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NO 1 GEMS PRECIOUS STONES Rare Coloured Diamond Investments

No 1Gems Brochure

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Page 1: No 1Gems Brochure

No 1 GemsPrecious stoNes

Rare ColouredDiamond Investments

Page 2: No 1Gems Brochure

Regarded for their exquisite beauty and the timeless qualities of love and devotion that they represent, diamonds have fascinated mankind throughout the centuries.

The most precious and enduring of all gemstones, only a small number survive the journey to the earth’s surface; fewer still are of a quality that can be made into a precious piece of jewellery

Page 3: No 1Gems Brochure

No 1 Gems, based in Hove, is a unique international boutique diamond investment company offering its clients discreet and professional services

Our Mission

We aim to educate, source and supply the most exclusive and beautiful natural fancy coloured diamonds.

With over 100 years combined experience in the industry, No 1 Gems has been providing the worlds most portable and concentrated form of wealth with knowledge and discretion.

Unparalleled resources, reputation and expertise are why No 1 Gems is a trusted supplier to international clients and global private investors.

Our Promise:

No 1 Gems serves its sophisticated clientele with dedication to excellence.

Through our exclusive agreements, we source the finest stones available worldwide with maximum knowledge and utmost discretion. In an industry where trust and integrity are paramount, all requests, discussions and acquisitions are strictly confidential. A great deal of energy and time is devoted to providing the best selection from the international market.

That is why both world-class diamond investors and serious collectors rely on our expertise.

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Coloured diamonds are the world’s most concentrated form of wealth. A coloured diamond portfolio fits inside an envelope and can easily be transported in your coat pocket. They can be transported quietly and legally, and sold globally in most major cities. These facts alone make coloured diamonds worthy of consideration by individuals seeking discreet investment opportunities.

Prices for the highest grades of coloured diamonds have increased in value by an average of between 15-25% per year, with rarer colours and higher grades enjoying the greatest appreciation. In addition, this appreciation has statistically been non-correlated to the stock and bond markets, an important consideration for investors seeking a diversified portfolio.

A Coloured diamond should be viewed as a mid-to-long term investment. With demand for coloured diamonds continuing to grow and supply becoming very scarce, experts predict prices will significantly outperform the historical averages over the next five years.

“Diamonds are the most concentrated store of value that exists, they are a finite source and 1000 times rarer than gold”

Page 5: No 1Gems Brochure

No 1 Gems prides itself on the breadth and quality of its services, our discerning clientele demand and deserve nothing less.

These services include experience, discretion, security, brokerage services and diamond portfolio management.

Our team of diamond consultants put over a century of experience within this industry at the disposal of the client. Needless to say, each and every client’s transactions are entirely private; discretion is the watchword at No 1 Gems.

For the convenience of the client we provide our own secure storage facility or alternatively you, the client, can take physical possession of the diamond yourself.

This service is free to clients and includes full insurance.

Through our extensive network of relationships within the industry, No 1 Gems is proud to provide a full diamond brokerage service.

For clients who are asset rich but time poor, we can provide discretionary accounts and if required, a complete diamond portfolio management service.

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Why Invest In Coloured Diamonds?

“Diamonds could very well outperform base metals in the coming years”

Andrew Ferguson - New City Investment

Managers, London

Fancy coloured diamonds have a rock solid history of steady price appreciation and they are expected to continue increasing in value over time.

Over the past 30 years the price of coloured diamonds has remained strong; in fact the price of investment grade coloured diamonds has steadily increased by approximately a minimum of 15-25% per year with some diamonds above a certain carat size showing in excess of 45%

$3,111,000

$2,955,450

$2,799,900

$2,644,350

$2,488,800

$2,333,250

$2,177,700

$2,022,150

$1,866,600

$1,711,050

$1,555,500

$1,399.950

$1,244,400

$1,088,850

$933,300

$777,750

$622,200

$466,650

$311,100

$155,550

$

1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 2000 2002 2004 2006 2010 2012 2014 2016 2018 20202008

Page 7: No 1Gems Brochure

Without question, fancy coloured diamonds are truly rare and exotic; people derive much personal pleasure and satisfaction from simply owning something so unique.

The rarity of fancy coloured diamonds has taught investors that they are recession proof. Over the decades and especially during times of great economic uncertainty investors have learned that fancy coloured diamonds provide a reliable store of wealth.

Past performance shows that in both national and global recessions over the past 30 years investment grade diamonds have sustained their value and have continued to increase.

As an heirloom, fancy coloured diamonds can easily be passed from one generation to the next.

The unique and rare nature of fancy coloured diamonds means their value is unconnected to and unaffected by the trials and tribulations put upon other forms of investment, including the stock market.

When there are so many other forms of comparatively high risk investment opportunities to provide capital growth, investing in fancy coloured diamonds provides a relatively low risk hedge against any losses that may be incurred by investing in other alternative assets or financial products over the medium to long term.

Page 8: No 1Gems Brochure

They provide a hedge against inflation.

They have universal appeal with an internationally recognised system of standards.

Easy investment options are available.

Can be used as jewellery and enjoyed as the investment matures.

They offer high portability, complete privacy and ownership.

They’re a natural resource, hence available in limited supply.

Prices of coloured diamonds are not highly correlated to other traditional investment assets such as stocks and bonds. It is also independent of government laws; coloured diamonds retain their value even during recessions and their price volatility is lower.

Naturally fancy coloured diamonds are the most valuable gemstones on the planet as determined on a price per carat basis.

Exceptionally fine coloured diamonds have no fixed price and as with fine paintings, set rules do not apply. Their true value will be determined when they are sold at auction.

