FAQ

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 Diamond is a mineral and one of the allotropes of carbon (element number 6, element symbol C). Diamond and graphite are allotropes of the same carbon, but because their molecular structures are different, they are completely different minerals. Diamond's greatest characteristic, its hardness, is due to its carbon atom bond structure being an isotropic crystal (equal arrangement in all directions). Diamonds are also the only gemstones made of a single element.

Diamonds were formed in the high temperature and high pressure environment of the Earth's interior. It is calculated from the continental plate (rock) which is 120m underground at its shallowest point and 200km underground at its deepest point. Most diamonds are produced from igneous rock called kimberlite. Diamonds are said to have been discovered in India several thousand years ago, 4,000 to 5,000 years ago, and it is thought that they were discovered by chance after appearing near the surface of the earth due to tectonic movements or erosion.

It is true that it has been an extremely valuable stone since its discovery in BC, but as there was no polishing technology, its unparalleled hardness gave it a mysterious quality, and it was prized as a talisman in the Middle Ages. In the 15th century, a method of polishing diamonds with diamonds was devised, and their value as gemstones increased, and in the 17th century, the complex cuts that formed the basis of the brilliant cut became possible, and the gemstones we know today were made into diamonds. He became the king of Since then, various legends have been born around diamonds. The blue diamond ``Hope Diamond'' housed in the Smithsonian Institution and the ``Cullinan'' owned by the British Royal Family are famous, and ``Cullinan'' is especially known as the largest rough diamond in history.

Diamonds were originally valued not as jewelry, but rather as a symbol of authority due to their rarity, hardness, and chemical resistance, which means they never change. Also, because the amount produced was so small, it was a gemstone that could only be owned by royalty and the wealthy. It's only been in the past few decades that diamond jewelry has become widely available for purchase, such as in engagement rings.

The 4Cs were devised by the GIA (Gemological Institute of America) as an indicator of diamond quality, and are now globally recognized quality evaluation indicators. 　

The first C is "carat" (weight). The carat, which represents the mass of gemstones such as diamonds, is currently defined as 1 carat = 200mg (0.2g). 　

The second C is "color". Diamonds are often thought to be colorless and transparent, but in reality, many diamonds have a yellowish tint, and the closer to colorless and transparent they are, the higher their value. However, there are rare diamonds that are colored but expensive, such as blue diamonds. 　

The third C is "clarity". In the case of natural diamonds, impurities and cracks inevitably occur inside them. "Clarity" is often understood as transparency, but originally it means "imperfection" or "free from defects." In appraisal, the highest grade of "defect-free" is when no defects can be found under 10x magnification. 　

The fourth C is "cut". Simply put, it's a method of polishing. Diamonds have no value as gemstones unless they are polished. No matter how high-quality the color or clarity, if the cut is bad, it won't shine. Cuts have proportions and finishes. Proportions are closely related to the light that reflects inside the gemstone. Finish relates to the quality of polishing and affects gloss. Currently, the most ideal cut is considered to be an excellent cut. 　

When a diamond is observed from the front and back sides, diamonds with eight arrows and a heart image are called "Heart & Cupid", and some appraisal organizations add them to the appraisal as a subgrade, but GIA We are not hiring. However, the market price is a little high.

If you are purchasing a diamond as an asset rather than a piece of jewelry, it must be at least 1 carat, colorless or almost colorless (highest rank D), clarity must be intact or extremely difficult to spot even under magnification, and cut must be excellent. considered desirable. There are very few diamonds over 1 carat, and clarity grade FL (flawless) diamonds are so rare that they almost never exist on the market, so their asset value is high.

In addition to GIA, diamond appraisal organizations include HRD, which is the official diamond representative organization in Belgium, and FGA (British Gemological Institute), but there are many other appraisal organizations, and in Japan there is also the Central Gemological Research Institute. There are appraisal organizations such as Japan Gemological Association, AGT Gem Laboratory, etc. 　

GIA (Gemological Institute of America), known for establishing the "4 Cs" that are now the basis of diamond appraisal, is a non-profit organization with a diamond grating laboratory in New York and a gemological education center in California. There are institutions. GIA has dramatically increased the transparency of the diamond business by introducing unified standards for diamond appraisal, which previously had varied standards. Its reliability is so high that famous jewelry brands and auction houses request GIA for appraisals. Currently, it is widely recognized as the most reliable diamond grading organization in the world.

 Diamonds are definitely different from gold in that they are (1) light and small and suitable for carrying, and (2) diamonds can be worn or kept close to you and managed by yourself.

It was the Jewish people who knew the value of diamonds. In fact, even today, Jewish people are active in many of the world's diamond networks. Why did the Jewish people prize diamonds? It was because they were a treasure that a persecuted people could wear and hide. Before World War II, Jews who did not have their own country did not trust the currency of the country in which they lived, turned their wealth into precious metals and hid them, and in times of emergency they carried them abroad. I fled to Precious metals could be exchanged for cash in any country in the world, and people could use the money to start a new life in a new country.

Among the precious metals, diamonds were particularly prized. This is because its market price is more stable than other gemstones, and it is also lighter and smaller than gold, making it suitable for concealment. For example, if there is a gold nugget worth 100 million yen, its weight will be 50 kg to 100 kg (depending on the market price), but if it is a diamond, it will weigh only 10 diamonds worth 10 million yen. 100 million yen in cash is quite bulky and heavy.

 There are four main reasons why precious metals such as gold, silver, platinum, and diamonds are attracting attention as assets.

