Natural FaNcy coloured diamoNds

ROCk STARS OF ThE ALTERNATIvE INvESTMENT MARkET

by Robert Simpson Investing in coloured diamonds is an emerging market segment for individuals seeking value appreciation and wealth preservation in uncertain economic times. From Dubai to Shanghai, Los Angeles to London and points beyond, the trend to diversify into hard assets and non-traditional investments is gathering momentum. Coloured diamonds, once considered the ultimate investment of passion, have crossed over into the alternative investment marketplace with extraordinary success. Canadian diamond broker David Colin Ferguson saw the trend coming, sourced a dazzling collection of the rare and precious gems - directly from the mines in most cases - and launched rare gem investor as a platform to service the coloured diamond investment marketplace. In high-security offices overlooking Vancouver's beautiful Coal Harbour, Colin David Ferguson is on the phone extolling the virtues of colour saturation over carat size with a client, while intently poring over trays of coloured diamonds worth a king's ransom. And when he's not in the office, he's likely visiting one of the world's major diamond centres, scrutinizing the facets of newly cut and polished diamonds, or sourcing the finest quality coloured stones directly from mines through exclusive tenders held annually in cities around the world. As a leading authority on coloured diamonds, Ferguson's philosophy on investing in this niche market is based on highly nuanced, yet surprisingly simple fundamentals. "Stones of great value are always stones of great beauty,? Ferguson says. "Rare coloured diamonds of exceptional beauty have always shown the greatest value appreciation over time, and are today the most concentrated form of wealth on Earth.? There are other rules of course - some written in stone - as with any major investment. One is to buy only conflict-free diamonds that have been internationally certified by one of the major gemological laboratories, such as the Gemological Institute of America (GIA). Another rule is that they must be natural with a perfect cut to enhance their beauty. Ferguson says treated and colourenhanced diamonds, or uncertified stones of dubious origin are bargain-priced "for obvious reasons?. Another fundamental rule is to buy coloured diamonds at wholesale or brokerdirect prices, which until recently was no easy task. Coloured diamonds are not available in neighborhood malls and the high-end retailers and fine auction houses catering to the rich and famous sell them for a premium befitting prestigious luxury goods. And most mines only sell their rough stones to De Beers, which cuts, polishes and markets the diamonds around the world, or to a select few brokers and diamantaires at invitation-only tenders. Vancouver-based Rare Gem Investor (www.raregeminvestor.com) is the first to offer coloured diamonds at prices that no high-end retailer could match by sourcing them directly from mines, notably Australia's famous Argyle Mine, or from established sources in diamond and cutting centers around the world. Ferguson was the first Canadian broker to be invited to Argyle's Pink Tender held annually to showcase its signature pink diamonds. Only one of a million diamonds mined at Argyle is selected for this prestigious offering of pink gems, which are highly coveted by jewellers, celebrities, collectors and investors from around the world. 32 www.resourceworld.com August 2008

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