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Rare pink diamond jewellery - alternative investment in tough times: Calleija

John Calleija

LONDON, November 2, 2008 - Fine jeweller Calleija’s rare pink diamond jewels are an appealing investment for collectors in tough economic times because of their increasing rarity, owner John Calleija says.

Reserves of the intense pink diamonds extracted from the Argyle mine in Western Australia are expected to run out before 2020.

“The rarity of an Argyle pink diamond elevates its value to 20 times that of its white equivalent and has led to a worldwide pink diamond demand, with discerning collectors prizing these rare gems as sound investment pieces,” Australia-based Calleija told JewelleryOutlook in an interview via email.

“Savvy collectors are aware of the limited future supply of pink diamonds. It is expected that the Argyle diamond mine will exhaust its supply within a decade or so, resulting in these magnificent treasures becoming even more valuable and sought after over time.”

“Given the current financial climate, naturally we anticipate a decline in the number of City bankers specifically crossing our threshold,” Calleija said.

“However, the discerning City banker will hopefully still look to Calleija pink diamonds as an alternative investment.”

Calleija said that as pink diamonds will never be commonplace, their rarity, desirability and value is only set to rise.

“We would expect the retail value of intense pink diamonds to increase steadily over the coming years and particularly when the Argyle source is exhausted and availability becomes even scarcer,” he said.

Fine jewellery appears to be one of the few industries that is managing to sustain a stable level of sales during the current economic crisis, with a percentage of the high net worth community not affected and still engaging in luxury expenditure, Calleija said.

Moreover, with equity markets heading south, people are seeking alternative and sound investments.

Pink diamonds are one of the world’s rarest treasures, with less than one percent of the 600 million stones yielded each year the elusive and coveted pink colour.

“Given that Calleija specialise in pink diamonds, naturally sourced from the Argyle Mine, there is still a demand for our pink diamond pieces and so we do not envisage a radical drop in sales,” Calleija said.