Gems a handy asset for investors

Unset gems are attractive to a wider market. Source: Getty Images

THERE'S nothing like a bit of bling to put a sparkle in the eye and a hefty dent in the savings account.

However, gemstones can be an investor's best friend.

Precious stones have been an investment of choice since man first dug them out of the earth's crust, rivalling gold as international currency.

Unlike most gold, not all gems are created equal and, believe it or not, fashion and politics are big factors in the world of investing in gems.

Precious stones and gems rise and fall in popularity depending on politics, war, science and supply and demand.

Australian-based Gem Hunters says stones currently on a rapid rise in price include sapphires, tanzanite, emeralds, coloured diamonds and rubies.

For first-time investors, blue sapphire is probably the safest bet, Gem Hunters founder Trudy McKenzie says.

> Rising star

"Blue sapphire is always the best world seller and its value is rising rapidly every couple of months," McKenzie says.

"What is forcing blue sapphire prices up is the difficulty in obtaining them. Pakistan and Afghanistan have very good blue sapphire; the Taliban control a lot of it."

Although Africa and Australia are also good sources of sapphire, the supply chain in Africa is undergoing a structural change, while in Australia the Queensland floods during the past four years have affected production.

At the same time, there is a hungry new buyer pushing up prices even more.

"China has decided it wants all blue sapphire, rough and cut, and it will pay high prices," McKenzie says.

Natural sapphires are also more desirable, particularly as there are a lot of colour-enhanced sapphires flooding the market treated with beryllium. To test a sapphire for beryllium is expensive, so to avoid buying a treated stone the price for natural sapphires has also grown.

> How to choose

Ultimately, all gems are ruled by the four Cs: carat, colour, clarity and cut. Australian Diamond Brokers managing director Varoujan Djeva says there is a fifth C that is just as important: certification.

"Don't buy a stone that is not certified and the best certification is Gem Institute of America," Djeva says.

"I only recommend GIA certified to investors and in most cases they should reject anything that is not GIA, especially if it is a white diamond," he says.

There are other companies that offer certificates, particularly in Europe, but within the investment and wholesale markets GIA is globally recognised as the true benchmark.

> When and how to buy

"Now," Djeva says. "The strong Australian dollar makes it great timing to buy any commodity based on US dollars, and gems and diamonds are always priced in US dollars."

Like all marketing and sales industries, the internet has flowed through to the gem market. Internet sales are now common and with GIA certification it is easy to compare the quality and value of stones, Djeva says. However, nothing beats seeing a stone in person.

> Investment returns

According to McKenzie, buying the biggest and best quality stone you can afford will provide the best investment return.

"If you want to be an active trader you could start as small as $50, buy some cheap small affordable gems to re-sell for a quick turnover, such as small sapphire. Your profit could be about $200, which would give you funds to buy a more desirable gem size," she says.

"For an inactive trader, if you want to buy and hold, then $3000 is a good range. But don't buy retail; search the gem dealers until you find good clean big stones.

"Generally jewellery is not as good. Once the gem is set, the next buyer must like the setting - and jewellery is a very individual taste."

> Unset gems are attractive to a wider market.

Djeva says different cuts also appreciate at different rates. Round brilliant cut gems are the most expensive and most popular because there is a wider market. Princess cut is the second most popular, followed by oval.

"During the past few years, pink diamonds have doubled in price, while white diamonds are up about 25 per cent. However, if the Australian dollar drops back to about 80 US cents ... then the gains over the past few years will be multiplied," Djeva says.

+ WHAT TO BUY

> CLASSIC INVESTMENTS
* White diamond
* Emerald
* Ruby
* Sapphire
* Coloured diamond

> RISING RETURNS
* Tourmaline
* Green garnet
* Spinel

> CERTIFICATION
* Gem Institute of America

> TYPES OF CUT
* Round brilliant
* Princess
* Oval
* Tear drop (pear)

Source: Gem Hunters, Australian Diamond Brokers, Gemstones for Dummies

View the original article here

Trusts slow to woo back wary investors

Property trusts aren't keeping up with the rest of the field. Source: National Features

PROPERTY trusts, once loved by mum-and-dad investors, have failed to keep pace with the recent sharemarket surge.

These trusts own much of Australia's most prominent real estate, but many investors remain shaken by the sector's horrendous losses during the global financial crisis, and analysts have mixed views about their outlook.

In the past three months, the property trust sector has improved 7 per cent, while the broader All Ordinaries index has climbed 13 per cent. It has done better over the past year, but is still sitting 60 per cent below its 2007 high.

Scott Schuberg, the chief executive of investment group Rivkin, says the short-term under-performance is likely to continue, primarily because listed property trusts do not offer the lucrative dividend franking tax benefits that shares do - key plank of the recent rally in shares.

"I don't expect it to keep up with the rest of the rally if it stays in place," he says.

Now called real estate investment trusts, these vehicles pool people's money to buy big properties - ranging from Westfield malls to Bunnings warehouses to apartment blocks and industrial sites - and pay income from the rents.

