French newcast, 05/24/2012:
Diamond Invest is a safe haven
Its rarity makes it a great value, all in a very small volume. Indeed, a 1 carat diamond is 0.2 grams and can have the same value as gold bullion weighing 1kg. As is the case for gold, diamond value rises naturally and regularly at the discretion of the depletion of the resource.
Diamond is unalterable. It does not require any special precautions and is generally kept in safes .
Colored Diamond is one that offers the best investment
Fancy Colored Diamonds have an identical carbon composition as Colourless Diamonds.
Exposure to specific elements during formation cause them to naturally form colour. This makes them exponentially more rare than colourless diamonds.
For every 10,000 carats of colourless diamonds mined only one single carat (0.01%) will be classified as having “Fancy” colour.
Total of 12 different main colours, 90 secondary hues, 9 intensity levels and over 230 possible colour combinations.
Graded similar to colourless diamonds following the 4 C’s (clarity, carat, colour and cut).
How to estimate the value of a diamond ?
To estimate the value of a cut diamond, different levels of classification have been developed, based on the main characteristics of diamond , namely:
- weight (carat)
- purity (clarity)
- the finishing of the cut (cut)
We could add a fifth, it would be la "cote d'amour" (Love rating), element entirely subjective but whose importance is not negligible .
Diamond is not a speculative product of short or medium term, but real value likely to enhance over time, depending on supply and demand.
When countries are in recession (such as France ) , the investor seeks above all to preserve his property for a possible general stagnation. It tends to turn to the real tangible values, including real estate, gold, silver and diamonds, whose intrinsic quality is guaranteed .
In 2013, the Fondapol Foundation has shown that 9 % return on capital must be generated as to hope simply resist inflation and pay the IRS. But a well-managed capital hardly worth more than 3%. All capital held in France is condemned to depreciate by 6% per year.
We know since 2008 a situation where those who own shares or securities may lose all or part of their assets in a very short time .
Only investors who have taken the precaution of buying some diamonds can even move, taking with them some of their assets (Real Estate in Your Pocket).
- It is a safe investment because there is formed over millions of years. Diamonds are unalterable.
- The value of diamonds is not linked to currencies. It does not serve as a guarantee.
- Only investment in extremely rare diamonds (Ex Ex Ex) can provide a comfortable income in France but is likely to generate a capital gain on investment.
- Diamond is an investment that values over time.
- Since the early 1900s, the diamond is valued for one and a half to two times the rate of inflation over long periods .
As stated in its latest report, the consulting firm Bain & Company, the demand will grow twice as fast as the offer to reach 247 million carats in 2020 to face a range of 175 million carats. Global demand will grow by more than 6% per year until 2020. On the supply side , it is expected to grow by 2.8 % per year, which will lead to a state of " structural shortage " with consequent inevitable price increases.
World production is not sufficient to meet the growing appetite of China, India, the Gulf States and Brazil soon for valuable especially for diamond stones.
Sergey Vybornov , President of the Russian company Alrosa , the reason is the booming demand in China and India ( in China due to the rapid growth of the middle class and the number of millionaires causing great craze for products luxury ) . In these markets coupled with the strong demand growth in the U.S. in the Gulf countries and in the coming years , to provide for the emerging countries of Latin America , including Brazil .
For example, the price of rough diamonds increased by 29 % in 2011 and that of polished diamonds rose sharply .
- Investment Grade FCD’s are appreciating in value on average of 15-30% per annum
- No asset holds value better.
- Prices have been in a constant upward trend with no major corrections in over 40 years (since they have been tracked)
- During the 2008 economic crash FCD’s outperformed almost every other asset class (PM’s, stocks, bonds, real estate etc.)
Prices have/will skyrocket during times of inflation
A formerly secret investment vehicle for hundreds of years. Once only reserved for royalty and aristocrats used to safely store and transfer wealth through generations.
An extremely rare and finite natural resource that cannot be printed or reproduced. After it has been depleted it will be gone forever
Demand is outpacing supply especially with emergence of Chinese and Indian middle class and new millionaires (hard asset savvy)
Argyle Mine scheduled to close in 2018 / Ellendale Mine scheduled to close in 2014
Main stream acceptance aided by Financial Advisors / Wealth Managers / Diamond Brokers
Internationally established and recognized goods with an accepted global standard for grading and valuation
Portability / Durability of diamands
Most concentrated form of wealth in the world (Millions of dollars could be easily be concealed and transported to another country)
Entire portfolio can be stored in a piece of jewelry or safety deposit box
Diamonds are the hardest mineral in the world. They are billions of years old and formed under immense conditions
Absolutely breathtaking, will never dull and will always look as amazing as the first day you purchase it
Multi-Functioning asset that can be enjoyed as both a beautiful piece of jewelry and investment
Complete Privacy of your invest
Complete privacy of ownership with no bureaucratic/government agency oversight.
No reporting increases in value for tax purpose to IRS (U.S) /CRA (Canada) / ISF (France), etc.