Investors

OUR STRATEGY

LONDON DE FOCUSES ON BOTH THE MANUFACTURING OF AND TRADING IN THE RAREST AND FINEST QUALITY, TOP OF THE RANGE GEMSTONES BECAUSE THIS IS THE SEGMENT OF THE MARKET WHICH HAS PERFORMED THE MOST CONSISTENTLY.

We are now seeing a further increase in demand for the highest quality emeralds, rubies and sapphires with significant price increase and new records being achieved.

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We supply gemstone and jewellery to order, operating online, on the phone and face-to-face, without the need for costly retail premises. As a consequence, we can deliver our product at a fraction of the price of traditional jewellery and gem dealers.

We achieve this in part through our unique set of relationships, high in the gem supply chain, and partly through our lean business model.  We can deliver consistent profitability through regular turnover of stock at attractive and sustainable margins, benefiting from an asset class with increasing global demand.

The corporate mission of London DE is to deliver precious gemstones and bespoke jewellery to both business and retail markets in a smarter, more cost effective way than our competitors.

We can deliver consistent profitability through regular turnover of stock at attractive and sustainable margins. Benefiting form an asset class with increasing global demand.

FINER GRADE

LONDON DE TRADES IN FINER QUALITY GEMSTONES, WHICH HAVE HIGHER PROFIT MARGINS AND GREATER LIQUIDITY.  THERE IS ALSO MUCH MORE COMPETITION BETWEEN BUYERS FOR THE FINER GRADE OF GEMSTONES.

The higher liquidity of these trades enables us to turn over the funds and stock more frequently, up to 3 to 4 times per year, whilst also maintaining healthy margins.

The process of “turning” the stock  involves sourcing, buying, re-assorting, re-polishing, certification and finally selling the stock, and takes about three months.

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London DE has the opportunity to trade at each sales window, an efficient process from rough to finished goods, whilst retaining robust margins.  Our model means that we trade at both end of the supply chain, with several opportunities to make sales.

https://www.londonde.com/wp-content/uploads/LDE-Bond-Brochure-img6.jpgWe will focus our on the 3 major precious gemstones (ruby, emerald & sapphire) and, with increased funding, we will expand our international sales operations and increase our buying efficiencies.

With improved economies of scale, the company will have a stronger bargaining position in an industry traditionally reliant on extended credit terms.

INVENTORY

WE OPERATE A LARGE INVENTORY OF EMERALDS, RUBIES AND SAPPHIRES. A MAJOR ADVANTAGE TO RUNNING AN EXPANDED INVENTORY IS THAT IS GIVES YOU THE ABILITY TO DELIVER STONES TO CLIENTS IN AN EXTREMELY SHORT TIME-FRAME.

Furthermore, clients can view a wider array of emeralds whilst the “romancing the stone” effect takes full force.  These stones are held in Geneva and London and are available for immediate local supply to UK and international buyers.

It also allows London DE to buy stones that are being sold under the market price at source.  From time to time miners and other dealers may need to sell stock quickly to raise capital; it is in these situations that liquidity can ensure you obtain an extremely competitive price.

Demand for these gems has increased in recent years as people have opted for more colour when choosing their jewellery.  The “Kate effect” has also been noted as causing an increase in demand for blue Sapphire as this was the stone given to the Duchess of Cambridge as an engagement ring. Royal Blue and Cornflower Blue have the highest demand.

Ruby has seen continued strong demand in Asia and the USA.  With the lifting of the ban on importing Burmese rubies into the USA, at the end of Obama’s last term, the US market has opened up to stones of Burmese origin and these are considered to be the finest.

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In the last 5 -10 years, as Asian economies have risen, a new trend has developed in which coloured stones have regained market share and media attention.  An example of how rapidly the market is growing in some corners of the world is India.  Mehul Choski from Gitanjali Gems (a Gemfields auction partner) says that he is seeing demand for coloured stones rise on a yearly basis, with some years experiencing more than 50% growth.