When shares plunged 54 per cent in 2008-09, the property trust sector suffered even more - losing almost 80 per cent of its value, because many had borrowed heavily in the years before the GFC.

"I think investors are still a bit scared," says Schuberg, but he says the trusts still have a place in an investment portfolio. "It's ultimately a security backed by relatively reliable income payments."

Their income yields currently average about 5.3 per cent.Rivkin's top picks for the sector are CFS Retail and Stockland, as well as the two Westfield businesses because "they are the smartest operators" in the sector.

Baker Young Stockbrokers managed portfolio analyst Toby Grimm says while the trusts have lagged the sharemarket in the short term, over the 12 months their returns are higher at 27 per cent.

"The sector makes up almost 7 per cent of the market so it's not an insignificant amount," he says.

"The GFC was a highly unusual scenario - their balance sheets were significantly over-geared. Post the GFC they have been more sensible and safe, and gearing has fallen from north of 50 per cent to about 20 per cent."

Baker Young holds the Westfields in its portfolio and also GPT, and believes improving consumer sentiment sets up retail property trusts for a good 6-12 months.

View the original article here

Trusts slow to woo back wary investors

Property trusts aren't keeping up with the rest of the field. Source: National Features

PROPERTY trusts, once loved by mum-and-dad investors, have failed to keep pace with the recent sharemarket surge.

These trusts own much of Australia's most prominent real estate, but many investors remain shaken by the sector's horrendous losses during the global financial crisis, and analysts have mixed views about their outlook.

In the past three months, the property trust sector has improved 7 per cent, while the broader All Ordinaries index has climbed 13 per cent. It has done better over the past year, but is still sitting 60 per cent below its 2007 high.

Scott Schuberg, the chief executive of investment group Rivkin, says the short-term under-performance is likely to continue, primarily because listed property trusts do not offer the lucrative dividend franking tax benefits that shares do - key plank of the recent rally in shares.

"I don't expect it to keep up with the rest of the rally if it stays in place," he says.

Now called real estate investment trusts, these vehicles pool people's money to buy big properties - ranging from Westfield malls to Bunnings warehouses to apartment blocks and industrial sites - and pay income from the rents.

When shares plunged 54 per cent in 2008-09, the property trust sector suffered even more - losing almost 80 per cent of its value, because many had borrowed heavily in the years before the GFC.

"I think investors are still a bit scared," says Schuberg, but he says the trusts still have a place in an investment portfolio. "It's ultimately a security backed by relatively reliable income payments."

Their income yields currently average about 5.3 per cent.Rivkin's top picks for the sector are CFS Retail and Stockland, as well as the two Westfield businesses because "they are the smartest operators" in the sector.

Baker Young Stockbrokers managed portfolio analyst Toby Grimm says while the trusts have lagged the sharemarket in the short term, over the 12 months their returns are higher at 27 per cent.

"The sector makes up almost 7 per cent of the market so it's not an insignificant amount," he says.

"The GFC was a highly unusual scenario - their balance sheets were significantly over-geared. Post the GFC they have been more sensible and safe, and gearing has fallen from north of 50 per cent to about 20 per cent."

Baker Young holds the Westfields in its portfolio and also GPT, and believes improving consumer sentiment sets up retail property trusts for a good 6-12 months.

View the original article here

CBA targets self-managed investors

CBA has launched MyWeath targeting the 3 million Australians who manage their own investments. Picture: Melvyn Knipe Source: The Daily Telegraph

• MyWealth website allows banking and investing
• CBA to add superannuation and property functions
• Your Money

AUSTRALIA'S biggest bank is targeting the three million Australians who manage their own investments with a new free online wealth platform.

The Commonwealth Bank today launched MyWealth, which allows people to do both their banking and investing on one website. Users can buy shares, funds and fixed interest investments, receive tailored news feeds based on their investments, and get a "big picture" view of their total wealth.

The integration has been made possible by a $1 billion-plus CBA systems upgrade over the past five years, and the bank plans to add superannuation and property functions in the coming months.

Chief innovation officer equities and margin lending Lisa Frazier said CBA already had a relationship with 1.8 million of the three million Australians who invested without using financial planner, because of its banking and CommSec online share trading businesses.

"This is just the beginning,"she said. "It will change everything about how Australians manage their wealth," she said.

The bank says MyWealth is an Australian first, and it expects competitors to emerge to meet growing customer demand for self-directed investing.

View the original article here

CBA targets self-managed investors

CBA has launched MyWeath targeting the 3 million Australians who manage their own investments. Picture: Melvyn Knipe Source: The Daily Telegraph

• MyWealth website allows banking and investing
• CBA to add superannuation and property functions
• Your Money

AUSTRALIA'S biggest bank is targeting the three million Australians who manage their own investments with a new free online wealth platform.

The Commonwealth Bank today launched MyWealth, which allows people to do both their banking and investing on one website. Users can buy shares, funds and fixed interest investments, receive tailored news feeds based on their investments, and get a "big picture" view of their total wealth.

