Colour Diamonds Feature | FLIGHT OF FANCY L to R: Graff | Calleija | Calleija | Leibish & Co. so it’s a great opportunity for jewellers to make some extra margin on their product.” Yet while demand is evidently growing, supplies have become more limited. The end of an era The supply-demand dynamic will become more extreme in the future, as the world’s premier source of pink diamonds, Rio Tinto’s Argyle Mine in Western Australia, is scheduled to close at the end of <strong>2020</strong>. Argyle opened in the mid-1980s and currently accounts for 90–95 per cent of the global pink diamond supply. It also produces blues, yellows and browns, often sold as ‘cognac’, ‘champagne’, and ‘chocolate’ diamonds. “Since summer last year, more and more jewellers are reaching out requesting Argyle pinks, trying to get the last piece of the pie,” says Maheshwari. Leibish Polnauer, director of international fancy colour diamond supplier Leibish & Co., notes: “Rio Tinto closing the Argyle mine will lead to a massive decrease in pink diamonds, meaning that prices will continue to inflate. I don’t advise jewellers to stock up on all colour diamonds, however if they are looking to invest in one, I would recommend stocking up on Argyle [pink] diamonds as these are the most sought after [by consumers].” Bolton agrees. “As we approach the conclusion of the Argyle Mine – and the reality of this sinks in for consumers – Argyle pinks and Argyle products in general become increasingly rare, valuable, and desirable,” he says. Der Bedrossian – whose brands exclusively feature Argyle diamonds – says origin is now “as important as the other 4 Cs” for the local market. “The certificate of Argyle origin is essential – especially for Australian consumers. Many feel patriotic buying an Australian product,” he explains. Indeed, Argyle has been the lynch pin of the Australian diamond industry for decades and is currently the country’s only active diamond mine. Camilah Graff Calleija The Merlin Diamond Mine in the Northern Territory, which had previously produced brown and blue stones, is currently dormant after the Federal Court appointed liquidators to its parent company, Merlin Diamonds Ltd, in 2019. Meanwhile, the Ellendale Mine in Western Australia, which once produced half the world’s yellow diamonds, was closed in 2015 when its previous operator, Kimberley Diamond Company, went into liquidation. It may return to productivity in the coming years; Australian mining company Gibb River Diamonds recently took over the lease after a rejuvenation project by the West Australian government. However, it is not known when the site will become fully operational. In order to satisfy consumer demand for fancy colour diamonds, jewellers will need to look further afield. New diamond sources Russian mining conglomerate Alrosa – the world’s largest diamond producer by volume – has indicated it intends to become the world’s premier source of fancy colour stones. Pavel Vinikhin, director cutting and polishing division, Alrosa, recently told the Russian news service TASS: “[Following] the closure of the Argyle Mine in Australia, we will become the world’s largest producer of coloured diamonds and can therefore go after leadership in the coloured diamond market.” Indeed, Alrosa has unearthed several notable colour stones in recent years, including the 14.83-carat fancy vivid purple pink it named ‘Spirit Of The Rose’. It holds the high-profile True Colors Auction each September, with the diamonds available to view at the Hong Kong <strong>Jeweller</strong>y Fair. Colour diamonds currently account for less than 0.1 per cent of Alrosa’s total output and most originate from the remote Yakutia region in Siberia. In February, New York-based fancy colour diamond supplier LJ West Diamonds purchased a 6.21-carat intense purplepink Yakutia stone. In what could be interpreted as a ‘sign of the times’, it was INDUSTRY VOICES WHAT ABOUT LAB-GROWN COLOUR DIAMONDS? Leibish Polnauer Leibish & Co. Founder “I don’t believe that lab-grown diamonds have any impact on real colour diamond sales, as synthetic will never replace one’s desire to own something unique, natural and one-of-a-kind, like a fancy colour diamond.” Martin Schiechtl Swarovski Created Diamonds Senior Vice-President Global Marketing “We believe that natural and manmade diamonds can co-exist and thrive. In nature, fancy colours are extremely rare as the conditions for the formation are very seldom met. This rarity of course reflects in the price. Our aim is to make colour lab-created diamonds accessible to a broader group of customers.” Brett Bolton Bolton Gems Director “Retail stores who choose to stock both natural and lab-created diamonds are appealing to a broader range of consumers, which inevitably leads to increased sales and consistent customers.” 24 | <strong>March</strong> <strong>2020</strong>
PinkKimberley.com.au E pink@samsgroup.com.au W samsgroup.com.au P 02 9290 2199 SAMS GROUP AUSTRALIA
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