A unique opportunity
to own some of the
rarest fancy coloured
diamonds available
• Diamonds are a finite resource, with clear global demand
• Benefit from an asset class with limited supply
and increasing global demand
• Consistent year on year growth
• A real tangible asset
• Take delivery or store with us
• Managed exit strategy to suit your requirements
ONLY THE BEST
Diamond Investment Opportunities
Pure Diamonds offers a unique range of diamond investment opportunities and
thanks to its previous experience and track record the company is in a strong
bargaining position and works with the worlds leading manufacturers, cutters
and polishers.
Clients can benefit from outright diamond ownership and take advantage of our
experience, knowledge and history as we supply Investment Funds, Institutions,
Retailers, Wholesalers, Private Collectors and Individuals globally.
Ours is a very simple model. We want investors to profit from the investment
into rare natural fancy coloured and certain white diamonds. Pure Diamonds
is with you throughout the investment period and it is in all parties’ interest to
secure the best diamonds at the best prices and to exit at the appropriate time
to maximise the returns.
We source the right colours, (clarity and carat) at the right price, using a robust,
transparent and ethical trading strategy and deliver direct to you. We also offer
a secure store and insure service as well as a fully managed exit strategy.
Sit back and let diamonds do what they have done since time began...
....appreciate in value.
“Diamond Prices are poised
to rise as demand grows at
double the pace of supply
through to 2020 because
of expanding middle class
populations
in China and India”
(source: Bain and Co Report: The Global
PUREDIAMONDS
DIAMONDBROCHURE 2
PROVEN SUCCESS
Our track record.
For years Pure Diamonds has supplied diamonds at genuine wholesale prices
and has followed, sourced and invested in the natural fancy coloured and white
diamond market. As it has grown and matured we have witnessed first-hand how
the supply and demand dynamics have taken hold of the market.
Pure Diamonds supplies wholesale, retail, private investors, groups, companies,
institutions and funds with the worlds best diamonds and associated support
services.
IN THE NEWS
Daily Express 20th July 2013
Diamonds aren’t just a girl’s best friend
THERE’S only a 20 year supply left in some mines so no wonder canny investors
now regard them as more valuable than gold..
“Supply has gone down for a number of reasons. There haven’t been any major
discoveries of mines in the last 10 years and it’s thought that there is less than
20 years’ supply remaining in existing operating mines. Extraction costs are
becoming more expensive and the mining industry is also having to diversify.
Twenty years ago a lot of diamonds were coming from Africa. Now a lot of new
diamond companies won’t have anything to do with African countries because
of conflict issues there and are looking instead towards mines in the New World.
Funnily enough, the major discoveries now are coming in Canada where 20 years
ago there were thought to be no diamonds whatsoever.”
Demand for the gemstones, meanwhile, has been pushed up by the emerging
middle classes in India, China and Russia while at the same time diamonds
continue to be the favourite choice for engagement rings in more than 150
countries.
The Independent 13th July
Sparkling: Diamonds could be the investors’ best friend
For centuries diamonds have been a symbol of wealth coveted by brides-to-be
and collectors, but could these most precious of stones also prove the ordinary
investor’s best friend?
Gold has traditionally been the preferred commodity for many investors, but now
that it is down from its peak, diamonds are an attractive prospect if you’re looking
for an alternative. In the last five years, one to five-carat diamonds provided
annual returns of 12 per cent and this year, global diamond prices are predicted
to increase by around 10 per cent, while the price of the best gems could jump as
much as 50 per cent.
PUREDIAMONDS
DIAMONDBROCHURE 3
A UNIQUE OPPORTUNITY
Natural fancy coloured diamonds offer a strong growth
potential
OVERVIEW
A unique opportunity to enjoy the potential significant returns achievable
by purchasing investment grade natural fancy coloured and certain white
diamonds.
Natural fancy coloured diamonds and certain white diamonds offer a strong
growth potential and this tangible diminishing asset has a low correlation to
the financial markets and have retained their values even during periods of
recession.
