According to new research published by the Fancy Color Research Foundation (FCRF), one of the most overlooked facts concerning the diamond industry is that the world’s diamond mines are rapidly depleting. Within a quarter of a century, the majority of the 45 most notable diamond mines operating today will cease to exist, and the last diamond will be unearthed in 60 years. According to the FCRF, diamond prices will rise as supply wanes.
D1 Mint Limited, the creator of the diamond-backed crypto asset D1 Coin, has signed its first purchase agreement to buy 1,500 investment-grade diamonds, valued at approximately $20 million, from diamond cutting and polishing company KGK Diamonds.
As has happened with fine art, wine, and other categories, well-informed consumers are rapidly recognizing the opportunities inherent in jewelry and, in the process, driving up the prices of an already limited commodity. Just 10 years ago, a buyer could have bought a vivid blue diamond for $200,000 to $300,000 per carat; today, that same stone is fetching $2 million to $3 million per carat. This tenfold increase in value surpasses the growth rate of the S&P 500 and most real estate markets ...
The International Institute of Diamond Grading & Research (IIDGR), part of De Beers Group, today announced it will provide diamond verification services to Singapore Diamond Mint Company’s (SDM) new investment-grade diamond product, Diamond Bullion, listed on the Singapore Diamond Investment Exchange (SDiX).
This week, the Antwerp World Diamond Centre and the University of Antwerp hosted an “Innovation and Diamonds” conference at the Antwerp Diamond Bourse, featuring specialists from across the entire spectrum of the diamond trade, from mining to blockchain tech.
In November 2016, Reuters reported that an Italian market regulator Consob was investigating the sale of high-quality investment diamonds through bank branches across the country after a TV report alleged the stones were mis-sold to the public. Several Italian banks distribute diamonds for diamond brokers, generating around 300 million euros ($334 million) in sales for the brokers last year.
Singapore Diamond Investment Exchange (SDiX), the world's first commodity exchange in physically settled diamonds, has announced a partnership with Kynetix, a physical commodity digitisation expert, and Everledger, supplier of blockchain and distributed ledger infrastructure, to complete the first part of a Proof-Of-Concept of a blockchain-based authentication and secure record-keeping service for trading diamonds on a global commodity exchange. The technology is designed to enable holders of diamonds wi
Necklaces with detachable pendants that double as brooches, tiaras fit for royalty that can also be worn as bracelets, and earrings which can transform into haircombs are making their way back this season. High Jewelry brands such as Chaumet, Van Cleef & Arples, Cartier, Bulgari and Graff have re-embraced the notion of transformable jewelry. The versatile trend is“perfectly adapted to our times,” says Jean-Marc Mansvelt, CEO of Chaumet.
Russian diamond miner ALROSA has postponed initiation of investment diamonds trading on the Moscow Exchange until summer 2017, the company told Russian news agency TASS. "The Investment Diamonds project launch deadline is postponed in connection with the need to work out its implementation mechanisms in greater detail. We are working to address interests of all market participants and offer a liquid investment and saving mechanism to investors. The project will start in summer 2017," the official spokesperson of Alrosa said.
Joseph Lipton, inventor and CEO of VULT - a digital diamond exchange platform seeking to turn diamonds into a true tangible asset class - presented his cutting-edge ideas about the future of global wealth at a very special TEDxFultonStreet Salon about “Things You Can’t Have” with other thought leaders in NYC.
High price purchases of 'fancy colored' diamonds, once the almost exclusive domain of collectors and connoisseurs, have become more commonplace in recent years, writes The Wall Street Jounal, as investors seek to take advantage of soaring appreciation of these rarest of stones. "Prices are being driven higher by investors who are hoping the hot market stays hot, many of whom have been disappointed by returns from other assets, say industry insiders. Over almost eight years, from the start of 2009 to Sept.
Two investment bubbles, 340 years apart, provide living proof of Edmund Burke’s famous observation that those who do not know history are doomed to repeat it. Rough diamond broker and founder and president of N.Rothmann, Nurit Rothmann recounts the history of two remarkably similar speculative bubbles: the spectactular rise and sudden collapse of the tulip market in 1637 and the rough diamond market in the late 1970's and early '80s. Reprinted here by special arrangement.
Russia's ALROSA, the world’s largest diamond miner by volume in carats and value, plans to launch retail trade in investment-grade diamonds in 2018, according to a plan ALROSA President Andrei Zharkov approved on Thursday. "The aim of the investment diamond selling project is to support Russia’s diamond manufacturing industry, as well as to create a market employing investment properties of diamonds," says Zharkov.
Three Texas men are awaiting trial after allegedly tricking 77 investors out of $6.5 million in a diamond investment fraud scheme, according to the U.S. Justice Department. The men have all been charged with wire fraud and conspiracy to commit wire fraud, while two are also accused of mail fraud, according to the Dallas Morning News. They could face 20 years in federal prison if convicted.
