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If you have questions about coloured diamonds, you will find the answers here. If you have a question we haven't covered, email us, and we will get back to you.
| Q. What are the main reasons for the upward movement of prices in the coloured diamonds market over the last thirty years? |
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| Q. How would Pastor-Genève recommend I handle storage for privacy and discretion? |
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| Q. Why are grading and certification so important in acquiring coloured diamonds? |
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| Q. If I want to buy a specific coloured diamond, can I simply call Pastor-Genève and place an order? |
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| Q. How are coloured diamonds valued? |
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| Q. How do connoisseurs acquire pieces in the coloured diamond market? |
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| Q. How do I liquidate my coloured diamond holdings? |
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| Q. What are the main reasons wealthy and successful people hold coloured diamonds as a means of wealth preservation? |
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| Q. Where do I seek appropriate advice in order to ensure my financial privacy is maintained? |
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| Q. What are the terms of sale? |
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| Q. What is Pastor-Geneve’s return policy? |
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Q. What are the main reasons for the upward movement of prices in the coloured diamonds market over the last thirty years?
A. The coloured diamond market has developed from a specialty area of interest to one of the most important collectibles markets in the world. Connoisseurs are attracted to the durability, beauty and rarity that coloured diamonds have to offer. Investors are interested in coloured diamonds because over the last thirty years, prices have doubled in value on average every seven years and they have been shown to hold their value during recessions and economic downturns.
Price movements in the coloured diamonds market are based on supply and demand. It has been reported that for every ten thousand carats of diamond mined, only one carat will be a fancy coloured diamond. This extreme rarity coupled with the gradual, consistent increases in demand are the main factors behind the rise in prices. In addition, major sources of supply for coloured diamonds are expected to decrease over the next decade at a time when demand for coloured diamonds continues to rise. The main buying segments in the market are:
Retail Buyers- Several retailers have developed marketing campaigns promoting coloured diamonds and surveys indicate that a number of retail buyers want to purchase a coloured diamond in the future. They are considered some of the most beautiful diamonds available in the jewelry trade.
Collectors- They are attracted to rare items of value and beauty. Each individual coloured diamond has its own story and the faceting and cutting of the stone makes each piece a unique work of art.
Investors- Coloured diamonds are the most portable form of wealth in the world. They are a private, unregistered asset and their rarity and strong demand fundamentals make them an attractive option for hard asset investors.
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Q. How would Pastor-Genève recommend I handle storage for privacy and discretion?
A. P.G. Services s.a. provides for a secure environment for your holdings through the relationship with and exclusive use of the services of Port Francs et Entrepots Geneve s.a. Founded in 1888, Port Francs is an international company of secured storage and transport. Port Francs assures the client of security with discretion. As correspondent agents for Brinks, they are known throughout the world. Their secured storage facilities are located in the " Free Zone", a tax-free area adjacent to the Geneva International airport. Goods are stored in trust in the free zone on a fully insured basis. Port Francs will provide clients of P.G.Services s.a. with an itemized statement of valuables held in trust with a corresponding document of insured value on request. Your valuables can be accessed either on a personal basis or transported via armored car delivery to any major world city. Port Francs provides private facilities with natural lighting, calibrated scales and professional instruments for personal inspection of your collection. The major auction houses and luxury retailers can be counted on the Port Francs client roster. For confidential, insured, tax-free storage of your valuables we highly recommend the use of Port Francs, who for over a century have provided discreet, efficient service to the industry.
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Q. Why are grading and certification so important in acquiring coloured diamonds?
A. Coloured Diamond grading and certification are important aspects of any responsible purchase.
Any goods acquired through the international marketplace must meet three main requirements:
- That the diamond is a natural coloured diamond and not irradiated or enhanced in any way.
- The specifications of the colour and the colour modifiers.
- That the diamond is graded under these criteria by an internationally recognized institution.
Internationally recognized labs possess the most advanced equipment available to determine whether or not a diamond has been altered in any way, making it impossible for an irradiated diamond to pass through the certification and grading process. Furthermore, equipment for measuring colour saturation has risen to the level where it is possible to determine scientifically just how much colour any particular stone has. For the novice collector, it is critical to know they are dealing with natural, authentic pieces and proper laboratory grading and certification guarantees that.
