With the outlook for the global economy grey and dull right now, some might want to consider an investment with a bit more sparkle.
Investing in jewellery and precious gemstones is one way for wealthier investors to add a bit of shine to their portfolio.
While stock markets stagnate, cash loses its crown, property looks pricey and commodities crash, a diamond is still forever. Emeralds, rubies, sapphires and amethysts also have their charms.
Beauty, as ever, comes at a price. Investing in diamonds, gemstones and pearls can be risky, and you need to know what you’re doing.
To make it work, you have to immerse yourself in the subject. For many people, this will be a privilege and pleasure, rather than a chore.
You can, of course, buy jewellery in almost any mall in Dubai and the UAE. Or you could head to the Gold Souk in Deira, Dubai, and start bargaining. With the gold price currently hitting a fresh four-year low of $1,196 an ounce, prices are much lower than in September 2011, when gold peaked at $1,920.
That makes now a tempting buying opportunity, but don’t expect to make a quick profit, because movements in the gold price are almost impossible to predict, and it could fall further still.
“Gold and silver continue to look anything but precious right now, as a combination of the strong US dollar and stifled global demand force prices lower,” says Alistair McCaig, market analyst at the financial spread betting specialists IG Index.
Gold is denominated in dollars, so when the greenback strengthens, it becomes more expensive for buyers in other currencies.
Gold is on track for its second year of annual declines, and could take another hit in 2015, if the US Federal Reserve hiked interest rates. The yellow metal doesn’t pay interest or dividends, which means it struggles to compete with yields on bonds and stocks when interest rates rise.
Serious investors may prefer to invest in precious stones such as white and coloured diamonds instead. Be warned, this can also cost serious money.
Alexandra Kinderman at the auction house Christie’s says investing in jewellery is like investing in the stock market for the first time. “If you don’t know what you’re doing, you will make mistakes. You must do your research before you part with your money.”
Don’t enter the market expecting to make a quick profit, she adds: “If you just buy a diamond then put it back on auction a few months later, you will probably lose money, especially after deducting the auctioneer’s commission. Your piece needs to be off the market for a time, to attract buyer interest.”
If you’re serious about investing in diamonds, you need to start with at least $200,000 or $300,000, she says. “Although there are thousands of diamonds priced at between $50,000 and $100,000, they don’t always offer the best quality, cut or colour, and are less likely to appreciate in value.”
Christie’s holds 26 jewellery sales a year, in Amsterdam, Geneva, Hong Kong, London, New York, Paris and Dubai.
You don’t need to attend the auction in person, you can bid over the internet or make an absentee bid, setting a maximum price in advance.
Investors can visit the Dubai office pre-auction to talk to specialists, learn about the wider market and experience an auction first-hand.
“If you fall in love with a piece and don’t care too much if its value rises, by all means buy it,” says Ms Kinderman. “Otherwise, do your homework diligently before you bid. Examine retail prices. Visit dealerships. Read Rapaport magazine or visit Diamonds.net. Find out exactly what you need to look for if buying, say, a diamond or sapphire, and check the prices paid for similar pieces.”
When investing in a piece, look for beauty, rarity, quality and provenance.
Jean Ghika, director of the jewellery department at the auction house Bonhams, which held its inaugural Middle East auction in Dubai, in March 2008, says investors should focus on jewellery signed by recognised makers, as proof of quality and authenticity. “Cartier, Van Cleef & Arpels, Boucheron, Tiffany and Bulgari are all highly collectable. Always buy the best you can afford. If you are buying a diamond, focus on colour, clarity, cut and carat, rather than size,” she explains.
Insist on seeing a gemological certificate, which gives you an independent analysis of the stone, she adds: “The most reputable laboratories are The GIA, the SSEF and Gubelin. Always check the condition carefully, especially on antique pieces.”
Signed period jewellery is popular right now, especially from the art deco period, which has attracted strong demand for years.
Ms Ghika says you might also consider high-quality items from the 1960s and 1970s, signed by Cartier, Van Cleef & Arpels, and Boucheron. “They are often of flamboyant design with interesting stone combinations.”
