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Gemstone shopping trip

My gemstone shopping trip (in the time of Covid-19) in Afghanistan there raw material (crystals) and then onward journey over the Kalverpass to Pakistan, there I have the super grinders who made a simple crystal, a wonderful gemstone with high brialliant, such as for example : emerald, sapphire, peridot, kunzite, imperial topaz, tourmaline, garnet and many others,

 

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Petra Diamonds completes restructuring

Petra Diamonds completes restructuring

Petra Diamond’s Finsch mine in South Africa (Image: Petra Diamonds.)

Petra Diamonds (LON: PDL) said on Wednesday it had completed its restructuring, aimed at recapitalizing the business, which involved new governance arrangements and cashflow controls.

Petra Diamonds
Petra Diamonds is a diamond producer based in the tax haven Jersey. The company, founded in 1997 by Adonis Pouroulis, has taken over five mines from de Beers. In 2015, 17.1 million tons of ore were mined, from which 3.2 million carats of diamonds were extracted. Petra Diamonds is currently exploring in the Kalahari in Botswana and at Reivilo near the Finsch Pit.

As part of the move, announced in October 2020, the miner has partially reinstated notes debt with holders of existing notes, contributing $30 million in new money.

Each of these will take the form of a new senior second lien note.

The new notes amount to about $337-million, and the remainder of the notes debt will be converted into equity, resulting in the noteholder group holding 91% of the enlarged share capital of Petra.

The diamond miner, which has just sold a 299.3 carat diamond for $12.18 million, also announced that the appointment to the Board as a non-executive director of Matthew Glowasky, has become effective immediately.

Fighting debt

Petra Diamonds began 2020 in a fragile financial state due to stagnant demand and heavy borrowing to expand its mines, particularly the iconic Cullinan.

Its weak position pushed Petra to put itself up for sale in June. The miner reversed the decision in October, opting instead for the debt-for-equity restructuring completed Wednesday.

Petra’s shares slumped by more than 80% last year as the covid-19 pandemic battered the global diamond sector, with mines forced to shut down while consumer demand continued to fall.

The diamond miner, which has three operations in South Africa and one in Tanzania, is also dealing with allegations of human rights abuses at its Williamson mine in Tanzania, resulting from the actions of its security guards.

Petra formed in February an internal committee to oversee an ongoing investigation on new abuse claims. The probe is being carried out by a specialist external advisor in conjunction with the company’s lawyers.

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HIGH-QUALITY GEMSTONES AS A SOLID INVESTMENT!

Cut diamonds and colored gemstones have been a popular and recognized form of investment for centuries. This is due, on the one hand, to the fact that gemstones have survived all previous financial and economic crises unscathed and, on the other hand, to their special mobility. A high-quality colored gemstone (e.g. ruby, sapphire, alexandrite, or emerald) with a weight of 5 carats – this corresponds to one gram – can have the same market value as a gold bar weighing 1 kg. For this reason, gemstones have often been given the title “ideal escape currency”.
This fact, as well as the fact that gemstones are not subject to wealth tax and are hardly affected by inflation, deflation or devaluation, makes them particularly attractive as an anonymous real asset investment!

Of course, gemstones can and should only represent part of the investment mix, but not everyone can or wants to invest in real estate, antiques or works of art and the international stock exchanges and financial markets are currently hardly classified as a safe haven. Even gold, the “crisis currency no. 1”, has seen clear downward trends after a record high.

Ruby, sapphire, alexandrite, paraiba, aquamarine, garnet and emerald should be mentioned in the foreground as a proverbial high-carat investment in the color stone area. In terms of quantity, their quality deposits are far below those of diamonds, which is unlikely to be a disadvantage for future price developments. We also recommend selected individual pieces of tanzanite, mandarin garnet, tsavorite and tourmaline, to name just a few examples. In addition, there are a large number of gemstone rarities, but the purchase of which should be reserved for expert collectors or industry experts. If you are only looking for a quick profit, you are not well advised with this form of investment, the decisive criteria here are definitely the factors of longevity and enjoyment of this uniquely attractive material.

When buying, you should make sure that the gemstones are within a price range that can be classified as resellable within the upper middle class. It makes relatively little sense to invest large sums in a single stone, which can then only be sold through one of the international auction houses – a selective distribution (which can take personal preferences into account) is better, whereby the quality of the gems always comes first must stand!

