New Year, New Opportunities by Argyle Bonds

 

Mid-January. By now, some of us have stopped going to the Gym (or realised we’re never actually going to go!) or fallen off our diet wagon or decided ‘Veganuary’ was a big step too far! But if your New Year’s resolution was to find a better investment for your hard earned cash, or to expand your current portfolio in new and exciting ways, then look no further – Argyle Bonds could have just the opportunity you’re looking for.

Entrepreneur and CEO of the Argyle Group, Rav Dhillon, says: ‘Our Investment Bonds are perfect for experienced investors who want to earn more from their savings. We’re currently busy meeting people up and down the country who have decided to start their New Year with a review of what their portfolio is earning them.’

The ethos at Argyle Bonds is clear on talking to Rav. The company is excited by the opportunities available via their brand new fixed income bond, and that excitement clearly translates over to their new Clients. ‘This isn’t just any old investment opportunity’ Rav explains ‘You’re helping us to buy a piece of history, something that will never happen again.’

Rav Dhillon’s Argyle Group consists of a number of companies all producing stunning bespoke pieces using the natural coloured pink diamonds found only in the Argyle Mine in Australia: and it won’t be producing them for very much longer.

The mine’s owners recently announced that due to rising costs they would discontinue mining operations in 2020, meaning a massive fall in the number of natural coloured diamonds available to the world from that point onwards, and already leading to a spike in demand and prices which is of course what Argyle Bonds was developed to take advantage of.

Rav continues ‘We want to raise £3 million pounds via this innovative corporate bonds issue to buy some of the last naturally available pink diamonds in the world. Using the other companies within the group, we’ll turn those diamonds into bespoke pieces of jewellery or collectors items in our unique Argyle Coins.’

So this New Year, when you’re considering your investment portfolio, make it a part of your resolution to consider investing in something so unique it will quite literally never happen again – an investment in a finite natural resource that’s already continually rising in value as a response to that fixed end date of its availability. In so much as there’s no sure thing in investment terms, in this instance, like the rare gems themselves, you have perfect clarity of knowledge upfront about what the outcome is likely to be.

RAGING DEMAND FOR FANCY COLOURED DIAMONDS

Raging Demand for Fancy Coloured Diamonds

In light of the recent sale of Pink Star, Diamond World explores the reason behind the demand for these coloured diamonds and the most expensive pink diamonds ever to be sold.

Last week, history was made at the Sotheby’s auction house in Hong Kong. A massive 59.60 carat, flawless Pink Diamond going by the name “Pink Star” was sold to a Hong Kong-based jewelry company Chow Tai Fook for a whopping $71.2 million! This is not the first time a colossal sum of money has been spent on a fancy coloured diamond, however, this is the first time in the history of diamond auctions, such an expensive transaction has taken place. Before this it was the elusive 14.62-carat “Oppenheimer Blue” which was sold for $57.5 million. Fancy coloured diamonds (FCD) are rare, priceless and more importantly, resistant to any kind of recession. So it is not a wonder why people have always taken a fancy towards fancy coloured diamonds. However, their demand has considerably increased over the last few years, and the High Networth Individuals (especially in Asia, according to reports) are willing to pay anything, just about anything, to get their hands on one of these precious gems.

Increasing prices of FCDs

When chemical elements such as Boron or Nitrogen are trapped during the process of a diamond formation, coloured diamonds are formed. Only 1 carat of coloured diamond is found in a total of 10000 mined diamonds and when these are further scrutinized for “intense” colour grading, a measly one carat may be found in a total of 25,000 diamonds. So it is this rarity factor that makes these FCDs inestimable. In 2008, when the economy took a heavy beating, investors were looking at alternatives or tangible forms of investments rather than stocks and shares. The wealthiest 1 per cent began investing in wines, paintings, precious metals and gemstones. According to Fancy Color Research Foundation, as of September 30, 2016, pink diamonds price has increased by 180 per cent, the highest thus far, followed by blue and yellow diamonds which are up by 70 per cent and 90 per cent respectively. Market fluctuations have no effect on FCDs. They are long term assets which have proven to fetch great ROI – any investor who has made his bid over a FCD will tell you that it is now worth multiple times its original price.

