U49 – Holding Loose Diamonds during Re-allocation
0:02
All right. We’re going to talk about buying some loose diamonds or using them for, I guess you would say investment purposes. But really, it’s a temporary measure.
0:11
Just like if you were to buy gold, I think it’s only shouldn’t probably keep gold for more than three months, OK? I’m not saying buy and hold it forever. It’s just a way to put money somewhere that’s liquid and can be stored easily.
0:26
Loose diamonds are an option, so as gold. But let’s talk about loose diamonds.
0:30
So Mia, I’ve got a couple of articles here I want to share or share with you.
0:38
Very brief one here.
0:39
So this is what I put together years ago.
0:41
Now, this is about 10 years old, so you want to, I’m going to show you some references here, but you’ll want to look in, um, you want to look at some of the recent publications regarding the diamond industry.
0:54
Again, you can avoid volatility in the pricing of diamonds by keeping them in the short-term and having another investment purpose in mind. And diamonds, just being the interim, like, let’s call it, the crypto version of the stable coin, OK, loose Diamond’s, let’s just use it like that.
1:10
So you see, here, I’ve got the round. type diamond.
1:16
OK, now I’m gonna show you what I have concluded, as a way, to buy Diamond, what to buy, and based on what criteria.
1:26
So we’re going to talk about the round, brilliant.
1:29
It’s the type of diamond.
1:31
And I have two profiles.
1:35
one, typically, over this period of time, from 2003 to 20 13, showed a return of about 8%. Now again, I’m not trying to make money with diamonds.
1:46
No, I’m not trying to lose money either.
1:48
So here’s what we’ll make you 8% typically, and here’s also what can make you 16%. So the 8%.
1:55
Now, I call this a profile, so this is the type of diamond we’re looking at.
2:01
Then the diamond has these characteristics, color, clarity, carrot, and cut.
2:07
You do a lot of research on that. There’s a lot of learning there, but I’m just gonna give you the summary here, the punchline.
2:12
So, color is, uh, identified by Letters, A, B, C, D, I don’t know, I don’t know if there’s F or G or H, I have to go, I’m gonna show you in just a second.
2:21
Um, these are grades of how clear they are. For example, inside the diamond, if you look carefully, sometimes you can see an imperfection.
2:29
So there’s something that’s called occluded or included these different physical characteristics of the inside of the diamond.
2:35
So, they have these, um, these, uh, abbreviations here. I’m gonna get into that just a second.
2:42
Then you have the carrot, which is the weight, no.
2:46
I’m, I’m recommending that if you’re going to do this, stay within one carrot.
2:50
I like to stay at one carrot, but you can go one carrot to up to three carrots in my opinion, based on what we’re trying to do here. And then, of course, what kind of car are we talking about. We have a very good cut ideal. And a signature ideal and the signature ideal has something to do with the brand of the seller.
3:08
So it may have a certain reputation. It wants to keep right.
3:12
So you’ll see I’m going to show an example of one of the suppliers they may want to look into, just one, it’s online, it’s it has a very helpful website, and this is why I like to demonstrate with this website.
3:23
Now here’s the other part of the profile, OK.
3:26
A portion of your holdings should maybe be in this profile and a portion maybe in this profile.
3:33
Just like any other investment, there’s more volatility in the higher returns. So the 16% profile means, basically, you’re looking at 16% returns. You were at least from these, this time, period, 2003 to 2013. So like it, you got that round brilliant again.
3:50
And you’ve got the types of color. You got. The clarity. The carrot weight is up.
3:55
OK, So from three carrots to six carrots, then you’re looking at a very good ideal and signature ideal for cutting.
4:03
So I’m going to show you one of the suppliers here.
4:10
Here we go. Now this isn’t an account. You can get a free account. Here is blue nile dot com. I get a free account at blue, now, dot com. And I just went in here and I said, OK, I’m going to dial in the profile. I want, I want to look for round. Brilliant.
4:23
Um, I didn’t really give it a price range, But you can see here, I can, I can change what kind of pricing I want. I just left it wide open.
