The Timeline and History of the Argyle Diamond Mine
The Argyle Mine was one of the most famous diamond mines in Australia and around the world.
At times, it was the world’s largest diamond producer by volume. It also provided the only substantial source of the world-famous pink diamonds. In fact, over 90% of the world’s pink diamonds in the Argyle Mine.
Along with pink diamonds, the Argyle Mine produced large quantities of other coloured diamonds, including red, champagne, cognac and rare blue diamonds.
The Argyle Diamond Mine is situated in Kimberley, Western Australia, although it now lies dormant after ceasing operations in November of 2020. Rio Tinto committed to decommission and rehabilitate the site by 2025, and works are well underway.
Due to the mine closure, pink diamonds are some of the rarest gemstones on the planet, and they are highly prized for custom jewellery and as an appreciating investment opportunity.
Below, we have put together a timeline of the Argyle Diamond Mine that tells the complete history of the site and provides more details about the revered pink diamonds it once produced.
What Makes Pink Diamond Investments Unique
Previously the world’s largest single diamond mine, the Argyle Mine was first discovered in 1979 by a group of geologists. The group was exploring diamond deposit opportunities in the Kimberly region of Western Australia, and the mind was founded with backing from Rio Tinto.
In 1984 with mine operations well underway, Rio Tinto established a tender for the pink diamond investment process. This was a significant contributor to raising the profile of the Argyle Mine and the pink diamonds it was producing.
Each year, Rio Tinto would invite a select number of clients to view the most exceptional pink diamonds the mine had produced. These were known as Argyle Tender stones, and they were made available for bidding by investors.
The value of Tender Stones, and the value of all other pink diamonds, climbed steadily in the intervening years. This was largely due to the rarity of the stones.
This can be highlighted by the Argyle Mine’s production in 2009, where approximately 160 million carats of rough diamonds were produced. Of those, only 30,000 carats were rough pink diamonds, making them 0.03% of the global market share.
The mine produced over half a million carats of diamonds in its lifetime. Before its closure in November of 2020, the Argyle Mine produced virtually the entire global supply of pink diamonds. For centuries, pink diamonds have been some of the world’s most sought after gems, especially for pink diamond rings. Due to their beauty and rarity, they command prices far exceeding those of white diamonds, making them an excellent investment opportunity.
The Argyle Mine made a substantial contribution to the global diamond market and established a demand for pink diamonds. Although it’s now closed, it will likely remain Australia’s largest diamond mine, cementing the reputation and value of Australian pink diamonds for decades to come.
Why Invest in Pink Diamonds from the Now Closed Argyle Mine?
Following the Argyle Mine closing and ending diamond production in Nov 2020 we are now presented with a very unique opportunity to invest in Western Australian pink diamonds.
Since the closure of the Argyle Mine and the chances of a newly discovered pink diamond mine replicating the properties of the Argyle mines are slim to none.
What makes pink diamond investments from the Argyle Mine so appealing is that there are currently no other pink diamond mining operations in the world at this time, so even if there were another discovery following ongoing exploration, it would be 10 years before any new mines could be operational and mining diamonds.
Unlike white diamonds that have an established list price for sale, every pink diamond is different and cannot be compared to one another. If you’re looking for an investment with some exclusivity to it then pink diamond investments in these rare and now scarce gems may just make complete sense!
Diversify your Portfolio Investing in Pink Diamonds
Investing in pink diamonds is a unique opportunity to not only diversify your portfolio but also invest in a product that has appreciated exponentially over the last 25 years.
Pink diamonds have increased in value due to their scarcity since the closure of the Argyle Mine and are currently providing an excellent growth opportunity for investors around the world.
Pink Diamond Investment is a Great Hedge Against Inflation & Financial Uncertainty
Another important factor to consider when looking at pink diamond investments from the Argyle Mine is the uncertainty in global financial markets as they continue to show volatility and instability in the boom and bust landscape which makes up a large part of the global financial system.
All underpinned by central banks printing trillions of dollars of fiat currency out of thin air with huge balance sheets of unpayable debt. As a hedge against the above-mentioned uncertainty investors and collectors around the world are taking a closer look at rare, hard luxury assets to diversify their portfolios.
Pink diamond investments are also an excellent hedge against inflation due to their unique characteristics of scarcity which have been accelerated further since the Argyle Mine closed; it would not even be unreasonable to compare them to investing in Bitcoin.
There are many reasons why an investor might want to invest in pink diamonds. The Argyle Mine is one of the only Australian diamond mines that has ever produced these rare gems, and it’s now closed.