For those customers who are interested in particularly exquisite quality, we have worldwide contacts (India, Thailand, Sri Lanka, Brazil, Vietnam, Russia) with the best prices, selected premium gemstones (each certified twice). These treasures, which are predestined as solid and long-term capital investments, will be happy to present and advise you personally by appointment.

In contrast to colored stones, diamonds are subject to a worldwide calculation and valuation standard based on the US dollar. The international diamond business is dominated by a single group – this offers the advantage of a certain continuity, but also the disadvantage that “bargains” are hard to come by.

As a potential buyer of gemstones, you should only invest your money where, in addition to serious and competent advice, a third-party, independent expert opinion from a well-known institute (gemmological expertise) is provided free of charge. In addition to the detailed description and grading, this usually also includes a current assessment of the market value – this is also of great importance for insurance or notarial purposes and serves as an ideal estimate of the price demanded by the gemstone dealer.

If you are specifically interested in gemstones as an investment, you can also contact us by email shop@chalos-shop.com or phone +306945895143

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How you can make money with colored gemstones!

Shares too expensive? Bitcoin train departed? Gold and silver out? How about some colored gemstones? Sapphire, ruby ​​& Co. can be a useful and lucrative enrichment for the depot.

The auction lasted just under five minutes. And in the end there was a new record. A few days ago Sotheby’s auctioned one of the world’s most spectacular gemstones, a flawless pink diamond weighing 59.6 carats, in Geneva for around 62 million euros. It was previously called “Pink Star”, but its new owner, a diamond cutter from New York, officially renamed it “Pink Dream”.

Never before has a single diamond brought in such a sum at an auction. The previous record was almost 37 million euros and was only reached three years ago. Not only diamonds, but also classic colored gemstones – emeralds, sapphires or exotic such as the mandarin garnet – condense incredible values ​​in the smallest of spaces.

Many varieties are in such demand due to the global search for tangible assets that prices are skyrocketing everywhere. Anyone who deals with gemstones as an investment should, however, familiarize themselves intensively with the individual stones and the sometimes peculiar market rules.

In contrast to the diamond market, where a few large international corporations like De Beers set the prices, the market for colored gemstones is more diverse in the truest sense of the word. Prices usually react more quickly to supply and demand. In this respect, there is always something speculative about buying a gemstone.

Demand is dominated by China
If you want to get some glamor into the depot, you have to dig deeper into your pocket today than a few years ago. “The demand for high-quality colored stones is still unbroken and the price is absolutely dominated by the Chinese market,” says the Viennese gemstone expert Heinz Schiendl.

If you want to buy untreated, i.e. not burned rubies or the coveted Winza rubies, you have to reckon with a four- or five-digit amount – depending on the weight and quality. The prices per carat (equivalent to 0.2 grams) for good quality rubies are currently well over 2000 euros, often even over 3000 euros.

In addition to rubies, the closely related sapphires and emeralds are among the “standard values” among colored gemstones. The Detmold expert and author Johannes O. Vranek calls them “jewels”. The emerald in particular is one of the greatest classics and was already highly valued in ancient times.

It is reported about Emperor Nero, for example, that he is said to have regularly watched the fights of gladiators through a green emerald. It is not known whether the stone was used as a fashion accessory or as pragmatic sun protection. What is certain is that emeralds have been of stable value for centuries.

Stagnation in emeralds
In contrast to their green relatives, sapphires come in an impressive variety of colors. But they mustn’t be red, because then they would be rubies. Collectors and investors appreciate sapphires in the purest cornflower blue. Sapphires from ten carats upwards or in fantasy colors are suitable as capital investments.

The prices vary, depending on the weight and quality, between a few hundred euros and the equivalent of an upper middle class car. In the case of emeralds, on the other hand, there has been a stagnation in performance in recent years.

Investors who like things a little more speculative should take a look at the “small caps”. Some of their prices have exploded in recent years, mainly thanks to strong demand from China. “An eye-clean, 20-carat rubellite tourmaline in top color is currently around 500 euros per carat in European wholesalers. At a Chinese dealer, you get around 1,000 US dollars per carat for the same stone, ”says Heinz Schiendl.

Individual stones, such as the blue zircon, peridot and chrysoberyl from ten carats, are on a high price. This is an adjustment to the price development of stones with comparable colors, such as aquamarine or green tourmaline, with which one could earn a lot of money in the past few years.

Mandarin garnet was a stroke of luck
“Fine-colored aquamarines today cost almost twenty times what you had to pay in the 1970s”.

