29 October 2008
World's most precious diamonds deliver strong result
Unprecedented interest from around the world
PERTH, 27th October, 2008 - Results from Rio Tinto's 24th annual Argyle Pink Diamond Tender have demonstrated a strong market for this truly rare product.
The world's most exclusive diamond sale featured the world's rarest pink diamonds from Rio Tinto's Argyle mine in Australia, with around one hundred key clientele personally viewing the diamonds in Perth, New York, London, Hong Kong, Tokyo and Sydney.
Whilst the company does not release the names and number of successful bidders, nor the prices that were paid, it was happy to comment on the increasing attraction of pink diamonds as an investment option. Josephine Archer, Sales and Marketing Manager of Argyle Pink Diamonds comments, "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."
As well as investors, the diamonds sold at this year's Tender will go to a range of individual diamantaires, jewellery manufacturers and luxury retailers across all major markets. The ultimate consumer for these diamonds is likely to be collectors, celebrities and high net worth individuals.
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. This year is also the first year that Rio Tinto has placed reserve prices on the collection, driven by the increasing rarity of these diamonds.
Production of pink diamonds from the Argyle mine will be declining as the mine transitions to an underground operation over the next couple of years and eventually closes in 2018. As Ms Archer explains, "The upper end of this unique product category is akin to that of rare art and, as supply declines, their value is set to escalate accordingly. Given this, and the current turmoil in financial markets around the world, we felt very comfortable introducing a reserve price mechanism."
Commenting on the 2008 Tender, Raj Kandiah, General Manager Argyle Pink Diamonds said, "All the diamonds received a significant level of interest and competition in what can only be described as a difficult economic market. Whilst the pink diamond market is not completely insulated from the current global economic crisis, our Tender results point to a market that recognises both the beauty and the ongoing value of this product."
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 Authorised 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.
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For further information or images contact
Robyn Ellison +61 417 968 359
Email: robyn.ellison@argylediamonds.com.au