Exploring Economies of Rarity

90% of world diamond supplies vanish? What happens now?

Rare Investment Report- The following report explores what will happen after the year 2018, when the Argyle Mine, the world’s largest producer of Natural Fancy Colored Diamonds, the majority of Champagne Diamonds and 90% of the world’s Pink diamonds ceases to exist and how you can benefit from this supply shortage.

This year, there was a shortage of 1 million carats. If you were one of the lucky investors with Rare Investment you know exactly what happened to your rare diamond investment. If you weren't so lucky to have already secured your position, you haven't missed the boat entirely, but you are quite fashionably late.

Between now and then expect prices to soar. While this is great news for early adopters, its sour grapes for the slow-to-move, as supplies are rapidly consumed and prices soar from the roaring demand in China. According to Bloomberg, “Diamond prices rose five times faster than gold this year due to surging demand from China and India” (2011).

Think about the value of oil due to its rarity. Now consider, there is a greater volume of oil shipped in a single day than all the volume of all the diamonds in the world ever mined. Do you have an Economy of Rarity in your favour?

Rare Investment coined the term ‘Economies of Rarity’ to describe and identify a market condition of ‘No Supply to Soaring Demand,’ as is the case with Natural Fancy Colored Diamonds. Given the upward momentum in the diamond industry, it is not surprising that Natural Fancy Coloured Diamonds are the fastest growing hard asset in the world. The rarest, most concentrated form of wealth in the world is becoming even rarer...

In the 1890’s gold-seekers discovered their first diamonds in Australia, in extremely limited quantities. In the 1970’s interest peaked in the region, as geologists found similarities between the Lamproite rock of Australia and the diamond-rich Kimberley rock of South Africa.

What happened next laid the foundation for the opportunity you have today, putting Natural Fancy Colored Diamonds on the map as a profitable hard asset investment and excellent hedge against inflation. Argyle realized that the quality of its coloured diamonds was very special and that they are were unique and significantly rarer than their colourless cousins. Argyle knew they had to get these diamonds out to the collectors and investors, so they created the Pink Diamond Tender, which has become one of the industry’s most anticipated yearly events.

Pink diamonds offered at the Tender are literally one in a million. For every million carats of rough mined at Argyle, only one polished carat is offered at the Tender. Imagine you are at the Tender, seated in spell-binding amazement watching coloured diamond prices in excess of US$100,000.00 per carat.

Experts argue that Pink diamonds paved the pathway for all natural fancy coloured diamonds. Today, Natural Fancy Coloured Diamonds are arguably the most concentrated and portable form of wealth on the planet—they appreciate faster than New York City real estate, but fit easily in your pocket. Today’s values in Blue, Green, Orange, Pink, Purple, Yellow, Silver and now Champagne easily hit 7 figures.

From rare to non-existent; the mine closes in 2018. There will be no more... It has been confirmed the Argyle mine's diamond production fell sharply by 24% to only 2.733 million carats in the second quarter of 2011 and 14 percent in the fourth quarter of 2011, to 1.918 million carats. In total, the Argyle's production fell 24% in 2011 (Rappaport, January, 2012).

As the Argyle mine closes in 2018 and 90% of the world's supply of these already rare diamonds becomes practically non-existent, what will your position be? Imagine 5 years from now, as you experience a feeling of overwhelming pleasure, realizing you made the right decision, looking back on today as being the start of it all. This opportunity, now that’s true rarity.

Talk to us about adding Natural Fancy Colored Diamonds to your investment portfolio at our toll-free 1.888.922.7287.

Sources

Bloomberg- Diamonds Outpace Gold

Bloomberg- Diamonds Lure Insurance Investor

Rappaport- Rio Tinto's Diamond Production -7% in 4Q