Pure Diamonds only source direct from manufacturers (cutters and polishers)
at or below wholesale prices. Only sourcing the best of the best and the rarest
of the rare.
Own your own diamond and take delivery yourself or store and insure in our
Geneva vault, this option is import duty and VAT free.
An investment you can wear. Many of our clients
their diamonds made into a piece of jewellery
in our workshop. Buying at wholesale saves an
average of 280% over High Street prices.
Unlike other investments this is a real tangible asset
that you own outright.
Diamonds have outperformed many traditional
investments year on year and unlike many alternative
investments do not require any further actions
to grow in value (such as planning permission on
land, a build in off plan property, or a harvest in a
choose
to
have
“Diamonds are a finite
resource and all diamonds
(white and fancy coloured)
have historically increased in
price at an average of 27% per
annum.”
WHY PURE DIAMONDS?
Fully managed exit strategy via wholesale, retail, auction, private collectors,
private investors, UK and overseas funds
Pure Diamonds source only GIA (Gemological Institute of America)
certificated diamonds with strong market value and constant demand
Pure Diamonds only source conflict free diamonds under the Kimberly
Process certification system
Pure Diamonds operate with the guidance of experienced diamond
trading experts
Benefit from an asset class with limited supply and increasing global
demand
PUREDIAMONDS
DIAMONDBROCHURE 4
PURE DIAMONDS
A specialist diamond procurement and investment company.
Pure Diamonds is a Company, which specialises in the sourcing and purchase of
ethical diamonds to be held as an investment. Investors have the opportunity
to directly own some of the world’s finest conflict-free diamonds at wholesale
prices, thanks to our years of expertise, knowledge, experience and buying
power.
Over many years the Company has invested in, sourced and followed the
natural fancy coloured and white Diamond market with great interest as it has
grown and matured and has witnessed first-hand how the supply and demand
dynamics have taken hold of the market.
We source the best investment quality diamonds
and thanks to our position in the industry and
with our connections to the world’s best cutters and
polishers, source only the best of the best and the
rarest of the rare. Whilst buying power and access
to these rare fancy coloured diamonds is paramount
this however must go hand in hand with the selection
process. This is an area of expertise where we excel
and our historical price comparisons stretch back
years as we compare wholesale, auction and retail
prices. This gives unrivalled information which
investors benefit from as Pure Diamonds source
the colours, shapes and sizes that have historically
shown the best growth.
Pure Diamonds work and partner with industry
leading companies and our clients know they can
trust in our services and the authenticity of the
diamonds as we only source Gemmological Institute
of America (GIA) certified diamonds,
Production at Rio Tinto’s Argyle
mine in Western Australia’s
Kimberley region will soon
come to an end as its rare
deposits of pink diamonds
approach exhaustion. Sky
News reports that the mine,
which accounts for over 90%
of the global supply of pink
diamonds, will be largely
depleted. This mine has
announced that it will cease
production in 2018.
(Source: www.argylediamonds.com.au/docs/
All diamonds are verified in the vault by one of the
world’s leading independent laboratories, before
any payment is made using the Vault Escrow Service.
Pure Diamond Holdings Ltd offers a trustworthy trading policy, genuine
wholesale prices and conflict free diamonds in compliance with the United
Nations Resolutions. If Pure Diamonds store the diamonds for you then the
diamonds are insured (underwritten) by Lloyds of London and prices are
monitored and valuations adjusted accordingly.
In today’s uncertain financial times discerning investors are looking to
“alternative” asset backed investments to balance, or broaden their current
investment portfolios.
One of the world’s oldest trades and stable markets is that of diamond
investment.
Pure Diamonds are with you, the investor, throughout the investment period. It
is therefore, in all parties’ interest to secure the best diamonds at the best price
and to exit at the appropriate time to maximise the returns.
