Currency Capitali$t
Vol. 3 No. 7
Profiting From Today’s Best Currency Opportunities
July 2010
The Great Inflation Waiting Game
Why Inflation is Still Coming and a Sure-Fire
Way to Get Paid While You Wait
Inflation. Deflation. Reflation. Hyperinflation. Biflation.
As far as “flations” go, I’ve heard it all and then some. This month, I want to set
the record straight. I want to give you my take on what’s really coming for the U.S.
economy.
For some time, I’ve said the government’s nasty habits would lead to inflation.
That includes increasing the money supply, handing out stimulus, easing credit, and
flooding the banks with reserves.
Chuck Butler
I’ve also told you how the Fed would be behind the 8-ball in hiking rates and would allow this
inflation to soar. (As we went to press, the Fed announced that they won’t be raising rates for quite
some time, so apparently Big Ben is already taking that route.)
Well, I’m here to tell you that I’m not changing my tune. Instead,
I will just wait to sing it louder again!
I say that because currently deflation is all around us. But even
though we’re stuck in the deflationary mode right now, it’s pretty
obvious to me that inflation is still just around the corner, after this
latest crisis eventually calms. That means higher prices for everyone.
Inside This Issue:
The Few Places You’ll Find
Inflation Right Now
Is the U.S. Turning Japanese?
The Moral of This “Flation”
Story
How to “Insure” Your Stock
Portfolio with Foreign
Currencies
Crisis = Deflation, for Now
Asset price deflation has been around since Lehman employees
joined the unemployment ranks in September 2008.
This Currency Performed
Better than Gold during the
Global Recession
Now stocks have rallied back since then, but asset prices overall
have not reached anywhere near where they were before this crisis
stole everyone’s focus.
New Stock-Insurance Portfolio
Continued on page 2
Published by World Currency Watch
A Division of The Sovereign Society
How to Use This “Insurance
Tool” to Earn up to 320%
Currency Capitali$t
Continued from page 1
For those of you new to the class, any market
crisis forces deflation like this.
each and every week? They could simply hire
someone else.
It’s because market uncertainty encourages
both consumers and investors to cut back. They
tighten their belts, spend less, sit in cash, and
even stick money under their mattresses.
I don’t expect this to change anytime soon, for
I truly believe that the unemployment problem
in this country will last through 2012.
This forced liquidation causes a period of
negative price movement (hence you have deflation when all is said and done).
Now we still haven’t healed from the 2008
crisis, and we have a new global crisis in the
Eurozone. This euro debt crisis is pushing down
asset prices once again. This will continue until
things change overseas.
At the Same Time, Employers
Pay You Less!
Since 2008, we have also seen wage deflation
that’s stealing jobs and salaries.
After all, why would employers pay you more,
when over 450,000 new jobless claims are filed
The Few Places You’ll Find
Inflation Right Now
While deflation has stolen wages and market
earnings, inflation has not completely
disappeared, either.
Here are some of the most startling year-over-year
price increases in the U.S. markets:
• Fresh and dry vegetables up 56.1%
• Fresh fruits and melons up 28.8%
• Eggs up 33.6%
• Beef and veal up 10.7%
• Dairy products up 9.7%
That’s just food. Imagine what the coming inflation
will do to the rest of the items you have to buy for
yourself at the supermarket.
2
But once this wage deflation finally disappears
and hiring begins in earnest (and not just on paper as the government would have you believe),
wages will rise like the Phoenix bird from the
ashes of deflation.
Deflation, Available at Stores Near You
I’m also seeing deflation at all major stores.
I’m seeing defilation in TV’s… computers…
cell phones… new game systems for my son…
The prices just keep falling.
That’s a problem because if deflation “stays”
in an economy, you get a stagnant economy.
The economy goes nowhere. People don’t want
to spend more because they expect lower prices
later. It can become a vicious cycle.
(Don’t believe me? Just ask the Japanese, who
suffered through a deflationary economy since
the 90’s!)
Also this deflation gives the Fed Reserve, and
others a false sense of security with regards to
inflation.
The Fed believes they won’t have to deal with
inflation for some time, because of the unemployment situation. And at the moment banks
are not releasing their excess reserves into the
marketplace.
Investors and traders alike have the same false
sense of security. Why be concerned with inflation when deflation is all around us?
Currency Capitali$t
Here’s the sticky point: This deflation will
eventually subside, and we’ll have another inflation monster waiting on the other side...
Who Will Spark the Next Round
of Inflation
I know inflation is coming because I understand bankers. I know how they think.
Soon bankers will have to loosen their purse
strings and start loaning out cash again. Granted
it won’t happen for the next six to 12 months,
but it will happen.
They have to start loaning again — bankers have
to make a profit just like anyone else. They won’t
do it unless they can start collecting interest again.
The Fed is quite aware banks must put their
reserves to work, and they know it could cause
inflation to soar once more.
On June 15, the Fed announced their very
first auction of Term Deposits, which is simply a
fancy way of saying CDs.
The Fed wants bankers to buy these CDs,
and collect interest. That way bankers won’t be
tempted to start loaning out funds to the general
public and release this tsunami of cash into the
marketplace.
Here’s the problem: I know the Fed’s CDs are
Currency Capitalist is published monthly (12 times a year) for $99 per
year by World Currency Watch, 98 S.E. 6th Avenue, Suite 2, Delray
Beach, Florida 33483.
Editor: Chuck Butler.
Emerging Markets Analyst: Ashish Advani.
Managing Editor: Kat Von Rohr.
Graphic Designer: Bruce Borich.
Contact the editors by email at: [email protected]. For
information about your subscription to Currency Capitalist, contact
Subscriber Services at 800-818-6934 or fax 561-272-5427.
WEB PASSWORD: Read this issue, and all past issues of the Currency
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password.
Is the U.S. Turning Japanese?
I’ve long written about how the U.S. was following
the same mistakes that Japan made in the 90’s
that caused their economy to wallow in deflation.
I’ve borrowed the lyrics to the 80’s song… “We’re
turning Japanese, yes, I really think so!”
But a multi-year deflationary period like Japan?
That’s not going to happen. The day the U.S.
suffers a multi-year deflationary period like Japan, is
the day that pigs fly!
Here’s why: Americans are not the same as the
Japanese. We have always looked to spend,
whereas the Japanese have always looked to save.
Look at consumer spending data each month. Even
during this long recession, personal spending has
been positive, and in fact has resumed its previous
position (before the financial meltdown) of printing a
larger number each month than the corresponding
personal income number.
If my fellow Americans are increasing their spending
during a recession and with unemployment at 20%
(using real numbers), imagine how much they’ll
spend once things improve!
no match for the net interest and fees associated
with a loan. I’m sure bankers are chomping at
the bit to get back to loaning money!
So in short, deflation will subside, and inflation will take over in six months to a year. When
that happens, certain currencies will soar. But in
the meantime, you need to protect your portfolio from this deflationary wave.
If Cash Is King, Foreign Cash Is Better
As an investor, what can you do in the shortterm to protect yourself from deflation?
Well, portfolio theorists have always said that
the best thing you can do is hold cash!
In their world, cash always equals buying the
U.S. dollar. But that’s not the only option. There
are plenty of other ways to invest in cash during
a deflationary era.
