Please click on the questions to view the answers
Why should I choose to invest with Rare Investment?
Rare Investment is the preeminent authority on Natural Fancy Colored Diamonds and rare jewel investments. Rare Investment provides clients with unparalleled choice in investment-grade, high potential profit diamonds. Rare Investment’s direct mine access gives investors the opportunity to purchase a higher investment grade stone for better prices than an average jewellery store could or would offer. All Rare Investment diamonds are conflict-free, protected by the Kimberley Process and are graded and certified by the Gemological Institute of America (GIA). The GIA is one of the most respected gemstone grading laboratories in the world.
Are you a middle man?
No. We provide a service to our clients by giving them purchasing access to rare Natural Fancy Colored Diamonds from some of the world's leading mining/polishing companies. We do not buy or sell to brokers.
Are you a mine?
No, Rare Investment has a long-standing history within the diamond industry and acquires diamonds from world class mines and sources.
What specifically do Rare Investment ‘Brokers of Rare Jewels’ do?
Rare Investment ‘Brokers of Rare Jewels’ have an impressive range of experience, specializations and GIA designations. When our Rare Jewel Acquisition Team first sources a jewel, they have a Rare Investment broker value and examine it before it ever leaves our Rare Jewel Diamond House for certification from the GIA. At Rare Investment, we believe there is a close link between driving business performance and attracting, developing and retaining talented people. Rare Investment boasts accomplished employees, often with diverse backgrounds as successful professionals from around the world.
Meet our Management Team.
What is the Kimberley Process?
The Kimberley Process is a United Nations mandated system designed to prevent conflict diamonds from entering the legitimate diamond market. The entire diamond production chain is monitored from mine to retail purchase. Diamonds can only be imported and exported accompanied by a government issued certificate. The Kimberley Process is endorsed by the GIA and World Diamond Council. More than 70 nations participate. Today, 99% of diamonds are certified conflict-free through the Kimberley Process. Diamonds sourced directly from mines, specifically Australia’s Argyle Mine, have their own certificate of origin and authenticity.
Who is the GIA?
Established in 1931, the Gemological Institute of America (GIA) is the world’s foremost authority on diamonds, color stones, and pearls. GIA exists to protect all purchasers of gemstones by providing the laboratory services, research, instruments and education needed to accurately and objectively determine gemstone quality.
Is the quality of my diamond guaranteed?
All our diamonds are graded by gemological laboratories recognized and respected throughout the industry. We are confident that these laboratories ensure each diamond is examined, graded and certified accurately.
Why are Natural Fancy Colored Diamonds such a good investment now?
The reason is simple. There is an exceedingly limited supply of Natural Fancy Colored Diamonds in the world and the largest supplier, the Argyle Mine, is scheduled for closure in 2018. Follow the link to see a copy of the Argyle Mine’s closure strategy. As demand increases and supply remains limited, industry experts foresee prices dramatically rising over the next decade.
What are Economies of Rarity?
Economies of RarityTM is a term coined by Rare Investment refering to structural market condition of ‘high demand to low supply’ moving towards ‘high demand to no supply’. This is the future of Natural Fancy Colored Diamonds. The reason for this their extreme rarity in nature. A typical mine will only produce one Natural Fancy Colored Diamond for every 10,000 colorless stones, and worldwide diamond production is rapidly dwindling.
Investments such rare art, rare collectibles, antiquities and Natural Fancy Colored Diamonds have potential for very high returns and their value is unlikely to ever decrease. Its appeal for investors is based on principals of supply and demand; high demand + no supply = high profits.
Why are Champagne diamonds such a good investment now?
It’s not a secret that more money can be made by ‘buying low and selling high’, opposed to ‘buying high and selling higher.’ In other words, the key is to buy a hot, hard asset that’s in demand just before everyone else is doing it. Warren Buffet says it best when he stated, “Be greedy when people are fearful and be fearful when people are greedy.” If everyone understood the opportunity in Champagne diamonds, they likely wouldn’t be such an exciting investment. The reason that Champagne diamonds are a good investment right now is because they are currently affordable but they won’t be for long.
