Direct Questions, Direct Answers

Many people believe wealth is only lost when the stock market crashes. In my experience that is not true. The greatest danger is usually far more subtle, and it is called loss of purchasing power — inflation, expansion of the money supply, and sometimes poor decisions about asset allocation. Since the US dollar's gold convertibility was abolished in 1971, the international monetary system has changed fundamentally, and many currencies have lost significant purchasing power over long periods. That is why wealthy families today ask a different question than they did thirty years ago. Not "where can I get the highest return?" but "how can I preserve the purchasing power of my wealth for as long as possible, and diversify sensibly?" That shift in perspective matters.

The larger a fortune becomes, the less likely it is to consist solely of cash. It consists of businesses, real estate, equity investments, art, precious metals, and in some cases natural diamonds. Wealth of that kind does not depend on a single bank account. Many professional investors therefore think less in terms of money and more in terms of assets, ownership, diversification, and spreading risk — which is often what separates building wealth from preserving it.

We are living through a period of considerable change: inflation, rising government debt, geopolitical tension, new regulatory developments, and the digitisation of the financial system. All of it is leading entrepreneurs to re-examine how their assets are structured — not out of fear, but out of responsibility. The questions I hear most often are simple ones. Is my portfolio sufficiently diversified? What share of it consists of real assets? Which assets can be traded internationally? How flexible am I, really? In my view those questions will only grow more important in the coming years.

For centuries diamonds have been among the most compact tangible assets available. They hold high material value in very little space, they are traded internationally, they are comparatively easy to transport, and high-quality diamonds with GIA certification are graded worldwide against uniform standards. The same caveat applies as to any tangible asset: prices can rise or fall. Diamonds should always be considered within the context of your own wealth strategy rather than on their own.

Not because we sell diamonds — diamonds are available worldwide. What convinced me is how the company organises access to them. STIG Inter PH Inc. combines physical ownership with a transparently documented structure. A customer can purchase a diamond with GIA certification directly, or use the Solution Plan. Under that plan, and in accordance with the terms of the contract, rough diamonds are reserved for the customer from the outset and their custody is documented. At the end of the agreed term, depending on the contract model, the customer can choose physical delivery of the diamond or an alternative settlement method provided for in the contract. For anyone weighing tangible assets as part of a broader wealth strategy, I find that an interesting structure.