Posts tagged clarity

What are you doing with your cash?

Have you ever wondered why diamonds vary in price from shop to shop?

Since 1949, statistics have shown that diamonds are the only commodity that has increased year on year 15-20%. And in years of a recession, even more than that. Provided of course they are purchased at the right level, wholesale!

There have been years, when diamonds have been increasing in value by up to 40%. It is the only commodity that is not listed on the stock exchange. It is still very much an item that is ruled by big diamond house’s around the world. Most famously DeBeers who used to own and control more than 95% of the worlds diamonds. That has since been reduced to around the 35% mark.

It’s very much a supply and demand process with diamonds, and with emerging countries like India and China demanding huge amounts of diamonds each year for new found wealth, the demand is far exceeding the supply. Did you know there has to be around 250 tons of earth mined for each 1 carat commercial quality diamond found. 

Jewellery retailers are known to put huge mark-ups on their stock, and this is done for various reasons, and it’s an accepted part of the culture we live in. So buying an investment diamonds from a retailer would take many years to see any return on your investment. 

This is where Joseph Sterling are able to help. We offer a service that from as little as £2000,  you can open a diamond portfolio. I’m not talking about buying a share of a diamond, but actually owning and having the physical goods in your possession to marvel over whenever you want. As a member of the London Diamond Bourse, we have access to all the diamonds which come into the country before they are distributed to wholesalers, manufacturers and retailers, so logically we should be your wholesaler to come to.

Compare this to purchasing a luxury holiday, some Christian Louboutin shoes, or even putting your money in a savings account, and this will guarantee you a better return in years to come. And if you are looking at natural fancy colour diamonds, such as the ones in the ring above, your return could be even greater.

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

A Diamond is Forever

The famous phrase "A Diamond is Forever" was first penned in 1947 by a young copywriter working for N. W. Ayer & Son, Frances Gerety. But is this really true? After all, what is a diamond? It’s just a lump of coal, isn’t it? 

Well yes and no. Diamonds have gone on to become the most precious of natural “stones” in the world. And in times like these, when we live in uncertain times and everything we seem to want to invest in has an uncertain future, maybe the time is right to invest in diamonds. Hear me out.

 

In my previous blog titled “Are diamonds forever? How to invest in them" I spoke about coloured diamonds and large investments. Today I want to let you know that investing in diamonds is not only for those with deep pockets, but for all of us too.

Over the last few years, diamonds have risen year on year between 15-20% and looks like a very safe bet indeed. However the best way to make a great return on your investment is to purchase wisely. You won’t make any money if you buy a piece of diamond set jewellery from a retailer for example. There are many reasons for this. First you have the retailers mark up; there is the labour in making the piece: there is the tax; and there is the metal costs. 


Tips

The value of a diamond is based largely on the 4C’s Clarity, Cut Colour, and Carat

 

When shopping for diamonds always buy them at wholesale or near wholesale prices. If the price of the diamond is five to 10 percent more than the cost, keep looking for a better deal. Go to a reputable dealer who sells GIA certified diamonds. GIA is the Gemological Institute of America, a non-profit institute considered a foremost authority in gemology. Diamonds certified by EGL USA Group, the world’s premier independent gemological laboratory is another option.

Diamonds have proved their worth as a stable commodity that maintains its value in the worst of economic time. While there’s a bit of a catch 22 here in that you need to be fairly wealthy to begin with in order to invest in diamonds, you can get started for just a few thousand dollars and rest assured that, in the long run, that investment has a very good chance of paying off.

The reason I have mentioned price’s in Dollars, is because they are priced in Dollars worldwide. If you do buy as an investment and you are not in America, take in to account the conversion rate and look at the historical currency chart. It could make your investment go a little bit further. 

Lewis Malka is a recognized expert in making diamond rings as well as being famous for being a jeweller to the stars. All his blogs are his own opinions. 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


Cupid’s arrow is aiming to sparkle this Valentine’s Day

With around 10% of marriage proposals occurring on or around Valentine’s Day, the most romantic holiday of the year sees a fair share of diamond rings purchased. 

Valentine’s Day has worldwide appeal, and the practise of gift giving is celebrated in the USA, Australia, Britain, China, Ghana, India, South Africa and more. In Mexico, heart shaped and red themed gifts appear immediately after Christmas. Japanese women bestow small gifts such as chocolate on Valentine’s Day, the men return the favour a month later on White Day by handing out jewellery and other gifts to loved ones. 

Now with all this said, the problem now becomes what is the ideal piece of jewellery for me to purchase and how do I go about doing this? Well with all my years of experience, and being a member of the London Diamond Bourse, let me try to offer some sensible advice. 

If you are going to propose or indeed purchase a significant diamond, then you need to do your research. Being familiar with the 4C’s of diamond quality is a crucial element in understanding what you are buying, and why on the face of it, two diamonds may appear the same yet be miles apart in price. These are all explained in a previous blog.

Choose a qualified jeweller: Sounds obvious however I have been into many multiples, and found that the staff there are very inexperienced as they may be working their way through college and are just counter staff. Take note of their qualifications and ask to speak to someone who you feel comfortable with.