How do I know demand will continue to outstrip supply?
There are two answers to this question:
Firstly, there is a finite supply of colored diamonds in the world. Current mines are reaching their peak potential and there have been no new discoveries since 2001. The world’s largest colored diamond mine is scheduled for closure in 2018.
Secondly, demand for diamonds and diamond jewellery continues to increase. China’s swelling middle class and booming economy is introducing new Chinese diamond consumers to the market. China has 1.4 billion people (compared to U.S. 310 million). Just imagine what kind of purchasing power 1.4 billion people will generate. KPMG foresees a growth of total revenues from 185 billion USD in 2010 to 230 billion USD in 2015.
Even more, all major diamond retailers such as Harry Winston, DeBeers, Tiffany’s and Laurence Graff have opened flagship retail outlets in China to anticipate China’s booming economy. KPMG speculates that the Indian and Chinese market for gems will surpass the U.S. market in size by 2015
How do I know supply is decreasing?
The Argyle Mine, which is the world’s largest producer of natural colored diamonds and also produces 80% of the world’s supply of Champagne diamonds is scheduled for closure in 2018. Follow this link to see the Argyle Mine’s full ‘Closure Strategy.’ Not only does it take ten years to develop a mine from discovery to production, but there haven’t been any major diamond discoveries since 2001. The two most recently discovered mines are in Russia and Canada and they produce only colorless diamonds.
Are most of your jewels purchased as long-term investments?
For our investor’s benefit, Rare Investment advises investors to hold their rare natural fancy colored diamonds at least 4-6 years. Never in history have natural fancy colored diamonds been poised to appreciate more. The margin at which you can buy natural fancy colored diamonds today and sell them 4-6 years from now is significant. Mike Baghdady from the Huffington Post recently explained that demand from Asian consumers is driving the price of diamonds up further, making rare diamonds a safe haven investment and competitive with gold and the Swiss franc.
How much has the price of natural fancy colored diamonds appreciated?
Since the 1970’s, natural fancy colored diamonds have increased substantially with the rarer colors and higher grades enjoying even greater rates of appreciation. Follow the link for examples of colored diamond price evolution. Faced by significant decreases in supply and increasing demand, natural fancy colored diamonds face a bright future indeed.
Could colored diamonds go down in value? If so, what would cause this decrease?
Demand for diamond products remains high irrespective of economic cycles. It is unlikely the value of natural fancy colored diamonds will decrease. Journalists Stanley Pignal and Emiko Terazono show industry experts speculate that China’s swelling middle class has caused the prices of diamonds to rise. Russell Flannery from Forbes Magazine explains that China has more new [billionaires] than any other nation this year. According to the Royal Bank of Canada (RBC), supplies of rough diamonds will fail to match demand driven by China and India over the next five years due to a lack of new mines.
Why are natural fancy colored diamonds such a popular investment now?
The majority of people don’t study financial economics and history. If they did, they would understand that we’ve been in a commodity bull market for many years and it is even more evident today. There is a high demand for hard assets today, especially ones that you can carry with you.
Why are natural coloured fancy diamonds so valuable?
Modern mines predominantly produce colorless (white) diamonds. These translucent diamonds dominate the market as the most accessible choice for consumers. As a result, natural fancy colored diamonds – long viewed as the exclusive realm of royals and wealthy collectors – were overlooked as geological oddities. The tide turned in the 1970s, when revolutionary cutting styles for natural fancy colored diamonds emerged. Rather than emphasize the virtues of brilliance and fire sought in colorless stones, the new cutting styles emphasized color intensity.
As natural fancy colored diamonds reached the market, jewellers displayed them as eye-catching showpieces raising their prestige and profile – and raising retail sales and profits at the same time. They became the premium choice for discriminating collectors and investors.
