Notwithstanding the fact that natural color diamonds, precious gems, and jewelry incorporating same (hereinafter called the “Property”) have, for the most part, appreciated in value over the last 5 to 10 years at the wholesale level it is undeniable that many investors/collectors who have entered this market have been unable to remarket/liquidate their portfolios. We opine that the reasons are as follows:

It is our experience in dealing with individuals who have acquired Property that the vast majority have done so for investment purposes with the intention of earning a profit. We reiterate that few diamond/precious gem dealers (if any) who sold Property to its clients provided them with a realistic or viable exit strategy enabling them to earn a profit or, in many cases, the return of their capital outlay. Thus, the void in the marketplace.