PUREDIAMONDS
DIAMONDBROCHURE 5
MEET THE FOUNDERS
Diamond and investment specialists
ANDREW SEGAL, Managing Director
Is responsible for establishing all the operational procedures with
various internal and external partners. Andrew brings a wealth of
experience to the company having started in the jewellery business
some 30 years ago managing jewellery shops in the South West of
England. More recently he has worked in the property development and
consultancy arena, and has successfully helped to launch commercial,
residential and alternative investments in to the investment markets.
The latest diamond investment brings to bear his jewellery, diamond
ARNOLD DEBENHAM, Operations and Finance Director
Is responsible for the day-to-day running of the Company, Arnold is
the Operations and Finance Director, bringing with him many years
of experience. He is also the Managing Director of another diamond
company.
OUR DIAMOND EXPERTS
We source diamonds worldwide and work directly with the mining/cutting
companies and sources at or below wholesale prices. One of our sources is a
3rd generation company with manufacturing (cutting) facilities in South Africa,
Russia, New York, Antwerp and for over 67 years has supplied the world’s top
jewellers and the diamond trade.
This company buys huge quantities of uncut (rough) diamonds every year direct
from the mines and cuts and polishes in house. Our buying power and historical
relationship allows us to select and source the best of these fancy colours.
PUREDIAMONDS
DIAMONDBROCHURE 6
THE DIAMOND INDUSTRY
The 4Cs - Carat, Colour, Clarity and Cut
As diamond investment grew, it became essential to have a grading system, which
would be recognised throughout the world. The Gemological Institute of America
(GIA) introduced the International Diamond Grading System and the 4Cs to compare
and evaluate diamonds.
The 4Cs are the Carat, Colour, Clarity and Cut of a diamond – all of which affect its
value.
CARAT
Not to be confused with the karat, which is used
for measuring the purity of gold, the carat rating
for diamonds and other gemstones refers to its
weight. Early gem traders would use the seeds
from the carob plant to counter their scales, which
is where the term carat originated. Established
in 1918, the modern carat system unified the
weighing system making one carat equal to 0.2
grams. Carats are divided into 100 points, for
example a 20-point diamond weighs 0.20 carats.
The majority of diamonds used in fine jewellery weigh one carat or less. As even
a fraction of a carat can make a considerable difference in cost, precision when
weighing stones is crucial and weight is often measured to the hundred thousandth
of a carat, and then rounded to a hundredth of a carat.
Stones that weigh more than one carat are expressed in carats and decimals.
However, even two diamonds of the same weight can have very different values
depending on the other three Cs.
COLOUR
Before the GIA introduced the Colour Grading
Scale, a number of other systems were used
to grade diamonds. These used alphabetical (A
B & C) and numerical (both Roman and Arabic)
values and the result was inconsistency and
inaccuracy. Because the GIA required a unique
system, they chose to start their grading system
with the letter D, never previously used. This has
become the international industry standard for
measuring a diamond’s colour.
The clearer a diamond is, the higher its value. Most diamonds used in jewellery run
from colourless to near- colourless with slight hints of yellow or brown. For example,
a colourless diamond will be given either a D, E or F grade whereas a tinted (usually
yellow or brownish) diamond, where the colour is visible to the naked eye, would
be given a S – Z rating.
Diamonds which fall between these colour ranges are given grades G (nearly
colourless diamond) through to R (lightly tinted, usually yellow). Although at the
lower end of the colour scale, colour is visible to the untrained eye, many diamonds
express very subtle colour distinctions only visible when viewed by a professional
– a slight difference in colour can mean a big difference in the price of a diamond.
Naturally fancy coloured diamonds such as pink or orange diamonds have their
own grading system and can reach astronomical prices at auction.
PUREDIAMONDS
DIAMONDBROCHURE 7
THE DIAMOND INDUSTRY
The 4Cs - Carat, Colour, Clarity and Cut
CLARITY
Diamonds often contain unique marks either inside
the diamond itself; an inclusion, or on the surface
of the stone; a blemish. Both are caused in the
formation of the diamond under extreme heat and
pressure deep within the earth. They can also make
the diamond more likely to shatter.
