Why a Blue Diamond gets PINK a Buy Recommendation?

June 20th, 2013 by Noam Flint

It has been 2 months since Petra announced the discovery of a 25.5 carat blue diamond.
Approximately one month later, Petra released that the rare blue diamond was sold for $17 Million Dollars – an astronomic amount of over $663,000 per carat for a diamond in the rough.

So… what does the sale of a blue diamond have to do with PINK?

Analysts are Investing in PINK

If you follow our blog, then it is no news to you that colored diamonds sales have broken plenty of records in the last couple of years. In fact, it seems that just about every sale made by Christies and Sotheby’s breaks new records.

The concept of investing in diamonds has grown dramatically over the last few years and with the media coverage that those record breaking diamonds from the auctions are getting, the professional niche of investing in colored diamonds has grown even more.

It seems that the acknowledgement of diamond investment, fascination with colored diamonds and their rising value have now dazzled and ignited the minds of analysts from the stock exchange.

Since the discovery of the big blue rough, the stock of Petra diamonds, whose symbol is PINK, has risen approximately 6% and received 9 BUY recommendations including the most renown investment banks such as Goldman Sachs, Citigroup and Bank of America.

We can only guess that part of the reasons (a $17,000,000 reason) is the understanding that where one amazing gem was found, more of the same might pop again…