A real gem of an investment
The majority of my life is spent looking at investments to try and find that rare thing – an interesting, profitable and safe investment. And that is a challenge at the moment in a world where nothing is certain and very little is predictable. At the moment I hate property investment as an asset class and I am looking forward to seeing myself and my clients exit property development investment completely by mid 2022. A combination of slipped completion dates occasioned by the pandemic, worsening lending criteria by banks, escalating material costs and a very uncertain macro-economic future make this an investment sector that I really don’t like over the next three years – unless it is a business specialising in distressed property of which I fear there will be a surplus. We have two property investments that are stressed at the moment and whilst investor capital is safe I am also stressed by it!
And so I have been looking specifically for investments that are not property-based, not correlated to markets that I expect to correct substantially, and that have a credible investment strategy. As most of my clients know Investment Owl usually recommends less than 5% of the investments that we review. In these challenging times we are now reject ting more than 97% of what we look at.
I have discovered a real gem amongst all the dross. It is often said that diamonds are a girl´s best friend but I am pleased to report that if you are looking for a low entry investment that pays a monthly income then emeralds, not diamonds, can be an investor´s best friend. Precious metals, gems and mining are not an area that I have favoured in the past because investments into this industry have been fraught with danger but I have been watching the progress of a London jeweller for some years and they have structured an investment to support their growth plans which offers a good return, paid regularly and secured against assets in the UK and Colombia where they mine emeralds. The investment is administered in the UK.
In simple terms the jeweller is building a business model that is vertically integrated. They started as a specialist sourcing high quality gemstones, then began making jewellery, expanded to become a retailer of their jewellery and have developed further to have their own workshop in Colombia where they actually cut emeralds, rubies and sapphires directly purchased from the mines. They are founded on the strongest ethical foundations and are committed to operating a sustainable business model.
Since 2018 they have been asking investors to provide funding to grow the business and allow them to exploit economies of scale. It is essentially the provision of working capital to a business sector where the mine to sale period is around four months and the returns to the jeweller on each set of gemstones that they mine, grade, cut, polish and sell is between 30% and 60%. This allows them to offer a very good annual return paid every month. Details as follows:
- Invest $11,000 – $36,000 and earn 10% return per annum (0.83% pcm)
- Invest $36,001 – $72,000 and earn 12% per annum (1% pcm)
- Invest $72,001 and above and earn 15% per annum (1.25% pcm)
- All returns are paid on the 1st of each month
- 12- month investment
- UK Security Trustee hold a legal charge on behalf of investors
- Track record of paying out returns since 2018
They do also offer investors the chance to travel to the mines in South America and select a stone which they will polish and set in jewellery at cost price but that may not be for everyone!
But in these uncertain times an investment into an established UK business with security, a strong track record and a perfect payment record will be attractive to many. Particularly as returns are paid monthly and the investment period can be as low as 12 months. If this gem of an investment attracts you then get in touch here.