Educating Investors on Colored Diamonds
This profile is part of a paid investor education campaign.*
Asteria Diamonds is an Israeli diamond and jewelry manufacturer that procures rough fancy colored diamonds from mines worldwide and produces in its base in Israel and branches spread around the world. After manufacturing these beautiful polished diamonds, they are then marketed and sold to jewellery stores and traders worldwide.
Early on in his career, in Israel, Eliyahu Bashari founded a company in his name that conducted diamond polishing and sales. Following the expansion of his first business into China, Bashari and his partner Ishai Bettan, later founded Asteria Diamonds in 2008. The reason of founding this establishment was to “Sell unique fancy colored diamonds and jewellery not readily available in most market places at wholesale prices”.
Today, Asteria Diamonds remains focused on supplying polished diamonds and jewelry for customers, investors and retailers across the world. “Asteria Diamonds has become a leading supplier of fancy colored diamonds by upholding our original principles of incomparable quality and services to our customers,” said Bashari.
The company also provides a wealth of educational information on investing in colored diamonds which it makes readily available to its customers through their website and consultations with investment experts across the globe.
As a diamond supplier, Asteria provides multiple forms of engagement to their investors, including the purchase of fancy colored diamonds and partnerships where investors can purchase a gem and receive a portion of the resale value. Asteria resells investment grade diamonds on average six to 12 months later with a minimum capital gain of 10%.
Asteria Diamonds is a family run business. With the coming in of a new generation of diamond connoisseurs, the company has been able to navigate vast changes in polishing technology while still maintaining the integrity of the craftsmanship developed by Bashari himself.
- Over 40 years of reputation in the diamond industry
- Operations conducted in a very stable colored diamond market
- Certified by multiple diamond bourses across the world
- Compliance with the Kimberley process in assuring that all diamonds sold are conflict-free
- Vast network of global jewelers available for resale purposes if required
- Keen customer focus and available educational investment materials
- Agressively marketed web and social media platform assisting in sales directly to consumers.
- Variety of investment options including purchase of stones and partnerships on resale value of the diamonds
Navigating Colored Diamond Investments
Since its inception, Asteria has developed a global presence with offices in three continents including five in China and others in Hong Kong, England, Dubai, France, India , Australia and the United States. With this presence, Asteria supplies diamonds to over 600 retailers worldwide.
In the last decade, with their new generation of leadership, Asteria has also transitioned some of their sales onto a digital platform, using a sophisticated website to help customers research their potential investment.
Asteria aims to be at the forefront of the discovery of new colored diamond markets. Employing approximately 70 jewel experts, Asteria is constantly researching the best products at the best prices so as to be the first to supply customers with new opportunities.
Investing In Colored Diamonds
Colored diamonds are naturally occurring stones considered to be more valuable than clear or colorless diamonds due to their rarity. They are formed in the same way as their colorless counterparts, except that the carbon compression includes interactions with other elements such as boron (blue), high temperatures (pink or red) or radiation (green).
It is estimated that for every 10,000 carats of clear diamonds, there is 1 carat of colored diamonds. While the 4Cs in diamond selection (carat, color, clarity, cut) are still important when considering fancy colored diamonds, color intensity is the most important factor in determining the value of the stone, with deeper hues implying higher value.
Currently, colored diamonds are considered to be a sound and profitable investment for three reasons. The first of these is that the popularity and demand of colored diamonds has been rising consistently over the past decade. This is particularly the case in blue diamonds, which are considered to be the most valuable in the colored diamond industry. For instance, in April 2016, the 10.10-carat De Beers Millennium Jewel 4 sold at auction for $31.8 million and there have been other such stones selling at that rate.
The second reason is that there is a limited supply of new colored diamonds in nature. As well the largest mines excavating colored diamonds have been closed such as Argyle in Australia. The increased demand worldwide and the drastic reduction in production raises the investment value. While this does have a positive impact on prices, it is important to remember that diamonds, like other gems, are occasionally re-introduced into the market by individuals opting to sell, but the effect in pricing is minimal.
The third consideration when investing in colored diamonds is that gems are investments that can be used throughout the period of possession without devaluing them. As such, there is an opportunity to enjoy the colored diamonds as a possession and then also obtain a profit upon their sale.
The fourth reason is truly the basic value of investments in any diamonds. Its the smallest size solid commodity, that is easily transported and stored. Meaning a person can move there wealth on a finger. In times of crisis, having this commodity in your pocket proves to be very beneficial. Diamonds as well are unaffected by currency devaluations, inflations or wars. Prices in the last 50 years have proven to be very stable and rising no matter what hurricanes, wars or government tax policies came out. Of course Colored diamonds and its rarity have proved to be much more profitable and rare.
Value Proposition For Customers
Asteria provides a number of services for their investors at each stage of the investment cycle. Prior to purchase, Asteria aims to ensure that its customers are well informed as they make their decision to invest in a fancy colored diamond by offering educational material on their website and interactions with diamond investment specialists.
When it comes to investing in a fancy colored diamond, Asteria offers two options. The first is the outright purchase of the diamond, which the customer can then choose to resell at a later date for a profit. While Asteria Diamonds may opt to purchase diamonds back from their investors, the company does provide a service whereby it connects its customers with other investors around the world that might agree to purchase the diamond. Asteria Diamonds in this case will act as a mediator and guarantor to both parties, to make the transaction safe and genuine.
The second investment option is a form of partnership with Asteria Diamonds. In this approach, the investor pays for the diamond; Asteria diamonds will hold it for a period of six to 12 months trying selling it to jewellers/traders worldwide, then sharing the profit with the investor. According to Asteria Diamond CEO Ishai Bettan, the return for the investor in this approach is usually approximately 15-20 percent after setting in jewellery.
Investment Risks And How To Mitigate Them
Asteria understands that there are risks to entering the colored diamond investment space. One of the risks that permeate the colored diamond industry is fraud through the use of ‘treated’ or ‘enhanced’ diamonds. Some manufacturers might treat their diamonds so that they appear a higher grade than they really are and sell them for more than they are worth. Another risk element is entering the investment market without enough insight into diamond prices, because it is very easy to make an uneducated and unprofitable investment.
In order to help customers address these risks up front, Asteria Diamonds provides investment training in the form of rich content on their Invest Asteria page, one-on-one consultations with diamond investment specialists and training sessions that cover topics such as the position of diamonds in the investment market and how diamonds compare to other investment choices.
In order to maintain their global presence and reassure their customers, Asteria Diamonds has been certified on the diamond bourses of multiple jurisdictions including Israel, London, Shanghai and New York. The diamond bourses are the bodies that mandate integrity and high trade standards in the industry and being a member qualifies a company as compliant.
Asteria Diamonds also prides itself in dealing exclusively with conflict-free diamonds. Conflict diamonds those that have been used to fund conflict and militant groups in countries in Western Africa and are widely condemned across the world. Asteria Diamonds abides by the Kimberley Process Certification Scheme (KPCS), which is a program developed by the UN, international governments, diamond associations and NGOs.
Asteri Diamonds as well provides third party independent gemological certifcation for each individual diamond, proving the authenticity and natural composition of the diamonds. Of course GIA is the most reputable and used certification accepted worldwide to being the strictest and most trustworthy. Any Investment grade diamond certified by GIA, has its seal of approval.
Asteria Diamonds reputation worldwide has proven to be of solid standing. Customers continue to invest and refer friends knowing they are getting solid advice, rare products at the most competitive prices buying directly from the manufacturer.
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