The clarity of a diamond refers to the absence of
these inclusions and blemishes and as diamonds
without any marks are rare, they are therefore more
valuable.
The GIA system assigns diamonds with a clarity
grade, which ranges from flawless (FL) to diamonds
with very obvious inclusions or blemishes (I3). A
flawless diamond will show no internal or external
imperfections whereas a VVS1 or VVS2 (very, very,
slightly included) diamond will have no internal flaws
but will have slight external blemishes – often only
visible under a jeweller’s loupe.
Most categories of clarity will not affect the stone’s
brilliance and it isn’t until you reach the bottom end
of the scale – the I1, I2 and I3 included diamonds that the imperfections will
begin to detract from the beauty of the diamond.
Although there are a total of 11 grades of clarity, most diamonds fall into
the VS (very slightly included) or the SI (slightly included) grades. Completely
flawless diamonds are extremely rare.
CUT
Of all the 4Cs, the cut of a diamond has the greatest
effect on its beauty. Diamonds have a unique ability
to manipulate light and this can be released and
maximized only by cutting and polishing the diamond
to a high level of accuracy. When a diamond is cut
well it refracts and reflects light to the maximum
degree.
“In 2003 a 3.58ct Fancy Intense
Pink diamond was sold for
$115,000 per carat, and in 2011
a 4.59ct Fancy Intense Pink
diamond was sold for $625,000
per carat.”
(source: Leibish & Co, Sotheby’s
Similarly, you may have a colourless, flawless
diamond but if it is not cut well it will appear dull and
and Christies auction houses)
lifeless. Firstly, the shape of a diamond is established
– the most common is a round brilliant stone and all
others are known as fancy shapes. Traditional fancy
shapes include the marquise, pear, oval and emerald cuts although different
shapes such as hearts, triangles and squares are gaining popularity.
Difficult to analyse or quantify, the cut of a diamond can be split into three
different attributes; brilliance (the light reflected from a diamond); fire (the
dispersion of light into the colours of the spectrum) and scintillation (how a
diamond sparkles when moved).
PUREDIAMONDS
DIAMONDBROCHURE 8
THE DIAMOND INDUSTRY
The 4Cs - Carat, Colour, Clarity and Cut
When looking at the cut of a diamond to express its
value, various aspects are taken into consideration
- the diamond’s proportions, its symmetry and the
polish.
The depth of a diamond, called the Pavilion, can
greatly affect the diamond’s brilliance and cutters
have to be experts in balancing the retention of
the stone’s weight against a pavilion depth which,
if too shallow or too deep, will allow light to escape
through the sides or bottom of the diamond. A
well-cut diamond will direct more light through the
crown of the stone thus making it more brilliant to
the eye.
The number of cuts is also important – a standard
round brilliant diamond has 57 or 58 facets (the
58th being the flat facet at the bottom of the
pavilion known as the culet). The large flat facet
on the top is called the table. The proportions of
a diamond refer to the relationships between the
size of the table, angle of the crown and depth of
pavilion.
After 15 years of meticulous research the GIA
launched its diamond cut grading system in 2005 for standard round brilliant
diamonds in the D – Z colour range.
Taking all of the above into account, diamonds are awarded a cut grade of Excellent,
Very Good, Good, Fair or Poor.
In addition to the 4Cs, a diamond graded by the GIA also gives information
regarding the make-up of an individual diamond. It is these factors, combined with
the 4Cs grade that determines the price.
