A slideshow created for AdAmiA BVBA Investment Diamonds company about diamonds, value and why an investment in diamonds is a wise and long lasting investment.

1. The Case for Diamonds:
A Brilliant Alternative Investment!
Presented By:
Laurent Mathiot
CEO of AdAmiA BVBA
Antwerp, April 2013

2. I – What is an Investment Diamond?

3. I – What is an Investment Diamond?
Among the 25% of polished diamonds used as gemstones,
only 2% are eligible to be considered investment grade
diamonds because of their top quality features according to
the “4 C’s” grading: such a rarity is the main factor for an
everlasting demand, not met by supply and thus a
continuous price appreciation!
Features of an investment diamond:
Shape: Round (brilliant)
Carat: More than one Carat
Color: D, E (Exceptional White), F, G (Rare White)
Clarity: FL, IF (Flawless), VVS1, VVS2 (minute inclusions that are
very difficult to see under a 10X loupe)
Cut: Ideal, Excellent or Very Good

4. I – What is an Investment Diamond?
To provide a concrete example of rarity: the world - GIA in New York (Gemological Institute of
production of premium cut diamonds in D Color and IF America)
Clarity from 1 to 1.49 Cart is less than 900 Carats per - HRD in Antwerp (Hoge Raad Voor Diamant)
year meaning less than 750 stones! To produce these - IGI in Antwerp (International Gemological
750 exceptional diamonds mining companies must dig Institute)
more than 800,000,000 tons of Kimberlite, the rock Certificates and valuations from the Gemological
which rough diamonds are found! Institute of America (GIA) have the widest international
acceptance. For this reason, a certificate from this
Investment diamonds must be purchased in a sealed organization is a great advantage in later diamond
package, accompanied by an authenticity certificate sales.
established by the independent laboratories which are
recognized worldwide. Other reputable and professional diamond institutes
include Hoge Raad Voor Diamant (HRD) and the
The certificate address the criteria of quality, examined International Gemological Institute (IGI). A laser
by one of the following official independent engraving of the certificate number on the girdle of the
institutions: diamond is a further confidence-building factor. While
engraving is not absolutely essential to be able to
identify a diamond with certainty, it is occasionally
popular with private investors.

5. II – The Top 10 Reasons to Invest in
Diamonds

6. II – The Top 10 Reasons to Invest in Diamonds
II-I A Diamond Does Not Go Bankrupt II-II A Great Store of Value
Diamonds still hold an intrinsic value and Like any long-term tangible asset,
have for millennia, for they are tangible diamonds also offer a hedge against
assets and not a paper asset that relies on inflation because they retain their intrinsic
the assurance of a third party and value irrespective of currency changes.
represents their debt. Diamonds have one This has been demonstrated through many
fundamental quality that renders them studies that show how diamond prices
unique compared to other financial have preserved purchasing power for their
products: they do not present any credit owners over long periods of time.
risk. Upon taking possession of one’s
diamonds, an investor is no longer exposed
to the failure of a third party. Like gold, a
diamond is a tangible asset that can be
liquidated at any time.

7. II – The Top 10 Reasons to Invest in Diamonds
II-III An Universal Asset
Unlike other gemstones, diamonds are valued according to a
catalog of internationally applicable criteria. Diamonds are
sought after all over the world, and wherever they are the
same criteria are used to establish evaluation. Assessment
criteria for diamonds have been defined by various
international gemological laboratories (G.I.A. was the first in
1931) and are structured around four main concepts (cut,
color, clarity and carat).
The Rapaport Diamond Report, a tool designed specifically
for professionals, allows for the financial value of any stone
to be established. Created in 1978 by Martin Rapaport, a
member of the World Diamond Council, these lists of
diamond prices have today become the basis for all global
diamond transactions. Because of their universal appeal,
diamonds are one of the major investment alternatives. They
can be used everywhere in the world as a form of payment in
transactions, all the more so when their value is established
and recognized.

8. II – The Top 10 Reasons to Invest in Diamonds
II-IV A Diamond is Forever
Diamonds are the precious stones with the greatest
hardness. Unalterable and indestructible, diamonds
cannot be affected by natural elements, such as
humidity or temperature: they are not subject to
any preservation risks. Its integrity is preserved for
centuries. Investment diamonds therefore present
the significant advantage of not requiring any
management fees!

