Blog About Diamonds by Joseph Sterling

Diamonds Don’t Only Come In White!!

Diamonds are without question the most beautiful and precious things in the world. They don’t only come in white though!!

With the hype and talk surrounding gold and the high prices it has commanded over the last 4-6 weeks slacking off, clients have been returning to more day to day investments. I am of course referring to themselves and their loved ones. Creativity, something I pride myself on, is the order of the month. Diamond engagement rings are traditionally made with white diamonds, however if it’s the wow factor you are after, or indeed just want to be the talk of the town, then why not opt for a Black diamond engagement ring??

The photo above received a lot of interest on my Facebook page this week, and thank you for that. As you can see, this ring makes a huge statement, and so it should. It is set with a large 1.66 carat black diamond in the centre, and is flanked by 5 white diamonds on each shoulder to help enhance it’s beauty. The couple received so many comments on their Facebook page on how lovely the ring is and how they haven’t seen anything like this before, that it made their occasion that much more memorable. 

Lewis Malka is a recognized expert in making diamond rings as well as being a famous jeweller to the stars. All his blogs are his own opinions. He is a member of the London Diamond Bourse (LDB). You can follow him daily on Facebook and Twitter. 
If you would like any bespoke jewellery made, then please visit his website.

Owning physical gold should be a consideration for all levels of investors

Why is physical gold not held in every investment portfolio?

The price of gold over the last 10 years, and most notably since the start of the current financial crisis, has outperformed virtually every other available asset class with average (real) returns of over 25% per annum. Despite this performance, gold is still seen as a luxury good and one that is out of reach for the run of the mill investor.

A recent survey of 1,000 investors undertaken by the US based precious metals provider Gold Bullion International LLC (GBI) identified the types of assets investors hold as part of their investment portfolio. The survey looked at the investments currently held and their attitude towards investing in physical assets such as gold. As well as being essential market research for physical gold suppliers, the results of this survey also highlight the lack of understanding many investors have for investing in physical gold and the role it can play in their portfolio.

Survey Results:

The survey highlighted increasingly strong demand for investment in gold, be it through physically held assets or pooled investment vehicles. More than half of respondents (63%) saying that they would like to own a physical asset like gold coins or bullion as part of their investment portfolio. A further 29% said they would prefer to invest in the gold market through pooled, non-physical assets like gold stocks and mutual funds.

In contrast only 2% of those questioned currently own investment grade gold. This in itself represents a huge gap between those who believe in gold as an asset class and would like to invest, and those who have taken the steps to hold physical gold in their portfolio. A large number of investors (44%) felt that they did not know enough about physical gold as an investment asset and therefore had not seriously considered including it in their portfolio. Investors felt that gold is too difficult to purchase (37%) with 22% of respondents not knowing how or where they can purchase gold.

With the correct marketing and support there is huge potential in the market for physical gold companies, with more than half of those questioned in the survey (51%) saying that they would own physical gold bars or coins if recommended to them.

If you would like to own some physical gold in your portfolio, then please contact me on 020 7404 4022 to make an appointment. I am able to source and supply it for you at very competitive rates and also recommend where and how to store it. Thank you.

Lewis Malka is a recognized expert in making diamond rings as well as being a famous jeweller to the stars. All his blogs are his own opinions. He is a member of the London Diamond Bourse (LDB). You can follow him daily on Facebook and Twitter. 
If you would like any bespoke jewellery made, then please visit his website.

www.joseph-sterling.com | lewis@Joseph-sterling.com

With thanks to Luke Jackson on behalf of Intelligent Partnership Ltd http://bit.ly/Q3K5ga

What Are Typical Gold Bullion Bars

Most people imagine large brick-like bars when they think of gold. In fact the gold bars used on most bank heist films weigh 12.5kg and are worth nearly £1/2million!

Luckily for the average investor bullion bars are available in many sizes to suit even the most modest pocket. Bar weights come in both imperial and metric denominations. The common weights you’ll see are 1g, 2.5g, 5g, 10g, 20g, 1oz, 50g, 100g, 5oz, 250g, 10oz, 500g, 1kg, and 12.5kg.

