PREMIER DIAMOND GROUP (NORTH AMERICA) LTD.

Transcription

1 PREMIER DIAMOND GROUP (NORTH AMERICA) LTD.

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4 WHAT ABOUT THE EUROPEAN UNION A) - ISSUES TO WATCH IN 2018 Migration Brexit Cybersecurity Issues Youth Empowerment & Unemployment Inequality Terrorism North Korea SUMMARY: Europe has its hands full with a host of socio-economic issues that continue to cause instability. B) - ISSUES TO WATCH IN 2018 The debate on Future Financing of the European Union has begun! Debate has begun but there will be no great leap forward. Realistically, changes to the Resource System will require the Council of the EU to agree unanimously after consulting with the European Parliament. Then, it will require ratification from every single member states Mission Impossible!

5 2010 SURELY WALL STREET HAS LEARNED ITS LESSON? Wall Street bundled auto loans into Asset Backed Securities (ABS s) Sold to Commercial Investors as High Return, Safe Investments. All auto loans were to be scrutinized and Approved As Solid. (5% delinquency acceptable) 2018 Anyone with a pulse can get a car loan approved. Delinquency rate currently over 30% - and rising! ETF s, 401ks Etc. All include these ABS s. This market is about ¼ size of the failed 2007/8 mortgage ABS! Industry currently being investigated by the office of the comptroller citing, unprecedented delinquencies, fraudulent falsification of income and employment data on approved loans! Combine the used car loan marketplace with the student loans market (also in trouble) and you have a volatile marketplace about 80% the size of the 2008 mortgage market!

6 SELECTED DEALER TO DEALER ASKING PRICES FOR COLORED DIAMONDS OVER A 48 YEAR PERIOD Diamond Average Asking Average Asking Total 48 Yr % Average 48 Yr Price 1970 Price 2018 Increase Yearly Increase 1 Ct. Fancy Vivid Pink $20,000/ct $475,000/ct 2375% 49.50% 1 Ct. Fancy Blue $9,500/ct $350,000/ct 3684% 76.80% 2 Ct. Fancy Intense Blue $17,500/ct $900,000/ct 5143% % 1 Ct. Fancy Purplish Red $37,500/ct $1,800,000/ct 4800% % 1 Ct. Fancy Intense Orange $9,500/ct $349,000/ct 3674% 76.50% 1 Ct. Fancy Intense Green $25,000/ct $335,000/ct 1340% 27.92% 1 Ct. Fancy Purple $7,500/ct $190,000/ct 2533% 52.70% *Average Yearly Increases significantly decrease when diamonds are held for a shorter duration! Source: Sovereign Society Report, Practical Privacy Strategies, D. Marcum; Private Client Sales Sources and Auction Results

7 COLORED DIAMONDS THE NEW GOLD STANDARD HOW THEY COMPARE 10 YR AVERAGE COLORED DIAMONDS / DOW JONES / GOLD DOW JONES STOCK MARKET APRIL 10, ,852 (SOURCE DOW JONES) MARCH 24, , YR AVERAGE INCREASE 11.42% PER YEAR GOLD PRICING APRIL 10, 2008 $ / OUNCE (SOURCE KITCO INC.) MARCH 24, 2018 $1, / OUNCE 10 YR AVERAGE INCREASE 4.32% PER YEAR SELECT COLORED DIAMONDS 10 YEARS MAR/2008 TO MAR/2018 SOURCE: (FANCY COLOR PINK DIAMONDS 315% 31.5% PER YEAR RESEARCH FOUNDATION BLUE DIAMONDS 154% 15.4% PER YEAR AND BARRONS FINANCIAL) YELLOW DIAMONDS 110% 11% PER YEAR

8 Rare Diamonds: The Allnatt, Millennium Star, Pumpkin Diamond, Moussaieff Red, The Ocean Dream, Steinmetz Pink

9 SUMMARY U.S. Fed forecasting 4 rate increases in 2018 aiming for 3% interest rate. Socio Economic instability in the European Union. Inflation means even more market volatility everywhere. Inflation and volatility combined create instability for stocks, gold and real estate investment! Natural colored diamonds have not gone down in value at the dealer level once over the past two decades! Proven resistant to volatility, inflation, deflation, recession and a near depression over that period!

10 Colored Diamonds There are 13 basic color varieties of Colored Diamonds. Red, Orange, Purple and Violet are the most rare in nature. Next are Pink, Blue and Green. All Colored Diamonds are much more rare than a D color Internally Flawless colorless diamond!

11 The Hope Diamond

12 The Tiffany Diamond

13 Brown Diamonds Brown Diamonds are colored by layers of brown graining that are thought to be caused by deformation of the diamond s structure. Because the majority of Red, Pink, Purple and Brown Diamonds are formed in the same way, it is not uncommon to find two or more of these colors blended together. Diamonds that contain two or more color combinations can be among the most beautiful of all Colored Diamonds. A suite of Brown Diamonds

14 Yellow Diamonds Most Yellow colors are the presence of nitrogen or hydrogen atoms in the diamond crystal. The greater the nitrogen saturation, the stronger the color. Yellow is the second most common color found in diamond. A Yellow Diamond is much rarer than a D clarity Internally Flawless colorless diamond carat Fancy Vivid Yellow Sun-Drop Diamond

15 INTENSE YELLOW & BURNT ORANGE DIAMONDS ARE 1,000 TIMES MORE RARE IN NATURE THAN A D COLOR, FLAWLESS DIAMOND YET THEY COST LESS PER CARAT AND POSSESS THE SAME DOUBLE DIGIT YEARLY GROWTH POTENTIAL AS MANY 6 FIGURE PER CARAT COLORED DIAMONDS! THEY REPRESENT AN UNPRECEDENTED WEALTH ACCUMULATION OPPORTUNITY!

