Rare Pink Diamonds Could Fetch Millions in Exclusive Sale – TheStreet.com

NEW YORK (TheStreet) — Rare pink diamonds went on display in New York this week ahead of one of the most exclusive diamond sales in the world.

The pink diamonds come from the Argyle diamond mine in Western Australia, which is owned and operated by Rio Tinto (RIO) . According to the company, just one-tenth of 1% of the mine’s diamonds are pink.

“The color in the Argyle Pink Diamond is unrivaled. There’s nothing else that I’ve seen in the world that has this strong of a pink color in it,” said Jordan Fine, president of JFINE, a boutique diamond company that specializes in rare color diamonds. “The fact that these stones are extremely rare is causing almost a renaissance I would say with collectors seeking to find the best pinks they can find.”

Each year, Rio Tinto holds an Argyle Pink Diamonds tender, offering tender viewings this year in New York, Sydney, Hong Kong, and Perth, Australia. The diamonds are shown at invitation-only viewings attended by prospective buyers, who then submit sealed bids — this year by Oct. 21. Fine will be one of those bidders.

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“I imagine the top stone from this year’s tender would sell well in excess of $2 million, maybe $3 million per carat for the stone,” he said.

The top stones in each year’s collection are given names. Fine was referring to the Argyle Prima diamond, a 1.20-carat stone with a deep red color. Sixty-five diamonds will be sold in this year’s tender.

As part of the New York diamond display, several luxury jewelers showcased jewelry made from pink diamonds, with prices ranging from $6,000 for a necklace to $300,000 for a bracelet. Fine said pink diamonds have continued to increase in value, and he expect to see greater demand for them from the U.S. market.

“If you compare the growth or appreciation in value of Argyle pink diamonds over time, it is certainly double-digit growth for at least the last 10 years,” said Fine.