They include:
• Date of Grading
• Report Number
Diamond cutting
• Laser Inscription
• Registry
• Shape and Cutting Style
PUREDIAMONDS
DIAMONDBROCHURE 9
THE DIAMOND INDUSTRY
The 4Cs - Carat, Colour, Clarity and Cut
NATURAL FANCY COLOURED DIAMONDS
They are a quirk of nature, formed billions of years ago deep below the earth’s
surface. These special diamonds acquired their colours, shades and tones from
additional trace elements and distortions to a typical diamond structure
• On average for every one million carats of diamonds mined
there is only one gem quality 1 carat diamond found
• It takes on average five million diamonds to find a single 2 carat
diamond
• Around two hundred tons of Kimberlite will need to be mined
to find just one diamond
• 90% of diamonds that are found are only industrial quality and
of the 10% that remain less than 1 in 10,000 are fancy coloured
• Of the fancy colours that remain we source the top 1% of these.
COLOUR
When a colour is strong enough and of a different hue it is known as a fancy
coloured diamond and sits within this special group known as natural fancy
coloured diamonds.
There are twelve different main fancy colours and many shades in between. All
natural fancy coloured diamonds are graded by their saturation, hue and tone.
Saturation means the strength or intensity of the colour; hue indicates the
dominant colour of the stone; and tone describes how much lightness or
darkness the stone retains.
Most natural fancy coloured diamonds possess combinations of different hues
and shades. Secondary hues are known as ‘overtones’ or ‘modifiers’.
For example, if a Yellow diamond has a slight orange tint or shade it will be
called Orangey Yellow (the last colour in the description being the dominant
colour). It is then given one of nine colour saturation descriptions:
• Faint
• Very Light
• Light
• Fancy Light
• Fancy
• Fancy Dark
• Fancy Intense
Pure Diamond Holdings Limited
only source GIA certified and
authenticated diamonds
• Fancy Deep
• Fancy Vivid
PUREDIAMONDS
DIAMONDBROCHURE 10
SAMPLE GIA REPORT
The International Diamond Grading System
PUREDIAMONDS
DIAMONDBROCHURE 11
ETHICAL DIAMONDS
Our promise: we only source ethical diamonds
ETHICAL DIAMONDS; the Kimberley Process
To promote the trading of diamonds from legitimate sources and to ensure that
consumers can be confident in their diamond purchases, governments, NGOs
(Non Government Organisations) and the international diamond industry have
worked together to implement a ‘certificate of origin’ system, known as the
Kimberley Process:
The Kimberley Process is a certification system, which prevents diamonds from
an area of conflict entering the legitimate diamond supply chain. The Kimberley
Process ensures that only rough diamonds accompanied by a governmentissued certificate can be imported and exported, providing an assurance that the
diamonds are from conflict free sources. Under this United Nations mandated
system, only countries that are part of the Kimberley Process can import or
export rough diamonds.
Today, 74 countries are members of the
Kimberley Process, ensuring that more than
99% of diamonds are from conflict free sources.
Anyone who imports or exports rough diamonds
between these countries without a Kimberley
Process certificate is breaking the law.
Diamond demand is way ahead
of supply. By 2016 the supply
demand gap is likely to be 15%
and by 2020 this is likely to
be 36% and continue to drive
upwards.
In addition to the Kimberley Process, the System of
Warranties was developed by the World Diamond
(source: tacy’s 2011 diamond pipeline/Rio tinto
Council (WDC) to extend the Kimberley Process
conflict free assurance to polished diamonds
and provide a means by which consumers can
be assured their diamonds are from conflict free
sources. Its principal element is a declaration on the invoice accompanying every
transaction (apart from the transaction directly to the consumer) of polished
diamonds that declares the diamonds are ‘not involved in funding conflict and
are in compliance with United Nations resolutions’. The System of Warranties
provides assurance that diamonds are from conflict free sources all the way to
the diamond jewellery retailer.
CIBJO, the World Jewellery Confederation, is an international confederation of
national jewellery trade organisations with 40 nations represented. In addition
to the national members there are 33 associate members from the commercial
organisations. Founded in 1926, CIBJO’s purpose is to encourage harmonisation,
promote international cooperation in the jewellery industry, and to consider
issues, which concern the trade worldwide. Foremost among these is to protect
consumer confidence in the industry.
