For love… or money. Why do we buy diamonds?

Diamonds are eternally fascinating. They can also be a good investment if you know how to cut the right deal, says jewellery expert Lewis Malka.

Have you ever wondered why there is no way to buy diamonds on the stock market? You can buy almost anything else – sugar, gold, orange juice, part of a football club – but you can’t buy diamonds anywhere.

There is a reason. If you are thinking of buying a diamond, you have to examine it carefully. The first thing you’re assessing is The Four Cs: cut, carat, clarity and colour. Each of these is vital. Take clarity, for example. The diamond’s internal characteristics include features such as clouds, cavities, graining, laser lines and much else. These are often known as ‘inclusions’. Which inclusions a diamond has, and where, makes a big difference to the price. You also have to consider the symmetry, fluorescence, proportions and much else. An impossible task without carefully viewing it in person.

People increasingly ask me about purchasing diamonds as an investment. Their first question is usually, “Will I get a better return than I do on cash in the bank?” The short answer is no. If you buy a significant diamond ring from any high street jeweller, it will probably take you 25-30 years to make your money back on it.

The only sensible way to purchase diamonds as an investment is to go to a reputable diamond trader, who might sell you a diamond at the wholesale price. We all know about the dangers of using past performance as a guide to the future, but the wholesale price of diamonds has increased by between 5% and 15% every year since records began in the 1970s. My advice is that it’s probably better to spend your budget on one larger stone than two or three smaller ones. The larger a diamond, the rarer it is. As with most things, rarity makes for a better investment.

Coloured diamonds are rarer still, and we have seen yellows, browns, greens and reds coming onto the market recently. These will command an even higher price and should make a profit more quickly. Our records show that these have gone up in recent times by as much as 30% year on year.

24.78ct natural pink diamond. Amazing!! 

Pink diamonds are the rarest of all. In November 2010, Laurence Graff bought a 24.78 carat rectangular pink diamond at auction for £29million. You probably won’t be surprised to hear that this was the most ever paid for a diamond. When he was asked why he paid so much, Mr Graff replied: “To reduce my tax bill this year.” Diamonds can be almost magically beautiful, but investing in them remains a hard-headed decision.

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

When I Grow Up I Want To Be A Jeweller

One of the most common questions I get asked, other than “Where did you get your good looks from?” is “Have you always wanted to be a jeweller?”

The short answer is no. However how I did become a jeweller and how this happened was a bit by chance. 

Traditionally most jewellers in Hatton Garden, the jewellery centre of the UK, are in the business because it has been in the family for a few generations. The tradition of bringing your children into your business is something which happened quiet a lot years ago. Not so much anymore. As in most industries, things are getting harder and harder.

My son at work with me in the London Diamond Bourse:

I was 16 years old when I was first introduced to the back end of the jewellery industry. A friend of my parents was a manufacturing jeweller, and wanted to know if I was interested in helping out for a few weeks in the summer holidays. I was intrigued by the offer and accepted. I was fascinated by what I saw. The attention to detail and the intricate work involved was mesmerising for me. Working with some of the most precious gemstones and metals on earth was something I wanted to do. My mind was set. This was for me. 

After 2 weeks of what can only be described as a great summer job, I looked into starting a course in jewellery making, and found one which was starting that term at Sir John Cass School of Arts. It was an apprenticeship course and they assisted in finding me work placement too. I loved it. Learning everything I could. From soldering to sawing, filing to buffing, polishing to setting, casting to bending. All my friends were doing A level exams and then off for a gap year. Not me. This was it. 

I was fortunate for the college to find me a guy called Laurence who, with his father, ran a wholesale company making 18ct and platinum ring mounts, as well as bespoke pieces by hand. I spent a total of 9 years with Laurence, the person I owe a lot to for my career path, then decided to move on and go on my own. 

Some shots of procedures used in making jewellery in my workshop:

In the year 2000 I founded and started Joseph Sterling Bespoke Jewellers, and focused my business on creating bespoke pieces for private clients. The best way, and in my opinion the only way, to do this is to create a network of people who can, and will, happily refer clients to me. I joined BNI and have been a member ever since. 