9. II – The Top 10 Reasons to Invest in Diamonds
Declining supply: Although demand for diamonds
III-V The Market Fundamentals are shows continued strong growth, diamond supply is
Very Bullish growing by a mere 2.8% p.a. because many major
diamond mines are already depleted and to date no
Although diamond mining has already surpassed its comparable new deposits have been found. Global
global peak, global demand continues to rise volumes of mined diamonds have been declining since
considerably. A study by the Antwerp World
Diamond Center (AWDC) predicts that demand for 2003. While new deposits of diamonds have been
diamonds will double by 2020 as diamond supply found, they are all in inaccessible regions, requiring
stagnates at best, thus leading to a significant complex methods such as extremely costly offshore
increase in diamond prices. Increased demand: The mining on the sea bed.
AWDC experts predict annual growth of
approximately 6% assuming that demand for
diamonds will continue to rise steeply as wealth
grows in the extremely populous developing
economies of India and China.
Demand for diamonds in these countries is forecast
to equal that of the USA – previously the largest
gemstone market in the world – by 2020. In
addition, diamonds are particularly sought after as
an investment in periods of economic instability;
this trend boosts demand even in times of
economic crisis.

10. II – The Top 10 Reasons to Invest in Diamonds
II-VI A Performing Asset The techniques developed allow to analyze the effects of
any factor, economic, cultural or political upon diamond
Diamond prices have risen steadily throughout the past trade including demand (both regional and global),
50 years of 5 to 10% annually on average. Even the
2008 financial crisis triggered no more than a slight supply (rough being mined), manufacturing techniques,
decline in prices for some carat sizes, which was more prices (rough and polished) and stocks. The forecasting
than compensated for by their appreciation in model, allows for the comparison of Demand, Supply
subsequent years. See Price trends since 1960: The and Stock Changes to produce forecasts of prices for
example of a one-carat diamond in brilliant cut of each of the rough and polished categories followed. The
excellent quality in color D and clarity IF shows the price forecasts give a central forecast for diamond prices
strong and relatively consistent increase in diamond for the next five to ten years.
prices in US dollars over the period since 1960: a one
carat diamond with the best 4C characteristics is
currently valued at around $30,000, while it was valued
at only $15,000 in 2002, a 100% increase in 10 years!
Forecast of future diamond prices have been computed
by Diamond Forecast LTD, using a scientific
econometric model incorporating a database designed
to be a central depository for all information relating to
the diamond industry. The database contains history
and forecasts for the macro-economic factors that have
a bearing upon the diamond industry.

11. II – The Top 10 Reasons to Invest in Diamonds
The model yields a potential doubling of the price
of polished diamonds from 2012 to 2022. A base
case scenario for the next 10 years of a return on
investment (ROI) of 10% p.a. seems conservative
and consistent with historical data.

12. II – The Top 10 Reasons to Invest in Diamonds
II-VII A Diversification Asset
Investment diamonds are a long-term
investment that generates capital
investment appreciation. The diamond
market is negatively correlated to other
financial asset types thus offering
diversification benefits when added to an
investment portfolio. Also, the diamond
market is purely physical, does not
generate unstable derivative products and
not linked to currencies: it is, therefore,
not bound by geopolitical considerations
or potentially related manipulation.

13. II – The Top 10 Reasons to Invest in Diamonds
II-VIII A Stable Asset, Even in Time
of Crisis
Investment diamonds are a very stable
investment. Its volatility is about half of
the volatility of gold. Furthermore,
compared to other assets, the low
volatility of polished diamonds is marked
by a high degree of regularity in its
progression thus generating an optimal
“risk-return” investment. An examination
of diamond prices in the years 2008 and
following clearly shows that the overall
minor declines in price had already been
made up by 2010.
For example, prices of one-carat
diamonds did not fall at all although their
price appreciation stagnated for a short
period. It can thus be seen that diamond
prices fluctuate far less than the prices of
conventional stocks and shares.

14. II – The Top 10 Reasons to Invest in Diamonds
II-IX The Highest Concentration of Value
Diamonds concentrate the maximum value in the smallest possible form. Sealed
investment diamonds are very easy to transport. By way of explanation for a top
rated 4C diamond:
This can be strikingly demonstrated in a comparison with gold: for a top rated
4C diamond: 1 gram of diamond is worth 1 million dollars US, which is the value
of 20 kilograms of gold (based on a gold price of 50.000 dollars/kilogram)!