Natural fancy colored diamonds have the highest per-carat value of all diamonds on the market. A recent study examined over 3,925 sales from Sotheby’s and Christies from the period 1999-2010 and found the average transaction price per carat was highest for natural fancy colored diamonds at 530,349 (USD) per carat, white diamonds at 440,583(USD) per carat and other gems at 272,291 (USD) per carat.
How rare are natural fancy colored diamonds?
Colored diamonds account for only 1% of all diamonds mined today. For every 10,000 carats of colorless diamonds mined, only one carat coloured diamond is found. For example, Pink diamonds sold at the Argyle Pink Tender are literally one-in-a-million of the total diamond production from the Argyle Diamond Mine in Australia. Many natural fancy colored diamonds are so rare that their market value can only be determined through a bidding process, such as occurs with fine art and antiquities.
Which colored diamonds are the rarest?
It is true that all colored diamonds are rare occurrences; however, there are differences in rarity among colors. Rarity has two components; 1) How many of a certain color (according to the physical laws of science) did nature produce? 2) Rarity imposed by man; what is the commercial desirability of a certain color over another? Typically red, blue and pink are considered the rarest. Orange and Green are also very rare. Some yellows are extremely rare. For example, a true canary yellow diamond is an extremely rare occurrence because of the conditions required to create a Canary diamond. Cape yellow is more common but still classified as rare. Brown, black and greys are more plentiful but still considered rare. As you can see, it is difficult to make blanket statements about rarity because a unique set of physical and chemical circumstances of a particular color defines true rarity of a color.
How rare are Natural Fancy Pink Diamonds?
Natural fancy pink diamonds are found very randomly from mines all over the world, however, 90% of the world’s supplies are found in Western Australia at the Argyle Mine. Pink diamonds discovered at the Argyle mine account for less than 1% of Argyle’s entire production. The rest of the world’s mines, in their entirety, produce less than 10% of world’s Pink diamonds.
The Pink Diamond Tender is one of the most industry events of the year, where the rarest and most exceptional Pink diamonds from the Argyle mine are selected and sold. Pinks from the tender are literally one-in-a-million of the total diamond production from the Argyle Mine. When the Argyle mine closes in 2018, investors and collectors who possess Pink diamonds from the Argyle mine will prosper. Rare Investment has the nation's largest collection of Pink Diamonds available for investment.
I’ve heard that a Canadian mine in Ontario is now producing pink diamonds? How will this affect the rarity of Pink diamonds?
Yes, it is true that in December 2011, a 2.75 carat natural fancy light Pink diamond with SI clarity was mined at the Victor Mine in Ontario Canada. The diamond, which is considered the largest pink diamond to be discovered in Canada, is of no real consequence to Pink diamond supplies. Production of Pink diamonds around the world is ‘spotty’ at best. The fact that ‘one’ Pink diamond was discovered in Canada is nothing substantial.
The key thing about Pink diamonds is their ‘rarity’ and the Argyle Mine is the only reliable source.
Kevin McLeish, chief operating officer (COO) of the Argyle Mine says, “Nowhere else in the world today can you find such a treasure trove of rare pink diamonds. The physical conditions needed to color a diamond naturally occur scarcely. As a result, a pink diamond is sometimes 20 times more valuable than its white equivalent.”
How are colored diamonds graded?
The Gemological Institute of America (GIA) system for grading natural fancy colored diamonds is based on the attributes of Hue (the characteristic color), Tone (the color’s relative lightness or darkness) and Saturation (the strength or weakness of the color).
Using controlled viewing conditions and color comparators, the grader determines the stone’s color out of 27 hues. The fancy grade describes the stone’s tone and saturation using terms such as Fancy Light, Fancy Intense and Fancy Vivid. The grading scale for clear diamonds is alphabetical, with D as the highest color grade.