She also tips a small group of British designers from the same era who viewed jewellery more as an art form. “Andrew Grima was a real pioneer, his work is increasingly sought after by collectors, while Stuart Devlin, Charles de Temple and John Donald are other names to look out for,” she adds.
Meanwhile, natural pearls have experienced enormous growth, with prices rising several times over the past 10 years, and no sign of interest waning, Ms Ghika says. “It can take years for one single pearl to form and often decades to complete a single strand of well-matched pearls, hence the competition to secure the best.”
Unless you are buying high- value items with a known resale price, jewellery won’t necessarily prove a glittering investment, says Keren Bobker, an independent financial adviser at Holborn Assets in Dubai and The National’s On Your Side columnist.
“There is a massive difference between a piece with unique stones, a famous previous owner, or a good story behind it, than an item from a high street retailer. The fabulous jewels that were owned by the late Elizabeth Taylor, which were exhibited at Emirates Tower in Dubai a few years ago, are a good example.”
Celebrity sells, as in almost everything else these days. The diamond eternity ring Joe DiMaggio gave to Marilyn Monroe in 1954 would normally be worth just $3,000, but it fetched $772,000 at Christie’s New York in 1999.
“Often you will get better value from old or antique pieces, especially if the item is in a style that is not currently fashionable, as these things often go in cycles,” says Ms Bobker.
The Edwardian “belle époque” era is currently fashionable, while Victorian jewellery is far less popular, because the settings are heavy, and doesn’t always go well with modern fashions.
If you want to invest in precious metals, gold bars and bullion may be a better bet, Ms Bobker adds: “Like many alternative investments, you might make some money from investing in jewellery over the years, but it should only ever represent a small percentage of your portfolio.”
Jewellery may not always prove a dazzling investment, but at least if you don’t make a profit from your purchases, you still have the pleasure of owing something beautiful.
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Getting there
The flights
Flydubai operates up to seven flights a week to Helsinki. Return fares to Helsinki from Dubai start from Dh1,545 in Economy and Dh7,560 in Business Class.
The stay
Golden Crown Igloos in Levi offer stays from Dh1,215 per person per night for a superior igloo; www.leviniglut.net
Panorama Hotel in Levi is conveniently located at the top of Levi fell, a short walk from the gondola. Stays start from Dh292 per night based on two people sharing; www. golevi.fi/en/accommodation/hotel-levi-panorama
Arctic Treehouse Hotel in Rovaniemi offers stays from Dh1,379 per night based on two people sharing; www.arctictreehousehotel.com
Killing of Qassem Suleimani
Mountain Classification Tour de France after Stage 8 on Saturday:
- 1. Lilian Calmejane (France / Direct Energie) 11
- 2. Fabio Aru (Italy / Astana) 10
- 3. Daniel Martin (Ireland / Quick-Step) 8
- 4. Robert Gesink (Netherlands / LottoNL) 8
- 5. Warren Barguil (France / Sunweb) 7
- 6. Chris Froome (Britain / Team Sky) 6
- 7. Guillaume Martin (France / Wanty) 6
- 8. Jan Bakelants (Belgium / AG2R) 5
- 9. Serge Pauwels (Belgium / Dimension Data) 5
- 10. Richie Porte (Australia / BMC Racing) 4
UAE currency: the story behind the money in your pockets
Results
6.30pm: Al Maktoum Challenge Round-2 Group 1 (PA) US$75,000 (Dirt) 1,900m
Winner: Ziyadd, Richard Mullen (jockey), Jean de Roualle (trainer).
7.05pm: Al Rashidiya Group 2 (TB) $250,000 (Turf) 1,800m
Winner: Barney Roy, William Buick, Charlie Appleby.
7.40pm: Meydan Cup Listed Handicap (TB) $175,000 (T) 2,810m
Winner: Secret Advisor, Tadhg O’Shea, Charlie Appleby.
8.15pm: Handicap (TB) $175,000 (D) 1,600m
Winner: Plata O Plomo, Carlos Lopez, Susanne Berneklint.