3
Currency Capitali$t
Currency Scoreboard
Major Currencies
Price (6/24/10)
30-day change
12-month
change
89.39
1.22
1.11
1.49
1.04
0.86
7.8
6.51
6.06
0.7
-2.05%
-0.79%
-3.48%
2.76%
0.00%
1.18%
-0.13%
0.77%
0.33%
2.87%
-7.33%
-13.04%
1.83%
-9.70%
-10.33%
6.17%
1.30%
1.24%
14.12%
8.41%
Japanese yen
Euro
Swiss franc
British pound
Canadian $
Australian $
Swedish krona
Norwegian krone
Danish krone
New Zealand $
Sentiment View
Direction











Japanese yen
euro
Swiss franc
British pound
Canadian $
Australian $
Norwegian krone
Swedish krone
Danish krone
Gold
Silver
Comments
But only as long as current
crisis remains
Euro will suffer from Greek
Hangover
SNB drops need to stem
appreciation Continue to fall after election
Oil is back on rally tracks!
Has backed off, buy on dips Has backed off, buy on dips
Will follow the euro lower
Will follow the euro lower
A new all time high
Cheap compared to gold
But fortunately, we are talking about the
currency market here. There’s no such thing as
an across-the-board bear market in currencies.
There’s always at least one currency rising against
the others.
For now, those currencies are the U.S. dollar,
Canadian dollar, Swiss franc, and Japanese yen.
In this environment, I would also consider
precious metals to be “cash.” Hard currencies like
gold and silver also rise during in times of uncertainty. So they both qualify as good buys during
a deflationary era, and an inflationary one!
The Moral of This “Flation” Story
If you take nothing else from this issue, please
be sure to listen to what the market is saying to
you right now.
As you can see I’m a firm believer that
inflation is heading for us in 2011. But in the
meantime, we’re seeing deflation in most of
the market. You must recognize that so you
should take advantage of the short-term opportunities.
This month, we have created a special deflationary portfolio in your Currency Capitalist to
help you do just that.
Other Key Indicators
Gold
Silver
Crude Oil
S&P 500
Price (6/24/10)
30-day change
12-month change
$1,229.55
$18.26
$75.74
$1,092.04
1.10%
-1.62%
2.39%
0.24%
32.69%
34.26%
1.49%
18.79%
= Up = Down = Neutral
For instance, you can buy foreign cash. With
the deflationary asset prices hanging over us like
the Sword of Damocles, buying certain currencies will be tricky too.
4
I’ve asked my colleague Sean Hyman, who
spends every day watching the daily Forex market to explain how you can jump on these shortterm deflationary plays. CC
Till next month — stay diversified!
Chuck Butler
Currency Capitali$t
How to “Insure” Your Stock Portfolio
and Earn Up to 27% in Profits
I own two muscle cars from
the ‘60s — a 1967 Camaro
and a 1969 Corvette Stingray
convertible.
Sean Hyman
I don’t just keep them in my
garage either. I drive at least one
of them almost every day.
You see, I don’t understand why people refuse
to use nice things — why china collects dust in
cabinets or certain rooms are saved for special
occasions. No, around the Hyman house, we use
everything!
Back to my cars: I mentioned that I drive
them regularly. However, there’s always a chance
that the cars could be damaged, so I fully insure
both of them.
is one area of your lives that is left wide open to
risk. Often, it’s more valuable than both your
cars and even your home.
It’s your stock portfolio, and all your taxable
brokerage accounts including your tax sheltered
IRA and 401k accounts. If you add it up, that’s a
lot of money at stake.
Fortunately, there’s an easy way to “insure”
these accounts (more on that in a moment).
Don’t Leave This Huge Asset
Uninsured
I’m writing you at a very important time.
The S&P 500 nearly doubled off of its March
2009 lows up until May of this year. Baby
Boomers saw their portfolios come back from
the brink of destruction.
Another huge investment that I have is my
house. Now while its much less likely that something will happen to my home, I have homeownBut as we all know, the gains are quickly
er’s insurance as well.
disappearing. As Chuck just mentioned, the EU
crisis has sent the destructive forces of deflation
That way, if a hail storm blows through
ringing through the market.
(which happens often in my hometown northern
Dallas for some reason), I can easily replace my
That’s not all. As a trader, I constantly moniroof or anything else on my home.
tor charts from all assets including stocks, commodities and currencies.
I’m sure you’re the same way. You probably
Right now there’s one specific chart that has
have insurance on your homes, cars, maybe even
your wedding rings or other jewelry.
caught my attention. It’s the chart that tracks the
World Stock ETF, and it follows a huge basket of
However, if you’re like most investors, there
stocks from all over the world.
5
Currency Capitali$t
when the rest of your stock portfolio or worse,
your retirement account, falls.
Currently every single item on this chart is
telling me that stocks are about to fall.
I can see that lower highs and lows have set
in. Also, the 50-day small moving average just
crossed the 200-day moving average.
This Currency Performed Better than
Gold During the Global Recession
If you’re looking for insurance, you can start
with adding gold to your portfolio.
That’s the death cross for stocks — it forces
computerized trading programs all around the
world to dump equities. So basically it means:
timber! Watch out below!
The Entire World Just Said Sell Your Stocks!
47
46
We all know that gold acts like a form of
insurance and holds its own when most other
things are headed towards zero. I’m a firm believer that everyone should own some physical
gold in their portfolios.
45
44
World
Stocks
43
42
41
40
39
50 Day
Moving
Average
38
200 Day
Moving
Average
Sell
Signal!
37
36
35
34
Jul
Aug
Sep
Oct
Nov
Dec
2010
Feb
Mar
Apr
May
However, there’s a much cheaper way to get
this insurance. You can simply buy the few currencies that look to rise as stocks fall.
Jun
The trend is changing. The party is over. The
government “pump up the market” money has
run its course and now the market is about to fall
flat on its face again.
So in short, you must get ready right now so
that your portfolio doesn’t suffer.
Your Insurance Policy from the
Coming Stock Sell-Off
I hope that chart gives you enough healthy
fear, so you can act now and protect your portfolio.
My absolute favorite currency to buy is the
Japanese yen.
In fact, I believe buying the Japanese yen is
just as good, if not better than buying gold outright during times of deflation.
What?!? Yes, buying the Japanese yen is even
better than buying gold alone and I can prove it.
Check out the chart on the next page which
shows gold vs. the Japanese yen. Basically,
when the line rises it means that gold is rising in value in Japanese yen terms (or gold is
“beating out” yen). When the chart line falls,
it means that the yen is winning out over gold.
So now what? How do you keep your stock
portfolio from turning into a scene from the
Nightmare on Elm Street?
As you can see from the circled area, the Japanese yen outperformed gold during the worst
of the credit crisis. If you’ll remember back to
2008, gold was relatively flat that year, while the
Japanese yen soared.
Easy! You get portfolio insurance. Or in other
words, you buy a few assets that tend to rise
In other words, the Japanese yen was the best
hedge against the deflation the last time we saw a
6
Currency Capitali$t
serious period of deflation in the markets. That’s
why I say it’s even better than gold.
One Type of “Stock Market Insurance”
That’s Better Than Gold!
11.6
11.4
11.2
11.0
10.8
10.6
10.4
10.2
10.0
9.8
9.6
This time is no different! The Japanese yen
is one of the best tools you can have to protect
your stock earnings.
9.4
9.2
9.0
8.8
8.6
8.4
Now how to buy the Japanese yen. Well honestly, my favorite way is in the Forex market (see
the sidebar for information on how to do it).
