The strong performance in recent years of precious commodities, including diamonds, has not only caught the attention of both private and institutional investors, but has led to the entry of a host of companies offering diamonds and diamond-supported securities as investment alternatives. Typically, these are gemstone dealers looking to develop new market opportunities or financial firms offering the possibility of investing in funds that are backed by diamonds in their possession.

DFI is neither of these. It is a specialist service provider focusing on diamonds for investment, where the client obtains full ownership of the diamonds. Our company offers the expertise of financial market professionals, including portfolio managers and analysts, who are backed up by a team of diamond market specialists. DFI provides the level of experience, analytic capability and range of services that a client would expect from an established financial manager.

Because a DFI client obtains full ownership of the high-grade diamonds, he or she is not dependent upon the performance of a fund manager. The client can hold the assets in a secured facility, operated on behalf of DFI in a customs free zone, but also can take possession of the gemstones if he or she so prefers.

DFI investment portfolios are also fully tradable. The company’s proprietary investment model enables the client to monetize his or her investment at any given time.

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WHAT IS IT THAT SETS THE DIAMOND APART AS AN INVESTMENT OPTION?

Projected Capital Growth
Diamond prices are expected to climb steadily over the coming decade, as a result of a strong growth in demand in developing markets, coupled with lower growth in supply from rough diamond producers.

Outperforming the Stock Markets
High-grade natural diamonds have outperformed the leading stock market indices by an average of 14 percent per annum during the past 12 years.

Tangibility and Affordability
Like real estate, a high-grade diamond has a physical presence that over the long term will retain value irrespective of cyclical trends. But unlike real estate it can be acquired or disposed of in small units.

Portability
Small and compact, diamonds traditionally have served as a store of value during times of uncertainty. Easily transportable and internationally tradable, they have been used for generations as dependable guardians of financial security.

Anti-Inflationary Hedge
Diamond prices have increased at a rate that is consistently higher than the rate of inflation. Research published in 2012 showed that between 1999 and 2010 demonstrated that returns for white and colored diamonds stood at 6.4 percent and 2.9 percent above inflation per annum.

Low Correlation with Other Asset Classes
Diamonds are a particularly attractive alternative for diversifying an investment portfolio, showing low and stable correlations with the traditional financial markets. Diamond indices also exhibit low correlations with precious metals, even while the metals exhibit high correlations with one another

Low Volatility Relative to Other Precious Commodities
According to Bain and Co., between 2004 and 2011 annual price volatility of silver stood at 37 percent, platinum at 27 percent and gold 19 percent. The annual price volatility of polished diamonds was only 9 percent.

Easily Transferable from Generation to Generation
Diamonds traditionally have been regarded as family heirlooms, informally passed down from generation to generation.