There are thousands of different producers of bars and many of the top refiners are members of the London Bullion Market Association (LBMA) which provides accreditation and guarantee of quality. Some of the best known manufacturers are Credit Suisse, Johnson Matthey, Pamp Suisse and Umicore. Each may produce bars of equal gold content and weight, but with varying dimensions and shape. All will be regarded as 24 karat which is virtually pure gold and is often quoted as 99.99% pure. Some bar refiners will offer certification and serial numbers on some of the smallest bars, while others only provide documentation for bars of 250g or larger.

The main advantage of investing into gold bars is that you will more often than not receive the most actual gold for your money as their value solely consists of their gold content. However a popular misconception is that bars can be bought exactly at the gold spot price. This is never true unless you are a large central bank dealing in tonnes of gold! In practise, the spot gold price is the benchmark from which all types of investment gold are priced. Gold bars will generally trade at a narrower premium to coins and this premium falls as the size of the bar increases. Obviously when selling back a 1oz gold bar, you will no doubt receive a lower price from a dealer than its equivalent sized coin.

While a gold bar is the most efficient purchase for someone looking to melt down the gold for jewellery, it can present some obstacles for other investors. The very fact that it’s 24 karat gold means that unless the bars are kept in a specialist depository, it can scratch and tarnish. This can affect the price you’ll receive when selling the bar.

Ease in selling your bars can be affected by two other factors. Firstly make sure that you buy a well known manufacturer, as there are many obscure producers whose bars may be more difficult to sell. Secondly, while purchasing larger bars may save a couple of percent off the buy price, you cannot break this bar up if you only want to cash-in some of your investment. You may find a 1kg bar may be more difficult to sell than a 1oz bar as there are fewer buyers.

Finally, unless bought as part of a pension, the profit made on the bullion bars is taxable. If you’re keen to own gold bullion as part of your pension, then bullion bars are the only type of gold that qualifies. Gold coins of any type are not currently permitted into UK pensions. The advantages of Pension gold are that you receive up to 40% discount off the price of bars through tax relief, the bars are in 1oz denominations offering full flexibility and are stored in a licensed gold depository – maintaining the integrity of the bars.

Lewis Malka is a recognized expert in making diamond rings as well as being a famous jeweller to the stars. All his blogs are his own opinions. He is a member of the London Diamond Bourse (LDB). You can follow him daily on Facebook and Twitter. 
If you would like any bespoke jewellery made, then please visit his website.

www.joseph-sterling.com | lewis@Joseph-sterling.com

Benefits of Gold, Why Buy Gold

Why buy gold?

Gold has endured centuries as a mark of wealth, it is indestructible, relatively scarce and cannot be manufactured. It provides a refreshing departure from the complex investment products in the headlines today.

Gold provides a portfolio balance.

There is a finite supply of gold in the market, which creates exponential price rises when demand increases. When demand increases, production cannot simply rise to match demand, so the supply/demand dynamic naturally pushes prices higher. This also reduces the risk of devaluation as lower prices quickly attract new demand, which will once again fuel price increases.

No counter party risk.

In its physical form, the holder has no risk to any counter party. This is particularly relevant in today’s new financial world, where money is no longer even safe simply in a bank account. It also avoids the counter party exposure that investors in gold stocks, futures and options have.

Great Heirloom

More than just a valuable investment, gold coins are part of the nation’s historical heritage, and can be both beautiful and collectible. In fact, many gold investors and collectors take great pride in their coin portfolios, often preserving them within their families for several generations. Note, this also contributes to a decline in the market supply of gold, once again increasing gold’s value!

Cash is not King!!

Investors worldwide are nervous about the global financial crisis, with Governments committing to huge bank bailout packages, which will inevitably have to be funded by the tax payer.

The very fundamentals of banking have changed forever, with the perception of strength and safety now a thing of the past.

In Europe we’ve witnessed countries such as Portugal, Greece and Spain struggling to repay debts within the constraints of the single currency. In the US, we’ve seen the Dollar continue to depreciate, and many no longer regard it as the world’s reserve currency.

We have not escaped this in the UK, and a majority of our large high street banks are now partially nationalised. We have the first coalition Government since 1945 – inevitably meaning indecision on major policies. With interest rates, and therefore savings rates, at all time lows, returns on bank deposits are negligible. In fact, with the pound depreciating, and the threat of hyper-inflation as the central bank considers printing more money supply, returns can actually be negative. Simply parking money in deposits is no longer the safe haven it once was.