Pin Lee, writing for the South China Morning Post, spoke with insiders from the Hong Kong and Asian diamond market to get their opinions on diamonds as an investment. While not without risk, as with any investment, by making a careful choice and focusing on the highest quality and rarest of stones, one should end up with a rock-solid investment. "Generally speaking," said Chin Yeow Quek, Sotheby’s deputy chairman of Asia and chairman of international jewellery in Asia, "diamonds do not fluctuate but, as with most items of value, there will be some ups and downs.
"With new fortunes being created around the world faster than at any time in history," write David Brough and Atul Prakash for Reuters, "more of this expanding elite of wealthy investors are looking at different ways of protecting cash that now earns close to zero percent interest in bank accounts, while asset market turbulence can wipe out millions in hours. Some are eyeing rare diamonds as a best friend, or long-term haven at least. And it's no longer just a top table of 'super rich' billionaires who are gravitating to this arcane world. A second division of wealthy is emerging.
Real assets should provide investors with a sense of a safe haven. But today, the image of financial products related to gold, silver or industrial metals, which are hedged with physical assets and should therefore provide investor protection, is damaged. A changing world requires a range of long-term, value-protecting alternatives to hedge financial investments. On top of this list should be investment diamonds.
Following a week that saw the Oppenheimer Blue break all auction records for a polished diamond, and in which the sale of his own Unique Pink Diamond broke the record for a pink stone, industry analyst and veteran diamond trader Ehud Arye Laniado examines the 'how' and 'why' of the recent spate of diamonds achieving record prices.
The goal is to change the perception that a diamond is a financial expenditure and to facilitate the perception of a diamond as an asset ... With the increase in synthetic diamonds, which when placed in jewelry are no less beautiful than natural diamonds, we must highlight the financial value of natural diamonds. I believe that synthetic diamonds are here to stay but their existence and usage in the jewelry industry can only boost the notion of natural diamonds as an asset with potential wealth preservation value.
Russian diamond mining company Alrosa is in talks with the Moscow Exchange to offer investors there the chance to invest in up to $1 billion worth of diamonds, news agency RBK reported on Friday. Sputnik International reports that while rare stones such as blue diamonds are subject to sharp changes in their valuation, other diamonds could offer a more stable investment than precious metals, as their value tends to fluctuate by less than five percent a year.
Diamond industry analyst Ehud Laniado takes an in-depth look at why diamonds are not fulfilling their economic 'promise' as a luxury investment that will appreciate in value. Comparing the performance of diamonds to other luxury items bought out of 'passion', he determines that the lack of marketing is hurting diamonds' potential to be perceived as an asset rather than just an expense. But he has a plan.
Customers and staff of a company called Asia Fine Diamonds (AFD) are up in arms after the so-called investment firm went out of business owing money, Singapore's Straits Times newspaper reported. A report cites a client, Stephen Yeo, who invested $17,785 in a 0.21-carat round cut diamond - described as "fancy intense purplish pink" - from AFD. He never laid hands on it. Meanwhile, an AFD employee said that about 20 sales, telemarketing and administrative staff have not been paid for about two months, with the office closing down in January.
Heritage FA Limited, which marketed and sold colored diamonds and other commodities to the public for investment, has been officially ordered into liquidation. An investigation found that vulnerable and elderly individuals were being targeted and aggressively sold investments in fancy colored diamonds and rough diamonds, as well as gold, fine art and oil wells. It was discovered that at least £7 million (around $10 million) was raised from investors generating commission of over £2.5 million (about $3.5 million) before the company was forcibly closed.
Singapore-based securities firm and investment bank UOB Kay Hian (the stockbroking arm of United Overseas Bank Ltd) has joined the Singapore Diamond Investment Exchange (SDiX), the world's first and only commodity exchange trading in physically settled diamonds, as its pioneer broker, writes The Business Times. This means UOB Kay Hian will be able to offer its accredited investors the chance to invest in diamonds as an asset class. Its affiliates in Hong Kong, Thailand, Malaysia and Indonesia will have the same access.
Fred Mouawad, the Mouawad Diamond Division Bangkok Co-guardian and the man behind the most expensive piece of lingerie in the world (Victoria's Secret, $11 million) tells Bloomberg at the International Jewelry Show in Hong Kong that the diamond industry is under as much pressure as any other business, but that diamonds are, "probably one of the best asset classes you can invest in." Mouawad said that, "The diamond and jewelry industr
"It was with profound disbelief that I read your press release today entitled: "Rapaport Launches New Investment Diamond Grading Report". In all honesty, my initial response to this press release was simply: Has Rapaport totally lost their f----g minds? It’s not enough that the “Rap Sheet” ruined the profitability of the retail diamond markets, or that the effort to “commoditize” diamonds was such an incredibly absurd (read: failed) idea. Now Rapaport wants to promulgate the selling of diamonds to consumers as “investments” like stocks and bonds?
