Case StudiesHigh yield returns
a £10,000 budget Jeff's story
Jeff H Diamond Investor
A £10,000 budget
Jeff H approached us with a £10,000 budget and was looking for an investment that was safe, asset backed and would offer good capital appreciation and was happy to invest for the midterm.
He choose our managed Future Revenue Lease (FRL) option as this offered Jeff a number of benefits over and above investing in his own individual diamond; firstly his £10,000 gets him a (pro rata) share of a much more valuable portfolio of diamonds. In other words Jeff will achieve greater growth investing in a 10% share of a £100,000 diamond than owning 100% of a £10,000 diamond.
This option includes storage, insurance, a fully managed exit strategy and is asset backed; this means that Jeff owns the diamonds, fully unencumbered through the lease making it 100% safe and secure.
Jeff liked the fact all payments are made to an independent administrator and that once the target returns of 13% per annum have been achieved there is a 50/50 split in additional profit between Jeff and Pure Diamonds.
a £75,000 budget Helen's story
Helen W-W Diamond Investor
A £75,000 budget
Helen W-W had a budget of £75,000 and was looking for a diamond as an investment but didn’t want to be tied in to a structured investment so she could have flexibility as to when to sell.
We sourced a beautiful pink Argyle diamond that in addition to the normal GIA documentation has further certification from the Argyle mine itself and has this detail laser etched on to the girdle of the diamond.
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 allowing Helens Diamond to be extremely rare and in great demand.
The Argyle Mine
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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 2018/19.
The 2013 Argyle pink diamonds tender comprises 64 diamonds, including 58 pink diamonds, three fancy red diamonds and three blue diamonds.
In this direct ownership offer Helen W-W stored and insured the diamond with us in one of our overseas vaults, thus saving import duties and VAT. Helen can access and remove the diamond herself at anytime and store and insure as she sees fit. We advise Helen the best time and route to sell this diamond and manage the sale process seamlessly. She has already turned down a generous trade offer on this diamond saying “Why would I want to sell it when they are not making them anymore!”
Is the same diamond equal?
An unusual question but a client wanted only a round brilliant cut diamond, 1.00ct in weight, D in colour (the best) and IF (internally flawless) – (learn more about Diamond Grading)
He wanted to know why there can be up to a 40% price spread for a 1.00ct D, Internally Flawless diamond. This is where it’s important to make sure you have a diamond professional as there are many variables in each unique diamond.
Contrary to what most people believe the 4C’s (Cut, Carat, Clarity, Colour) are not the only factors that affect a diamonds value.
Here are some further elements that can affect the price; Fluorescence, Shading, Graining, Clouding, Symmetry, Polish, Extra facets, Minor polishing details, to name but a few.
It is in this area in which we excel. One of our expert diamond suppliers was established in the 1940’s; they buy direct from the mines and cut and polish rough diamonds in their own factories. We then individually select the best of these cut and polished diamonds. This experience is invaluable when choosing the right diamond for investment. History has consistently shown us that there have always been buyers globally for these truly top end diamonds.