Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
A fancy pink diamond weighing 5.03 carats sold this week for more than $2.9 million, setting a new auction world record of $583,551 per carat for a diamond of its kind.
The rock was auctioned at a sale organized by Bonhams London Fine Jeweller, which beat Sotheby’s Geneva previous record of $528,021 per carat for a fancy pink.
According to Emily Barber, Director of Jewellery at Bonhams UK, the stone’s features explain why it sold at such a high price. “This was due to a number of factors: its size – it’s exceptionally rare to see a pink over five carats on the market today; its even colour saturation and its extraordinarily elegant cut.”
In Barber’s view, with Western Australia’s Argyle mine forecast to cease operations by 2020 after 50 years of activity, the future of pink diamond mining is uncertain because there are no other known deposits with such a consistent production. Thus, she says the gems have started to increase in value.
“They are highly desirable to discerning collectors given their rarity and limited supply. A diamond like this would definitely be one of the most prized pieces in an important jewellery collection,” the executive added.
4 Comments
john
Argyle which was gobbled up by Rio Tinto when they offered a better price for the shares and the majority too the easy money.
Rio got the buy of the century my shares, which to purchased in the IPO were compulsory acquired.
Wiesław Jura
bravo .
Steve Treloar
Argyle actually made the real cash as they operated a combination alluvial/open pit mine. At one point the Argyle mine had a staggering percentage of the world’s total supply. Rio bought in for the far less lucrative underground effort.
Jane E Williams
Argyle Diamonds are closing down their mine and production of pink diamonds – they account for 90% of the world’s supply. Some of the clarity and colour of the pink diamonds are crazy, I can only see their value appreciating with time. This is an interesting article for sure.