What is the Kimberley Process?
The Kimberley Process is a United Nations mandated system designed to prevent conflict diamonds from entering the legitimate diamond market. The entire diamond production chain is monitored from mine to retail purchase. Diamonds can only be imported and exported accompanied by a government issued certificate. The Kimberley Process is endorsed by the GIA and World Diamond Council. More than 70 nations participate. Today, 99% of diamonds are certified conflict-free through the Kimberley Process. Diamonds sourced directly from mines, specifically Australia's Argyle Mine, have their own certificate of origin and authenticity.
Who is the GIA?
Established in 1931, the Gemological Institute of America (GIA) is the world’s foremost authority on colorless (white) diamonds, coloured diamonds and pearls. GIA exists to protect all purchasers of gemstones by providing the laboratory services, research, instruments and education needed to accurately and objectively determine gemstone quality.
How can I do my own ‘due diligence?’ I heard I can check my natural fancy colored diamond’s certificate on the GIA website?
The GIA has a convenient way to check your jewel’s GIA certificate on their website. Simply, follow this link or navigate from the GIA’s homepage by going to ‘Labs Reports and Services’, then click on ‘Verify a Report.’ You will need a certificate number and the carat weight of your jewel. Enter the information into the provided spaces and you will be given a GIA report check, which is basically a confirmation of your jewels certificate.
What are synthetic diamonds?
Synthetic diamonds are grown in laboratories and essentially have the same chemical composition, crystal structure and physical and optical properties as natural diamonds. The majority of synthetic diamonds are made for industrial purposes. Diamond simulants (such as cubic zirconia) look like diamonds but are not. Diamond simulants can be natural or synthetic and have chemical compositions, physical and optical properties that are different from natural diamonds. They can be readily identified by a trained gemologist or jeweller. Rare Investment exclusively carries natural diamonds. The certification that we provide guarantees the diamond is natural.
How can you determine if a diamond is synthetic or natural?
The only way to be 100% certain that a diamond is ‘natural’ and not synthetic is to have it certified by the Gemological Institute of America (GIA). The GIA is most advanced, well-funded and sophisticated diamond laboratories in the world for grading, valuing and classifying colorless and natural fancy colored diamonds. Without GIA certification there is no way to ‘definitively’ know that your diamond is natural. If the GIA classifies a diamond as natural and untreated, it is ‘natural and untreated’ and recognized as such throughout the industry.
All of Rare Investment’s diamonds are officially certified by the GIA. If you wish to learn more about the GIA’s process of detecting synthetic and treated diamonds you can visit their website or call them 1-800-421-7250 or outside the U.S. and Canada: 760-603-4000.
What shapes are most popular in colored diamonds?
The cut of a colored diamond is selected as the one that will best emphasize beauty and color. Most are cut into Fancy shapes that amplify color (for example, the Radiant, Cushion, Pear or Oval). Round (brilliant) gems are worth more than Fancy shapes due to the higher loss in weight during the cutting process. Emerald Cut and round shapes with strong color are rare and sell at a premium.
I want to invest in natural fancy colored diamonds. What’s the first step?
The first step is to make a deposit. Rare Investment requires a $1,000.00 deposit on investments $10,000- $49,999.00 and a $5,000.00 deposit on investments $50,000- $99,999.00. On investments +$99,999.00 we require 10% deposit.
What is the minimum investment?
10,000 is the standard. Add GST.
Can you produce a price list quickly if I tell you what I’m looking for?
No. We will offer detailed information on individual stones as requested but due to the rarity and constant price increases we do not offer a pricing sheet for clients to work with.
How do you ship diamonds to volume-based customers?
We ship with Brinks and locally with FedEx.
Do you insure (most diamond producers do not seem willing/able to insure - just too costly)?
Our entire inventory is insured. During shipping it is insured through Brinks.
Is the quality of my diamond guaranteed?