But as a long-term investor, you can buy
the CurrencyShares Japanese yen trust (NYSE:
FXY) in your stock brokerage account. This
play gained 27.7% during the global recession,
and could easily gain another 27% this time
around.
Why Stop There? Build a Whole
Portfolio to Protect Yourself!
Like Chuck, I’m a firm believer that we’ll be
8.2
Gold falls as
the Japanese
yen rises in
2008
2007
2008
2009
8.0
7.8
7.6
7.4
7.2
7.0
6.8
6.6
2010
in deflationary mode for a while longer. That’s
bad news for stocks, most commodities and yes,
several foreign currencies too.
That’s why I’d like to introduce a new portfolio to Currency Capitalist this month. It’s a
short-term “stock insurance” portfolio designed
to rally when most stocks and other foreign currencies fall.
How to Use This “Insurance Tool” to Earn up to 320%
Next Time Stocks Fall
My favorite way to buy the Japanese yen is to pair it
with weaker foreign currencies. In other words, I like
trading the Japanese yen in the Forex market.
Earn a Commission-Free 320%
Just By Shorting the EUR/JPY
70
It’s the only way I know to buy the Japanese yen
without paying commissions and make a bundle in the
process.
65
If you had shorted the euro, and bought the Japanese
yen in the Forex market during the global crisis (or sold
the EUR/JPY currency pair) you would have more than
tripled your money.
45
The reason is the euro tends to move in the same
direction as stocks. We saw that in the past month
as both stocks and the euro sold off. And as I just
mentioned, the Japanese yen moves in the opposite
direction of stocks.
60
55
50
40
35
30
The EUR/JPY plummeted
5,500 pips or 32% (unlevered)
during the global recession!
25
20
15
2007
2008
2009
2010
401k, IRA or even a taxable stock brokerage account.
Pair them together and voila — you grab a nice tripledigit gain.
EDITOR’S NOTE: Sean Hyman is the editor of Currency
Cross Trader which focuses on pairing the weakest foreign
currencies with the strongest currencies worldwide.
I think that would go a long ways towards protecting
your other depreciating assets in your portfolio. This is a
great way to use your Forex trading account to protect a
In the past eight months, this dynamite strategy has led to 13
out of 18 winners. You can learn more about his service here:
http://www.worldcurrencywatch.com/Sean.
7
Currency Capitali$t
We have three of the plays in our portfolio
already: gold, silver, and your PowerShares DB
Dollar Bullish Index (NYSE: UUP).
All three plays are already climbing, but
frankly I would still be buying all three at this
stage in the game. In addition, I’d like to add
the CurrencyShares Japanese yen trust (NYSE:
FXY) play to this new portfolio because again,
I see it soaring even further than gold at this
point.
Now please understand: This does NOT
negate the other plays in your Currency Capitalist portfolio. Your long-term core holdings will
soar once more when inflation grips the market
again. But in the meantime, use this short-term
portfolio as your hedge.
This is just an “insurance policy” to protect
your currency, commodity and stock holdings.
But it’s also a great way to play deflation in the
short-term. Buy now! CC
Currency Capitali$t Portfolio
Symbol/
ISIN
Exchange/
Domicile
Added
Buy Price*
Price
6/23/10
BUY: NEW “Stock Insurance Portfolio”
CurrencyShares Japanese Yen Trust
Gold in Pooled Account
Silver in Pooled Account
PowerShares DB US Dollar Bullish Index
FXY
Your Bank
Your Bank
UUP
NYSE
Your Bank
Your Bank
NYSE
July
Oct-08
Jan-09
Mar-10
$110.22
$5,000.00
$5,000.00
$23.72
$110.22
$7,016.70
$8,503.21
$24.97
NEW
40.33%
70.06%
5.27%
BUY
BUY
BUY
BUY
TIME TO SELL:
ProShares UltraShort 20+ Year Treasury (ETF)
TBT
NYSE
Jul-09
$50.65
$37.96
-25.03%
SELL
$10,824.00
$22.26
$87.52
$95.81
$10,551.00
$25.24
$1,291.95
$1,537.35
$19,240.00
$11,342.00
$8,855.00
$26.74
22.80
$1,557.45
$32.05
8.24%
-13.95%
18.53%
0.22%
5.51%
8.77%
3.34%
2.49%
-3.80%
13.42%
-11.45%
2.69%
-3.31%
3.83%
-6.34%
HOLD
HOLD
HOLD
HOLD
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HOLD
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HOLD
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HOLD
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HOLD
HOLD
CURRENT POSITIONS:
All-Weather Portfolio
EverBank
EverBank
Feb-09 $10,000.00
iPath S&P GSCI Crude Oil Total Return
OIL
NYSE
Dec-09
$25.87
CurrencyShares Australian Dollar Trust
FXA
NYSE
May-09
$74.00
CurrencyShares Canadian dollar Trust
FXC
NYSE
Jan-10
$95.60
Asian Currency Portfolio
EverBank
EverBank
Sep-08 $10,000.00
WisdomTree Dreyfus Indian Rupee Fund ETF
ICN
NYSE
May-09
$23.22
American Eagle Coins
Bank/Coin Dealer Bank/Coin Dealer Dec-09
$1,250.15
MarketSafe BRIC CD
EverBank
EverBank Jul-09 (Issue Alert) $1,500.00
Viking CD
EverBank
EverBank
Oct-08 $20,000.00
Brazilian Real CD
EverBank
EverBank
June-09 $10,000.00
Norwegian Kroner CD
EverBank
EverBank
Jan-10 $10,000.00
WisdomTree Brazilian Real ETF
BZF
NYSE
Mar-10
$26.04
PowerShares DB G10 Currency Harvest
DBV
NYSE
April-10
23.58
MarketSafe Gold CD
EverBank
EverBank April - 10 (Issue Alert) $1,500.00
CurrencyShares Russian Ruble Trust
XRU
NYSE
May-10
$34.22
Total Returns Advice
*NOTE: Starting in 2010, all buy prices are based on the first day subscribers could buy after the issue was released online.
All contents of this issue are copyright 2010 by World Currency Watch and Currency Capitalist. All rights reserved: reproducing
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8
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Open an offshore diamond account and be assured of the stability and integrity of Swiss
banking along with the prestige and performance of the international coloured diamond market.
Only 1 in 10,000 carats of diamonds are coloured. This
means the demand for coloured diamonds far exceeds the
supply. As sophisticated international collectors, investors
and jewelry buyers continue to increase their rare hard
asset holdings and as major sources of supply for coloured
diamonds decline, coloured diamond prices are expected
to rise significantly over the next decade.
There is no requirement for registration of your diamond
portfolio with any governmental or regulatory body.
Diamonds are, as yet, not considered a monetary vehicle.
As a transportable concentration of wealth, a diamond,
representing millions of dollars, can literally be discreetly
carried in the palm of your hand.
Long Term Growth
Unregistered Hard Asset — Transportable
Free Market System — Hedge Factor:
No cartel, individual group or company controls the
coloured diamond market. The market is governed by
the laws of supply and demand, and remains virtually
free of any external interference. An international market
structure dictates that coloured diamonds be considered
as one of the best global hard asset hedges against
currency devaluation and inflation.
Affordable Safety and Protection:
Given the top-rated status for coloured diamonds for
the past thirty years, this tangible asset is one of the
safest havens for your money. You can start collecting
with a moderate sum tailored to your individual financial
situation and build a portfolio at your own pace.