4:31
I’m more interested in the type of diamond. So I want to keep my range within 1 to 2.99. Just like him, I just showed you, right? So see this here?
4:42
It’s kinda cool.
4:42
Their website is coming useful here, So, I just want to keep it there.
4:46
And now, also, I can choose, what kind of cut?
4:50
Right?
4:50
So this example I just showed you, I can go back to it? Can I do that?
4:57
OK, let’s do that. You see?
5:01
So I can, I can choose this in my profile and I can choose the color EMD, right?
5:07
This is my 8% profile and here’s my Clarity.
5:12
Now, let’s go into I’m going to show what this means.
5:14
If you guys don’t know already, um, there’s something you may want to get. It’s really cheap to do this. You can get what’s called a loop.
5:23
I don’t have it with me right now. I don’t think I have it with me. I didn’t think about that until just now. But a loop is a little lens, OK, And it it unfolds, and you can look at a diamond at 10 times magnification.
5:34
All right, you can get a loop. And if you want, when you see the diamond, you can start looking at it. You’ll even see sometimes it put a laser etched serial number inside the diamond. You can’t see it without help. So if you get yourself a loop, you can. you can have a way to look at some of these diamonds. So anyways, if you go to the profile and you see, let us look at what clarity, how it’s graded. So clarity you have things that are considered flawless and internally flawless.
6:00
And then you have things that are very, very slightly included, which means when you look through it with a loop.
6:07
A lens at 10 times magnification, you’re probably not going to find any imperfections unless you’re in some kind of expert.
6:14
That’s what this is saying here.
6:15
And of course, of course, it gets lesser quality. There’s little more inclusions.
6:21
OK, V S one, V S two, You see my range here, though, V S one, V S two very, very slightly.
6:31
And then, this is probably the lower quality you’re gonna likely avoid this also, and in fact, this cutter won’t even sell you such a low quality here, so that’s kinda nice to know these things. But this, this website is so helpful. So, if you go through here, I mean, you can just sit here, like, you’re at Amazon, not to promote Amazon, but you can actually go and buy some loose diamonds, and I think your price is pretty good now, yeah, This is probably retail, but you might be able to work something out with them.
6:56
What I’m recommending is, if you, but if you’re going to buy a large volume of loose diamonds, I would recommend going to not your retailer, but the the cutters.
7:09
So, there’s some some middleman between the cutter and the retailer, So you want to go ideally buy from the cutter, but I don’t know if you need to make that deal.
7:20
I just think probably go through one of the first brokers. The cutter deals with, OK?
7:25
I don’t know that you’re going to be able to go to the cutter unless you have a large amount of money, and the cutter would, would work with you, OK?
7:34
So, you would get better pricing that way And what’s in it for the, for the person, that broker to work with, his cutter and you, It’s because maybe you can make it such a large purchase that he can buy at a higher volume and get a better pricing.
7:48
So that’s what’s in it for maybe your broker, um.
7:52
But that’s what I’d recommend.
7:53
So anyways, when you, When you make all these selections on blue now dot com, it’s already selected all the These are all the diamonds that are in that category.
8:03
As you can see, it’s, you know, kind of showing you the diamond, Of course, is not the same as looking at it in person.
8:10
But, you know, this is on the Internet. I mean, it’s, it’s convenient.
8:14
They’re going to sell you what they’re promising. And they have a refund policy and all this stuff, too. So look, all, These are all one carrots.
8:20
Like it’s $6000, $6000.
8:23
I mean, you can get them for a million dollar. You can for $10 million, if you want.
8:27
So as you as you can see, I’ve created my profile. And now, I’m looking at all these different diamonds.
8:32
And it’s telling me everything about him, right? How much money it can be purchased for.
8:37
And I could just put all this is my shopping cart if I want.
8:42
So it’s quite a few.
8:45
If I were to change the, let’s see here.
8:48
I’m going to get myself some higher quality, right?
8:51
So, let’s get some higher quality.