Mandarin garnet prices have also skyrocketed in recent years. Anyone who took hold of this gemstone 20 years ago and acquired very good qualities should have multiplied their wealth since then. Alexandrite is also one of the investment stones. “An extremely rare variety of Chrysoberylle”,

Interesting buy signals are also coming from the USA. The American Gem Traders Association (AGTA) recently named tanzanite, sapphire and aquamarine as the trend stones of tomorrow. Tanzanite is particularly popular in the USA. As a result of the financial and economic crisis, trade in these gemstones there has declined significantly in recent years.

In the meantime, the demand is rising again, while the supply of these top stones is scarce. Around Kilimanjaro, attempts are being made in some places at a depth of 100 meters to wrest the last remnants of these treasures from the earth, but technology is gradually reaching its limits. Large alternative sites are not yet known.

Larger stones are considerably rarer
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The coveted Paraiba tourmalines in excellent quality, the prices of which have increased almost tenfold in just a few years, are among the outperformers among the “small caps”. Today you have to reckon with high four-digit carat prices for point stones in wholesale.

The criteria for assessing the quality of colored gemstones are similar to those for diamonds. Of course, the price of a colored gemstone depends on its weight. A sapphire with over three carats will always cost disproportionately more than a 1.5 carat with a comparable color and purity, simply because the larger stones are considerably rarer. And the color of the stones also determines the price.

But when it comes to purity, colored gemstones are different from diamonds. Flawless diamonds or those with “very, very small inclusions” usually fetch the highest prices. Anyone interested in colored gemstones will come across the term “eye clean”. It states that the specialist cannot detect any inclusions with the naked eye (and not under a magnifying glass with ten times magnification as with diamonds).

In addition, inclusions in colored gemstones are considered to be “fingerprints of nature”. They give clues as to the authenticity and origin of the stones. The finest inclusions in sapphires and rubies are responsible for particularly interesting light reflections – the so-called asterism effect.

Certificates are essential
Depending on the incidence of light, this usually creates a six-pointed star image on the surface of the gemstone. So while inclusions usually significantly reduce the value of a diamond, with colored gemstones the very personal feeling decides on a quality assessment of inclusions.

Certificates from recognized gemological institutes are essential for investment gemstones. In addition to a detailed description and grading, this expertise often also includes a current assessment of the market value, which is important for insurance reasons.

But for the investor it is not only the emotional return and the pride of ownership that count. The main question that arises for him is whether it still makes sense to invest in colored gemstones after the price increases in recent years. As in Nero’s time, this is supported by the rarity of high-quality stones. “Even with the best international contacts to miners and exporters, it is at best possible to replace two out of three stones sold equally”, says Heinz Schiendl.

A high demand therefore meets limited resources. “If this trend continues, most of the gemstones will rightly bear this name again, because only a few customers will be able to afford the extreme price level.” Perhaps now is the last opportunity to shop a little of the Roman antique glamor.

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Alrosa finds first large coloured diamond at new Yakutia mine

Russia’s Alrosa (MCX:ALRS), the world’s top diamond miner by output, has found a 17.4-carat bright yellow gem-quality precious rock at its new Verkhne-Munskoye deposit in Yakutia, which started operations in 2018.

Alrosa finds first large coloured diamond at new Yakutia mine

The diamond, recovered in mid-February from the Zapolyarnaya kimberlite pipe, is the first large coloured stone found at the site, the company said.

Alrosa, which did not disclose the estimated value of the diamond, said it would be assessed and evaluated by its experts in coming days.

THE 17.4-CARAT BRIGHT YELLOW GEM-QUALITY STONE WAS UNEARTHED AT THE VERKHNE-MUNSKOYE DEPOSIT

Diamond miners and traders have been hit hard in the past year by weak market conditions. These factors have taken a major toll on producers of small stones due to an oversupply in that segment.

De Beers reported Thursday its worst set of earnings since Anglo American (LON:AAL) acquired it in 2012.

The world’s No. 1 diamond miner by market cap said demand for rough diamonds from polishers and cutters was weak last year due to the impact of US-China trade tension and the closure of US retail outlets. Many companies in the so-called midstream are struggling to obtain financing, it said.

Alrosa believes the situation is about to change as it’s already seeing the first signs of stabilization in the sector.

Increasing demand for synthetic diamonds has also weighed on prices. Man-made diamonds require less investment than mining natural stones and can offer more attractive margins.