Ask for an independent diamond grading report: A diamond certificate details the gemological quality of the diamond. It will tell you if the stone is natural or synthetic, if it’s been treated and how, and it’s quality of the 4C’s.

Keep the purchase secure: Have the diamond independently valued and then insure it. It is probably one of the largest purchases you will ever make. It would be prudent to have it insured on your home content policy. Some diamonds are laser inscribed with the certificate number on the girdle. Keep this number safe to help identify it if it’s ever lost or stolen.

Purchase the stone loose and have the ring made later: If you are unsure what design your fiancé would prefer and yet want to maintain the element of surprise, then one option is to buy a loose diamond and go through the design process together. Very romantic and she will love the idea that you are doing they together. 

A gift of diamonds is an outward expression of what people mean to one another. Enjoy the process, it’s one that will live in the memory for a very long time. 

Lewis Malka is a recognized expert in making diamond rings as well as being famous for being a jeweller to the stars. All his blogs are his own opinions. 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 

Are Diamonds Forever? How to invest in them.

Famous diamonds like the Hope from India, the Yellow Tiffany from South Africa, and theWilliamson Fancy Pink inspire the imagination and are so valuable they seem almost like fictional objects of desire. Their size can leave you in awe and you can practically go blind from their beauty when in their presence. But diamonds can also be a practical investment. In markets where inflation rates have soared; investors have sought out diamonds as a way to put a hold on the value of their currency. The wealthy have used their diamonds to get them through tough economic times such as during WWII and the Asian economic crisis of 1997. In our current economy, investing in diamonds is paying off for many.

 

A Rich Man’s Game

According to the international diamond wholesaler Ajediam, prices for diamonds have increased on average 15% each year since 1949. However, investing in diamonds comes easier to those deep-pocketed individuals with the extra money to spare. Capital requirements for diamond investing is high and most new investors are already millionaires. The price of a premium cut 1-carat diamond can range from $14,000 to $25,000 depending on the quality.

Determining Value

The value of a diamond is based on the 4 C’s (Cut, Clarity, Color, Carats). Cut refers to the way a diamond has been shaped, its faceting pattern and its polish or surface finish. Clarity or purity is a diamonds’ ability to let light in and reflect its brilliance. For example a diamond with a clarity grade of LC/ IF has no internal or external spots so it is valued higher than a stone with minimal flaws. Colour is also a factor. Most diamonds are white or colourless but the most rare and priciest diamonds are the naturally coloured or “fancy” stones. Carat is the weight of the stone. In contrast to the 1-carat mentioned earlier, a 3-carat stone could be priced at $40,000 or more depending on its distinct characteristics.

Diamonds are the hardest natural substance known. 

Diamonds as an Investment

It may sound contradictory but a big part of the allure of diamonds for investors comes not from their romantic symbolism but from their practicality. Diamonds are easy to carry. An investor can easily carry thousands or even millions of dollars worth of diamonds in a small pouch. Also, their value is not directly linked to the stock market, making them an ideal financial instrument that holds its value in times of recession and increases in value during inflation.

According to Pastor-Genève, a worldwide wholesale dealer of high end coloured diamonds, the key to making a worthwhile investment is to buy the most rare and largest diamond you can find. Naturally coloured yellow, pink, sapphire blue and green diamonds occur as a result of a chemical reaction with other natural substances in the earth and are more difficult to come across. Due to their rarity, these are considered the most valuable, even more so than white diamonds.

Diamond investing, for all its appeal is not without its drawbacks. Diamonds are easy to buy but not easy to sell. Large-scale frauds and scams have made jewellers apprehensive and the most rare and high caliber diamonds have a better chance of being purchased. Not to say your 1-carat diamond will not be purchased, it’ll just take longer. Selling your diamond at a profit also will take time. A rare blue diamond can take at least five years to double in price and a yellow diamond can take eight to 10 years. In addition, supply and demand play a key factor on selling power. The ratio of white to coloured stones is 10,000 to 1, so if you have a white stone, chances are it will be more difficult to find a buyer for it.

Tips

When shopping for diamonds always buy them at wholesale or near wholesale prices. If the price of the diamond is five to 10 percent more than the cost, keep looking for a better deal. Go to a reputable dealer who sells GIA certified diamonds. GIA is the Gemological Institute of America, a non-profit institute considered a foremost authority in gemology. Diamonds certified by EGL USA Group, the world’s premier independent gemological laboratory is another option.

Diamonds have proved their worth as a stable commodity that maintains its value in the worst of economic time. While there’s a bit of a catch 22 here in that you need to be fairly wealthy to begin with in order to invest in diamonds, you can get started for just a few thousand dollars and rest assured that, in the long run, that investment has a very good chance of paying off.

The reason I have mentioned price’s in Dollars, is because they are priced in Dollars worldwide. If you do buy as an investment and you are not in America, take in to account the conversion rate and look at the historical currency chart. It could make your investment go a little bit further. 

 

Lewis Malka is a recognized expert in making diamond rings as well as being famous for being a jeweller to the stars. All his blogs are his own opinions. 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