The first is the international political and economic turmoil. In Europe, the financial deterioration of Spain and Portugal, led by Greece, is worsening, with Greece in particular on the brink of default. Meanwhile, in Asia, the Chinese economy is overheating and struggling to control inflation. If the national finances collapse, currency and government bonds become waste paper.

The second is the fear of a major disaster. Japan suffered tremendous damage from the Great East Japan Earthquake and the nuclear power plant accident. Houses and land, the most basic assets of the Japanese people, were destroyed, and household goods were lost. Even if there was no direct damage, many people have had to leave their homes due to the effects of the nuclear accident.

The third is distrust in financial institutions. Since 1990, many financial institutions in Japan have gone bankrupt, including Hokkaido Takushoku Bank. In addition, the payoff (deposit protection) system has changed, and under the current system, if a financial institution goes bankrupt, ordinary deposits other than deposits that do not earn interest (current accounts, etc.) will be protected up to a maximum of 10 million yen and their interest. If the amount exceeds that amount, you may not receive a full refund.

Japan is currently suffering from deflation, but many countries like China are also suffering from inflation. Inflation significantly reduces the value of a currency, so even if the amount you deposit is the same, its value will decrease. Investment in precious metals is becoming more active in China, but inflation is behind this. Another extreme example of a collapse in the value of a currency is denomination (meaning currency devaluation in Japan). When a denomination was carried out in a country near Japan, people who were angry at their savings being turned into waste paper caused chaos, and the person in charge was reportedly executed.

Fourth is the slump in the stock market. The stock market has been in a slump since the Lehman Shock, making it a high-risk investment. Even if you own stocks of large companies with stable business performance as assets, the reality is that you cannot predict when a major problem will occur and the stock price will plummet, such as the Tokyo Electric Power Company's nuclear accident.

In this way, unstable political and economic situations, major disasters, etc. mean that traditional methods of asset management such as real estate, bank deposits, golf memberships, or stocks of large companies cannot be considered ``safe assets.'' It is creating.

Japan has a stable political and economic system, and it is unlikely that an emergency situation in which property will be completely lost will occur. However, there is always the risk of a major disaster, and we cannot deny the possibility that financial deterioration could lead to a national crisis like the one in Greece, or that the country could become embroiled in war. The surrounding area of Japan is in an unstable political environment in which it cannot be said that a permanent state of peace will necessarily continue.

It has been pointed out that when holding diamonds as assets or for investment purposes, it is not as easy to convert them into cash as with gold because a global public market has not been established and there are complex processes such as appraisal. I did. 　

However, as explained in the ``Corporate Philosophy'' section, as the diamond market expands, Rapaport, an international diamond network group, has started publishing the ``Rappaport Diamond Report'' magazine and online website. We are announcing the price list through. Rappaport's price list is the international standard for diamond transactions around the world, and anyone can search it freely.

Diamonds are difficult to appraise for amateurs, so a certificate issued by a professional appraisal agency is the only guarantee. The diamonds we handle have been certified by the world's most prestigious diamond grading organization, GIA (Gemological Institute of America), so they can be easily converted into cash when buying or selling. The Rappaport price list is also based on GIA's grading and certification.

 In the past, diamonds were so expensive that they were only available to wealthy people or royalty, and to ordinary citizens they were considered a luxury. However, as it is now produced in many countries and the amount of distribution has increased, it has become less difficult to purchase. In particular, ever since De Beers, the world's largest diamond major, ran a campaign promoting diamonds for engagement and wedding rings, diamonds have become established in Japan. During the bubble period, Japan became the world's second largest importer of diamonds. 　

However, the value of diamonds used in engagement rings etc. is not very high. A typical engagement ring is said to cost less than 400,000 yen, but in most cases the value of the diamond alone is less than a quarter of that. Although the value of love given by diamonds is infinite, diamonds as general jewelry have almost no asset value. There seem to be many cases where people try to sell diamond jewelry without knowing this and are surprised at the low purchase price. It has also been pointed out that there are some traders who take advantage of the fact that the general public does not know the value of diamonds and buy them at lower prices than their original value.

Because such stories are widely circulated, there are many cases where people lack confidence in the value of diamonds, but jewelry and diamonds held as "asset" are completely different things. The diamonds we recommend are not jewelry. It is a diamond that is valuable as an asset. Even now, with so many diamonds on the market, it is not easy to obtain a diamond that is truly valuable. Still, the turmoil in the world economy, frequent conflicts and wars, and disasters such as major earthquakes are increasing the value of diamonds, and the number of people purchasing diamonds is gradually increasing.

 Demand for diamonds declined for a while due to the effects of the global recession, but has soared in recent years. This is due to increasing demand in countries such as India and China. De Beers believes that diamond consumption in Asia will surpass that of the United States in the near future. India is the birthplace of diamonds, so it is a country where the faith in diamonds is deep-rooted, and China is a country where the wealthy population is rapidly expanding and there is a strong desire to hold assets by converting them into safe assets. As you can see, the market for diamonds is expanding, and naturally, their value is also increasing. 　

What about Japan? In fact, we are in a very advantageous position. This is related to the strong yen. The global trade in diamonds is done in dollars. According to experts, a single diamond, which is said to have a high asset value, is worth more than 100,000 dollars, but in the current yen-dollar exchange rate, 100,000 dollars is about 8 million yen. Diamonds that were once worth more than 10 million yen can now be purchased for 8 million yen.