Industry consultant Bain & Co., however, believes that while glut that’s depressing the diamond market will probably be cleared early this year, it will take at least another 12 months for the market to fully recover.

“The industry’s first and strongest opportunity to rebalance and regain growth will be 2021,” said Bain in a report released in December, adding that supply could fall 8% that year.

 

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Lithium prices continue to soar – up 88% in 2021

Lithium prices continue to rise exponentially in China on the back of heavy demand for lithium iron phosphate (LFP) batteries, the first ever mid-month assessment by battery supply chain research and price reporting agency Benchmark Mineral Intelligence shows.

Image: Tianqi Lithium

Lithium prices continue to rise exponentially in China on the back of heavy demand for lithium iron phosphate (LFP) batteries, the first ever mid-month assessment by battery supply chain research and price reporting agency Benchmark Mineral Intelligence shows.

Benchmark’s battery grade lithium carbonate midpoint price (EXW China, ≥99.0% Li2CO3) for mid-March shows the raw material up 88% just since the start of the year to over $12,600 a tonne, the highest level since March 2019.

Benchmark’s battery grade lithium carbonate midpoint price (EXW China, ≥99.0% Li2CO3) for mid-March shows the raw material up 88% just since the start of the year to over $12,600 a tonne, the highest level since March 2019.

Benchmark says in its new report some transactions were concluded as high as $13,400 on signs of a market shortage with producers running out of inventory. The last time domestic Chinese lithium carbonate sold for more than $13,000 was August 2018.

Lithium hydroxide prices in China have also rallied this year, up more than 20%, although a relatively deep discount to carbonate continues to exist.

LFP’S OVERALL SHARE OF THE GLOBAL BATTERY MARKET IN TERMS OF CAPACITY STOOD AT 18.5% IN JANUARY

Hydroxide prices came close to $25,000 a tonne and carbonate peaked at $23,000 at the start of 2018, but entered a steady decline that only bottomed at the end of last year.

China controls 60% of the world’s lithium processing and refining capacity and a similar percentage of cathode manufacture.

LFP on the up

Last month Benchmark lithium analyst George Miller said “demand for durable, improved, and low cost LFP cathode material has become rejuvenated in China – a very similar story to what we saw in lithium’s last price run of 2016 but with a much improved product for the 2020s.”

A year ago, Tesla surprised the electric car industry when it announced some Model 3s made in its Shanghai factory will be equipped with lithium iron phosphate (LFP) batteries made by China’s Contemporary Amperex Technology (CATL).

But the cobalt and nickel free vehicle has been a runaway success. In December, only its second full month of sales, the 55KWh LFP-battery Tesla Model 3 captured 5.9% of the global full electric car market in terms of battery capacity deployed despite not being for sale in the US, according to data supplied by Adamas Intelligence.

Boosted by deliveries to Europe, it made up 46% of all Model 3 sales in January and an astonishing 32% (December it was 47%) of the battery capacity in all LFP-equipped cars worldwide.

That lifted LFP’s overall share of the global battery market in terms of capacity to 18.5% in January, according to Adamas, which tracks demand for EV batteries by chemistry, cell supplier and capacity in over 90 countries.

That’s from only around 1% at the beginning of last year and 3% in June.

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Electric cars will cost more using ethically sourced batteries

The European Union’s efforts to ethically source a key battery metal face headwinds that could make it more expensive for automakers to go electric.

Child miners as young as 11 in eastern Congo. (Image by Enough Project, 

Cobalt is the battery metal at the highest risk of being exploited in ways that damage the health of people and the environment. Most of the world’s supply comes from the Democratic Republic of Congo, with as much as a third of that supplied by small-scale miners who often work in dangerous conditions. Regulators have begun developing rules designed to help industry avoid damaging its reputation.

But those “ambitious requirements might currently be too difficult,” according to an assessment prepared by researchers advising the European Commission. The report, which will be published by Elsevier Ltd.’s Resources Policy journal in June, suggests a tightening market for responsibly-sourced cobalt.

“If, as proposed by the European Commission, due diligence on cobalt supply chain will be mandatory for batteries sold in the EU markets in the near future, the demand for responsibly sourced cobalt will increase rapidly,” the study prepared by the EU’s Joint Research Centre said.

Many downstream companies have been reluctant to purchase hand-dug cobalt because of concerns about child labor. Glencore Plc, which operates two of the world’s biggest industrial cobalt mines in Congo, assures its buyers like Tesla Inc. that only responsibly-sourced cobalt feeds into its products.

