Diamonds are known as a symbol of romance, luxury, and enduring value. In terms of the main difference, the clear one is the traditional, while the pink is the rare, modern type of diamond. Usually, the common way to choose between diamonds is by personal preference, but in terms of value, there are many factors to consider when identifying which holds better value.
Again, for personal use, preference is the main factor to consider, including the long-term goals and budget. In addition, diamonds can also hold personal value, like when they’ve been gifted or offered as an engagement ring.
In this article, we’ll discuss the differences between pink and clear diamonds, and compare which holds better value.
1. The Value Through Rarity
As mentioned, rarity is the factor that’s usually considered when it comes to a diamond’s value. For instance, a clear diamond is popular and considered abundant all over the world. There are mines where clear diamonds are often found, and they’re available in various shapes and sizes.
On the other hand, a pink diamond can be hard to find, especially when the Argyle Mine, the largest supplier of pink diamonds in the world, closed in 2020. Since the said mine supplies 90% of the world’s pink diamonds, the supply dropped after it closed. Although there was a last auction after that, they’re the last collection of Argyle pink diamonds.
So, in terms of rarity, it’s evident that pink diamond is more valuable in terms of rarity.
2. Market Demand and Investment Appeal
When it comes to popularity and demand, clear diamonds are known, especially in engagement rings and timeless, traditional jewellery. However, when it comes to the resale value, there may be factors to consider that can tell whether the value of the clear diamond is the same, lower, or higher than the initial price. Some of these factors include the 4Cs, market value, and the current condition of the diamond.
On the other hand, pink diamonds are becoming popular, even as engagement rings. At the same time, with the high demand and low supply, many investors are eyeing to collect more pink diamonds to secure a strong appreciation rate.
3. Price Trends Over Time
The price of clear diamonds has remained stable for years. With the steady amount of supply and demand, which is why it has been a notion that clear diamonds are more valuable compared to the return investment.
Meanwhile, pink diamonds are known for having consistent appreciation in the past decades, which is due to the increasing global demand and limited supply. This is especially true when it comes to the vivid shade of pink diamonds. Besides, when it comes to colour, those that have a more intense colour are usually more expensive.
4. Liquidity and Accessibility
In terms of liquidity and accessibility, the go-to for many investors is the clear diamond. Clear diamonds are easy to buy and sell, especially with the 4Cs standard. This helps the pricing to be standardised and transparent. At the same time, the transaction became more straightforward.
Meanwhile, pink diamonds are less liquid since they’re rarely sold through auctions and dealers, and it can be hard to find the right buyer. However, since there’s the exclusivity factor, it can be a reason why pink diamonds can have higher value.
So, when it comes to liquidity and accessibility, clear diamonds are more valuable. On the other hand, if you’re looking for exclusivity, choosing pink diamonds can be the best option.
5. Emotional Value
When it comes to jewellery, emotional value is something that comes along, whether they’re buying, selling, or keeping it. Most of the time, the emotional value comes when a piece of jewellery is a gift, heirloom, or holds something memorable. On the other hand, the investment value is the goal to ensure that the diamonds you have appreciates overtime.
For emotional value, clear diamonds are known as the classic choice for engagement rings and personal collections. However, in recent years, pink diamonds have also become a part of the bridal jewellery and engagement ring options.
6. So, Which Holds Value Better?
If you’re looking for a long-term investment and aiming for higher price appreciation, the pink diamond is recommended. With its rarity and high demand, you can ensure that you’ll get your money back, and even more.
However, if you’re aiming for accessibility, timeless appeal, and liquidity, you can never go wrong with the classic clear diamond.
Final Thoughts
When choosing between pink and clear diamonds, the final decision still depends on your goals. If you want something rare, you can go with pink diamonds. However, if you’re looking for accessibility and liquidity, go with the clear diamond.
Meanwhile, nowadays, when it comes to investing, it’s best if you can have both, as it can help you diversify your investments.