All Rare Investment’s diamonds are graded by gemological laboratories recognized and respected throughout the industry. We are confident that these laboratories examine, grade and certify diamonds with the highest level of accuracy in the industry. We stand behind the quality of all our rare natural fancy colored diamonds. In fact, we are so confident in our diamond’s quality, we give you a 60 day return policy. You can literally see what others say about your diamond within the first 60 days of your purchase and if you are not satisfied, return it for a full refund.
Can I come in and see the diamond before I decide to make the purchase?
Yes. You can arrange an appointment at our high-security International Rare Jewel Diamond House at the World Trade Center in Vancouver, B.C. Contact our office to make an appointment
Should the diamond be insured?
Yes
Where can I store my diamond?
We recommend that you store your diamond in a safety deposit box.
What are your terms of sale?
Assign Stone
Investor Approval
Note*All payments are to be made in Canadian dollars via wiring, check or credit card. If you are paying the remaining lump sum by credit card there will be an extra charge anywhere from 3-4.5% depending on what type of credit card is used. There is also a $10 wiring fee. Please request payment procedures for further details.
Note* In the extremely rare event that the stone is graded lower than expected, a diamond broker will re-assign you a stone, but if it is graded higher than expected, we give you the benefit of keeping the diamond for the original price.
Delivery
Upon your consent, Rare Investment will send you your natural fancy colored diamond via mail (We ship with Brinks and locally with FedEx). We strongly recommend that you secure it in a safety deposit box.
How are natural fancy colored diamonds priced?
The price of natural fancy colored diamonds is one of the most misrepresented and least understood aspects of buying and valuing colored diamonds. Some investors and even jewellers hold false knowledge mainly because uneducated jewellers often make faulty claims – due to their own lack of education. “At the present time, there is no doubt in the mind of any gem and jewellery professional that colored diamonds are the most valuable gemstones on the planet, as determined on a price per carat basis”. The accurate market price of natural fancy colored diamonds can only be determined through a bidding process. In all Economies of rarity, such as rare art, antiquities and natural fancy colored diamonds, there is no limit to their value.
Do you do ‘Quick Flips’?
Rare Investment has facilitated ‘quick flips,’ however we are reluctant to encourage this type of investing. Real appreciation on natural fancy colored diamonds develops over time. Natural fancy colored diamonds are a mid to long-term investment and we want you to sell for maximum profit. Rare Investment recommends that you let your investment appreciate through a 4-6 year window. Various gems will appreciate at different rates and times. Ultimately your diamond may not flip quickly but it will certainly increase in value over time.
What returns can I expect?
Based on historical evidence, returns can be substantial. To maximize gains, Rare Investment recommends a 4-6 year time horizon.
If I chose to ‘wear’ my diamond do you have connections to a company who would set this in jewellery?
Yes, Rare Investment has partnered with Carats Investments Inc. who specializes in diamond jewellery. Carats Investment Inc. works with investors who wish to turn their rare jewels into jewellery for investment or personal purposes. Carats Investment Inc. has helped Rare Investment pioneer Directed Retail LiquidationTM program. Rare Investment is currently the world leader in DRL.
What is Directed Retail LiquidationTM (DRL)?
DRL is an innovative liquidation program that enables investors to liquidate investment-grade natural fancy colored diamond’s (purchased through Rare Investment) into a piece of luxury jewellery for retail prices. All jewellery is sold through Rare Investment’s partner company Carats-The Colored Diamond Company or PinkLuxury.
For more detail about Directed Retail LiquidationTM , please contact us
Isn’t the fact that diamonds are a luxury item a problem?
Diamonds being a luxury item isn’t a problem for investors. In fact, many ‘big player’ investors see it as an incentive. I.e. Laurence Graff, purchased the 24.78 carat pink diamond (worth 46 million) and wants to get his hands on all the natural fancy colored diamonds he can. Graff understands that the diminishing supply of natural fancy colored diamonds combined with the growing demand from China will cause an increase in the value of natural fancy colored diamonds.