Learn Why Coloured Diamonds Have Always
Protected Investors Against Currency
Devaluation and Inflationary Pressure
Identify Where the Next Major Price Increases
Will Occur In the Coloured Diamond Market.
35-YEAR TRACKING OF DIAMOND APPRECIATION
1 carat DFlawless Colourless
1 carat Fancy Vivid Yellow
1 carat Fancy Pink
1 carat Fancy Red
1 carat Fancy Blue
1 carat Fancy Orange
1,120%
2,260%
2,855%
3,340%
3,410%
3,680%
Past performance of coloured diamond appreciation is not necessarily indicative of future results.
LeadGetter2010.qxd:22140 Pastor GenËv Bro.qxd
1/29/10
2:48 PM
Page 1
A PRIVATE COLLECTION OF NATURAL DIAMONDS, REPRESENTING THE 14 COLOUR VARIETIES.
Coloured Diamonds……… From One Generation To The Next.
THE COLOUR VARIETY COLLECTION
BUILDING WEALTH TODAY.
SECURING STABILITY FOR THE FUTURE.
“Beauty is in the Eye of the Investor”
Open an offshore diamond account and be assured of the stability and integrity of Swiss
banking along with the prestige and performance of the international coloured diamond market.
Unregistered Hard Asset — Transportable
Long Term Growth
There is no requirement for registration of your diamond
portfolio with any governmental or regulatory body.
Diamonds are, as yet, not considered a monetary vehicle.
As a transportable concentration of wealth, a diamond,
representing millions of dollars, can literally be discreetly
carried in the palm of your hand.
Only 1 in 10,000 carats of diamonds are coloured. This
means the demand for coloured diamonds far exceeds the
supply. As sophisticated international collectors, investors
and jewelry buyers continue to increase their rare hard
asset holdings and as major sources of supply for coloured
diamonds decline, coloured diamond prices are expected
to rise significantly over the next decade.
Free Market System — Hedge Factor:
No cartel, individual group or company controls the
coloured diamond market. The market is governed by
the laws of supply and demand, and remains virtually
free of any external interference. An international market
structure dictates that coloured diamonds be considered
as one of the best global hard asset hedges against
currency devaluation and inflation.
Affordable Safety and Protection:
Given the top-rated status for coloured diamonds for
the past thirty years, this tangible asset is one of the
safest havens for your money. You can start collecting
with a moderate sum tailored to your individual financial
situation and build a portfolio at your own pace.
Learn Why Coloured Diamonds Have Always
Protected Investors Against Currency
Devaluation and Inflationary Pressure
Identify Where the Next Major Price Increases
Will Occur In the Coloured Diamond Market.
35-YEAR TRACKING OF DIAMOND APPRECIATION
1 carat DFlawless Colourless
1 carat Fancy Vivid Yellow
1 carat Fancy Pink
1 carat Fancy Red
1 carat Fancy Blue
1 carat Fancy Orange
1,120%
2,260%
2,855%
3,340%
3,410%
3,680%
Past performance of coloured diamond appreciation is not necessarily indicative of future results.
LeadGetter2010.qxd:22140 Pastor GenËv Bro.qxd
1/29/10
2:48 PM
Page 1
A PRIVATE COLLECTION OF NATURAL DIAMONDS, REPRESENTING THE 14 COLOUR VARIETIES.
Coloured Diamonds……… From One Generation To The Next.
THE COLOUR VARIETY COLLECTION
BUILDING WEALTH TODAY.
SECURING STABILITY FOR THE FUTURE.
“Beauty is in the Eye of the Investor”
Open an offshore diamond account and be assured of the stability and integrity of Swiss
banking along with the prestige and performance of the international coloured diamond market.
Unregistered Hard Asset — Transportable
Long Term Growth
There is no requirement for registration of your diamond
portfolio with any governmental or regulatory body.
Diamonds are, as yet, not considered a monetary vehicle.
As a transportable concentration of wealth, a diamond,
representing millions of dollars, can literally be discreetly
carried in the palm of your hand.
Only 1 in 10,000 carats of diamonds are coloured. This
means the demand for coloured diamonds far exceeds the
supply. As sophisticated international collectors, investors
and jewelry buyers continue to increase their rare hard
asset holdings and as major sources of supply for coloured
diamonds decline, coloured diamond prices are expected
to rise significantly over the next decade.
Free Market System — Hedge Factor:
No cartel, individual group or company controls the
coloured diamond market. The market is governed by
the laws of supply and demand, and remains virtually
free of any external interference. An international market
structure dictates that coloured diamonds be considered
as one of the best global hard asset hedges against
currency devaluation and inflation.
Affordable Safety and Protection:
Given the top-rated status for coloured diamonds for
the past thirty years, this tangible asset is one of the
safest havens for your money. You can start collecting
with a moderate sum tailored to your individual financial
situation and build a portfolio at your own pace.
Learn Why Coloured Diamonds Have Always
Protected Investors Against Currency
Devaluation and Inflationary Pressure
Identify Where the Next Major Price Increases
Will Occur In the Coloured Diamond Market.
35-YEAR TRACKING OF DIAMOND APPRECIATION
1 carat DFlawless Colourless
1 carat Fancy Vivid Yellow
1 carat Fancy Pink
1 carat Fancy Red
1 carat Fancy Blue
1 carat Fancy Orange
1,120%
2,260%
2,855%
3,340%
3,410%
3,680%
Past performance of coloured diamond appreciation is not necessarily indicative of future results.
LeadGetter2010.qxd:22140 Pastor GenËv Bro.qxd
1/29/10
2:48 PM
Page 2
Pastor-Genève Advises You To
DIVERSIFY YOUR PORTFOLIO & PROTECT YOUR WEALTH USING
NATURAL COLOURED DIAMONDS
Premium coloured diamonds have consistently held their value during recessions and economic downturns.
Premium coloured diamonds have doubled in value in a 3-year period under specific economic conditions.
Industry statistics and analysis indicate that coloured diamonds are presently poised for dramatic price increases.
BECOME A DIAMOND INSIDER AND JOIN IN OUR SUCCESS.
LEARN WHY COLOURED DIAMONDS ARE THE MOST PRIVATE AND PORTABLE FORM OF WEALTH IN THE WORLD.
The past decade has been witness to one
of the greatest periods of wealth accumulation ever known. Led by the world’s
equity and real estate markets, the
number of global millionaires has tripled.
Much of this growth was attributable to
artificially low interest rates and the
development of the “New Economy” of
growing productivity and international
trade. But as world markets go through
the painful process of correction, a
flight to quality will translate into the
elimination of holdings in speculative
securities and a corresponding increase
in cash, strategic assets and blue-chip
investments with a solid foundation.
Which strategic asset does one choose?
Where can one find the best mix of safety and better-than-average appreciation?
At Pastor-Genève, we believe that the
new focus is to a marketplace that is not
really that new! In fact, it’s hundreds of
years old, and has been quietly rewarding
investors with a unique combination of
safety and generous returns for many
years — COLOURED DIAMONDS.
Mother Nature will be almost impossible
to find in the distant future. From
Australia and South Africa to Russia and
Brazil, supply of the worlds pink, blue,
orange, chameleon and yellow diamonds
are already starting to decline just when
international demand is on the rise as the
wealthy classes seek rare, valuable and
beautiful tangible asset protection.
INT ROD UCT
N
ION EDI TIO
ND
ON
D D IA M
LOURE
T H E C O R O N IC L E
CH
LL EC TIB LE
EM IER E CO
’S
- NATU RE
PR
singly
the most
w diamonds
e and yello
to man.