8.50pm: Handicap (TB) $135,000 (T) 1,600m
Winner: Salute The Soldier, Adrie de Vries, Fawzi Nass.
9.25pm: Al Shindagha Sprint Group 3 (TB) $200,000 (D) 1,200m
Winner: Gladiator King, Mickael Barzalona, Satish Seemar.
Premier League results
Saturday
Tottenham Hotspur 1 Arsenal 1
Bournemouth 0 Manchester City 1
Brighton & Hove Albion 1 Huddersfield Town 0
Burnley 1 Crystal Palace 3
Manchester United 3 Southampton 2
Wolverhampton Wanderers 2 Cardiff City 0
West Ham United 2 Newcastle United 0
Sunday
Watford 2 Leicester City 1
Fulham 1 Chelsea 2
Everton 0 Liverpool 0
Profile of Foodics
Founders: Ahmad AlZaini and Mosab AlOthmani
Based: Riyadh
Sector: Software
Employees: 150
Amount raised: $8m through seed and Series A - Series B raise ongoing
Funders: Raed Advanced Investment Co, Al-Riyadh Al Walid Investment Co, 500 Falcons, SWM Investment, AlShoaibah SPV, Faith Capital, Technology Investments Co, Savour Holding, Future Resources, Derayah Custody Co.
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
England's Ashes squad
Joe Root (captain), Moeen Ali, Jimmy Anderson, Jofra Archer, Jonny Bairstow, Stuart Broad, Rory Burns, Jos Buttler, Sam Curran, Joe Denly, Jason Roy, Ben Stokes, Olly Stone, Chris Woakes.
Fanney Khan
Producer: T-Series, Anil Kapoor Productions, ROMP, Prerna Arora
Director: Atul Manjrekar
Cast: Anil Kapoor, Aishwarya Rai, Rajkummar Rao, Pihu Sand
Rating: 2/5
DUBAI WORLD CUP RACE CARD
6.30pm Meydan Classic Trial US$100,000 (Turf) 1,400m
7.05pm Handicap $135,000 (T) 1,400m
7.40pm UAE 2000 Guineas Group Three $250,000 (Dirt) 1,600m
8.15pm Dubai Sprint Listed Handicap $175,000 (T) 1,200m
8.50pm Al Maktoum Challenge Round-2 Group Two $450,000 (D) 1,900m
9.25pm Handicap $135,000 (T) 1,800m
10pm Handicap $135,000 (T) 1,400m
The National selections
6.30pm Well Of Wisdom
7.05pm Summrghand
7.40pm Laser Show
8.15pm Angel Alexander
8.50pm Benbatl
9.25pm Art Du Val
10pm: Beyond Reason
Tailors and retailers miss out on back-to-school rush
Tailors and retailers across the city said it was an ominous start to what is usually a busy season for sales.
With many parents opting to continue home learning for their children, the usual rush to buy school uniforms was muted this year.
“So far we have taken about 70 to 80 orders for items like shirts and trousers,” said Vikram Attrai, manager at Stallion Bespoke Tailors in Dubai.
“Last year in the same period we had about 200 orders and lots of demand.
“We custom fit uniform pieces and use materials such as cotton, wool and cashmere.
“Depending on size, a white shirt with logo is priced at about Dh100 to Dh150 and shorts, trousers, skirts and dresses cost between Dh150 to Dh250 a piece.”
A spokesman for Threads, a uniform shop based in Times Square Centre Dubai, said customer footfall had slowed down dramatically over the past few months.
“Now parents have the option to keep children doing online learning they don’t need uniforms so it has quietened down.”
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
box
COMPANY PROFILE
Company name: Letstango.com
Started: June 2013
Founder: Alex Tchablakian
Based: Dubai
Industry: e-commerce
Initial investment: Dh10 million
Investors: Self-funded
Total customers: 300,000 unique customers every month
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
Celta Vigo 2
Castro (45'), Aspas (82')
Barcelona 2
Dembele (36'), Alcacer (64')
Red card: Sergi Roberto (Barcelona)