16 UNIQUE NEON YELLOW GREEN COLORED DIAMONDS A rare 0.83 Oval Brilliant Cut Natural Fancy Intense Yellowish Green (Neon) Colored Diamond sold privately in Feb./2009 for $61,000 per carat.

17 Chameleon Diamond A second group of hydrogen rich green diamonds possesses the ability to change color. These rare diamonds are called Chameleon Diamonds. These two photos dramatize the color change of a Chameleon Diamond. The photo at the bottom shows the color as Yellow after being removed from darkness. The photo at the top shows the diamond as Green following exposure to light.

18 Green Diamonds Large Green Diamonds are so rare only one, The Dresdan Green is of historical importance. Green Diamonds obtain their color from exposure to trace amounts of natural radiation in the earth usually proximity to uranium ore in the kimberlite pipe carat Square Shaped Fancy Green Diamond

19 Blue Diamonds The majority of Blue and Gray Diamonds are from the Premiere mine in South Africa but recently they have also been found at the Argyle mine in Australia. Blue Diamonds from South Africa obtain their color from trace amounts of boron. The more boron, the deeper the blue color. Australian Blue Diamonds owe their color to hydrogen or nitrogen gas absorption into the crystal carat Fancy Deep Grayish Blue Wittelsbach Diamond

20 Orange Diamonds Nitrogen is thought to be involved in the color process of Orange Diamond, but there has been no conclusive scientific evidence. Orange Diamonds with a Brown or Yellow modifier are often referred to as Autumn Orange. Pure Orange Diamonds are among the most prized and beautiful of all Colored Diamonds carat Vivid Orange Diamond

21 Violet Diamonds More than 90 per cent of the World s rare pink diamonds come from the Argyle mine, which is the only source of hydrogenrich violet diamonds. These stones are seldom seen; Argyle has produced only 12 carats of polished violet diamonds for its tender in 32 years. The Argyle Violet, a 2.83-carat violet diamond

22 Red Diamonds Pure Red is the most commercially valuable Colored Diamond. A 1 carat Red Diamond will command a price per carat in excess of $1.5 million at auction! Red Diamonds are colored by layers of graining thought to be caused by the deformation of the diamond s structure carat Purplish Red Pure Red Diamond Ring The Rob Red

23 Pink Diamonds Pink Diamonds are colored by layers of graining that are thought to by structural faults due to high pressure. These stratified layers of coloration also give Red and Purple Diamonds their color. The closer the layers the deeper the perceived color carat Fancy Purplish Pink Diamond. Obvious color banding can be seen by the naked eye carat Pink Diamond

24 An index of pink diamond prices recorded steady double digit increases between 2007 and 2017, according to Gemdax consultants. That compares to a 6.1% return on the Hang Seng and 8.69% for DJIA. Between 2010 and 2018, pink diamond prices have escalated by 315% according to Barrons Financial and the Fancy Color Research Foundation. The 2017 Argyle Tender set a record for 1 year appreciation and all indication shows even more growth leading up to the mine s closing in 2021.

25 COLORED DIAMONDS VS GOLD Even Rough Colorless Diamond prices have outperformed Gold over the past 50 years

26 WHY PDG?

27 TRUST HAS ERODED 2008 NEAR DEPRESSION ONGOING GOVERNMENT OVERSPENDING RELATIONSHIP DECLINE COMPUTERS HAVE REPLACED TRADERS WE ARE ALL ABOUT PERSONAL SERVICE, NO MATTER THE ACCOUNT SIZE!

28 DEALERS WITH MORE THAN 45 YEARS CUMULATIVE EXPERIENCE We respect privacy. Natural Colored Diamonds are one of the last remaining assets that do not require a Social Insurance Number to purchase. Foreign real estate and gold are fine assets but they are fixed. They cannot be easily transported in the event of governmental change, economic change, social economic change. Our Business Plan We are regulated in Canada according to Fintrac. No cash or 3 rd party transactions. Your assurance of an orderly market. THREE EXIT SELLING STRATEGIES 1) Private client to private client. 2) Major auction house (representation). 3) Major jewelry production. *DIVERSIFICATION*

29 SUMMARY REBUILD YOUR WEALTH PROTECT YOUR ASSETS NATURAL COLORED DIAMONDS Have held their value during all 3 major recessions over the past 40 years. A track record of DOUBLE DIGIT annual growth at the Dealer level over the two decades! HEDGE against the volatility of the U.S. dollar. Can be sold in most world currencies! The best Colored Diamonds have DOUBLED in value at the dealer level every 5-8 years. ASSET PROTECTION against civil action or liability. $BILLION Buy/Sell market with LIQUIDITY! Has consistently outperformed Gold & Silver Ultimate PRIVACY! Non registered asset!

30 ZIMI YELLOW DIAMOND FORMATION Pangea Pangea, the supercontinent.source Zimi Yellow Diamond

31 ARGYLE MINE OPPORTUNITY PINK DIAMONDS RIO TINTO CLOSING MINE IN 2021 PRICES ESCALATING FOR ALL PINK DIAMONDS AS WE GET CLOSER TO MINE CLOSING. WHERE COULD PRICES GO?

32 AVOID VOLATILITY AND EXCESSIVE CREDIT AT ALL COSTS! AVOID SPECULATION AND INSTABILITY. MINIMIZE DOWNSIDE RISK. CAN BE BOUGHT AND SOLD IN ANY MAJOR WORLD CURRENCY. ULTIMATE PRIVACY AND PORTABILITY.

33 0.76 CARAT FANCY PURPLISH RED 1.04 CARAT FANCY INTENSE GREEN