Tiffany’s, Christies, Harry Winston and Laurence Graff have all opened up flagship retail outlets in China in anticipation of its booming economy. China’s swelling middle class has a buying power far stronger than the world has ever witnessed in a nation. The U.S., which has long been the largest market for diamond jewellery and luxury items, has a population of 307 million people. China has a population of 1.4 Billion people, where the number of billionaires grew from 64 to 115 in one year. Russell Flannery explains, "China has more new [billionaires] than any other nation this year...This year's group of 115 [Chinese] mainland members compares with only 64 last year….the U.S., by contrast, rose by only 10 people on the new list to 413 from 403 in 2009” (Forbes Magazine, March, 2011).
The bottom line is Chinese consumers want luxury items... Laurence Graff knows this and Rare Investment knows this.
Why would someone buy a diamond at retail when they could buy it like we do for a fraction of the price?
People buy diamonds at retail mostly because they want a specific brand. Tiffany can mark-up prices like they do because consumers will pay retail for a Tiffany diamond. Consumers buy luxury brands to redefine their identity and social status. Based on stats from 2003, 94% of women from Tokyo own a Louie Vuitton Bag, 92% own a Gucci Bag, 57% own Prada and 51% own Chanel. Ultimately, luxury consumers buy brands to buy into a lifestyle and that’s why they will pay more,
I think I saw colored diamonds being offered on the shopping channel for a really good deal...?
These so called ‘colored diamonds’ are most likely synthetic diamonds or gemstones. Natural fancy colored diamonds have consistently risen in price since the 1970’s. A shopping channel will not be able to offer better prices than Rare Investment brokers, who receive rare jewels straight from the source. Rare Investment has a 60 day return policy. You are free to check out other diamond dealers within 60 days and if you are not satisfied you may return your diamond for a full refund.
Is it true that an appraisal of a diamond is not respected by a bank as loan collateral?
Yes, this is true. Banks don’t loan against diamonds because they are not registered investments. However, banks also won’t loan against rare art and other investments, however, this obviously doesn’t affect their investment status. Rare commodity investments such as antique violins, rare art and natural fancy colored diamonds are an excellent way to protect wealth. Aristocracy and royalty have known this secret for centuries.
Who is going to buy a diamond if prices keep rising?
High-net worth individuals and other elites have used hard asset investments as a hedge against inflation during recessionary times for centuries regardless of what the market does. A recent Capgemini. (2010) study on passion investments stressed that high-net-worth individuals seek out more tangible assets expected to hold their long-term value. As a result, ‘jewellery, gems and watches overtook ‘art’ as the second most important category of passion investment globally in 2009 . As investment guru Warren Buffet says, "Only buy something that you would be perfectly happy to hold if the market shuts down for 10 years."
Some people say diamonds are not liquid?
Rare Investment’s Directed Retail LiquidationTM program is an extremely profitable incentive for liquidating diamonds. The potential for great returns is significant. Contact a Rare Investment diamond advisor to learn more about DRL.
This seems too good to be true...what’s the catch?
Your right. This is the opportunity of a lifetime! If everyone understood the opportunity in Champagne diamonds and started buying them, they likely wouldn’t be the greatest investment on earth. In the past, many financial planners had the same objection with regards to gold and silver and some experienced advisors were even claiming that precious metals were a bad investment! Just look at where gold and silver sit today.
Why is there such a demand for hard assets these days?
We’ve been in a commodity bull market for many years and it is even more evident today. There is a high demand for many hard assets, especially ones that you can carry with you. Natural fancy colored diamonds are among the most safe and portable hard asset investments. For example, one million dollars in gold is the equivalent of twenty (1 kilo) gold bars which is approximately 50 pounds and 23,000 grams. A 1 carat Argyle vivid pink diamond with high clarity can be worth over a million dollars which is approximately 0.2 grams.
