Why consider diversifying your investment portfolio with diamonds from a mine that will be depleted within two years?
Whether you’re a first time investor, sophisticated investor or SMSF Trustee, rare pink, red and blue Argyle diamonds offer unparalleled investment opportunities for diversifying your investment portfolio with the following added advantages.
- Access to the very best stones from the Argyle diamond mine, which has less than two years worth of stock remaining at current output levels;
- Low levels of risk, which through proper management, can be reduced even further;
- Outstanding growth rates, unparalleled in the financial markets;
- Liquidity and portability, across borders and generations;
- Ethically sourced stones, highly sought after by investors worldwide.
Investment quality, coloured diamonds are among the most rare and valuable commodities on the planet.
All diamonds are beautiful, but unless their quality and origin are exceptional, they would not generally be considered good investments.
NFCDs from mines with depleted or dwindling stocks such as Argyle, are more highly sought after than those from mines with an abundant supply.
Stelios Jewellers currently specialise in red, blue and pink diamonds from the renowned Argyle Diamond Mine in the Kimberley region of Western Australia. With an estimated 500 tender quality Argyle pink diamonds remaining in the mine, all Argyle diamonds currently in circulation and any still to be mined, should be regarded as rare commodities indeed.
Pink, red and blue diamonds are rare, with less than 0.01% of all diamonds mined globally being classified as Natural Fancy Coloured Diamonds (NFCDs) which is an industry term to describe coloured diamonds such as those found in the Argyle mine.
If NFCD’s had a rarity scale,
- An NFCD would have a rarity scale of 7/10.
- An investment grade NFCD would have a rarity scale of 9/10.
Investment grade NFCDs exhibit extremely high qualities in their Colour, Clarity, Carat and Cut, which makes them sought after by collectors and investors around the world.
One of the features of a good investment, is an active re-sale market to provide sellers with buyers, and both with a means to establish a fair value, when the time comes to sell. The maturity of the
market for NFCD’s generally and Argyle diamonds particularly, not only here in Australia but around the globe, is one of it’s most attractive selling points
TANGIBLE & MULTI-PURPOSE ASSET
“Diamonds aren’t just a girl’s best friend…”
Natural Fancy Coloured Diamonds are tangible and uniquely multi-purpose assets unlike shares, bonds and other financial instruments.
“Since diamonds are tangible assets, they can be insured against loss or damage, especially when the diamond in question is set in jewelry, which is a great comfort to investors. Intangible assets like stock will never have this insurance option!” – Mark Kiesel PIMCO
A diamond will continue to appreciate in value, while adorning the hand or neck of a beautiful woman, with no cost to the asset itself. A diamond will look exactly the same in 1,000 years, as it did on the day it was polished, even if someone takes it out to wear everyday
CONCENTRATION OF WEALTH
Investment diamonds and rare gemstones are the world’s most portable form of wealth, enabling you to carry millions of dollars in your pocket.
Natural Fancy Colour Diamonds represent an incredible concentration of wealth compared to any other asset in the world.
The amount of value that is packed into 1 gram of investment grade NFCD far outstrips that of other asset. Depending on the year and date, such expensive assets as a bar of gold, a bar of platinum, or even an expensive work of art do not pack in as much value into one gram as an NFCD!
As an example, a 1 gram (5ct) Fancy Vivid Pink diamond has been worth $10 million, while 1 gram of gold on the same day was worth only $35!
Investment diamonds and gemstones are ideal as part of a balanced, diversified investment portfolio.
Investment quality gemstones are considered a good fit for investors looking to diversity their portfolio through the acquisition of stable, medium to long-term assets.
Gemstones are not subject to the same price volatility as other investments such as listed shares. To maximise their true growth potential, a medium to long-term view is necessary.
Investment diamonds from AU $50,000.
Investment gemstones from AU $20,000.
As the name suggest, this type of investment is in a single Natural Fancy Colour Diamond or rare gemstone. A stone is chosen based on the colour rarity, with good characteristics of hue, clarity, grade and carat weight.
“Exceptional things will always sell for exceptional prices” – Christie’s New York
Demand for rare, investment quality gemstones has continued to grow on the back of limited worldwide supply.
The principals of economics determine this to be one of the fundamentals of a good investment. Another two fundamentals are the price you buy at and the price you sell at. The most promising investment may prove to be worthless if you don’t pay careful enough attention to these two variables.
Buy at the right price
Paying retail is acceptable for many purchases, but investment quality gemstones isn’t one of them.
Why pay a premium for gemstones bought from a retail shop with large overheads and profit margins, potentially requiring you to hold onto your investment for twice as long to see a return?
Specialist wholesale gemstone dealers like Stelios Jewellers source, cut and polish rough stones specifically for investors like you, and are able to offer more competitive pricing and personal service.
Sell at the right price
When the time comes to liquidate your investment, you have three options:
- Sell your stones privately;
- Sell your stones at International Diamond fairs
- Place your stones on consignment with an experienced, specialist investment gemstone jeweller.
Option 1 may provide you with the greatest financial return but not everyone has the expertise or industry network to find the right buyer and negotiate the best price.
Options 2 and 3 will usually deliver the current wholesale market price but the profit realised on the sale of the stones will largely be determined by the initial purchase price. The best way to avoid overpaying on quality gemstones or mistakenly buying less marketable gemstones, is to get advice from a qualified, specialist investment gemstone dealer.
PROS AND CONS
- When Argyle closes it takes 90% of the worlds pink production
- This is a commodity. It has not been affected by any economic crisis
- Low level of risk
- Demand for rare, investment quality gemstones has continued to grow on the back of limited worldwide supply
- Over the past 30 years there have been no recorded dips in the average wholesale price per carat on investment quality precious stones
- The most concentrated form of wealth
- A way to transfer wealth from country to country
- Global demand decreases
- Finding another mine
- Paying too much for investment