The main institutions for grading and certification used by Pastor-Genève are the Diamond High Council in Antwerp, Belgium and the Gemological Institute of America in New York and California. These two institutions are considered the standard for grading and certification in the industry. In addition, Pastor-Genève uses exclusive reports prepared by Stephen Hofer documenting unique aspects of specific coloured diamonds, such as colour composition or measurement of colour. These reports are designed to increase the commercial awareness of particular coloured diamonds and ultimately enhance the marketability of client holdings.
HRD
The Diamond High Council (HRD), a non-profit organization, is the official representative of the Belgium diamond industry. It was founded in 1973 in order to co-ordinate and optimise all activities on behalf of the diamond business in general. The HRD groups the four Belgian diamond bourses, trade organizations and trade unions and acts as their spokesman. The Diamond High Council is the officially recognized representative organization of the Belgian diamond business. The HRD provides extensive training in the art of certification, gemology and diamond grading. Located in the prestigious diamond office right in the heart of the diamond district in Belgium, the HRD works closely with customs and the government in regulating quality, quantity and value of the international trade flows.
GIA
For more than 70 years, the GIA has developed a reputation as the standard for diamond grading reports. This expert knowledge led to the creation of the most respected and most advanced education available in the gemstone and jewelry industry. The GIA offers a number of extensive courses on retail management, appraising and jewelry design. As an independent nonprofit organization, the Gemological institute of America is known for its impartial service as one of the world's foremost authorities in gemology. The GIA combines the principles of research, education and service to help professionals around the globe use science and product knowledge to sustain the public's trust. Their research in the areas of cutting and in treated diamonds has been instrumental in advancing the trade into the 21st century.
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Q. If I want to buy a specific colored diamond, can I simply call Pastor-Genève and place an order?
A. No, unfortunately there is only a few thousand colored diamonds a year coming from the mines around the world. Market supply makes it difficult for Pastor-Genève to fill client orders if size, shape and colour are specified. Some colours, such as yellow and fancy yellow, are available in small quantities, whereas pure greens and reds are next to impossible to acquire. For example, in any given year there are only a couple of natural red diamonds available in the international market. To acquire specific pieces, often connoisseurs must wait years to complete their collection.
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Q. How are coloured diamonds valued?
A. Like a Rembrandt or a Monet, some colored diamonds (bluish green, purplish red) are essentially one-of-a-kind pieces and are impossible to put a market value on. These pieces are primarily valued based on what a buyer is willing to pay for it. For other pieces, such as small pinks, yellows and cognacs, prices are determined by the available supply and the anticipated demand. Because each coloured diamond is an individual work of art, it is difficult to quantify a static price for each coloured diamond category. Pastor-Genève uses general price guidelines based on the rarity of the colour and the laboratory grade of the stone and then the value of each stone will be determined by the colour composition of the stone, the strength of the colour saturation, the quality of the cut and the size of the stone relative to its rarity. Clarity in coloured diamonds is considered a secondary issue because most coloured diamonds are slightly included. All of these factors are thoroughly examined to determine an accurate market price.
Although yellow, and cognac diamonds are more actively traded, buyers must recognise that very few blue and pink diamonds change hands each year. This is solely based on lack of supply, for if it was up to the buyers, the volume would increase many times over. By far the most valuable per carat, the red, green and Blue colours generally command the highest prices because only a few are available on the open market each year.
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Q. How do connoisseurs acquire pieces in the coloured diamond market?
A. One option of acquiring a coloured diamond is through a retail jeweler. However, potential buyers are paying full retail price and the selection is normally limited to the inventory available. In addition very few retailers actually specialize in coloured diamonds. If you are planning on acquiring a piece at one of the major auctions, you are required to provide information of financial suitability in order to enter into the bidding process. Payment is normally facilitated by either a cashier's cheque or a bank wire transfer. Although you may be able to bid on a number of different stones, auctions are a sellers' market, and bargains can be difficult to find. Furthermore, bidders are generally obliged to provide more financial data than they would like to, and there is little discretion or confidentiality. A third method is through a small group of international specialty dealers. Although most specialty dealers only work with a select client base, they are often in possession of a selection of rare and special colored diamonds rarely seen at the retail level and at a more reasonable price than at an auction. Specialty dealers are intimately in touch with both auctions and the retail side of the market and therefore can be a good advisor because of their market knowledge. Furthermore, the advice you will receive from a specialty dealer will be more personal and will give you a better gauge of the overall trends in the market. More importantly, specialty dealers are obliged to maintain both discretion and confidentiality for their clients.