The Council for Responsible Jewellery Practices (CRJP, “the Council”) was founded
in May 2005 with Members from the diamond and gold jewellery supply
chain, from mine to retail. The current 81 Council Members are committed to
promoting responsible business practices in a transparent and accountable
manner throughout the industry from mine to retail. Their commitment aims to
maintain consumer confidence in diamond and gold jewellery products and the
trust of all interested stakeholders in their industry.
Pure Diamond Holdings Ltd commits to source and trade only in diamonds that
are certified and subject to the Kimberly Process
PUREDIAMONDS
DIAMONDBROCHURE 12
WHY INVEST IN DIAMONDS
Diamonds are a finite resource.
Although diamonds have been around for centuries, the recent upswing in price
is due in part to changing economic times.
The globalisation of the world economy has resulted in increased wealth and
further demand for diamonds. Oil rich countries and rapidly growing countries
such as Brazil, Russia, India and China, are now competing for the scarce resources
of the world and hence pushing up commodity prices.
Natural fancy coloured diamonds are very rare and are only found in a few
locations around the world. Diamond mines are closing in the near future; what is
rare will become rarer, and much more valuable.
Naturally occurring coloured diamonds not only put one in awe of their beauty but
they are one of the most valuable gemstones on Earth. Once considered strange,
these diamonds are now extremely sought after by collectors, celebrities and the
wealthy.
ECONOMIC GOOD SENSE
Perhaps more important than any other economic factor is the basic principal
of supply and demand. There is a very limited supply of natural fancy coloured
diamonds. As demand increases and supply remains limited, industry experts
foresee prices dramatically rising over the next decade.
Investment into natural fancy coloured diamonds offers appreciating wealth with
a superb track record in a proven and diminishing asset.
This
tangible
investment
provides an inflation hedge unlike
gold and oil. Diamonds have not
suffered price volatility and are
price independent, not linked to
the stock or bonds market and
are unaffected by fluctuations in
real estate prices, inflations or
recessions.
• In 2003, a Fancy Intense Pink 3.58-carat
diamond was sold for USD115,000 per carat.)
• In 2007, a Fancy Intense Pink 3.86-carat
diamond was sold for USD390,000 per carat.)
• In 2010, a Fancy Intense Pink 4.59-carat
diamond was sold for USD625,000 per carat.
Although diamonds have been
(source:fancydiamonds.net/diamond_education/articles/how_color_diaaround for centuries, the recent
monds_have_appreciated_over_the_years.htm)
upswing in price is due in part to
changing economic times and
the lack of new diamond mine
discoveries, particularly in the natural fancy colours.
Diamonds are a finite resource and all diamonds (white and fancy coloured) have
historically increased in price at an average of 27% per annum.
Natural fancy coloured diamonds are very rare and are only found in a few
locations around the world. Diamond mines are closing in the near future; what is
rare will become rarer, and much more valuable.
According to British jewellery historian Vivienne Becker the closure of the Argyle
mine’s production will mark the end of an era for precious gemstones. Becker
says the pink diamonds are a “delightful freak of nature” whose peculiar hue and
scarcity draw a hefty premium from high-end consumers, and that in future they
will “emerge as the new Faberge egg, the thing jewellery myths are made of. “The
PUREDIAMONDS
DIAMONDBROCHURE 13
WHY INVEST IN DIAMONDS
Diamonds are a finite resource.
value of rarity is the most priceless factor…in the world of jewellery today and as supply
tightens, price will be driven up,” said Ms. Becker.
Although the Argyle Diamond mine supplies nearly all of the worlds pink diamonds (over
90%); a whole year’s production of stones of over 0.5 of a carat would fit into the palm of
your hand.
