L o n d o n C o m m o d i t y M a r k e t s

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"Diamonds have emerged as a safe haven investment alongside favourites

such as gold" - Financial Times

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Coloured Diamonds Are Attracting Attention

Coloured diamonds have started attracting the attention of investors around the world

recently, as the economic turmoil seen in many markets is creating a strong demand

for safe havens.

As well as their renowned aesthetic appeal, coloured diamonds also represent strong

long-term value; returns for the gems beat those of equities for much of the past 15

years.

The Financial Times reports that from 1999 to 2011, three-carat diamonds increased

by 145 per cent, while five carat diamonds rose by 171 per cent, as measured by the

Rapaport Diamond Trade Index.

"If we continue diamond mine at this rate - we are within 20 years

without" - De Beers

According to NuWire Investor,

the appreciation this commodity

has seen over the past decade is

unprecedented. Generally the

stones that fetch the highest

and most surprising sums are

those of highly rare colours,

sizes, and shapes. Vashi

Dominguez, chief executive of

diamond trading company Diamond Manufacturers, says: “Certain types of diamonds,

including coloured diamond varieties, have held their value over the past few years

better than other more volatile equity investments,”

And larger stones can certainly reap rewards for investors; the price of a typical five-

carat stone has grown by more than 150 per cent over the past ten years.

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"By 2016, global demand for diamonds will outstrip supply by 7 million

carats" - Bloomberg

The colour and intensity of a diamond is as important as its size or weight. A Fancy

Vivid Blue diamond less than half a carat in size could run into millions of dollars. A

Fancy Intense Pink round diamond over five carats could bring in millions of dollars as

well. On the other hand, a yellow diamond would have to be extremely large and

unusual to bring in figures anywhere near these sums.

Regardless of a coloured diamond’s colour, shape, size, or quality, the bottom line is

that due to the rarity of these stones in addition to the high demand, prices are soaring

on a yearly basis. This makes coloured diamonds ideal investment opportunities.

Though there are some coloured diamonds that are better to invest in than others, all

coloured diamonds are wise as far as investments go.

"Yellow, pink and blue diamonds are catching the eye of investors around

the world, according to dealers and industry insiders" - Reuters

Coloured Diamonds as Investments

Regardless of the purpose of

your purchase, and especially

in the event that the diamond

is used for an investment, be

sure to first speak with a

professional. The diamonds

that have demonstrated the

most impressive numbers and

are sought after by investors

are pink diamonds, top quality yellow diamonds above 2.00-carats in size, and blue

diamonds. When selecting a coloured diamond it is difficult to say without first

assessing the stone, but in general go for the highest intensity your budget will allow,

while still maintaining a decent clarity, size, and carat weight. If you cannot get a pure

coloured, go with a coloured combination that showcases the colours well. There are

so many options, but it is up to you to decide on the right colour, based on your taste,

and on your wallet.

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"When times are bad, diamonds can hold their value better than real-

estate and have the advantage of being portable" - Forbes

How to Value Coloured Diamonds

Unlike gold, which can be valued purely on weight, diamonds need to be valued

individually based on factors such as shape, colour and clarity.

The common perception is that diamonds are sold using the “carat” value. This may be

partially true on “jewellery” diamonds, but for “collection” diamonds the 4C’s are what

make up the value. These are:

Cut, Colour, Clarity and Carat.

The cut of the diamond is the most

important of the four Cs, as the skill of

the diamond cutter is what gives a

diamond its brilliance. A badly cut big

diamond won’t sparkle in the same way

as a well-cut smaller one.

Diamonds have a colour grading

system to show how much yellow (caused by nitrogen in the stone) is in them. The

grades D, E and F are colourless and therefore the most sought after. Avoid any colour

lower than grade H as it starts to become too yellow. Clarity is also important, with the

best grading being flawless.

Investors who decide to buy and hold diamonds also need to factor in the cost of

security and storage.

“The prices of diamonds are expected to enjoy a compound annual growth

rate of 16% until 2014” - leading diamond supplier Graff.

Content sources: http://www.ft.com

http://www.nuwireinvestor.com

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About London Commodity Markets

With over a century of combined experience in the alternative investments market,

the team at London Commodity Markets have a proven track history of delivering

excellent consultation as well as an unrivalled service to clients.

As a result of this unrivalled standard of service, quality advice and ethical approach to

the marketplace, London Commodity Markets have become the globe’s fastest

growing alternative investments company.

London Commodity Markets can provide information for people interested in investing

in 100% natural fancy blue diamonds at excellent prices and certified by GIA.

All diamonds supplied from London Commodity Markets come with a GIA certificate.

This is issued from the Gemological Institute of America, the world's foremost

authority in diamond grading. This certificate shows your diamond is the exact quality

your were sold.

London Commodity Markets can help you diversify your investment portfolio securely

with access to GIA certified fancy coloured diamonds.

http://londoncommoditymarkets.com/

HEAD OFFICE

Citibank Tower, 25 Canada Square, Canary Wharf, London E14 5LQ

Tel: 00 44 (0) 203 514 6000 / Fax: 00 44 (0) 203 514 6001

Email: info@londoncommoditymarkets.com

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