, purple, orang s of wealth known
red, green
y using
private form
that
exclu sivel
unique and
unaw are
imd almo st
red
they were
are trade
en about the
diam onds
been writt grading (both
. Natural colou exwill say that
than white
of peop le
mely
y colou red reports. So much has
ond
rity
extre
other
Fanc
diam
r
and
majo
tific
colou
ng
we will
iful,
The
ent of scien
diamonds),
came in any rare, extremely beaut is the blood-red diadiam ond gradi
diamonds
the developm white and coloured
diamonds
extremely
close to
for
portance of
all coloured one, they must pay
the point.
diamonds are
s
most rare of
not belabour
red dipensive. The collectors come acros
colou
to buy a fancy
ent. The
mond. When per carat to buy it.
n
It is important accompanying docum is the
US $1 millio
this
rt
Argyle
amond with
grading repo you if
alia’s Giant
diamond
. It will tell man.
years, Austr mere 60 carats
coloured
by
In previous
for the stone
yielded a
a total
“pedigree” natural or enhanced
r is
gems from
diamond mine
is
d. By
rarest pink
n of the colou
the colour
worth of the carats of diamonds mine 24 of
that the origi premium price s.
n
at
If it says
held
millio
even
onds
it
30
lex subof
buy
coloured diam records at aucmely comp
“natural”,
be an extre of us know about
2002, fancy
price
diaColou r can
per carat
rstand. Most
the top 25
price of white and
and carat
ject to unde colour, clarity, cut
eding the
far
rubi es
tion, exce
onds
s,
C’s:
diam
red
eme rald
the four
r in colou
mon ds,
in white
margin.
weight. Colou absence of colour In the
by a wide
sapphires
the
r.
supply
outweighs
tion facto
ts that the
as a valua y, cut and carat
cartel admi
diamonds
negligible
The DeBeers red diamonds is too aign to
colours, clarit to a signi fican tly
rarest of
but
For
.
value
tising camp s of
t
of fancy colou
onds
adver
effec
s
seriou
weig ht
carat
white diam or blue
thousand
to mount any
e than in
Only a few
less degre fancy intense pink
per year
incluthe public.
diamonds
a
eye visible even
red rough
millions
example,
to tens of
fancy colou
actually have
comp ared
vast mastone can worth tens of thousands,carat.
onds. The
are mine d
rs per
white diam
sions and be
ands of dolla
cut only tiny
inclu
will
thous
of carats of
le
d
of
visib
mine
t. One
eye
hundreds
jority of thosea few points in weigh is that
diamond with ht does have an
No white
weig
stones of just t of these diamonds l exfigures. Carat purple, green or red
aspec
ach those
DeBeers carte al
important
ever appro a sub-c arat natur al y because of its rar. Natur
matter if the
sions will
their value to the
it doesn’t
impa ct, but
price tag simplfrom Fancy through
never
to maintain
impo rtant carry an enormous
run
supply has
line
can go on
ty
The
that
.
ists or not
onds
quali
will
value
onds
ll
lose
red diam
overa
diamond
red diam
d and never
fancy colou
will be the
ral, colou
onds in any
they are mine g the demand.
ity. In gene through Fancy Vivid of coloured diam
market as
se
r with the
red
expensive
to outstrippin
y of colou
Fancy Inten
al fancy colou
come close
uces the most
ce the purit
s about natur as ultra-rare reds,
which prod These grades balan
esting thing
r.
onds (as well
most inter
value since
given colou
yellow diam maintained their
One of the
ation.
Some may
orange and
most satur
no
that they havein the early 1970’s.
blue, pink,
ND
indu set. There are se
s
purples) is
ED DIAMO
R
mark
major
U
and
O
in
price
L
s
g
O
cash
C
a
sion
Y
is
becau
green
FANC
side
ed moni torin heavy economic reces
ond market
a credit card
BUYING A
ga
rvious to down
deale rs start
coloured diam normally cannot use done by bank wire
laterally durin they have been impe tment has ever perThe fancy
actions are
have moved
but
nts and you
accepts the
tional inves ge, natural fancy
coun tries,
credit accou the stone. Most trans . Once the buyer
dealble or tradi
avera
trial ized
of
er’s check
returns. Most d.
No other tangiperiod of 30 years! On 5 years from 1970 on,
of the price
iable cashi
pressure.
do not allow
on averthat over a
a local, verif finalized. Auctions
time has passe
price every
or
of
years
like
in
h
d
6-7
led
lengt
is
forme
in
doub
sale
doubled everyonds have doubled
onds have
after a certa
stone, the
cononds have
blue diam
allow them
ques tions
pink diam
yellow diam
of natural
ers do not
natural fancy on, and natural fancy on. Matching pairs 30% over
you still havetopic s, or are into
ed
optio ns, if
age from 1970 8-9 years from 1970 and premiums of up
, other relat
wing these
contact your
al funds and
After revie colou red diam onds
ng, please
in price every diamonds can comm r and quality. Mutu
g, or tradi
red
cerni ng fancy r buying, sellin furth er infor matio n.
fancy colou
the same colouof performance.
eithe
for
stones in
terested in
senta tive
individual only dream of this kind
g
ève repre
natin
r-Gen
fasci
rs
Pasto
, the
bond trade
since
th per carat
tion of weal maintained their value pink,
e concentra
blue,
The uniqu the fact that they haveded make fancy
beauty, and been regularly recor
prices have
CO LO UR ED
DI AM ON DS
THE C
COL
OLOUR
ED
CHRON DIAMOND
ICLE
LECT
ING
AND
INVE
Collec
ting fan
kno
cy
Natural coloured diamonds are extremely
rare (especially when compared to
colourless diamonds) and come in virtually
every colour of the rainbow. What is critical
for investors to understand is that for the
first time in 25 years, diamond supply is
on the decline and the primary areas that
will be most affected by the impending
supply shortages are in areas where they
source rare coloured diamonds. This
means that these scarce items created by
STIN
G
wledge
colour
, pat
ed dia
colour
ed dia ience and goo monds is
mo
or just
no
d
need the nd may exp luck. One day easy task.
ire, ma
needs
It req
the ow
y lose
the goo funds from
uires
ner of
his
the
d
you fol
low eve fortune of bei sale. This is attachment a particular
to the
a gem
when the
ry lead,
ng in the
. Tha
sto
rare the t is when eventually you right place collector/in ne,
ves
a
at
stone. stone is and collector nee will find the the right tim tor
This is
opp
the cha to understan ds the knowle ortunity e. If
to
llenge
to collec d the beauty dge to kno buy
Rarity
w how
:
of eac
ting col
h
oured
Rarity
diamo individual
ref
nds.
in a rar ers to items
Dictio e eve nt, or "infrequentl
nar
y
a
the ope y). Whatever rar e spe cie found, seen,
s"
rat
or exp
to colour ive word inf your defini (Th e Ne w
erienc
Collec
ed–
Lex
tio
ting:
togeth ed diamond requent–a syn n is for rar ico n: We bst as
er they
ity, it
rarity,
er' s
onym
Collec
mu
for
these
tin
two typ m the com there are two for rarity. Wh st include
posses g coloured
plete pic
es of rar
different
en referr
dia
sin
tur
ity tru
exemp g, most imp monds is no
The tru
e rarity e of rarity aspects of rar ing
lar
ort
t
e (inher
in
and fal
ity;
taste and y specimens antly, it is only a proces
rarity
ent) rar
se rarity a diamond. I
a meticu
s of acq
that app
beauty
imp
ity in nat
call
builde
.