In 1999 I took a gemmology course and passed. Learnt so much that all it did was fill me with a desire to learn more. Diamonds are one of those things I am fascinated by. The fact that something so small has such beauty and lustre to command such a high price is extraordinary.

I joined the London Diamond Bourse in 2007 and a few years later was invited onto the board, and to this day I proudly sit as a board member as part of an 11 person strong committee. The fact that I have a say in the future of the diamond industry and can make suggestions to improve and evolve with society excites me. 

If you do have any jewellery ideas you would like made bespoke, then please do call for a consultation in our central London office and we would be glad to try and help you. Our details are on the main page of the Joseph Sterling website.

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.

How to create a masterpiece of diamond jewellery

Roses aren’t the only beautiful objects which come in pink, gold and sapphires do too, and thats exactly what my latest creation is made using. Let me walk you through it.

(Here we see the components I made for this particular ring and of course the 2.50ct)

The brief was to re-make an engagement ring using the clients original diamond. In this case I am referring to the 2.50ct Asscher cut diamond. She, Helen, had seen a ring elsewhere and wanted me to make the same ring but with some slight alterations to fit her diamonds dimensions. Helen also wanted to use rose gold as she wanted her ring to be unique and different. When using a white diamond in the centre of a ring, I always recommend that the setting be made of a naturally white metal. The only metal conforming to this is platinum. Helen agreed. 

(The ring is now assembled and ready for the stones to be set)

Helen wanted some shoulder stones which would compliment both the diamond in the centre and also the rose gold the shank is made of. After browsing some of my designs on my website, we decided not to use traditional white diamonds pave on the shoulders, but instead pink sapphires. Helen was so excited by this, she instructed me to commence immediately. 

(The finished piece in all it’s glory. A diamond ring with pink sapphire shoulders)

The reaction from Helen when done was brilliant. I couldn’t have hoped for a better one. She loved it really loved it. She couldn’t have been happier. The photo doesn’t really do it justice to the colour of the shank, but I assure you, the pink in the metal with the pink of the stones is stunningly beautiful. Or should I say, a real masterpiece. 

If you do have any jewellery ideas you would like made bespoke, then please do call for a consultation in our central London office and we would be glad to try and help you. Our details are on the main page of the Joseph Sterling website.

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.

Insurance valuations: What are they and do I need one?

Making sure that you’re jewellery is fully insured can be a lengthy and expensive process. It’s also something that only a handful of people bother to have done. Granted it can be an expensive process, but the truth is it’s all relative to everyones standard of living. Typical costs for having an insurance valuation certificate made out, can range from one to three percent of the total value of your articles.

What is a valuation certificate? The short answer is, it is a certificate produced by an experienced jeweller with knowledge of fine metals and gemmology, who is able to provide an accurate replacement figure for your fine jewellery pieces. 

If you have a good insurance broker, and are with one of the big companies, such as Chubb, Hiscox, AIG, or Sterling for example, (these are typical companies my clients are insured with) then you will find that only articles valued at over £5000 per item typically, will need to be specified on your insurance policy thus listed on a valuation certificate.

However it doesn’t end there. There are different types of valuations. Insurance retail replacement, manufacture replacement value, probate valuation, private sale valuation, and family division valuations for couple going through divorce. 

More often than not in today’s society, when you purchase a new piece of diamond jewellery, the retailer you purchased it from will provide you with a valuation certificate as part of the cost and service, it’s something I offer all my clients. Then all you need to do is pass it on to your insurance company to make sure your new piece of diamond jewellery is put on risk, thus giving you piece of mind. 

We live in a period now where we are finding more and more clients are coming in to have jewellery valued which has been bequest to them by a relative who has now passed on. These typically range from diamond engagement rings, diamond necklaces, diamond brooches, diamond earrings, and I even valued a diamond tiara at one point. A lot of these diamonds are old cuts and rose cuts which are not commonly found in todays retail store, and are from the 1920-1940’s period. They are more likely to be found in antique markets and second hand jewellery shops, so getting the correct value can be a timely process. 