What about investing in colorless (white) diamonds?
Roughly 9 out of 10 people involved in the Jewellery industry do not carry Investment grade diamonds nor do they understand colored diamonds. They tend to view colored diamonds as a threat to their white diamond business. They specialize in the most common - and that is white diamonds. The thing about white diamonds is that nearly everyone owns one, and we know that most people want what other people don’t have.
What do I care if Katy Perry or other rich and famous love colored diamonds?
Trends usually begin with the rich and famous and then quickly move to consumers. Celebrities such as Jennifer Lopez, Faith Hill, Elton John, Barbra Streisand, Oprah Winfrey, Jessica Simpson, Katy Perry and others wouldn’t consider Champagne diamonds in their wedding rings, earrings, and necklaces if they didn’t absolutely admire them.
Do auction houses such as Sotheby’s and Christies offer colored diamonds?
Sotheby’s and Christie’s are setting record high numbers in colored diamond sales. They sell all colors, including Champagne. The GIA also hosts a list of auction houses for diamonds. Other auction houses such as Waddington’s, Rapaport Auctions and others are often an efficient, cost-effective way to buy and sell both uncertified and certified diamonds.
I heard Champagne diamonds were worthless?
Until recently, Champagne diamonds were not advertized or marketed as luxury commodities. In fact, they were typically used for industrial purposes. However, the emergence of synthetic diamonds replaced the brown diamond and this opened the pathway for their retail use. Brown diamonds were rebranded taking on new identities of chocolate, cognac, champagne and cinnamon diamonds. Today, Brown diamonds have grown from zero to a five billion dollar a year industry.
What are the demographics of diamond consumers?
Roughly 80% of diamond consumers are women.
Can I call back if I have more questions?
Our brokers of rare jewels and diamond advisers are here to talk to you anytime. We are open Monday to Friday 8:30 a.m. to 5:00p.m. P.S.T. Contact us now.
At Rare Investment we often get asked, “If the world falls apart, how can owning a rare diamond be beneficial to me...who buys colored diamonds in turbulent times?”
The question we have to ask ourselves is “what is money?” Money is several things or rather it serves several distinct functions. To simplify basic economic theory, money can be viewed as having two distinct functions. It serves as 1) a medium of exchange and 2) it serves as a store of value.
As a medium of exchange we currently use fiat currency (bills, coins and electronic versions of credit). But in hyperinflation or currency collapse (that would be the conditions of "the world falling apart") the medium of exchange loses most or all of its value.
In that case, capital is moved from the liquid fiat currency to hard assets. Hard Assets are the second function of money; the store of value. Behind all this movement of capital in various economic times is one principle; protecting purchasing power. In normal times, fiat currency is just fine for protecting purchasing power. But when things turn bad, the only way to protect purchasing power is to move wealth from the medium of exchange function over to the store of value function of money. Store of value can include hard assets such as diamonds, gold, silver, food supplies, real estate etc.
In hard times all sorts of things become mediums of exchange such as food you grow or a skill or service you provide etc. The things that can be traded for something else so you can exist become the currency.
Hard assets do this too but they are usually held onto through hard times. They are the store of value or ‘ferry’ we use to carry our wealth across ‘the river of hard times.’ It is when a new currency is established in a new regime that those hard assets (store of value) can be translated back into currency (medium of exchange) often at greatly increased value. History has proven over and over again that wealth doesn’t vanish or disappear it simply transfers from the uneducated person to the educated one. Therefore if ‘things fall apart’ economically the poor and middle class may be wiped out but there will be an ultra-rich and ultra-wealthy class that will own hard assets such as gold, silver and natural fancy colored diamonds, as they will hold the wealth.
Natural fancy colored diamonds are an alternative hard asset investment that many investors are turning to because they are discreet and small; a multi-million dollar investment portfolio that fits into an envelope and contains no security numbers, no names and no registration requirements.