We have witnessed auction prices like never before in the last few years. 2015 May, a 14.62 blue diamond was auctioned at $57.5 million and in November the same year, the elusive 12.03 carat Blue Moon was sold $50 million. It was the only diamond that was sold at $4 million per carat. The Pink Star has joined this league of extraordinary coloured diamonds, breaking all records in total value.

Mixed hues are hot selling
With coloured diamonds, colour trumps other factors such as clarity and cut. Brown diamonds are the most common coloured diamonds. The more intense the brown, the higher the price. Once only used for industrial purposes, these diamonds were so smartly packaged as “Champagne”, “Cognac” and “Chocolate” these diamonds are worth thousands of dollars per carat today. This is followed by yellow diamonds also known as Canary diamonds – these diamonds are available in the market and come in large sizes up to 10 carats. Green, blue, orange, purple, violet, red and pink are the rarest (not in the same order), with red being the rarest of rare. While lighter shades of yellow, pink and blue diamonds in large sizes are in great demand, according to reports, combination colours like pinkish-purple or yellowish-brown is hot selling nowadays.

Rock solid investment

While coloured diamonds are in great demand, the market is not so transparent. Very few fancy coloured diamonds are auctioned at famous auction houses and most of them are sold privately. This doesn’t give too much of a window for investors to study the prices. Also, the supply is not as prolific as colourless diamonds. Rio Tinto’s Argyle produces about 90% of these coloured diamonds and the ambiguity surrounding the mine’s future, have made these diamonds even more priceless.

The global demand for diamond jewellery as such may be a bit sluggish, but these coloured diamonds are eye candies for investors who are looking at rock solid investments (literally!).

ARGYLE COINS TO EXPAND INTO SINGAPORE

Argyle Coins To Expand Into Singapore

We are excited to announce that Argyle Coins will shortly be opening our first office in Asia, with plans now formalised to expand into Singapore next month. The main reason for this expansion overseas is the rising demand for diamond/gold based investments across parts of Asia and the Middle East.

In the words of our founder and CEO, Rav Dhillon; “Investors are flocking to take advantage of our Argyle pink diamond inlaid gold and silver coins,” “We are very excited about our recent growth and expect to extend offices to Singapore, Hong Kong and Shanghai within the next five years. This growth is all stemming from our office in London which has been our only location until present. We are pleased to be able to accommodate the growing demand for investments of our Argyle Coins”.

Argyle Coins specialise in creating both gold and silver coins that are inlaid with Argyle pink diamonds. The diamonds are sourced exclusively from the Argyle mine in remote Western Australia where more than 90% of the world’s pink diamonds hail from. Our unique embossed coins are popular among investors as pink diamonds are currently considered to be a “safe haven investment’ due to the imminent closure of the Argyle Mine in 2020.

The demand for coloured diamonds is ever growing. According to recent studies, Argyle pink diamonds and red diamonds are rising in popularity among investors and gold and silver coins embossed with coloured diamonds have soared in sales since Argyle Coins was established early in 2016.

Our coins come with a choice of pink, red, blue or yellow diamonds, all of which are sourced from the Argyle Mine. Argyle Coins is the exclusive holder to the rights of the mine that is set to close in 2020, thus the profit margin of the coveted coin is projected to continue to spike due to increasing demand.

POTENTIAL IMPACTS OF THE ARGYLE MINE’S CLOSURE

Potential Impacts Of The Argyle Mine’s Closure
Why is the Argyle Mine so important?

The Argyle Mine in Western Australia is currently one of the most important producers of diamonds in existence. Not only is it the largest source of coloured diamonds in the world it is also responsible for over 90% of the world’s total pink diamond production. Since commencing mining operations in 1985, it has gone on to become the fourth largest diamond producer by volume worldwide. However, with resources running out and the cost of mining exploration increasing, Rio Tinto, the mine’s owners, have announced plans to cease all mining operations as soon as 2020.

Potential Repercussions

Currently there is no other mine in existence that can replace the level of output the Argyle Mine has achieved over the last few years. This means that when the mine eventually does close, it will significantly affect the supply of coloured diamonds. No other mine on earth can boast a tender like the famous annual Argyle tender and the quality of their investment grade pink, red and violet diamonds is unparalleled.

