Our business consists in creating diversified portfolios of safe-haven assets (precious metals, precious stones, artworks, vintage cars, etc.) that allow the clients to protect their assets over the time and pass it on to their heirs.
The clients, directly or through their wealth manager, depending on their risk propensity, their time horizon, the required tax optimization, the presence of heirs and the number of same, decide in full autonomy the diversification strategy more suited to them and, based on their choice and the amount available, we limit ourselves to creating portfolios of luxury assets that best meets their expectations of Asset Protection, Wealth or Inheritance Tax Planning.
Despite the fact that each client independently decides on the diversification strategy, in principle we can identify the following types of portfolios with regard to the most important safe-haven assets we deal with (precious metals, precious stones, artworks and classic cars) :
LIQUIDITY PORTFOLIO
(gold and diamonds)
This portfolio is featured by a massive presence of gold (80/90%) and, to a lesser quantity, by highly liquidable diamonds (10/20%).
Advantages
Immediate and certain liquidity of its assets.
Disadvantages
High volatility.
Time horizon
Even short term (<1 year), but recommended at least in the medium term (from 3 to 7 years).
Example of liquidity portfolio
DIVERSIFIED LIQUIDITY PORTFOLIO
(precious metals and precious stones)
This portfolio is featured by a massive presence of precious metals (70/80% and at least half in gold) and by precious stones (20/30% and at least half in highly liquidable diamonds).
Advantages
It has almost the same level of liquidity as the previous portfolio, but it further diversifies the assets.
Disadvantages
Volatility remains high but through greater diversification we try to reduce it.
Time horizon
The same as in the previous portfolio.
Example of diversified liquidity portfolio
BALANCED PORTFOLIO
(precious metals, precious stones, artworks or classic cars)
This portfolio is featured by precious metals (from a minimum of 35% up to 50% and at least half in gold), the remaining part is split between precious stones (at least half in high liquidable diamonds) and artworks or classic cars (only artworks or classic cars that are easy to be sold).
Advantages
Increased value protection over the time, reduced volatility.
Disadvantages
Less liquidity for some of its assets (longer times for the disinvestment of the entire portfolio).
Time horizon
Medium-long term (at least from 5/7 years up).
Example of balanced portfolio
DIVERSIFIED BALANCED PORTFOLIO
This portfolio contains all the main safe-haven assets we deal with and it is intended to be the main long-term instrument for purpose of Asset Protection, Wealth and Inheritance Tax Planning.
It is featured by precious metals (up to a maximum of 35%), precious stones (up to a maximum of 35%), artworks (up to a maximum of 35%) and classic cars (up to a maximum of 35%).
Advantages
Maximum diversification in order to assure the highest protection of the clients’ Wealth.
Disadvantages
Less liquidity of some of its assets (longer times for the disinvestment of the entire portfolio).
Time horizon
Long term (at least 10 years old).
Example of diversified balanced portfolio
We remind the clients that Aurum et Adamas SA is not an asset manager and does not offer advice on diversifying the clients’ assets.
This page only illustrates how different combinations of safe-haven assets can protect the financial value incorporated in them but it does not analyze the convenience on whether or not they shoul be in the clients’ total assets. For this last analysis, the clients are kindly requested to contact an asset manager or a financial advisor.