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Q. How do I liquidate my coloured diamond holdings?
A. There are a number of avenues available in the event that a collector would like to liquidate their coloured diamond position. Retail jewelers occasionally buy coloured diamonds but few specialize in this segment of the market. Retailers continue to develop their client base for colored diamonds but it must be noted that they have very high overhead so they must charge more for their diamonds. Consequently, they tend to offer lower prices than other avenues of sale. Auction houses generally bring the highest per carat prices, although stones are often held for months before the sale takes place. In the auction market patience is essential, for positioning your coloured diamonds at the right time and in the correct geographic market can mean the difference between thousands of dollars. However, auctions tend to charge higher commissions and they have certain requirements as to the pieces they offer. Individuals who sell at auction should consider having their colored diamond mounted to enhance the potential for sale as most of the pieces available at auction are classified as jewelry. Specialty dealers have a reputation for selling at fair market value, and because of their diverse client base, they can usually sell on a client's behalf in a relatively short period of time. If you are looking to maximize your returns, an auction is better suited to your needs, whereas a specialty dealer has the client base and the marketing to liquidate your position in a more timely fashion. In either case, investors should recognize that colored diamonds are a long-term investment. Like land or fine art, it is suggested that you allow yourself time to find the right buyer for your stone.
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Q. What are the main reasons wealthy and successful people hold coloured diamonds as a means of wealth preservation?
A. The core holdings of wealthy and successful people have always included estate jewelry, precious gemstones and important diamonds as both status symbols and as a means of maintaining wealth. Increasingly coloured diamonds are a core holding because of their rarity, mystique and inherent value created over the years. Other assets, such as stocks and bonds, are subject to the movements and fluctuations of market conditions. Real estate cannot be moved and is the first asset seized in times of turmoil. One of the main reasons for holding precious gems has been their ability to provide a safety net during times of political and economic upheaval. During WWII, countless people left Europe for America with only their jewelry holdings to help them weather the storm. When China became communist in the 1960's, hundreds of Chinese who fled the mainland in hopes of starting their lives anew were able to do so with nothing more than diamonds and jade sewed into the lining of their clothes. Finally, many families in Southeast Asia who lost enormous portions of their wealth virtually overnight escaped the economic crisis of 1997 unscathed due to their gem portfolio holdings.
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Q. Where do I seek appropriate advice in order to ensure my financial privacy is maintained?
A. Your best source of advice in this area is with an international firm that has the experience to meet the demands of a select client base. Auction houses are not required to give advice and retail jewelers often lack the knowledge to guide coloured diamond collectors in today's multi-faceted marketplace. For further information on acquisition, storage, insurance and anything you find pertinent to your holdings, dealing with a specialist will provide you with the necessary tools in an environment of privacy and professionalism.
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Q. What are the terms of sale?
A. Pastor-Genève cannot guarantee that the past performance of the fancy coloured diamond market will continue into the future, and that a fancy coloured diamond purchased from Pastor-Genève will lead to a profit. All asset markets may be volatile in nature, and from time to time coloured diamonds can experience unfavorable market conditions that would prolong the duration of holding periods. All of Pastor-Genève’s clients understand that Fancy Coloured Diamonds are considered a long-term investment and are subject to mark-ups. It is assumed that the client is purchasing coloured diamonds from Pastor-Genève for jewelry, estate, or collectible purposes in addition to its investment value.
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Q. What is Pastor-Genève’s return policy?
All orders from Pastor-Genève may be returned within thirty days of accepting delivery for a full refund. If you are not one hundred percent satisfied, Pastor-Genève will send you a refund request form to be filled out and signed. Once we receive the completed request form, we will refund the purchase price. You can contact your Pastor-Genève advisor for a refund request form.
All returns must have the original copy of the matching and/or identifying certificate(s). Returns not accompanied by all of their original documentation will not be honored. All diamonds must be in original condition without having been altered in any way. The diamond must not have been worn, mounted, or altered in any way.
Pastor-Genève will refund the purchase price of the diamond returned within the time limit and manner specified above.
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