rs of gre . One thing eal to an lous proces uiring and to the phy osed by nat
ura
l
ure: Ho
colour
s of
individ
at
sical law
quality
commo
ed
w
ual's ow selecting rarity in
to def collections is
n
natura s of scienc many of a cer diamonds ref
ine, but
diamo
n sense
a high to all great
e) did
l col
nd spe
ers
tai
of man: What
cimens whoever has aesthetic sen connoisseur
is the oured diamo nature pro n colour (ac to the
anothe
s
se.
and sel
duce?
comme
cordin
nds ref
r? Thi
ect the it is able to This is an elu and ind
Fal
Without
ividual s is usually rcial desira ers to the rar se (apparent g
com
best am
siv
bility
s
ask him exception, eve
establ
ity imp
ong the pare colour e For
)
of a
ish
instan engaged in a
osed by
self a
m.
ed
series ry great connoi
includ
similar ed by a con certain col
is defini ce, I have
our ove
e such
of que
sen
act
oft
sse
sus of
ivit
tely a
ur of
stio
que
it beauti
r
op
rare dia en overheard y such as
ful to loo stions as: Wh ns when vie coloured dia
buyers inion s by
mo
dia
anothe
nd
mo
win
mo
at
–it is the
k at? Is
and
nd
colour
nds
r
is this g a new stone. will
best yel merchants rem sellers.
that eve one like it? Adm it unique, a
stone?
The
low
one
ark
ry discrim
Ho
se
itte
I have
,
-of
However
ever see "It
inating dly, these are -a-kind sto w rare is it?
Is
ne? Wi
collector
n."
all ver
follow , at the very
ll you
y imp
wil
ing-wh
top of
at is you
every con l eventually ortant que see
stio
r first
impres noisseur's list ask him or her ns
When
sion of
a
the sto of questions self.
sciousl person first
ne?
is the
loo
y forms
harmo
an instin ks at a colour
ny of the
ctive firs
ed
other
face-u
t impres diamond, he
det
p
or she
sion, jud
it prejud ails. This firs colour as a
subcon
wh
gin
one tha ices all future t inductive jud ole, before goi g the beauty
t
and
of art, is both rare opinions. The gment can be ng on to con
sid
and bea
should
above
utiful), refore, a "tr so powerful er
all be
ue gem
that
pleasing when consid
stone"
ere
(i.e.,
to the
eye upo d as a fine
work
n first
glance
.
The natural restriction of supply coupled
with an ever-increasing public awareness
has pushed premium coloured diamond
prices to increases at the dealer level
EVERY YEAR FOR THE PAST 30 YEARS!!
Quality coloured diamonds have shown
to double in value in a 3- to 5-year period
under specific market conditions.
Although past performance is not indicative
of future results, price appreciation of
coloured diamonds shows every indication
of accelerating as more and more new
purchasers enter the marketplace to
compete with traditional dealers and
collectors for the best quality stones.
Global investors have recognized this
trend and have set up the first diamond
investment fund in London this year,
recently while sales at the worlds major
auction houses continues to rise dramatically. Top-end jewelry stores from
around the world are also reporting double-digit coloured diamond
sales increases. As a result, the
market is poised to produce the
strongest potential growth in its
history, with exceptional pieces
expected
to
continue
to
shatter historical auction results. Once
thought to be the ownership domain of
only the very wealthy, many coloured
diamonds are still remarkably affordable
considering their rarity. They are most
certainly well within the financial reach
of sophisticated international investors.
Decades of Experience with the Selection and
Marketing of Exceptional Coloured Diamonds
768 pages
1,400 color photographs
and illustrations.
For the past four decades the principals of the Pastor-Genève Group of
Companies have advised institutions and high net-worth individuals on
dealings in the international diamond market. Our reputation has been built
on providing discreet service and a superior selection of quality diamonds
at fair market value. Pastor-Genève bvba, Antwerp was formed to assist an
expanding European and US client base. With offices in Antwerp and
Geneva, the company is at the centre of a growing European, American and
Asian demand for important diamonds.
Hidden within the geological formations of our planet
are some of the most unique and beautiful expressions
of nature: FANCY COLOURED DIAMONDS.
CUSTOMER EDUCATION: OUR GREATEST ASSET
At Pastor-Genève we feel that an educated consumer is our greatest asset. For the past decade, we have endeavoured to remove the guesswork from the acquisition and sale of coloured diamonds through worldwide education seminars and through the publication of The Coloured Diamond Chronicle. The Chronicle is edited by
Pastor-Genève with input from an advisory board that includes experts such as Mr. Stephen C. Hofer, who, in
addition to his work with Pastor-Genève, also acts as an advisor to both Christie’s and Sotheby’s – well-known
New York auction houses. Mr Hofer’s 768-page book, Collecting and Classifying Colored Diamonds, has been
hailed for its scientific achievement as the reference source in the industry. The information contained in this
book is an absolute must for anyone considering the purchase of a coloured diamond. The Chronicle will provide excerpts from Mr. Hofer’s book, each month highlighting the unique characteristics of one of the fourteen
major diamond colours. We will also publish current auction results, current prices on coloured diamonds, and
identify economic and political factors that may influence future prices. In summary, we keep our readership up
to date and always ahead of coming market trends..
The Coloured Diamond Chronicle
You have been selected to receive The Coloured Diamond Chronicle, a $200 subscription value, AT NO COST OR
OBLIGATION. Upon receipt of your application, you will be sent your first issue of The Coloured Diamond
Chronicle*. Respondents will also receive a free copy of “The Handbook of Personal Wealth Management", with
chapters on investing in the rare coloured diamond market. From time to time sensitive developments may
occur that effect the market immediately. These issues will be brought to your attention, simultaneously with our
diamond mining and diamond dealer subscribers, as they transpire.
I look forward to your reply.
Cordially yours,
Stephen Hershoff
Managing Director, Pastor-Genève B.V.B.A.
Pastor-Genève B.V.B.A. • Brusselstraat 51, B-2018 Antwerpen, Belgium • Tel: + (0) 32 3 244 1871 • Fax: + (0) 32 3 244 1873 • www.pastor-geneve.com
HRA Nº 321.563 BTW Nº 444.815.472
* Please allow 2-3 weeks for processing
LeadGetter2010.qxd:22140 Pastor GenËv Bro.qxd
1/29/10
2:48 PM
Page 2
Pastor-Genève Advises You To
DIVERSIFY YOUR PORTFOLIO & PROTECT YOUR WEALTH USING
NATURAL COLOURED DIAMONDS
Premium coloured diamonds have consistently held their value during recessions and economic downturns.
Premium coloured diamonds have doubled in value in a 3-year period under specific economic conditions.
Industry statistics and analysis indicate that coloured diamonds are presently poised for dramatic price increases.
BECOME A DIAMOND INSIDER AND JOIN IN OUR SUCCESS.
LEARN WHY COLOURED DIAMONDS ARE THE MOST PRIVATE AND PORTABLE FORM OF WEALTH IN THE WORLD.
The past decade has been witness to one
of the greatest periods of wealth accumulation ever known. Led by the world’s
equity and real estate markets, the
number of global millionaires has tripled.