15. II – The Top 10 Reasons to Invest in Diamonds
II-X The Owner is the Bearer
Diamonds are the most confidential investment that exists for the owner is the
bearer: the purchase of diamonds is not subject to registration requirements,
enabling the owner to preserve anonymity more easily. Unlike gold or property,
diamonds have never been subject to prohibitions on ownership or
confiscation.
As a consequence, it is an investment product that is easily passed from
generation to generation. This brings a further heritage-related dimension of
wealth to add to its financial relevance.

16. III – How to Invest?

17. III-I Investor Considerations
III-I-I Budget & Asset Allocation
A preliminary consideration for each potential investor is to assess a specific
budget for the acquisition of diamonds. Although there are many parameters to
factor in while deciding on an investment budget, a key element to consider is
the relative weight of the potential investment compared to investor’s total
portfolio/wealth.
Investment diamonds are alternative investments and transportable “hard
assets”, such as precious metals. It is widely established that a private investor
should allocate at least 10% of total net worth into hard assets, up to 20% in
times of crisis. It is our recommendation to split this allocation half in gold
bullion half in diamonds.

18. III-I Investor Considerations
III-I-II Time Horizon: Long Term or III-I-III Investment Profile:
“Trading Scenario”? Conservative or Dynamic?
Another crucial parameter to look at before What is the main purpose of the investment
investing is the maturity or time horizon considered: to protect one’s wealth in these
anticipated for holding a given investment, times of massive debt burdens and financial
before considering selling it. Diamonds must be crisis or to seek a dynamic asset able to
reviewed as long term investments, not for generate capital gains over the years? The
short term “trading” purposes. Although one beauty of diamond investing is that investors
could successfully buy a top quality investment can get both protection and profit but to
diamond at a bargain price and sell it back with achieve such a remarkable performance,
a profit in a relatively short time period, this diamonds should be carefully selected according
“trading” scenario is not the most common for to the following guidelines.
private individuals who are not professional
“diamantaires”. We do recommend a minimum
holding period of three years at least whilst
considering the investment diamonds option.

19. III-II Which Diamonds to Select?
III-II-I Common Features: “4C” & Certificate & Laser
When purchasing an investment diamond, several prerequisites must be fulfilled: as seen
in the definitions section, the features of an investment diamond are:
Shape: Round (brilliant)
Carat: More than one carat
Color: D, E, F, G
Clarity: FL, IF, VVS1, VVS2
Cut: Ideal, Excellent or Very Good
Also, the stone must be delivered with an original certificate from one of the following
official independent grading institutions: GIA, HRD or IGI. A laser engraving of the
certificate number on the girdle of the diamond is highly recommended to associate the
stone with the certificate. Finally, a tamper-proof seal provided by the institution to carry
the stone is definitely a big plus and makes it so much easier to store and transport the
stone.

20. III-II Which Diamonds to Select?
III-II-II Main Value Driver: Carat decrease in price in times of crisis (such as in
2008), whereas 2 or 3 carat stones show minor
A very important consideration to bear in mind
while investing in diamonds is the exponential declines that are made up after about 2 years.
factor related to the weight expressed in carats These 2 or 3 carat stones gain more in times of
(1 carat equal to 0.20g). The price per carat of general price appreciation than 1 carat stones.
two similar stones increases exponentially with So a general rule of thumb would be to
its carat weight. In other words, one 2 carat
diamond is much more expensive than two 1 stipulate that 1 carat stones are a more
carat diamonds of the same “4C” features. For conservative investment option while 2 or 3
example, a diamond that is double the size of carat stones are more dynamic.
another similar can be up to four times the
price!
For a given budget, and depending on the
This makes the carat weight the main value investment profile, it is recommended to
driver of a stone and for a given budget, it consider the purchase of either the largest
makes sense to buy heavier stones. However, possible stone or a portfolio of smaller 1 carat
specific studies on the variation of diamond stones that would also provide a better
prices have shown that smaller stones, such as
1 carat, are more stable and do not liquidity in the future.

