Argyle Diamond Mine – an uncertain future

There has been a lot of speculation recently about the longevity of the Argyle Diamond Mine – and of most interest to us, how much long will we be seeing new pink diamonds?

As part of a review of the Argyle Mine, the owners Rio Tinto have recently decided to slash resources by two thirds. The updated reserves and resources statement, recently released by Rio, shows the global mining giant has cut Argyle’s resources by two-thirds — from 44 million tonnes of ore at the end of 2015 to 15 million tonnes this year. By doing this it all but rules out any extension beyond the current end date of the mine in 2021 and increases the chances of this date possibly even moving forward.

So in terms in pink diamonds that means one thing – these rare diamonds are only going to become more rare. At Hope Diamonds we have noticed an increase in demand for pink diamonds, particularly investors wanting to buy in their Superannuation Fund. Pink Diamonds have on average increased around 15% pa for the last ten years and this still does not look like slowing at all.

No one is able to predict what will happen in the future but if you look at basic supply and demand only – as the supply decreases and this is all but guaranteed to be the case, demand should steadily increase. We will closely follow the progress of the Argyle Diamond Mine and provide updates as we learn more. While we are definitely not financial advisers and strongly advise that people consult experts in this are a before making any financial decisions, we do know a lot about pink diamonds and the pink diamond industry – the trends and which areas are increasing the quickest. if you wanted to arrange a time to come in and chat about pink diamonds, please email info@hopediamonds.com.au or call 1300 67 57 87