Much of this growth was attributable to
artificially low interest rates and the
development of the “New Economy” of
growing productivity and international
trade. But as world markets go through
the painful process of correction, a
flight to quality will translate into the
elimination of holdings in speculative
securities and a corresponding increase
in cash, strategic assets and blue-chip
investments with a solid foundation.
Which strategic asset does one choose?
Where can one find the best mix of safety and better-than-average appreciation?
At Pastor-Genève, we believe that the
new focus is to a marketplace that is not
really that new! In fact, it’s hundreds of
years old, and has been quietly rewarding
investors with a unique combination of
safety and generous returns for many
years — COLOURED DIAMONDS.
Mother Nature will be almost impossible
to find in the distant future. From
Australia and South Africa to Russia and
Brazil, supply of the worlds pink, blue,
orange, chameleon and yellow diamonds
are already starting to decline just when
international demand is on the rise as the
wealthy classes seek rare, valuable and
beautiful tangible asset protection.
INT ROD UCT
N
ION EDI TIO
ND
ON
D D IA M
LOURE
T H E C O R O N IC L E
CH
LL EC TIB LE
EM IER E CO
’S
- NATU RE
PR
singly
the most
w diamonds
e and yello
to man.
, purple, orang s of wealth known
red, green
y using
private form
that
exclu sivel
unique and
unaw are
imd almo st
red
they were
are trade
en about the
diam onds
been writt grading (both
. Natural colou exwill say that
than white
of peop le
mely
y colou red reports. So much has
ond
rity
extre
other
Fanc
diam
r
and
majo
tific
colou
ng
we will
iful,
The
ent of scien
diamonds),
came in any rare, extremely beaut is the blood-red diadiam ond gradi
diamonds
the developm white and coloured
diamonds
extremely
close to
for
portance of
all coloured one, they must pay
the point.
diamonds are
s
most rare of
not belabour
red dipensive. The collectors come acros
colou
to buy a fancy
ent. The
mond. When per carat to buy it.
n
It is important accompanying docum is the
US $1 millio
this
rt
Argyle
amond with
grading repo you if
alia’s Giant
diamond
. It will tell man.
years, Austr mere 60 carats
coloured
by
In previous
for the stone
yielded a
a total
“pedigree” natural or enhanced
r is
gems from
diamond mine
is
d. By
rarest pink
n of the colou
the colour
worth of the carats of diamonds mine 24 of
that the origi premium price s.
n
at
If it says
held
millio
even
onds
it
30
lex subof
buy
coloured diam records at aucmely comp
“natural”,
be an extre of us know about
2002, fancy
price
diaColou r can
per carat
rstand. Most
the top 25
price of white and
and carat
ject to unde colour, clarity, cut
eding the
far
rubi es
tion, exce
onds
s,
C’s:
diam
red
eme rald
the four
r in colou
mon ds,
in white
margin.
weight. Colou absence of colour In the
by a wide
sapphires
the
r.
supply
outweighs
tion facto
ts that the
as a valua y, cut and carat
cartel admi
diamonds
negligible
The DeBeers red diamonds is too aign to
colours, clarit to a signi fican tly
rarest of
but
For
.
value
tising camp s of
t
of fancy colou
onds
adver
effec
s
seriou
weig ht
carat
white diam or blue
thousand
to mount any
e than in
Only a few
less degre fancy intense pink
per year
incluthe public.
diamonds
a
eye visible even
red rough
millions
example,
to tens of
fancy colou
actually have
comp ared
vast mastone can worth tens of thousands,carat.
onds. The
are mine d
rs per
white diam
sions and be
ands of dolla
cut only tiny
inclu
will
thous
of carats of
le
d
of
visib
mine
t. One
eye
hundreds
jority of thosea few points in weigh is that
diamond with ht does have an
No white
weig
stones of just t of these diamonds l exfigures. Carat purple, green or red
aspec
ach those
DeBeers carte al
important
ever appro a sub-c arat natur al y because of its rar. Natur
matter if the
sions will
their value to the
it doesn’t
impa ct, but
price tag simplfrom Fancy through
never
to maintain
impo rtant carry an enormous
run
supply has
line
can go on
ty
The
that
.
ists or not
onds
quali
will
value
onds
ll
lose
red diam
overa
diamond
red diam
d and never
fancy colou
will be the
ral, colou
onds in any
they are mine g the demand.
ity. In gene through Fancy Vivid of coloured diam
market as
se
r with the
red
expensive
to outstrippin
y of colou
Fancy Inten
al fancy colou
come close
uces the most
ce the purit
s about natur as ultra-rare reds,
which prod These grades balan
esting thing
r.
onds (as well
most inter
value since
given colou
yellow diam maintained their
One of the
ation.
Some may
orange and
most satur
no
that they havein the early 1970’s.
blue, pink,
ND
indu set. There are se
s
purples) is
ED DIAMO
R
mark
major
U
and
O
in
price
L
s
g
O
cash
C
a
sion
Y
is
becau
green
FANC
side
ed moni torin heavy economic reces
ond market
a credit card
BUYING A
ga
rvious to down
deale rs start
coloured diam normally cannot use done by bank wire
laterally durin they have been impe tment has ever perThe fancy
actions are
have moved
but
nts and you
accepts the
tional inves ge, natural fancy
coun tries,
credit accou the stone. Most trans . Once the buyer
dealble or tradi
avera
trial ized
of
er’s check
returns. Most d.
No other tangiperiod of 30 years! On 5 years from 1970 on,
of the price
iable cashi
pressure.
do not allow
on averthat over a
a local, verif finalized. Auctions
time has passe
price every
or
of
years
like
in
h
d
6-7
led
lengt
is
forme
in
doub
sale
doubled everyonds have doubled
onds have
after a certa
stone, the
cononds have
blue diam
allow them
ques tions
pink diam
yellow diam
of natural
ers do not
natural fancy on, and natural fancy on. Matching pairs 30% over
you still havetopic s, or are into
ed
optio ns, if
age from 1970 8-9 years from 1970 and premiums of up
, other relat
wing these
contact your
al funds and
After revie colou red diam onds
ng, please
in price every diamonds can comm r and quality. Mutu
g, or tradi
red
cerni ng fancy r buying, sellin furth er infor matio n.
fancy colou
the same colouof performance.
eithe
for
stones in
terested in
senta tive
individual only dream of this kind
g
ève repre
natin
r-Gen
fasci
rs
Pasto
, the
bond trade
since
th per carat
tion of weal maintained their value pink,
e concentra
blue,
The uniqu the fact that they haveded make fancy
beauty, and been regularly recor
prices have
CO LO UR ED
DI AM ON DS
THE C
COL
OLOUR
ED
CHRON DIAMOND
ICLE
LECT
ING
AND
INVE
Collec
ting fan
kno
cy
Natural coloured diamonds are extremely
rare (especially when compared to
colourless diamonds) and come in virtually
every colour of the rainbow. What is critical
for investors to understand is that for the
first time in 25 years, diamond supply is
on the decline and the primary areas that
will be most affected by the impending
supply shortages are in areas where they
source rare coloured diamonds. This
means that these scarce items created by
STIN
G
wledge
colour
, pat
ed dia
colour
ed dia ience and goo monds is
mo
or just
no
d
need the nd may exp luck. One day easy task.