The fact is that faith in numerous major world currencies is at an all time low. Concerned savers and investors are seeking a new, more reliable store of wealth, and many have turned to gold. Simply leaving your savings in the bank and burying your head in the sand will not safeguard the value of your money. It is the proactive saver who is now moving some of that money sideways into gold to reduce their exposure to traditional currencies.

Lewis Malka is a recognized expert in making diamond rings as well as being a famous jeweller to the stars. All his blogs are his own opinions. He is a member of the London Diamond Bourse (LDB). You can follow him daily on Facebook and Twitter. 
If you would like any bespoke jewellery made, then please visit his website.

www.joseph-sterling.com | lewis@Joseph-sterling.com

Making Gold Investment Simple

Pensions Gold: Legislation.

In April 2006, the UK Government updated pension parameters to allow for the investment of physical gold into pensions, supporting the notion of a more balanced, and therefore protected retirement wealth. Relaxed rules also mean a more flexible lifetime limit for contributions, so you can save more when you can afford it. 

SIPP.

The type of pension required to house gold is called a Self Invested Personal Pension (SIPP). These benefit from the flexibility of the updated legislation and can house a mix of traditional paper assets with tangible assets such as commercial property and now investment grade gold.

This can be achieved if you have no current pension provision but want to open a SIPP, or if you have an existing pension which you wish to transfer into the more flexible structure. A SIPP can even be opened alongside existing personal or company schemes to allow versatility.

Investments are chosen by you, and the SIPP provider acts as a fund trustee. When retirement comes, the capital provides an income which can be drawn either directly from the SIPP (subject to limits) or via an annuity purchased from an insurer. The SIPP trustee takes care of wrapping all these investments into one portfolio, while assuring that reporting and legal obligations are met.

You can establish a SIPP either directly or by using an Independent Financial Advisor (IFA) of your own to guide you through the risks and rewards of the various asset classes on offer, before you make any decisions.

Good Deliver Bars.

The type of gold required for a gold Sipp has to be of purity not less than 995 thousandths, and in the form of a bar. These ‘Good Delivery Bars’ are recognised by the bullion market and the high purity levels mean you own more gold content for your money.

Gold is the only physical commodity you can currently hold directly in a SIPP.

I recommend your gold should be in the form of small 100 gram bullion bars, providing you the flexibility to sell any part of your gold holding at any time. These bars are fully allocated to yourselves and segregated from other holders.

No VAT!!

Like other forms of investment gold, there is no VAT applicable to gold bars.

Efficient Investment.

The low cost of purchasing gold into a pension is illustrated by two factors.

Gold receives the same tax relief as other qualifying assets when bought as part of a pension. So for top rate tax payers, that means a whopping 40% off the price of gold.

Secondly, for many of the securities products which dominate pension portfolios, management costs have steadily escalated, eating away at their tax efficiency. Investing in physical gold attracts far lower management fees, less than one tenth of the charge applied to a typical unit trust.

Lewis Malka is a recognized expert in making diamond rings as well as being a famous jeweller to the stars. All his blogs are his own opinions. He is a member of the London Diamond Bourse (LDB). You can follow him daily on Facebook and Twitter. 
If you would like any bespoke jewellery made, then please visit his website.

www.joseph-sterling.com | lewis@Joseph-sterling.com

The remaking of a family heirloom diamond ring.

Time for a case study.

I thought it would be nice to see how a ring is remodelled, after a client ask for her grandmothers engagement ring to be re-made into a more classical and updated version, so she can wear it as her current engagement ring. 

In the first image we can see the original with the centre stone and one other already taken out. If you look closely you will notice there is no metal between each of the outside diamonds to hold them together, to keep them evenly spaced. 

This images shows a side angle of the original ring. If we look at the shank we can see it’s made from wire and doubled up at the back to give it a thicker feel. As a result of this, it makes the framework quite insecure and gives a higher chance of distortion and damage, should it take a whack!

Once all the diamonds are out and measurements have been taken, it’s time to make the new look ring. From a plate of 18ct gold sheet, the stones are marked, metal drilled, and a shape filed with wires added for the claws. On the shank, it’s thicker than previous and the wires are added to form the gallery of the ring. After the two pieces are made, all the wires are married up and soldered together. 

Excuse the slightly misty picture. In this shot we can see the ring made and assembled. All the wires matched up and have been soldered, joins were filed up and sandpapered, the ring has been pre-polished and ready to be set. 

