World Wealth Drops But Ultra-Rich Seek Safety in Jewels

The annual world wealth report produced by Capgemini and Merrill Lynch found that the world's population of high net worth individuals contracted to pre-2005 levels. This segment of the population, comprising 8.6 million individuals who own a total of $32.8 trillion in assets, lost 19.5 percent of its wealth in 2008. High net worth individuals were defined as those with at least $1 million in financial assets, excluding collectibles and residences.

Lifestyle spending, which includes the jewelry category, by high net worth individuals was significantly reduced in 2008. However, wealthy people did gravitate toward buying art and jewelry as investments, actually increasing their investment in these categories beyond their pre-recession levels, primarily as an additional means of "flight to safety," the report concluded.

Luxury collectibles, such as automobiles, yachts and jets, accounted for the largest portion of these "investments of passion" in 2008, at 27 percent. Individuals in Japan and in North America allocated the most funds to this category than those in any other region. The jewelry segment grew to become the third-largest passion investment in 2008, with 22 percent. High net worth investors in Asia and the Middle East allocated the most to jewelry, gemstone and watch investments.

Within the lifestyle spending category, purchases of luxury consumables fell 43 percent worldwide. Sixty percent of those in North America said they spent less on luxury consumables in 2008.

source: http://www.diamonds.net/news/NewsItem.aspx?ArticleID=26847

For more information on this matter, please contact Diamondmkt.com - Investment Diamonds Specialists at +44 (0)207 1830244 or email info@diamondmkt.com

Video "De Beers - Investing in Diamonds as an Alternative Investment"

http://richard-wilson.blogspot.com/2009/05/investing-in-diamonds-as-alternative.html

Watch this amazing video!

Raphael

Alternative investments get more popular at major hedge fund conference

By Barbara Kollmeyer, MarketWatch

Dealing in diamonds

Until recently, the professional diamond industry hasn't been on the radar for the alternative investment community.

But wealth managers are looking for that extra something to keep their clients happy after the bruising markets took last year, according to Saul Singer, a partner in Fusion Alternatives, a professional advisory firm specializing in the emerging alternative investment class of investment-grade diamonds. Demand for diamonds is outstripping supply, a trend Singer expects to continue because no diamond mines are coming on line and it takes years to get rough diamonds ready for sale once they are found.

"We get the feeling that wealth managers are out there on the lookout for different things," Singer said. "We get the feeling they have to prove they're not just sitting back and pressing a couple of buttons on an investment platform."

Fusion Alternatives offers selected investors access to investible diamonds that aren't readily available on the conventional market. It's also planning a fund that specializes in investment-grade polished diamonds.

And his field happens to have a strong de-correlation to traditional asset classes.

"Diamond-mining companies through equities are exposed to different risks," Singer said. "Generally, diamonds are mined in regions that are not necessarily so stable and the other thing they could do is pick up the phone and call a large diamond house and say they want to invest X amount of money in diamonds," said Singer, who adds that they provide clients with all the research."

http://www.marketwatch.com/story/alternative-investing-stamps-weather-death?pagenumber=2

For further information about investment grade diamonds please visit our website at http://www.fusionalternatives.com.

Contacts: Saul Singer on +44-(0)207-183-0244 or info@fusionalternatives.com

Investment Diamonds - Holding Strong

Summary:

* Prices have stabilized at low levels with early signs of price increases on larger goods.
* Rough diamond production cutbacks now flowing through pipeline as shortages create increased manufacturing demand.
* Recent JCK Las Vegas trade show indicates tough trading environment.

Trading Notes:

Prices seem to have stabilized over the last few weeks with slight price increases on larger better quality goods. Severe cut backs to rough production over last few months have now flowed through the pipeline which has coincided with more positive economic news and jewellers starting to re-stock inventory levels. Recent industry trade show confirmed tough trading environment with buyers holding bargaining power on price. 1-3ct investment diamond prices have stabilized at low levels presenting good buying opportunities, larger investment diamond (+3ct) prices have commenced upswing. We see increased liquidity in Very Good makes as buyers now showing price resistance to high premiums on Excellent and Ideal makes.
Market News:

7.03 carat vivid blue IF diamond sold for a record breaking $9.48 million at a recent Sotheby’s auction in Geneva. The sale broke two auction records — the world record price per carat for any gemstone at auction, and world record price for a fancy vivid blue diamond at auction. De Beers launches its Forever Diamond Grading Report to compliment its Forevermark diamonds. Rio Tinto joins other major diamond miners in executing considerable (20%) cutback in production. Diamond and jewellery exchange to be set-up in Armenia. The DTC May site estimated at $250m up 25 percent on previous sight but still 60 percent down on corresponding site in 2008. Antwerp Diamond Bourse launches new website - www.diamondbourseantwerp.com.

Investment Diamond Performance vs. other Investment Classes

For further information about investment grade diamonds please visit our website at http://www.diamondmkt.com.

Contacts: Saul Singer on +44-(0)207-183-0244 or info@diamondmkt.com