“Investors are snapping up diamonds as hard assets in order to hedge their portfolios. Many investment consultants are recommending diamonds as ‘must have’ asset for a secure investment portfolio”

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9ct. Fancy Vivid Purplish Pink Diamond Ring sold for $15.7 million

Page 10: No 1Gems Brochure

The Hope Diamond is the world’s most famous diamond weighing in at 45.2ct and is dark blue in colour.

Page 11: No 1Gems Brochure

Fancy Vivid Blue 8ct. Emerald Cut Diamond Ring sells for $12.72 million in 2012

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150ct. All Diamond Ring expects to sell for $70 million

Page 13: No 1Gems Brochure

“The market for fancy coloured diamonds is truly an arena in which collectors do battle to possess these ultimately rare and spectacular objects.

The number of these stones available at any one time is so small, that statistics cannot be applied, and the price of every stone is as unique as the object in question...”

Page 14: No 1Gems Brochure

Understanding Diamond Grading

A diamond’s cost is based on the characteristics known as the “4 C’s”. Clarity, Colour and Cut (proportion) are the quality elements which together with the Carat Weight determine the value of a stone.

The closer a diamond grades to the left of one or all of these scales the rarer and the more costly it will be.

While clarity is frequently assumed to be the most important factor of all the

“C’s”, in fact, colour and cut have a more profound effect on the visual appearance of a diamond.

Carat Weight

(2 Carat)

2.00ct

(1 ½ Carat)

1.50ct

(1 Carat)

1.00ct

(¾ Carat)

.75ct

(½ Carat)

.50ct

(¼ carat)

.25ct

Page 15: No 1Gems Brochure

Carat Weight

Carat is the unit of weight for all gemstones. one carat is subdivided into 100 “points”. Therefore a diamond measuring 75 points is 3/4 carat in weight, or 0.75ct. There are five carats in a gram.

The word “carat” comes from the seed of the carob tree pod which is found in tropical climates. These seeds were used until this century to weigh precious gems.

Cut

Cut, sometimes the forgotten “C”, ensures that a given stone has maximum brilliance and sparkle which would not be the case were the stone cut for weight alone.

Simply put, when looking at a diamond, if it doesn’t catch your eye or if it doesn’t flash in the light, it’s probably not well cut.

Good cutting is what brings fire to the ice.

AsscherCut

PearCut

EmeraldCut

RadiantCut

RoundCut

HeartCut

MarquiseCut

PrincessCut

OvalCut

Page 16: No 1Gems Brochure

Clarity

A diamond’s clarity is determined by the number, nature, position, size and colour of internal characteristics called

“inclusions” and surface features called “blemishes”.

Clarity is measured on a scale ranging from pure (flawless) to heavily included (I-3)

Colour

Increasing degrees of body colour are measured on a scale ranging from no colour at all (d) to deeply coloured (Z).

Beyond “Z” is the range where the diamond’s colour is vivid and rich, called

“fancy colours”.

“I do not remember the market for coloured diamonds to have ever been as strong as it is today”

David Bennett, chairman of Sotheby’s Jewellery Department for Europe and the Middle

East.

GIA Colour Grade Scale

F1 - flawless

IF - Internally flawless minor surface blemishes

VVS1 - extremely to difficult to locate inclusions

VVS2 - very, very small inclusions

VS1 - minor characteristics difficult to locate

VS2 - very small inclusions

SI1 - noticable

SI2 - easily noticed small inclusions

| D E F | G H I J | K L M | N O P Q R | S T U V W X Y Z |

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No 1 Gems will only supply to its clients, diamonds which have been fully certified by one of the reputable globally recognised gemological laboratories.

In most cases this will be the Gemological Institute of America (G.I.A), International Gemological Institute (IGI) or the Hoge Raad Voor Diamont (HRD) in Antwerp.

The certificates that accompany each and every diamond are the clients’ guarantee of the complete authenticity of their investment. It is to be noted that the certificate is a scientific document, not a valuation.

The latter is subject to market forces and changes frequently – In the case of coloured diamonds, usually positive...

Page 18: No 1Gems Brochure

Buying Process

Step 1 Once you have received our corporate literature, one of our brokers will contact you to discuss the investment opportunity, the diamond market and identify the kind of investment grade diamond that is most suitable for you and your investment needs.

Step 2 On establishing which diamond is suitable to your investment criteria, one of our brokers will then make a reservation in your name.

Step 3 No 1 Gems will then send an order form together with all relevant paperwork for you to check, sign and return to us, along with payment details.

Please note that in order to speed up the process, a bank transfer is preferred.

Step 4 Once we have received cleared funds along with signed and dated paperwork, including photographic ID - we will arrange for your diamond to be transported to our secure facility or sent securely to yourself.

Page 19: No 1Gems Brochure

No 1 Gems Ltd Romeo Suite Maritime House Basin Road North, Hove East Sussex BN41 1WR

T: 01273 704 960 E: [email protected]

Registered Office: 1st Floor 2 Woodbury Grove North Finchley London N12 0DR T: 0207 183 0545 0207 099 9482

Company Reg Number: 07828940 - VAT No: 129 7743 79

Contact Us

Page 20: No 1Gems Brochure

“A Coloured Diamond is a touch stone of the Universe, a little something God created that man can’t always find… they are the last frontier of collectibles”

For Investors: Whilst we strongly believe in diamonds as an investment class, the opinions and forecasts of No 1

Gems Ltd should not be relied upon as any implied or explicit guarantee of return.

The diamond industry is self-regulating, and is not under the authority of the FSA.

No 1 Gems Ltd is not a collective investment scheme, but rather a specialist coloured diamond dealer.

It is assumed that each client is aware of the potential risks and rewards in any investment, and makes decisions

based on their own knowledge, risk profile and experience.