Pure Diamonds has seen the prices of these rare pinks and yellows rise incredibly in value
in stock it is already holding in its previous investments. (source: PDH own internal findings
comparing wholesale prices with auction results on diamonds sourced)
AUCTION RESULTS
Coloured diamond auction results around the world have been and are attaining record
prices per carat year on year.
• Jewellery sales for Sotheby’s in 2012 surged to a record $460.5 million.
• The auction house stated that revenue from its jewellery sales was
propelled by the success of private collections, exceptional diamonds and
gemstones and historical jewels with noble provenance.
• Sotheby’s jewellery auctions worldwide achieved an average of 84% sold
by lot. Seventy-two lots sold for more than $1 million, with six surpassing
the $5 million mark.
• One highlight for the year came from a record sale of various-owner
jewels at Sotheby’s Geneva, where the total achieved $108.4 million in
May.
(source:www.diamonds.net/News/NewsItem.aspx?ArticleID=42194&ArticleTitle=Sotheby E2
%80%99s+Jewelry+Sales+Top+%24460M+in+2012
Our own diamonds that we have sourced and auction prices demonstrate that prices are
heading ever upwards. One of our manufacturers has even bought the same diamond
back as sold years previously for many millions of dollars more. Why? To hold and re sell
again at an even greater price
Some diamonds recently sourced
PUREDIAMONDS
DIAMONDBROCHURE 14
HISTORICAL PERFORMANCE
Average annual price increase of 27% per annum.
Diamonds are a finite resource and all diamonds (white and fancy coloured) have historically increased in price at an average of 27% + per annum.
FANCY INTENSE YELLOW
£18k
£12k
£6k
2002
TOTAL GAIN: 100%
£520k
£390k
£260k
£130k
£390k
£260k
£130k
2008
2009
2011
2012
TOTAL GAIN: 97%
£78k
£65k
£52k
£39k
£26k
£13k
2012
2002
2004
2006
TIME PERIOD: 10 YEARS
WHITE DIAMONDS
£20k
£15k
£10k
£5k
1980
TIME PERIOD: 50 YEARS
2008
2010
2012
TOTAL GAIN: 200%
£30k
£25k
1970
2010
FANCY LIGHT PINK
TOTAL GAIN:: 243%
1960
£780k
£130k
TIME PERIOD: 5 YEARS
£520k
TIME PERIOD: 5 YEARS
TOTAL GAIN: 180%
£260k
2007
£650k
2011
2012
£390k
£780k
2010
2010
£520k
TOTAL GAIN: 87%
2009
2008
£650k
2012
FANCY VIVID BLUE
2008
2006
FANCY VIVID PINK
£780k
2011
2004
TIME PERIOD: 10 YEARS
£650k
2007
£3k
2012
FANCY INTENSE BLUE
TIME PERIOD: 1 YEAR
£6k
PRICE PER CARAT
TIME PERIOD: 8 YEARS
2010
£9k
1990
2000
PRICE PER CARAT
2008
£12k
PRICE PER CARAT
2006
£15k
PRICE PER CARAT
£24k
2004
£18k
PRICE PER CARAT
£30k
PRICE PER CARAT
£36k
PRICE PER CARAT
FANCY VIVID YELLOW
2010
TOTAL GAIN:: 937%
Past performance for white diamonds taken from Rapaport Research and Coloured diamonds from public auctions.
PUREDIAMONDS
DIAMONDBROCHURE 15
HISTORICAL PERFORMANCE
Average annual price increase of 27% per annum.
Many of the world’s biggest and mature diamond mines are currently reaching the
end of their lifespan. Diminishing supply from these mines and increasing demand
from the whole world means that prices are rising fast for these natural fancy
coloured diamonds. This is ably demonstrated just by looking at historical auction
prices over the years.
Prices of half-carat diamonds have risen by 49% since 2001. One carat diamonds
have risen by 88% in the same period. Meanwhile three carat diamonds have gone
up by 238% over the same timeframe. (source: Financial Times 7th September 2012).
It is crucial to point out that these are white diamonds. The natural fancy colours
that we source are many times rarer and more valuable and have historically shown
much greater growth.
