Paragon International Wealth Management Forecasts Considerable Interest for 2017 Argyle Pink Diamonds Tender
Between questions over what lies ahead for the Argyle diamond
mine and the rarity (and increasingly high prices) of the fancy pink diamonds
the mine produces, anticipation over the 2017 Argyle Pink Diamonds Tender is on the rise, even though the
exclusive event is months away.
"Every year, this invitation only-event is a
chance to appreciate and bid on some of the rarest colored diamonds that have
come from the Argyle Mine," said Michael
King, Director of Trading at Toronto's Paragon International Wealth Management, which
is a leader in acquiring and managing fancy
colored diamonds.
King added that questions over the Rio Tinto Group's
diamond business in general with last year's leadership change is heightening
interest in this year's tender. In July 2016, Jean-Sebastien Jacques took the top spot of the world's
second largest mining company, amid widespread speculation he'd sell or spin
out the company's diamond business. In December, though, he told Reuters it was
a candidate for expansion.
And future availability of the rare pink diamonds (and
its influence on prices) continues to create buzz, Paragon International Wealth Management's Michael King said. This has been an ongoing topic,
with questions over the "near exhausted" mine's future. Still, the
closure date for the Argyle mine keeps being pushed out (now to 2020) and
diamond prices keep rising.
Just by themselves, the rarity of the showcased
diamonds and historic price peaks achieved at last year's Argyle Pink Diamonds
Tender make the event worth the price of admission.
The Argyle mine is the source of 90 percent of the
world's high quality pink diamonds, with fewer than 1 percent of those found at
the mine graded this color. The best diamonds the mine produces each year are
saved for display at the annual tender.
In 2016, the "Chroma Collection" showcased
63 rare pink, red and violet diamonds, and Rio Tinto said the stones comprised
the highest quality, size and color composition in the tender's 32-year
history. Among the highlights, the 2.83-carat Argyle Violet, the largest and
most valuable violet ever produced by the Australian Argyle mine.
Unlike other auctions, bidders do not know what others
are bidding for the same diamonds. Only a single bid is allowed on each diamond,
and the highest bidder takes it home.
The 2016 tender, held in October last year, achieved
the highest average price per carat since the Tender began in 1984, according
to Rio Tinto. The company also said that in the last 15 years, the Argyle Pink
diamonds sold at tender have appreciated by more than 300 percent.
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