8:53
Let’s see, color.
8:55
Let’s keep it at.
8:57
What’s, what’s the highest color quality here? Let’s see, color, E F, right. So, let’s do E F.
9:05
Let’s say that’s a better, better quality. Let’s even less even go F, right?
9:10
And then clarity.
9:12
Let’s just get some real high quality here, You see, now look at my list.
9:18
I’m gonna go hire carrots, too.
9:23
I’m gonna go no, not that high.
9:27
I’m gonna go like six carat.
9:30
All right, from three carat.
9:37
Let’s try that See, we get here.
9:38
Here’s our wishlist Now, like how short that is compared to the other one, right? But this might be better, better, worth your time. Because, look, you’re going to buy a three carat Diamond for $79,000.
9:51
What I would, what I might consider doing, though, if, now I haven’t done this yet, I’m about to, for storage to go along with gold and silver.
10:00
But, I would look and see what I can sell it for, what I can sell that retail for. And if I have a difficult time selling it, right now, you’re gonna see some information I’m gonna share with you.
10:10
There’s a interruption in the diamond industry market, but that I believe is temporary, and it kind of doesn’t matter anyways. Because this is going to be valuable anywhere in the world. As liquid. You can imagine taking this somewhere.
10:23
You get stuff in your pocket and put it in your coffee cup, You could put 10 of these in your coffee cup, right? And no one’s going to know.
10:32
Um, you can see, I mean, we get it all the way to, like, look at this.
10:37
I mean, $200,000, or they don’t see it here, they don’t have an image, somebody’s don’t have an image for some reason, but, anyways, $100,000 for this larger three carat.
10:49
You get the idea.
10:50
So, I can I can dial it up. I mean, I can really I can really take this up.
10:55
Let’s just talk about what, you know, the highest quality here.
10:59
Let’s go with, uh.
11:02
Higher carat.
11:04
Let’s see, We can pull up.
11:07
Let’s see if they have any, right?
11:12
No results, OK, It’s too high quality.
11:14
And yeah, so let’s do this.
11:18
Let’s do this.
11:19
And let’s do this.
11:22
Any OK, we got a few takers. All right?
11:24
So here we got a nice five carat Diamond for $300,000. You see how fast that was?
11:30
I mean, you can you can do this over a period of time.
11:32
All right, so you’re going to store some money, have some liquidity, kind of a unique way to do it, goes along with your gold silver, played him, whatever you guys, you don’t want to buy in, precious metals.
11:43
So let me just share with you, got to go back to me to pop out again.
11:49
I wanted to show you.
11:53
You can find this yourself, but Bain and Company apparently has got it publishes articles on this subject.
12:00
So you can look and see oh here we go Bain and Company here.
12:05
So you could probably even buy some information from Bain and Company. Bain and Company.
12:10
You can find a lot of it on the internet, What I’ve found, the good stuff on the internet requires you to join stuff, join clubs and whatever, subscribe, so, but anyways, this is a good source of information about the industry.
12:24
And it just gives you lots of criteria here that you’ve never heard of before. If you want to be up on it, that’s what I would just look at look for is, you know, Bain and Company has good information.
12:33
So pretty simple.
12:37
Um, it’s also, it’s good to get the right people.
12:39
I mean if you’re gonna go and find a cutter, you’re not going to be able to probably buy directly from the cutter but some middlemen down, down the way. That person would probably give you good information on.
12:51
Why or what to buy. Alright?
12:54
So I hope that helps y’all with your re-allocation plan. Remember, just keep in mind that something like this is like gold.
13:01
And in my opinion, when you’re re-allocating and you come out of your asset, maybe the first thing you want to get into is gold or loose diamonds, because right away you’re gonna get into something else but you’re not quite sure yet.
13:14
But if you already have your asset lined up and it’s just waiting, then sure, sell, then transfer the money over to your next asset. But if you’re not quite sure yet, you’re still trying to put something together. This may be a nice interim place to put your money and keep all the benefits that you want, liquidity, security, things like that.