The Rapaport Group has issued a press release announcing the launch of "a new diamond grading report - the Rapaport Investment Diamond Report (IDR). The new report conservatively grades diamonds based on Gemological Institute of America (GIA) standards. Additional gemological information including tint, location and color of inclusions as well as high resolution images are provided online and with the report. All Rapaport Investment Diamond Reports are double tested, as they include an additional independent GIA diamond grading report."
For the first installment of our new series, “Through the Loupe”, that will deliver insightful analysis from a broad selection of diamond industry insiders, The Diamond Loupe sat down with Peter Robinson to talk about Gem Diamonds - miner of some of the largest and highest quality diamonds in the world - and its Baobab manufacturing facility in Antwerp, the current state of diamond miners, investment diamonds, consumer demand and the art of polishing large, high-value diamonds.
The London Diamond Bourse (LDB) has partnered with a government agency, the Insolvency Service, to deal with the issue of companies claiming to offer diamonds as an investment. The London bourse has published a document on the public area of its website to help the public avoid falling foul of “boiler room” scams purporting to sell highly lucrative investment diamonds. The consumer advice was developed by the exchange and the Insolvency Service with former chief executive officer of the British Jewellers Association, Simon Rainer, consulting for the project.
On the eve of the January 18 public launch of the first diamond backed cryptocurrency in the world, the PinkCoin, by Precious Investments (OTC Markets: PNIK) and its subsidiary BitGem Asset Management Ltd. (BAM), fancy colored diamond investment consultant Yaniv Marcus has raised multiple red flags about the investment scheme, warning of a potentially major scam. "Precious Investments Inc. is continuing to mislead investors with innovation and a colorful website.
The New York Times writes that "If there is a holiday gift almost guaranteed to make a recipient swoon with joy, it is a diamond", but buying diamonds as an investment is tricky business. "The value of certain colored diamonds has increased while traditional white diamonds have fallen. Diamond dealers are talking about pink, blue and red diamonds as investments, citing a recent track record of double-digit returns." For example, the best-known pink diamonds are from the Argyle diamond mine in Australia. “They’re less and less available and more and more in demand.
Yair Shimansky, CEO of Shimansky Diamonds and one of South Africa’s leading diamond experts, shares his insights with Mineweb regarding investing in diamonds. The first thing he clarifies is that, “Buying diamond jewelry is not a financial investment. It’s an emotional investment in your relationship.
Yaniv Marcus of the Diamond Investment & Intelligence Center questions the fundamentals behind an investment scheme created by Precious Investments Inc. Precious Investments' October 5 press release claims that "BitGems" will be the "first asset based Ether coin on the cyber currency market, which will be values [sic] and supported by the color diamond portfolio in PNIK... with a total appraised retail value of $5,000,000".
At the end of last year, China became the world’s second largest diamond consuming market. More Chinese people not only buy diamonds as a luxury, but also hold them as an investment. In the international market, the price of white diamonds has increased around 160% in the past ten years. But in China, prices of some diamonds in retail stores have remained almost unchanged compared to a decade ago.
The Insolvency Service (TIS) of the U.K. disqualified three directors of Cohen Stones Ltd., Imperial Assets Solutions Ltd. and Tudor Global Ltd. from a "director" role at any firm for more than a decade after investigators determined the men misled diamond investors and then filed voluntary insolvency. The TIS said that the three companies operated in a similar fashion: selling diamonds to customers with an extraordinary markup, claiming the stones would increase in value annually and recording a profit before filing for bankruptcy.
Despite these multitudes of reasons [steady increase of diamond prices over time, future value increase probable due to strong demand and dwindling supply], financiers are still wary of investing in diamonds [due to lack of transparency, fungibility & standardization]. Investors feel that they are not knowledgeable enough to evaluate diamonds and have to depend on intermediaries. Even the gem and jewelry market is reluctant to offer diamonds as investment option owing to smaller profit margins compared to retail market.
UK-based diamond development company Paragon Diamonds Ltd. has signed a memorandum of understanding with Canadian mining company Lucara Diamond Corp. to acquire a 75% interest, with an acquisition cost of USD 8.5m, and operate the defined Mothae Kimberlite Resource, the company said. The Mothae Kimberlite Resource is located 5 km from the Letseng le Terai diamond mine in Lesotho. The acquisition is subject to approval from the government of Lesotho.
With trading conditions in the global trade remaining tough, the colored diamond business is increasingly promoting itself as the investment diamond vehicle. Colored diamonds account for just 1 percent of the entire diamond market, and some industry observers estimate that there is just one carat of colored diamonds for every 100,000 carats of white stones, so naturally they cost more than their transparent counterparts. Furthermore, supply is falling while demand, particularly from collectors and investors, is rising. All the makings of a perfect investment storm.
Eden Rachminov from the Fancy Color Research Foundation says they aim to bring pricing transparency to the coloured diamond trade with its fancy color diamond index —a first-of-its-kind tracker designed to monitor changes in pink, yellow and blue fancy diamonds. He says that the fancy color diamond as "an alternative asset class ... has exhibited strong growth.