And here’s the finished piece all polished up. A beautiful modern twist on a classical timeless piece ready to be handed down another generation or two, just as these diamonds were handed down two generations. After all, we never really own a diamond, we merely look after it for the next generation. And this proves it. 

Lewis Malka is a recognized expert in making diamond rings as well as being a famous jeweller to the stars. All his blogs are his own opinions. He is a member of the London Diamond Bourse (LDB). You can follow him daily on Facebook and Twitter. 
If you would like any bespoke jewellery made, then please visit his website.

www.joseph-sterling.com | lewis@Joseph-sterling.com

Dinner with Diamonds

Have you ever been to a dinner where you were expecting just a little bit more than what was given from the after dinner speaker? Have you ever been to a dinner and the speaker wasn’t very inspiring? Well instead of world politics or talks on social media, why not ask me, Lewis Malka, to  speak at an upcoming event.

I was asked recently to speak at a Women in Business networking dinner event last month, and the ladies were so excited, they invited the local press. As you can see from the cutting, there was a real buzz about the event, with no fewer than 30 women present. 

Topic’s ranged from: 

• How to distinguish a good diamond from a bad one.
• How to start an investment portfolio of diamonds.
• Where do all the diamonds come from and are we going to run out soon?
• What is the situation with illicit/blood diamonds.
• Valuing jewellery for insurance.

And the list went on. 

During dinner, guests had a chance to have a one to one question session with me and ask about repairing their jewellery and resigning or remodelling inheritance pieces so they can wear them.

Who may this appeal to? Would you like me to attend your next dinner? Drop me a line and let’s discuss when I am free. The next time you have a dinner, let me add that touch of sparkle for you.

Lewis Malka is a recognized expert in making diamond rings as well as being a famous jeweller to the stars. All his blogs are his own opinions. He is a member of the London Diamond Bourse (LDB). You can follow him daily on Facebook and Twitter. 
If you would like any bespoke jewellery made, then please visit his website.

www.joseph-sterling.com | lewis@Joseph-sterling.com

Things to know about your jewellery when getting divorced

“When two people decide to get a divorce, it isn’t a sign that they “don’t understand” one another, but a sign that they have, at last, begun to.” HELEN ROWLAND

The Office for National Statistics (ONS) found 45% of marriages will end in divorce before a couple’s 50th anniversary if rates continue, with almost half of these splits occurring before couples reach 10 years of marriage.

After the first decade, fewer than 31% of marriages will end in divorce, and after 20 years the proportion falls to about 15%

With these numbers in mind, one can imagine how many engagement rings end up on the market for sale.

In an effort to help divorcees understand their jewellery (and what they can do with it in the time of a divorce), I have put together the following list:

1. Know who is entitled to the jewellery
The rightful owner is determined by several factors including how it was given, local jurisdiction and reason for marital dissolution. A first good step is to consult a family lawyer to determine ownership.

2. Be emotionally ready
Whether you decide to sell it, redesign it or keep it, make sure you are emotionally ready to go through the process. It is not always a walk in the park. If you decide to sell it, it can be the most difficult (or most easy) step depending on the situation.

3. Keep it in a safe place
Keep it safe (in a safe). Whether you put it in your safe at home or at the bank, don’t be a victim of a sock-drawer disappearance.

4. Know what it’s worth
Most jewellery shops or buyers will be able to give you a rough estimate of what your jewellery is worth. Make sure to shop with a jeweller who has been recommended so they will give you a realistic and worthwhile estimate.

5. Know how to get the top price for it if you decide to sell it
Getting the maximum value for your jewellery requires understanding its worth and finding the best buyer for it. Chose a reputable buyer who comes recommended. This can be a very confidential endeavor so consider choosing a jewellery buyer in a private setting, and make sure you shop around.

All in all, the good news is that the owner of a jewellery asset has the choice to do with it what he or she wishes. If one were to ask Shakespeare what to do, he might say, “To sell, or not to sell, that is the question.”

Lewis Malka is a recognized expert in making diamond rings as well as being a famous jeweller to the stars. All his blogs are his own opinions. He is a member of the London Diamond Bourse (LDB). You can follow him daily on Facebook and Twitter. 
If you would like any bespoke jewellery made, then please visit his website.

www.joseph-sterling.com | lewis@Joseph-sterling.com