There is a common misconception that diamonds are cheaper in different parts of the world such as South Africa or Canada. Well that’s just not true. The bottom line is that diamonds are priced in dollars worldwide and then converted into the currency of the country you are living in. Once the stone is in the country, then the cost of manufacturing maybe higher and with the profit jewellers add, this makes the ring more expensive. 

With that in mind, the replacement value of your article on a valuation certificate can and does change over the years due to the changes in the exchange rate, particularly the US Dollar to the Pound.

Your insurance broker would recommend you have your certificate updated every 3-4 years. Please make sure you do it as values can change dramatically and I wouldn’t want you to be without the right money to be able to replace your sentimental piece of jewellery.

If you do have any jewellery you would like valued, then please do call for a consultation in our central London office and we would be glad to try and help you. Our details are on the main page of the Joseph Sterling website.

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.

How do I Sell My Diamond Ring And Other Diamond Jewellery

Most advertising campaigns by De Beers feature their famous slogan “A Diamond is Forever.” Consequently, women rarely sell a diamond and often feel uncomfortable buying diamonds previously owned by other women. There is a sentimental aspect to diamonds that is the very opposite from other tangible assets like boats, houses or cars. However, there are times when people need to sell their diamonds and, unlike the used car market, there is not a well-developed method for consumers to sell their diamonds.

As a consumer, you face some difficult challenges maybe not faced before when trying to get the best price for your diamond in a safe and comfortable manner. The starting point is to know exactly what you are selling. This is much easier if the diamond has a grading certificate from a major laboratory like the GIA, HRD or EGL. You have a better opportunity if there is a formal grading report. In the instance you don’t have one, you should find an independent evaluator who can determine the diamond and assess its quality and possible value.

Once you know your diamond’s specifications, you can find the up to date retail asking price by ascertaining with online retailers to see what similar diamonds are selling for in today’s retail market. It is unlikely you will be able to get the going retail price for your diamond. Selling your diamond at 80% to 90% of that amount would make it sell faster. Be realistic and honest about your expectations. The lowest cost online retailers, not the expensive jewellery shops with double the price, set the value of your diamond.

You now know your target price and simply have to decide how to find the correct buyer for your diamond. There are several possibilities available to sell your diamond and you need to decide which is best for maximising your money and safety while minimizing your time and effort.

Your first idea might be to travel to the nearest jewellery shop or pawnshop and sell them the diamond. The key to remember here is that they do not need your diamond. They can get all the diamonds they want at wholesale prices from their suppliers. The only reason they will buy your diamond is if the price is a fraction of the wholesale price. They hope you need the money desperately enough to take 25%-50% of what you could be getting for your diamond elsewhere. They might offer you a little more if you “upgrade” to something they have in their stock. However, this often results in you paying more for the new diamond and receiving less for your diamond than if you sold it elsewhere.

Several online brokers specialize in buying diamonds and estate jewellery from consumers. They typically have you ship the diamond to them so they can determine the amount they will pay you. Pretty much like the cash for gold scandal. All too often, this amount is much less than their preliminary estimate so you must either pay the return postage, or accept their price. If your main priority is getting money fast, this is a valid option. If your main priority is getting top dollar for your diamond, there are better selling methods available to you.

Auctions like eBay are very common for selling jewellery items but there is so much low quality jewellery listed, it is hard for potential buyer to find your quality diamond. You are competing with jewellery retailers whose entire business is selling on eBay so they are experts at writing the descriptions (often with exaggerated quality), taking impressive pictures and shipping their items. Even if a bidder does find your item, the odds of getting your target price are slim to nil because other retailers are advertising items with similar descriptions for about half the amount you want. Notice I did not say they are advertising similar quality, just similar descriptions. Do a search for diamond rings with GIA grading reports and you will see the vast majority of diamond rings have paperwork from sources you have never heard of before.