The integration has been made possible by a $1 billion-plus CBA systems upgrade over the past five years, and the bank plans to add superannuation and property functions in the coming months.

Chief innovation officer equities and margin lending Lisa Frazier said CBA already had a relationship with 1.8 million of the three million Australians who invested without using financial planner, because of its banking and CommSec online share trading businesses.

"This is just the beginning,"she said. "It will change everything about how Australians manage their wealth," she said.

The bank says MyWealth is an Australian first, and it expects competitors to emerge to meet growing customer demand for self-directed investing.

View the original article here

CBA targets self-managed investors

CBA has launched MyWeath targeting the 3 million Australians who manage their own investments. Picture: Melvyn Knipe Source: The Daily Telegraph

• MyWealth website allows banking and investing
• CBA to add superannuation and property functions
• Your Money

AUSTRALIA'S biggest bank is targeting the three million Australians who manage their own investments with a new free online wealth platform.

The Commonwealth Bank today launched MyWealth, which allows people to do both their banking and investing on one website. Users can buy shares, funds and fixed interest investments, receive tailored news feeds based on their investments, and get a "big picture" view of their total wealth.

The integration has been made possible by a $1 billion-plus CBA systems upgrade over the past five years, and the bank plans to add superannuation and property functions in the coming months.

Chief innovation officer equities and margin lending Lisa Frazier said CBA already had a relationship with 1.8 million of the three million Australians who invested without using financial planner, because of its banking and CommSec online share trading businesses.

"This is just the beginning,"she said. "It will change everything about how Australians manage their wealth," she said.

The bank says MyWealth is an Australian first, and it expects competitors to emerge to meet growing customer demand for self-directed investing.

View the original article here

CBA targets self-managed investors

CBA has launched MyWeath targeting the 3 million Australians who manage their own investments. Picture: Melvyn Knipe Source: The Daily Telegraph

• MyWealth website allows banking and investing
• CBA to add superannuation and property functions
• Your Money

AUSTRALIA'S biggest bank is targeting the three million Australians who manage their own investments with a new free online wealth platform.

The Commonwealth Bank today launched MyWealth, which allows people to do both their banking and investing on one website. Users can buy shares, funds and fixed interest investments, receive tailored news feeds based on their investments, and get a "big picture" view of their total wealth.

The integration has been made possible by a $1 billion-plus CBA systems upgrade over the past five years, and the bank plans to add superannuation and property functions in the coming months.

Chief innovation officer equities and margin lending Lisa Frazier said CBA already had a relationship with 1.8 million of the three million Australians who invested without using financial planner, because of its banking and CommSec online share trading businesses.

"This is just the beginning,"she said. "It will change everything about how Australians manage their wealth," she said.

The bank says MyWealth is an Australian first, and it expects competitors to emerge to meet growing customer demand for self-directed investing.

View the original article here

CBA targets self-managed investors

CBA has launched MyWeath targeting the 3 million Australians who manage their own investments. Picture: Melvyn Knipe Source: The Daily Telegraph

• MyWealth website allows banking and investing
• CBA to add superannuation and property functions
• Your Money

AUSTRALIA'S biggest bank is targeting the three million Australians who manage their own investments with a new free online wealth platform.

The Commonwealth Bank today launched MyWealth, which allows people to do both their banking and investing on one website. Users can buy shares, funds and fixed interest investments, receive tailored news feeds based on their investments, and get a "big picture" view of their total wealth.

The integration has been made possible by a $1 billion-plus CBA systems upgrade over the past five years, and the bank plans to add superannuation and property functions in the coming months.

Chief innovation officer equities and margin lending Lisa Frazier said CBA already had a relationship with 1.8 million of the three million Australians who invested without using financial planner, because of its banking and CommSec online share trading businesses.

"This is just the beginning,"she said. "It will change everything about how Australians manage their wealth," she said.

The bank says MyWealth is an Australian first, and it expects competitors to emerge to meet growing customer demand for self-directed investing.

View the original article here

CBA targets self-managed investors

CBA has launched MyWeath targeting the 3 million Australians who manage their own investments. Picture: Melvyn Knipe Source: The Daily Telegraph

• MyWealth website allows banking and investing
• CBA to add superannuation and property functions
• Your Money

AUSTRALIA'S biggest bank is targeting the three million Australians who manage their own investments with a new free online wealth platform.

The Commonwealth Bank today launched MyWealth, which allows people to do both their banking and investing on one website. Users can buy shares, funds and fixed interest investments, receive tailored news feeds based on their investments, and get a "big picture" view of their total wealth.

The integration has been made possible by a $1 billion-plus CBA systems upgrade over the past five years, and the bank plans to add superannuation and property functions in the coming months.

Chief innovation officer equities and margin lending Lisa Frazier said CBA already had a relationship with 1.8 million of the three million Australians who invested without using financial planner, because of its banking and CommSec online share trading businesses.

"This is just the beginning,"she said. "It will change everything about how Australians manage their wealth," she said.

The bank says MyWealth is an Australian first, and it expects competitors to emerge to meet growing customer demand for self-directed investing.

View the original article here