Consumer demand is likely
to be driven particularly by
emerging markets, including
China and India with combined
diamond consumption to reach
36% of global total by 2020,
surpassing the USA (which
already consumes around one
third of the world’s diamonds)
to become the major
importers.
‘There hasn’t been any new big mines
discovered during the past 20 years and the
current mines are all ageing. So when we
look at the next 10 years, there’s no doubt
demand is going to outweigh supply’
(source: Varda Shine, CEO of Diamond Trading Company 2012)
PUREDIAMONDS
DIAMONDBROCHURE 16
EXIT STRATEGY
A clear path.
Thanks to our track record and experience we won’t leave you high and dry when
it comes to realising any profits you have made. Depending on your budgets,
timeframes and desired holding time of any diamond we will source and recommend
the best diamond/s to you for your investment needs.
Pure Diamonds supplies at wholesale prices and can manage the exit and has many
routes to liquidate at the appropriate time. This can be wholesale, retail, auction,
private collectors, private investors, UK and overseas funds.
WHOLESALE
We sell back to the wholesale market and investors benefit from the capital growth
over the investment term. We have gone back to 2003 looking at the increase in
wholesale prices over the years in the types of diamonds we are acquiring. The
smallest appreciation per annum has been 15% and the largest 233% (source: PDH
wholesale suppliers-2003 to 2012 from a sample of 72 diamonds)
RETAIL
Natural diamonds are among the world’s most precious natural resources. In 2011,
diamond miners such as ALROSA, BHP Billiton, De Beers, Rio Tinto and smaller
companies produced 124 million carats of rough diamonds, valued at $15 billion.
Once out of the ground, the rough stones moved through the so-called diamond
pipeline—a value chain that runs from dealers to diamond cutters and polishers to
jewellery manufacturers to retail stores and finally to consumers.
The value-added along the way is impressive, as $15 billion in rough diamonds
becomes $24 billion in polished diamonds, which in turn goes into diamond jewellery
with a resulting retail value of $71 billion (source: Bain and Company Report: The
Global Diamond Industry). This makes the average high street mark up from polished
diamond (wholesale) to over 195%. This is an average; a top High Street jeweller will
have a mark up of around 280%.
AUCTION
A quick and profitable way to sell diamonds is through International auction houses
such as Sotheby’s, Christie’s and Bonham’s. These auction houses handle much of
the global sales of investment grade diamonds and have sophisticated databases
of potential buyers, far-reaching marketing strategies and high-profile international
sales on a regular basis. We coordinate, recommend and manage sales on behalf of
this investment through these global organisations.
PRIVATE COLLECTORS AND INVESTORS
Pure Diamond Holdings supplies diamonds to individuals and groups for their own
holding. The diamonds in this offering may be offered to our global clientele upon
exit.
FUNDS
Pure Diamonds with it partners, suppliers and advisors structure and manage
diamond investment programmes for funds, syndicates, companies, groups and
institutions globally and can offer previously sourced diamonds to these entities.
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MAKE CONTACT
Get started, contact us today.
Pure Diamonds
www.purediamondinvestments.co.uk
UK: 01603 904500
Overseas: 00 44 (0)1603 904500
Email: enquiries@
purediamondinvestments.co.uk
Disclaimer
This information does not suggest or imply and should not be construed, in any manner,
a guarantee of future performance and/or investment advice. Past performance does
not guarantee future results. Therefore, no current or prospective client should assume
that the future performance of any specific investment, investment strategy (including
the investments and/or investment strategies recommended and/or purchased by
Pure Diamond Holdings t/a Pure Diamonds), or product made reference to directly or
indirectly on this material or indirectly via link to any unaffiliated third-party material,
will be profitable or equal to corresponding indicated performance levels. Returns are
historical and based on data believed to be accurate and reliable. Prospective investors
are encouraged to conduct further research on their own initiative.
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