The Argyle mine, which is among the largest diamond producers in the world and the main source of pink diamonds, closed its mining operations in 2020 and this caused a shockwave within the diamond industry that is only being felt now, 3 years later!
Located in a remote region of northwestern Australia, the Argyle mine was among the top diamond producers on the planet in terms of volume and in 2018 the mine produced nearly 14 million carats and despite a large percentage of the 14 million of carats were not gem-quality diamonds, that did not change the fact that it still managed to produce a significant amount of rare pink and red diamonds.
The Argyle mine produces just over 90% of the world’s supply of pink and red diamonds and also produces a significant percentage of other types of colored diamonds such as champagne, rare blue diamonds and cognac.
Even though the mine holds the title of being among the world’s top diamond producers, mining operations stopped in November 2020, almost after four decades of operations and almost 900 million carats of rough diamonds.
Rio Tinto mine operators are currently in the process of rehabilitating the site which will be complete in 2025.
The impact of the closure of the Argyle mine on wholesale diamond store Supply around the world has been significant as the total supply of coveted pink diamonds has dropped by 90%, making this type of diamond even rarer than before.
Even before the lockdown and when overall diamond demand was holding steady, the announcement of the lockdown caused a surge in demand for rare pink and red diamonds, which were the most popular type of diamonds for wedding and engagement rings. However, the speculation that arose in the wake of the mine’s closure was slow to catch on.
Speculation that diamond prices will increase significantly starting in 2021 due to the fact that the global supply of diamonds will decrease by approximately 14 million carats did not occur. This speculation has just taken root three years after the closure.
The reason behind this late rise in prices is also due to lab-grown diamonds which have gained popularity due to the lower prices and, in many ways, the higher quality of these synthetic diamonds.
The void created by the closure of the Argyle mine was quickly filled with lab-grown diamonds that have kept prices stable within the realm of the natural diamond market.
However, the biggest impact that the mine closure has had on the market is quite specific and revolves around rare red and pink diamonds, as supply has not been able to meet demand, leading to an increase in prices, especially for pink stones. for which the mine has been popular.
For now, all signs point to a substantial increase in availability for buy Argyle pink diamonds in Melbourne In the coming years and in the event that new sources of diamonds are not found, prices will continue to rise.
