Pink diamond investment

[pebblestone]

I've recently started looking into the potential of pink diamonds. With the Argyle mine closing in 2020, (apparently produces 90%of the world's supply) scarcity you'd assume will drive up the price over time.
The prospectus I've read claims ~15%p/a average growth which seems pretty remarkable. Obviously storage fees and possible insurance would erode some of those gains but it still feels high (maybe too high).
Fairly large minimum investment of 20k which it seems gets you one stone (independently valued).

I'm unsure how difficult it would be to liquidate down the road or whether that is a potential problem.

Wondering if anyone else has had any exposure to this. I'd be interested to hear the thoughts of some of you more experienced investors.
Is this an ostrich farm?

 

[ash_1050]

I've done some work previously for someone who was looking at various Australian [insert sector here] companies and how they got their seed and subsequent funding. The early stages method is to engage a broker, doing a roadshow around Australia and pitching various VC firms to get funding. In this process they're grilled on their business model, how they intend to make money and what's in it for investors. 8 out of 9 firms did just that and secured funding.

The 9th firm also toured Australia, pitched various VC firms and were grilled on their business model, how they intend to make money and what's in it for investors. They didn't secure funding because they couldn't convince anybody in the Australian VC sector that what they were doing was any good. What was their next step? Do you admit that maybe admit that your company is a bit s**t and that it either needs a serious overhaul or needs to be scrapped? Of course not. They took the logical step of doing a public funding round through Facebook advertising where mum and dad investors could sign up and commit funds to this 'exciting new opportunity rarely seen at such an early stage of the capital market' allowing them to 'play the role of a VC firm'.

In short if you're not related to the industry and an 'exciting' opportunity comes along with then be wary, because everybody else in that industry has already passed it over.

 

[FrankGrimes]

what do they say about if its too good to be true....

 

[Power Raid]

I’ve owned diamond mines in the past, so have a reasonable idea.

In short, stay away if you’re not a professional wholesaler or retailer.

Diamonds are inherently cheap......like 1-5% of the retail price. The cutting is $10-40.

Meaning the biggest margin is the marketing and branding.

 

[William Wonka]

I’ve owned diamond mines in the past, so have a reasonable idea.

In short, stay away if you’re not a professional wholesaler or retailer.

Diamonds are inherently cheap......like 1-5% of the retail price. The cutting is $10-40.

Meaning the biggest margin is the marketing and branding.

Good to hear someone telling it like it is.

Diamonds are the biggest rort in existence.
They are far from the most impressive gemstone, their single claim to fame being their hardness.


Nor are they rare in the slightest- almost every woman in the western world has one, DeBeers simply keep prices up by restricting supply like an anaconda.

The Argyle mine has produced some lovely stones but is also a marketing feat more than anything else 'Champagne' and 'Cognac' sound so much nicer than 'Brown'

Pink diamonds are definitely not something I would invest in.

 

[Beerfish]

Wifey used to work at Argyle. They used to raffle diamonds off at the wetty each week. She has about 5 in her bedside table. No idea what they're worth or how you'd go about selling them without getting ripped off.

 

[Power Raid]

Wifey used to work at Argyle. They used to raffle diamonds off at the wetty each week. She has about 5 in her bedside table. No idea what they're worth or how you'd go about selling them without getting ripped off.

anywhere from $10-$250 for a carat unless they are something truly amazing

have them cut in India for an additional $10 and they would be worth $500-$1,000 unless can brand them and then they'd retail for $5k-10k

 

[Beerfish]

anywhere from $10-$250 for a carat unless they are something truly amazing

have them cut in India for an additional $10 and they would be worth $500-$1,000 unless can brand them and then they'd retail for $5k-10k

Post them in the mail to India?

What do you mean by 'brand'?

 

[Power Raid]

Post them in the mail to India?

What do you mean by 'brand'?

Tiffany!

We sold our production to a Jewish family who would have them laser cut in India. I’ll don’t know the retail business but they make the biggest margin.