In addition to being rare, they also have a very high value with prices for pink diamonds outperforming major equity indices over 25 years. This makes them a good investment no matter what economic cycle we may be in!
Reap the Financial Rewards of Investing in Pink Diamonds from Argyle
Investment in pink diamonds can reap considerable rewards.
As the global recession of late 2008 was materialising, Rio Tinto received the highest price ever paid for a pink diamond from the Argyle Mine. A year later a five-carat vivid pink diamond achieved US$10.7 million at auction.
The following year a 24.78ct sold for US$46.2 million and in 2013 we saw a 59.6ct Fancy Vivid Pink sell for US$83.2 million, a world auction record for any diamond.
The pink diamond is one of the rarest diamonds in the world. These gemstones from the legendary Argyle Mine have been prized for their rarity and scarcity since their discovery in 1979. Now, as demand for these gems continues to rise, prices at jewellery auctions have continued to follow a similar pattern since 2010, with buyers consistently willing to pay well above the pre-estimated prices to secure a stone. And so, as time passes each pink diamond becomes more collectable, highly sought after and valuable – with an enduring legacy that goes beyond its investment potential.
FAQ's
Pink Diamond Investment FAQs
Are pink diamonds a good investment?
Pink diamonds are becoming increasingly popular, with some even considering them the “next big thing.” They may be especially good investments due to their high growth rates and the rarity of these unusual diamonds. The average yearly investment growth for pink diamonds is around 15% and has reached up to 20% or more in some cases. It’s important to note that prices generally increase monthly because of the rarity and value of these pink gems. If you’re interested in pink diamond investment and making a purchase visit extensive collection.
Is investing in pink diamonds a good hedge against inflation?
Many people see pink diamonds as being the new gold in terms of being a safe-haven asset class offering protection against inflation and market volatility. Due to scarcity, the value of pink diamonds has increased substantially in recent years, and this trend does not seem to be slowing down anytime soon. A recent article by Forbes predicts that “the price of pink diamonds will continue to grow”. And while there is no doubt that some people Argyle pink diamond investment as a hedge against inflation, it’s important for you to consider all your options before making such an investment yourself.
Will pink diamonds increase in value?
While many people would say that the value of a diamond depends on its size, it also has to do with the rarity of the colour. Pink Diamonds, the rarest coloured diamond variety in the world and are increasingly becoming popular among collectors and investors alike due to their extreme scarcity. Put simply, pink diamonds are very rare and there just aren’t many of them around. With their extreme popularity and considering how difficult they are to find, the demand and price for these pink beauties will continue to grow.
Where is the site of the Argyle Mine located?
The Argyle mine which is now decommissioned is located in the Kimberley region in the far northeast of the Australian state of Western Australia. The Argyle mine location is southwest of Lake Argyle, about 550 km from Darwin and 185 km from Kununurra. Because it was so remote, a complete residential camp was constructed on-site where most workers used to commute from Perth which is over 2,000 km away for alternating two-week shifts at the mine.
How long have the pink diamonds extracted from the Argyle Mine taken to form?
The pink diamonds extracted from the Argyle mine in the Kimberley region of Western Australia are some of the oldest diamonds ever found. They have been dated to be 1.58 billion years old, and the volcano that created them is about as old too, at 1.1 to 1.2 billion years old. This means there was a 400 million year window for diamond formation – which might explain why they’re so small on average and unusual looking!
Was the Argyle Mine one of the world’s largest suppliers of diamonds when it was up and running?
Most people know the name Argyle if they know anything about diamonds. The mine was located in Western Australia and when operating at one point it was the fourth-largest diamond producing mine in the world by volume, averaging annual production of 8 million carats (1,600 kg). Production peaked in 1994 when 42 million carats (8,400 kg) were produced.
Why did the Argyle Mine close?
The Argyle mine in Western Australia closed on the 3rd of Nov 2020. The decision by Rio Tinto to decommission the mine and cease operations came after a dip in the global demand for diamonds which was compounded by increases in mining costs. The mine was previously one of the most productive diamond mines on the planet and yielded large numbers of pink diamonds over its lifetime. However, the mine reached a point of being over excavated reaching 600m depth at its deepest point. Continuing with excavations would be unviable, so Rio Tinto decided to close down the operations at Argyle and focus on other projects. But pink diamonds’ history still lives on via the wonderful stones which can be purchased at the Diamond Jewellery Studio.