Whilst there are other mines currently producing coloured diamonds, the growing cost of mining exploration is making it difficult for them to increase their output. It is also highly unlikely that new mines will be discovered any time soon due to the increasing time and resources it costs to excavate.

What does this mean for Investors?

If you’re thinking about investing in coloured diamonds, then now is the ideal time to do it. There is a limited window of opportunity before the Argyle Mine closes and coloured diamonds will likely become increasingly scarce thereafter. The value of coloured diamonds as a whole has appreciated by over 100% in the last decade and is continue to rise year on year. This means that the potential for large scale returns on investment is very good indeed.

COLOURED DIAMONDS A STANDOUT INVESTMENT OPPORTUNITY?

Coloured diamonds a standout investment opportunity?

Coloured diamonds are among the most valuable gemstones on the planet. Over the last two decades they have continued to appreciate in value year on year, and are now considered one of the stronger alternative investment options available to investors.

Coloured diamonds are highly valued for their beauty and rarity. Only one diamond for every 10,000 Â that are discovered is deemed to be a fancy coloured diamond. Due to their increasing scarcity and raising profile in the media, coloured diamonds are growing in popularity with investors seeking a new and exciting investment opportunity.

Several times over the last few years, record prices have been registered at auction for sales of coloured diamonds. Last year the “Pink Star” diamond become the world’s most expensive gemstone, selling at auction for $71.2 million (£57.3 million). The 59.60 carat stone is the largest cut pink diamond in existence and its colour rating, ‘Fancy Vivid’, is the highest possible grade on the scale used to assess coloured diamonds.

Whilst $71.2 million is a staggering sum for a coloured diamond, it is still not the highest price-per-carat ever registered for a coloured stone at auction. This record is currently held by the Blue Moon of Josephine, a 12.03-carat Fancy Vivid blue diamond which sold at Sotheby’s Geneva in November 2015 for $48 million: over $4 million per carat!

The future of the Argyle Mine and potential impacts of it’s closure

The Argyle Mine in Australia is currently the largest known source of coloured diamonds on the planet. It is responsible for over 90% of our total pink diamond production and it’s annual tender is among the most lucrative diamond sales in the world. Due to dwindling resources, the Argyle Mine is scheduled to close in 2020, which could signal the end of an era for pink diamonds. After 2020 these precious stones are likely to become almost impossible to get hold of on the open market, which is one of the reason demand for pink diamonds is growing at a staggering rate.

Below are four different charts showing both the current and predicted appreciation rates of coloured diamonds.

Blue Diamonds Attract Investors

Magical and Mysterious Blue Diamonds Attract Investors At Auction

Blue diamonds are among the rarest and most valuable shades of fancy coloured diamonds. Formed when traces of Boron are present in the stone, blue diamonds are one of the most stunning and sought after gemstones on the planet. According to a recent report from diamond research group Rapaport, Prices of fancy blue diamonds performed better in the second quarter of this year than the rest of the entire fancy-colour market combined and the FCRF’s Fancy Colour Diamond Index for blue diamonds rose 5.5% year on year. This has been fuelled by massive demand from markets in Asia as well as the growing scarcity of investment grade blue diamonds. Statistics from the Natural Colour Diamond Association, estimate that only one natural blue diamond can be found on the market for every 100 Picasso paintings up at auction, making them one of the rarest investments currently available.

In the last few years, blue diamonds have attracted media attention several times, most notably when breaking sales records at auction. In May 2016 the “Oppenheimer Blue: became the most expensive diamond ever sold (although it was later surpassed by the pink star diamond) selling for an incredible US$57.5Â million. The 14.62-carat stone is a stunning rectangle emerald cut and was the largest fancy vivid blue diamond classified by the Gemological Institute of America ever sold at auction. Not long before that, in November 2015 the “Blue Moon of Josephine” broke the record for highest price per carat when it sold for $48.4 million. The 12.03 carat stone was named after the buyer’s 7 year old daughter Josephine.

Blue Diamond Facts:

Researchers have shown that blue diamonds are better conductors of both heat and electricity than any other substance on Earth.

The Cullinan Mine in South Africa is currently the world’s primary source of blue diamonds

The most famous blue diamond is the “Hope Diamond”. A 45.52 carat Fancy Deep Grayish Blue diamond, it is said to be cursed due to the unfortunate fates suffered by many of it’s previous owners