At Paragon International the strategies we implement have historically demonstrated the highest degree of
success available to global investors. Our years of experience have provided us with the groundwork to develop strategies resulting in the utmost of success when investing in the coloured diamond markets. The key factors to this success are:
1. Choice of Investment Vehicle
Contrary to popular belief the very large and expensive fancy coloured diamonds are not the vehicles of choice when it comes to successful investing. Large and expensive stones are thinly traded and thus they do not offer timely resale liquidity. Although the larger coloured diamonds are more rare, their pricing is highly speculative. With this in mind, the first key to building a successful coloured diamond portfolio lies in the choice of investment vehicle. At Paragon, we place our clients in diamonds ranging in size from 0.15 ct to 2 ct or 2.5 ct depending on the colour and pricing of the stones. It makes more sense to invest $250,000 in 10 diamonds that are worth $25,000 each than to invest in one diamond worth $250,000. That being said, the larger and more expensive diamonds are suitable for long-term investment if liquidity is not a concern for your holdings. Typically we prefer to offer our clients fully liquid assets to hold for both short and long term gains.
Additionally, it is imperative that any diamond used for investment purpose comes along with a grading report certificate from an internationally recognized gemological institute. The primary grading authority internationally is the Gemological Institute of America (GIA). Most of the diamonds we recommend to our clients are GIA certified. However, there are a number of other grading organizations that are more than acceptable in terms of worldwide diamond trading. For example, Argyle Diamonds are often accompanied with a grading report directly from the Argyle Mine. It is not necessary for Argyle Diamonds to be accompanied by a GIA certificate in order to resell the stone. At Paragon International, we only recommend diamonds that are accompanied by a suitable certificate providing ease of resale.
2. Assessment of International Market Trends
Diamonds and Diamond Markets are highly complex. At Paragon International, our advisors are highly knowledgeable in the nuances of diamond quality as well as international diamond pricing and market trends. We aim to build portfolios with assets that will provide the greatest short to mid-term profits. Although coloured diamonds are well suited for long-term investment, it is often better to liquidate certain holdings and replace them with other vehicles that will demonstrate higher short-term gains depending on current international market trends. At Paragon International we are constantly monitoring market conditions to ensure that the assets held by our clients are those that will maximize the profitability of their investment portfolios.
3. Undervalued Price Points
As with any investment, a rule of thumb is to buy low and sell high! At Paragon International we are constantly on the lookout for the ability to purchase diamonds at below market value. These types of opportunities arise when purchasing a large number of loose diamonds in one lot. At Paragon International, we use our buying power to buy these "lots" and pass the individual stone savings on to our clients to enable a lower price point when making the investment.
Contrary to the belief of many, setting an investment quality diamond into Jewelry is beneficial to the investment as a whole. Most importantly, setting the stone into jewelry increases the number of potential buyers for the diamond. This increase in demand for your diamond naturally will increase the sales price. Higher demand means higher resale value. At Paragon International we use our connections in the Diamond Industry to enable our clients to have their investment grade coloured diamonds set into Jewelry at very low price points. This results in an overall value for the jewelry piece to be higher than the value of its parts (setting value and main diamond value).
5. Matching Pairs
This is a simple investment technique implemented when possible. No two diamonds are identical, however when two diamonds are very similar in their grading reports, they are considered to be a "matching pair". Very simply, two diamonds that are similar enough to be considered a "matching pair" can be resold at a higher value than the individual stones. Two diamonds making up a "matching pair" can be certified together. This "two stone certification" results in a higher valuation and thus leads to a higher resale value on your investments.
6. Resale at Auction
Often the highest price for diamonds can be garnered at auction. At Paragon International, where possible, we will arrange for our clients holdings to be placed up for sale at auction. We organize one to two auctions every year specifically for the purpose of resale of our clients' investments. It is possible at auction to significantly increase the profitability of your investments.
Successful investing in the coloured diamond markets begins with monitoring of the international marketplace. The research department at Paragon International is constantly monitoring the markets and analyzing the data that arises from our research.
Careful analysis of the past performance both in terms of short and long-term performance allows us to arrive at the ideal choice for current investment dollars. Continued monitoring and analysis also provides us with an indication of ideal liquidation opportunities for our clients' holdings.
Purchase & Sale
BUY LOW AND SELL HIGH is the aged old saying of every investor and advisor when describing successful investment techniques. This concept is easier said than done. At Paragon International, we use our buying power to secure below market price points on the purchase of any diamonds we recommend for investment. This enables our clients to buy low.
On the other side, the investment strategies and techniques we use at Paragon International combined with our international connections in the jewelry and auction industries allow us to identify and follow through with optimal liquidation opportunities. This enables our clients to sell high. It is the execution of transactions at these ideal price points that leads to the maximization of the profits available to our clients' portfolios.
Historically the coloured diamond markets have shown consistent growth, year in and year out. It is this steady growth that has paved the way for coloured diamonds to be the hard asset investment vehicle of choice for advisors around the globe.
At Paragon International we have developed investment strategies and techniques that take advantage of the consistent growth demonstrated in the coloured diamond markets. The fact that the values of coloured diamonds rise steadily and consistently enables us to implement our investment strategies and identify opportunities that lead to short term profits with a very minimal degree of risk.
• Fancy Coloured Diamonds have outperformed all other hard asset classes for many years.
• Fancy Coloured Diamonds are affordable and durable. They are the world’s most portable form of wealth. You can literally carry Millions of dollars in your pocket.
• Fancy Coloured Diamonds are recession proof. In times of great economic adversity Fancy Coloured Diamonds have continued to rise in value.
• From the time that the prices of Fancy Coloured Diamonds were first recorded, they have increased in value each and every year.
• Fancy Coloured Diamonds are a hedge against inflation.
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