21. III-II Which Diamonds to Select?
III-II-III Other Value Drivers: Color, Clarity & Cut
Carat weight, of course, is not the only factor determining value and prices.
One should be very careful about the three other C’s: Color, Clarity and Cut.
As a general rule, it may be considered that the whiter, the purer, the better
cut the diamond is, the faster the price will appreciate because of the rarity
effect we have previously described.
However, diamonds that are not the very top graded but “investment
grade”, such as F/G colors and VVS1/2 clarities tend to catch up the price
appreciation of top graded stones but it takes more time. Since these stones
are bought for lower USD per carat prices, they offer a better “quality / price
ratio” in dollar terms and can be considered more dynamic investments
whereas top graded stones are, in comparison, a more conservative
investment option.

22. III – How to Invest?
1- AdAmiA is a member of RapNet, the world’s largest
III-IV Liquidity Considerations diamond trading network, with about one million stones on
the platform, located in 80 different countries, thus offering
Selling a diamond is another crucial challenge for a wide opportunities to market a stone at the most efficient
private investor. As we have seen before, diamonds are
meant to be long term investments that can be passed price.
from generation to generation. However, any owner of
investment diamond(s) should be in capacity to sell this 2- AdAmiA’s CEO is a member of the Diamantkring of Antwerp,
asset within a reasonable time and at a fair market price. the oldest and leading diamond exchange “bourse” and
member of the World Federation of Diamond Bourses, thus
Although it is possible to address directly, the market in having the privilege of physical access to the 26 diamond
order to sell a diamond (through multiple options such as
auctions, local jewelers, Internet market places…) the exchanges in the world, another key consideration to market a
possibility exists that this will be a time consuming diamond at the most competitive price.
process with no guarantee of obtaining a fair price,
many “professional” diamond buyers being
opportunistic and seeking cash strapped sellers to offer 3- AdAmiA’s CEO is a former private banker and wealth
a meager bid price… manager and therefore entertains a wide network of high net
worth individuals that can be offered an attracting opportunity
We at AdAmiA are committed to offer a true liquidity to to purchase a great diamond for either investment or jewelry
our customers and therefore, we will make an offer to purposes.
repurchase any diamond sold by us.
4- AdAmiA’s CEO is an alternative investments specialist with a
Our offer will be based on current market prices and
conditions and we are proud to assert that this will be a trading office in Paris on the prestigious Place Vendome, home
competitive offer because of the following compelling of the most luxury jewelers in the world such as Cartier, Van
reasons: Cleef & Arpels, and Boucheron. Such jewelers are always
potential buyers for top quality gemstones.

23. Contact Information
info@investment-grade-diamonds.com
www.Investment-grade-diamonds.com
Office in Antwerp Office in New York
AdAmiA BVBA AdAmiA BVBA
Diamond Plaza 3 Columbus Circle
Hovenierstraat 55, B.66 New York, NY 10019
2018 Antwerp, Belgium Phone:
Phone: +32 (0) 3.205.92.21
Office in Hong Kong
AdAmiA BVBA
Two International Finance Centre
Level 19
8 Finance Street, Central Hong Kong
Phone: + 852.2251.1672

24. Laurent Mathiot’s Profile
In 1989, having graduated from In 1997, he became Deputy Director General of La
ENSAE as an Actuary, he started Foncière de Participations, managing a team of 50
his career at Banque Paribas as a employees and carrying out numerous asset
Financial Analyst in the Asset arbitrations aimed at wealth structuring, as well as the
Management department, implementation of the Group’s investment strategy. In
responsible for creating (through 2001, with this strong experience, he specialized in the
econometric and actuarial area of Asset Management and became CEO of a
modeling) a tool to aid investment Family Office located in London. It is in this context
decisions. This work contributed and in view of the troubling situation in global
to the launch of one of the first financial markets that he led, in 2007, a major cross-
guaranteed capital structured sectional study around one subject: new strategies in
funds in the Paris financial market. global wealth protection. The conclusions of this work
brought to light the relevance of tangible assets like
In 1993, having obtained an MBA gold and diamonds. After successfully starting AurAriA,
from Wharton School of Business, an ecommerce site selling investment gold, in 2009,
he served as Chief Financial the continuity of these reflections on alternative
Officer at L’immobilière de Crèdit, investments led him to start AdAmiA in 2012.
a financial company authorized by
the Bank of France and supervised
by the Banking Commission.