is closed, that makes these diamonds much for accessible to the public and investors. This is a very good thing for private sellers like me. I just can't help but wonder if i am selling too soon. Selling by public auction, with a minimum bid, where i will still achieve a good profit, with the possibility that i could even make more, makes sense to me. I took a big chance when i made this purchase. It made sense to me at the time. I could put my money into something that i could wear with pride while i was waiting for prices to go up. But, as the prices began to skyrocket, I became afraid to wear it for fear of losing it. So now, it just sits in a safety deposit box.

The old age question with investments.....sell now or wait lol

 

[Garry H (Cut Nut)]

I didn't know this. Thanks so much for the information!

Correction Karl,
They did go underground about 12 years ago.
They mined upwards for about a decade and drilled further down to estimate the resource further down and decided it was not economic / too dangerous.

As to the likelyhood of any new diamond mine, let alone one with pinks, is zero zip!
All new diamond mines are likely to fail now that we have LGD's. More than half the value of what comes out of a mine gets sold in shopping mall's and on TV etc. The new promo goods are LGD's.

There are two companies in Australia selling at auction or auction like formats on behalf of pink diamond owners.
But what took me by surprise is that fact that the steepest price rises have happened in the very small sizes. The fact is that no other mines in the world ever had pinks that were strongly saturated in small sizes. I discussed this yesterday with John Chapman in my store - the Argyle scientist who worked on all sorts of stuff at Argyle since 1987. He agrees that there are no other sources of diamonds under around half a carat that have the color intensity and beauty of Argyle pinks.

The thing is that diamonds from half a carat down, apart from the occasional find in Brazil, have never matched Argyle pinks in small sizes. We jewelers are hooked on reverse clusters using 0.005ct to 0.10ct pinks in suites. They will be unobtainable apart from recycled stones.
A clever guy, John Gletz, from Singapore/Sydney saw the writing on the wall and had been buying parcels of melee from Argyle for decades and has put together collections of pairs to a dozen matching in various colors, sealed and graded in IGI credit card packs. We have been selling them like hot potatoes. Half probably as investments, for grandkids etc, and half to be turned into jewelry.

 

[Karl_K]

Correction Karl,
They did go underground about 12 years ago.
They mined upwards for about a decade and drilled further down to estimate the resource further down and decided it was not economic / too dangerous.

thanks Garry you rock.

 

[fredflintstone]

Can you give me a good reason why i shouldn't do this? I am not very knowledgeable when it comes to this stuff. That is why i am asking on here .

Because auctions are inhabited with people looking for a deal. In other words, the want something for a little to nothing. You’re rolling the dice hoping for that lucky #7 at auction. But there are 11 other numbers. Unless as I wrote you really have something that they are going to bid large amounts on, but the right combination of people must be there to bid for that. Sometimes auctions are a good pay off, most of the time they are disappointing.

I take it the pink Diamond you are speaking of is your avatar, right? How big is it? What are you expecting to get out of it if I may inquire? It does look like a nice pink, but you can find quite a few sub-carat stones out there like that at very high prices, so more incentive for the people looking for a deal to go to auction hoping for that deal. You may come out on top. You should have a reserve, but as someone else already mentioned, consignment with a high end jeweler is the way I would go. It will most likely take longer, but at least you know what you are willing to part with it for and if it does not get sold you still have it for later.

 

[Nosean]

Because auctions are inhabited with people looking for a deal. In other words, the want something for a little to nothing. You’re rolling the dice hoping for that lucky #7 at auction. But there are 11 other numbers. Unless as I wrote you really have something that they are going to bid large amounts on, but the right combination of people must be there to bid for that. Sometimes auctions are a good pay off, most of the time they are disappointing.

I take it the pink Diamond you are speaking of is your avatar, right? How big is it? What are you expecting to get out of it if I may inquire? It does look like a nice pink, but you can find quite a few sub-carat stones out there like that at very high prices, so more incentive for the people looking for a deal to go to auction hoping for that deal. You may come out on top. You should have a reserve, but as someone else already mentioned, consignment with a high end jeweler is the way I would go. It will most likely take longer, but at least you know what you are willing to part with it for and if it does not get sold you still have it for later.

There is an Australian platform for second market APD - the asked prices are very high and if a stone like the one from the OP is accepted there (sure it will be) there is no risk to loose money.

 

[Nosean]

But what took me by surprise is that fact that the steepest price rises have happened in the very small sizes. The fact is that no other mines in the world ever had pinks that were strongly saturated in small sizes. I discussed this yesterday with John Chapman in my store - the Argyle scientist who worked on all sorts of stuff at Argyle since 1987. He agrees that there are no other sources of diamonds under around half a carat that have the color intensity and beauty of Argyle pinks.

The thing is that diamonds from half a carat down, apart from the occasional find in Brazil, have never matched Argyle pinks in small sizes.

So true and in my opinion exactly the reason why it is not necessary to pay a premium for an Argyle Pink Diamond with an Argyle report. GIA or another reputable Lab is good enough.

Again, color quality, fluorescence and internal graining are unique to Argyle. Same with the violet HGBV diamonds.

 

[Garry H (Cut Nut)]

The small melee with IGI reports almost all have Argyle lot numbers.
There are two platforms.slash Auction orgs in Oz.
Not so sure about the one mentioned

 

[fredflintstone]

There is an Australian platform for second market APD - the asked prices are very high and if a stone like the one from the OP is accepted there (sure it will be) there is no risk to loose money.

If it is a auction platiform, there is always a risk of losing money. No such thing as a full proof auction, unless a reserve is set, then it might not be met.

If it is a platiform for straight out sales, then great! I take it that is the platiform, straight sales, not auction as you are the one who wrote, "In my opinion the best to sell your diamond is if you find a vendor and sell it on a commission basis." - Which I absolutely agree with.

 

[kgizo]

Posting this here because we so rarely see resale prices for FCDs and this 0.52ct Argyle just sold. The hammer price was $81K, which means the seller got much less after auction fees. Current Leibish Argyle inventory posted for informational purposes. Prices vary widely. Good luck to you if you decide to sell and come back and let us know how it turns out.