Other effective ways to find a buyer are classified ads in local newspapers and bulletin boards at church or work. The challenge is reaching enough people to find at least one buyer willing to pay your price. You have to be careful when doing this kind of transaction, especially if selling to a stranger. Do the transaction in a safe place and be sure you have a valid form of payment. You do not want to hand over your diamond and end up with a phoney cheque or counterfeit pound notes.

Some jewellery shops and online retailers will sell your diamond on consignment. Online retailers with a local presence have an advantage in that they have large numbers of diamond shoppers on their website plus walk in traffic that can see your diamond in person. They also have lower overhead and prices so you can get a bigger share of the selling price. With jewellery shops often marking up prices over 100%, your share is likely to be less than half of the selling price.

Be sure to get a written description of the item you are giving on consignment and the minimum amount you will accept for your diamond. All too often sellers are not being able to get their jewellery items back from a store or only receive a fraction of the amount they expected from the sale. However, if you have patience and a low priced, trustworthy retailer to broker your diamond, you have an excellent chance of getting an excellent price for your diamond without the hassle and safety issues of selling it yourself.

If you do have any diamonds or other jewellery to sell, then please do call us for a free consultation in our central London office and we would be glad to try and help you. Our details are on the main page of he Joseph Sterling website.

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.

Using an old stone in a new ring.

It’s not all about big brash diamonds. Not everyone has the same taste. We are all different, and this is what makes my work so enjoyable! Everyone has a story. Everyone has a different idea. And everyone is unique. 

I was visited by clients who had a ruby that was handed down by her mother, and she wanted to include it in the design of her new engagement ring. Her idea was to have the ruby as the centre piece, and surround it with diamonds all of the same cut. Once this was finalised, the rest was plain sailing, ahem!!

Here we can see the framework for the stones. each of the small boxes are settings for the princess cut diamonds which will surround the ruby. 

Once the ring is set and polished, it has a totally different complexion. A consideration at the start was of course how to have her wedding ring. Does she have a straight one which would leave a big gap between rings on the shoulders? Do we go for a narrow curved ring to fit around the setting, but has a tendency to always rotate when you least want it to.

We decided to go for a wide ring with a section cut out for the engagement ring to snugly fit into. As you can se the result was perfection. This works beautifully for her as she has long slender fingers and the width of the ring compliments her hand. 

Would you like an heirloom reset? Why not give me a call and make an appointment? 

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.

European Professional Women and the Diamond Geezer.

Last Thursday evening was a night to remember. In the heart of London’s famous Soho district, in a swanky cocktail bar called Archer’s, there was an event going on like no other. Previously unattended by men, Lewis Malka, the Diamond Geezer from Joseph Sterling Bespoke Jewellers, was giving a talk on diamonds to members and guests of the European Professional Women’s Network.  

Billed as an evening of networking, sparkles and bubbles, the event lived up to it’s name. 

For the first time in their event history, the EPWN were sold out!! Entrepreneurs who I had the pleasure of meeting had come from all different countries, including Italy, Spain, France, and Germany to mention but a few. What was meant to be a 20 minute educational slot by me, turned into an hour of interactive Q&A’s which was delivered with humour and fact in a way that  made the time fly. Topics included the 4C’s, Conflict Diamonds, Re-Modeling antique Jewellery and always a controversial one, Should a woman buy her own engagement ring!!

On show last night was a range of diamonds which attendees were allowed to get up close and personal with :)

“This was my first time at an EPWN event and if they are all this good I am definatley joining up” said one lady I spoke with after the talk. Another said “I have never been as interest in diamonds as I am now. There is no way I am going to wait for my husband to buy me diamonds. I am going to buy my own from now on”. 

“What the evening did was allow lots of people to come together in a relaxed atmosphere to enjoy some champagne and time with one of natures natural wonders. It’s not everyday we all get so close to these beauties and with some much to learn and know, it was a pleasure to have Lewis come and speak to our members and guests of the EPWN”. That was a quote from event organiser Laurence Rose.

Would you like me to speak at your event? Drop me an email. It would be a pleasure. 

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.

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.

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

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