ire, ma
needs
It req
the ow
y lose
the goo funds from
uires
ner of
his
the
d
you fol
low eve fortune of bei sale. This is attachment a particular
to the
a gem
when the
ry lead,
ng in the
. Tha
sto
rare the t is when eventually you right place collector/in ne,
ves
a
at
stone. stone is and collector nee will find the the right tim tor
This is
opp
the cha to understan ds the knowle ortunity e. If
to
llenge
to collec d the beauty dge to kno buy
Rarity
w how
:
of eac
ting col
h
oured
Rarity
diamo individual
ref
nds.
in a rar ers to items
Dictio e eve nt, or "infrequentl
nar
y
a
the ope y). Whatever rar e spe cie found, seen,
s"
rat
or exp
to colour ive word inf your defini (Th e Ne w
erienc
Collec
ed–
Lex
tio
ting:
togeth ed diamond requent–a syn n is for rar ico n: We bst as
er they
ity, it
rarity,
er' s
onym
Collec
mu
for
these
tin
two typ m the com there are two for rarity. Wh st include
posses g coloured
plete pic
es of rar
different
en referr
dia
sin
tur
ity tru
exemp g, most imp monds is no
The tru
e rarity e of rarity aspects of rar ing
lar
ort
t
e (inher
in
and fal
ity;
taste and y specimens antly, it is only a proces
rarity
ent) rar
se rarity a diamond. I
a meticu
s of acq
that app
beauty
imp
ity in nat
call
builde
.
rs of gre . One thing eal to an lous proces uiring and to the phy osed by nat
ura
l
ure: Ho
colour
s of
individ
at
sical law
quality
commo
ed
w
ual's ow selecting rarity in
to def collections is
n
natura s of scienc many of a cer diamonds ref
ine, but
diamo
n sense
a high to all great
e) did
l col
nd spe
ers
tai
of man: What
cimens whoever has aesthetic sen connoisseur
is the oured diamo nature pro n colour (ac to the
anothe
s
se.
and sel
duce?
comme
cordin
nds ref
r? Thi
ect the it is able to This is an elu and ind
Fal
Without
ividual s is usually rcial desira ers to the rar se (apparent g
com
best am
siv
bility
s
ask him exception, eve
establ
ity imp
ong the pare colour e For
)
of a
ish
instan engaged in a
osed by
self a
m.
ed
series ry great connoi
includ
similar ed by a con certain col
is defini ce, I have
our ove
e such
of que
sen
act
oft
sse
sus of
ivit
tely a
ur of
stio
que
it beauti
r
op
rare dia en overheard y such as
ful to loo stions as: Wh ns when vie coloured dia
buyers inion s by
mo
dia
anothe
nd
mo
win
mo
at
–it is the
k at? Is
and
nd
colour
nds
r
is this g a new stone. will
best yel merchants rem sellers.
that eve one like it? Adm it unique, a
stone?
The
low
one
ark
ry discrim
Ho
se
itte
I have
,
-of
However
ever see "It
inating dly, these are -a-kind sto w rare is it?
Is
ne? Wi
collector
n."
all ver
follow , at the very
ll you
y imp
wil
ing-wh
top of
at is you
every con l eventually ortant que see
stio
r first
impres noisseur's list ask him or her ns
When
sion of
a
the sto of questions self.
sciousl person first
ne?
is the
loo
y forms
harmo
an instin ks at a colour
ny of the
ctive firs
ed
other
face-u
t impres diamond, he
det
p
or she
sion, jud
it prejud ails. This firs colour as a
subcon
wh
gin
one tha ices all future t inductive jud ole, before goi g the beauty
t
and
of art, is both rare opinions. The gment can be ng on to con
sid
and bea
should
above
utiful), refore, a "tr so powerful er
all be
ue gem
that
pleasing when consid
stone"
ere
(i.e.,
to the
eye upo d as a fine
work
n first
glance
.
The natural restriction of supply coupled
with an ever-increasing public awareness
has pushed premium coloured diamond
prices to increases at the dealer level
EVERY YEAR FOR THE PAST 30 YEARS!!
Quality coloured diamonds have shown
to double in value in a 3- to 5-year period
under specific market conditions.
Although past performance is not indicative
of future results, price appreciation of
coloured diamonds shows every indication
of accelerating as more and more new
purchasers enter the marketplace to
compete with traditional dealers and
collectors for the best quality stones.
Global investors have recognized this
trend and have set up the first diamond
investment fund in London this year,
recently while sales at the worlds major
auction houses continues to rise dramatically. Top-end jewelry stores from
around the world are also reporting double-digit coloured diamond
sales increases. As a result, the
market is poised to produce the
strongest potential growth in its
history, with exceptional pieces
expected
to
continue
to
shatter historical auction results. Once
thought to be the ownership domain of
only the very wealthy, many coloured
diamonds are still remarkably affordable
considering their rarity. They are most
certainly well within the financial reach
of sophisticated international investors.
Decades of Experience with the Selection and
Marketing of Exceptional Coloured Diamonds
768 pages
1,400 color photographs
and illustrations.
For the past four decades the principals of the Pastor-Genève Group of
Companies have advised institutions and high net-worth individuals on
dealings in the international diamond market. Our reputation has been built
on providing discreet service and a superior selection of quality diamonds
at fair market value. Pastor-Genève bvba, Antwerp was formed to assist an
expanding European and US client base. With offices in Antwerp and
Geneva, the company is at the centre of a growing European, American and
Asian demand for important diamonds.
Hidden within the geological formations of our planet
are some of the most unique and beautiful expressions
of nature: FANCY COLOURED DIAMONDS.
CUSTOMER EDUCATION: OUR GREATEST ASSET
At Pastor-Genève we feel that an educated consumer is our greatest asset. For the past decade, we have endeavoured to remove the guesswork from the acquisition and sale of coloured diamonds through worldwide education seminars and through the publication of The Coloured Diamond Chronicle. The Chronicle is edited by
Pastor-Genève with input from an advisory board that includes experts such as Mr. Stephen C. Hofer, who, in
addition to his work with Pastor-Genève, also acts as an advisor to both Christie’s and Sotheby’s – well-known
New York auction houses. Mr Hofer’s 768-page book, Collecting and Classifying Colored Diamonds, has been
hailed for its scientific achievement as the reference source in the industry. The information contained in this
book is an absolute must for anyone considering the purchase of a coloured diamond. The Chronicle will provide excerpts from Mr. Hofer’s book, each month highlighting the unique characteristics of one of the fourteen
major diamond colours. We will also publish current auction results, current prices on coloured diamonds, and
identify economic and political factors that may influence future prices. In summary, we keep our readership up
to date and always ahead of coming market trends..
The Coloured Diamond Chronicle
You have been selected to receive The Coloured Diamond Chronicle, a $200 subscription value, AT NO COST OR
OBLIGATION. Upon receipt of your application, you will be sent your first issue of The Coloured Diamond
Chronicle*. Respondents will also receive a free copy of “The Handbook of Personal Wealth Management", with
chapters on investing in the rare coloured diamond market. From time to time sensitive developments may
occur that effect the market immediately. These issues will be brought to your attention, simultaneously with our
diamond mining and diamond dealer subscribers, as they transpire.
I look forward to your reply.
Cordially yours,
Stephen Hershoff
Managing Director, Pastor-Genève B.V.B.A.
Pastor-Genève B.V.B.A. • Brusselstraat 51, B-2018 Antwerpen, Belgium • Tel: + (0) 32 3 244 1871 • Fax: + (0) 32 3 244 1873 • www.pastor-geneve.com
HRA Nº 321.563 BTW Nº 444.815.472
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