The Ups & Downs Of Colored Diamond Companies
July 2nd, 2013 by Noam Flint
You would have thought that the chance to obtain control of 90% of the world’s supply of high quality pink diamonds would be so alluring that mining companies would be knocking down the doors of Rio Tinto in order to get first dibs on it. But over a year after the mining giant announced that they were more than willing to part ways with their diamond assets – which includes selling the Argyle Diamond Mine, the source of those pinks – it took down its “For Sale” sign. But it’s hardly the fault of those rose-colored gems. There were several suitors with offers on the table, but Rio insisted on an all or nothing policy – either buy Zimbabwe’s Murowa mine and northern Canada’s Diavik mine, as well, or don’t even bother.
Evidently, none of those companies took the bait. But hey, don’t get down about it. If you can’t afford to buy the whole Argyle mine and two others to boot, you can at least pick up a sample of its blushing bounty. Three weeks ago Rio released 168 limited edition pink diamond ingots embedded in one-ounce bars of 22-carat pink gold. At only $4000, they’re a piece of pink history, and far more affordable than the whole hole in the ground.
Argyle Pink Diamond Ignots. Image – The Perth Mint
There’s also another option: instead of buying the whole company, why not just by a few shares in the firm? If you would have thought of this last week, you would be significantly richer right now. Gem Diamonds has been on a roll, discovering three 100-plus-carat diamonds in the last month alone. In addition to two huge white stones, Gem pulled a 103-carat yellow gem out of the ground. When news of the third find was announced, the company’s stock shot up by 6%.
Maybe you’re not interested in buying a mine, or even any shares. Might you be interested in a piece of polished diamond jewelry then? Perhaps a pink diamond ring? Maybe a yellow gem? Or are you having a hard time deciding which hue you prefer? If you’re entertainment impresario Pasquale Rotella, there’s no need to settle for only one color of the rainbow. He just popped the question to the mother of his child, former Playboy Bunny Holly Madison, with a ring containing yellow diamonds, pink diamonds, AND blue diamonds, worth $2 million in total. Although for that price tag, he nearly could have paid for a whole mine!