But some Chinese companies that sell processed cobalt to Europe mix certified streams of the metal with material sourced from unregulated mines, according to the report. Congo produces some three fifths of the world’s cobalt and as much of a third of that is extracted by hundreds of thousands of freelancers. Miners told the researchers that wages and mineral prices continued to be subjects of dispute.

By 2030, EU economies need to secure more than 64,000 tonnes of ethically-sourced cobalt beyond existing supply-chain constraints, a volume of metal worth around $3.2 billion at current prices, to fuel the transition to electric vehicles. The run on the metal’s price is prompting mining companies to seek new reserves from Australia to the deep sea.

 

 

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Gemstones Investment: Investing in diamonds, rubies, sapphires and emeralds

Can precious stones really hold a candle to coins and precious metal bars as investment alternatives? Diamonds are fascinating products of nature and are being discovered by more and more precious metal investors. Synthetic diamonds are also sold, but the gemstones are only really valuable if they were created by natural chance. If the cut, color, clarity and carat number are also right, a gemstone is a real alternative to gold and silver for some investors.

At first glance, precious stones have nothing more in common with precious metals than the first syllable. Nevertheless, they should not be forgotten when taking a comprehensive look at the market for precious raw materials, after all, similar techniques are used in the extraction of precious stones, and precious stones have a similar meaning to the jewelry industry as gold and silver – for some, the gold chain with a sparkling Diamonds are really beautiful and valuable.

Diamonds, rubies, sapphires and emeralds as investments
So it is not surprising that diamonds are also suitable as an investment. Four properties play a role in their evaluation: the weight (measured in carats), the color, the purity and the cut. On the other hand, the origin of the gemstone plays a subordinate role. The ruby, sapphire and emerald are considered particularly rare. The valuation of a stone is a practically impossible undertaking for laypeople, as even small imperfections can cause price differences in the five-digit range in extreme cases. In addition, there are many well-made fakes that are usually recognized immediately by experts, but can easily slip through to a layperson.

Precious stones as an investment: does it pay off for normal investors to invest in diamonds, sapphires, rubies, emeralds and other precious stones?
Investing in Gemstones: Short-term gains unlikely
Buying a gemstone should normally not be an option for the average consumer for investment purposes. The vast majority of the stones offered are not suitable for long-term investment and are of little interest to jewelry manufacturers. In addition, there are no short-term profits to be made with gemstones because of the fixed trading costs. And the typical motivation for buying gold and silver – protection against inflation and recession – does not fit in with buying a gem, because in a recession, the demand for luxury items is likely to collapse.

Anyone who nevertheless wants to invest part of their assets in gemstones is well advised if they do not invest too large amounts in a single stone – stones that can also be processed by the medium-sized jewelry industry are particularly easy to sell. All too sensational rarities, which can only be sold through international auction houses, can easily plummet in value if no enthusiast can be found.

Carat, Color, Clarity and Cut: Selection criteria for diamonds
Coin collectors pay attention to the surface of their treasures, postage stamp lovers take a close look at the points – but how do experts decide on the quality of a diamond? The most important criteria can be summarized in a simple formula: Four terms, all of which begin with the letter “c”, represent the most important points of reference. Carat, Color, Clarity and Cut are the measure of all things on the diamond market. They provide information about how expensive a diamond really is:

Cut diamonds are natural products. People only intervene when the diamond is cut – because it is the cut that creates the shine and shine with which diamonds have become the epitome of wealth and prosperity. The cut is an art in itself, correct proportions and the arrangement of the facets determine the appearance of the diamond. A distinction is made between four quality levels between “very good” and “poor”.
Color The diamond is actually referred to as a colorless stone – but if you look into the window of a jeweler, you will discover practically all the colors of the rainbow. In fact, very fine white is extremely rare, as is diamonds with a pure color. Yellow gemstones are particularly common. Today there are a total of eleven color classes.

Clarity No impurities are tolerated in a valuable gemstone. It is completely normal that a diamond, as a natural product, also contains inclusions of non-crystallized carbon. Nevertheless, it is true that the purity of a diamond also determines its value and the diamond becomes more valuable with increasing purity. The purity is assessed in six stages.
Carat This unit determines the weight and therefore also the size of a diamond. One metric carat is exactly 0.2 grams or 100 points. The price of a diamond is calculated using the number of carats.