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

I believe this is the right time to invest in physical gold bullion

Wow!! What a rocky few weeks we’ve had at the start of 2013.

What with currency doing a song and dance, and gold going up and down, I believe this is the perfect time to boost your physical gold holdings.

Are you nervous? Are you worried? Do you think that possibly the currency we use today may soon come to an end? Well you aren’t alone. Now I’m not saying this is the case, but looking at the habits of some of my clients, it seems they are stock pilling physical gold. They are taking the view that now the UK has been downgraded from a AAA to a Aa1 rated economy (I think thats correct), that the safest form of currency, one which can easily been transported internationally, and one that can be kept secure in a locked safety deposit box in a bank for a relatively small annual fee, and still the safest way to keep “cash”, is to buy gold investment ingots, coins and/or bars.

Now I am not a financial advisor, however looking at the facts, and having spoken to Sarah Bowles, who is a highly regarded IFA (independent financial advisor) for MAC financial in London, We can see that there is a trend happening and we would recommend people buy physical gold now. Look at the facts. It seems we are a nation of sheep. When one person shouts to do something we all follow. Back in the summer of 2011 our economy was doing terribly and the price of gold was rising. People panicked and started buying gold. This led to the price increasing and as a result we hit an all time high. As I mentioned, we have been downgraded, gold is priced lower at the moment, I believe the price can only increase medium to long term. Do I believe gold is a bargain? Yes. Do I recommend you should buy some and put it away? Yes.

I have written in the past a few blogs on the topic of gold, here they are should you want to dip your toe in. Topics include making gold investment simple, The benefits of gold and why buy it, and another is what are typical gold bullion bars? As always should you want to purchase any physical gold, then please contact me. And should you want any financial advice from a registered IFA, then please contact Sarah, she would be delighted to meet up with you and assist. Of course let’s not forget that one of the main attractions of physical investment gold bullion bars is the fact there is no VAT to pay. 

This image is of a client’s purchase last week. In case you didn’t know, there is no VAT on investment bullion. 

Facts

• The size of the ingots for its worth is very small. 
• You are purchasing a weight of gold, not a size of ingot. Different manufacurers shape their ingots differently. 
• All bars weighing 250 grams and over have an individual serial number.
• All ingots are in a sealed plastic casing to avoid the bar being rubbed down and thus lose weight. 
• You only need the smallest safe deposit box for storing these. 
• The purity of an investment ingot bullion bar is 999.9% gold. 

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.

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.

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.

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

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