Rio: Strong Market for Argyle Pink Diamonds

Rio Tinto reported a “strong market” following its 24th annual Argyle Pink Diamond Tender, concluded several weeks ago. The diamond miner did not disclose prices the offered goods fetched, or if all of them were sold.

For the first time, the rare diamonds offered at the tender had reserve prices. Of the some one hundred people invited to view the pink diamonds from Rio Tinto’s Argyle mine in Australia, diamantaires, jewelry manufacturers and luxury retailers were the successful bidders.

The company said in a release that pink diamonds enjoy an increasing attraction as an investment option. “The Argyle pink diamonds selected for the 2008 Tender attracted substantial interest from an increasing number of investors and is evidence that the increasing rarity of these stones is becoming more valuable and sought after over time,” according to Josephine Archer, sales and marketing manager of Argyle Pink Diamonds.

This year’s Pink Diamond Tender contained a record number of round diamonds, including a matching pair, along with the first heart shaped diamond in seven years and three rare violets.

The Argyle pink are usually smaller diamonds. This year, 30 diamonds weighing more than one carat were tendered. The total weight of the 65 offered diamonds was 62.46 carats.

“All the diamonds received a significant level of interest and competition in what can only be described as a difficult economic market,” said Raj Kandiah, general manager of Argyle Pink Diamonds.

Rio Tinto also used its Pink Diamond Tender to re-launch the Argyle pink diamond brand and its new distribution strategy. With just over a decade of Argyle production remaining, 15 Authorized Partners have been selected to receive polished pink diamonds directly from the mine, with a number of Select Ateliers chosen to use the brand, but not buy directly from the mine.