Across all forms and price points, the market for luxury goods has performed strongly since the start of the COVID- 19 era.1 Auction house sales of precious gems hit a record $15 billion in 2021, amid a surge of global wealth and the entry of younger buyers and online bidding.2 More broadly, demand for alternative investments has boomed, rising from $7.9 trillion (globally) in 2013 to more than $10 trillion in 2020, and is expected to reach $14 trillion by 2023.3 Capturing part of this demand, the IDEX diamond index saw a rise of more than 26% between Q1 2021 and Q1 2022, and fancy vivid pink diamonds saw a 39% price appreciation between Q2 2020 and Q2 2021.
At LUXUS, before we select an asset from the archives of our extensive brand network, we first identify a theme that is particularly relevant to the current economic market environment. In recent years, precious gems (white and fancy colored diamonds) have proven to be a high performing asset class. This is due to low global diamond supply being exacerbated by mine closures, recent sanctions on Russia (Alrosa produces 30% of the world’s diamond supply), and outpaced demand for precious gems from consumers and the global investor community.
We want to ensure that the first theme we introduce to investors is truly unmatched in both rarity and historical returns, and looked no further than fancy colored diamonds. Fancy colored diamonds have increased in popularity in the last decade, leading the large auction houses to realize some of their largest gains on the back of record-breaking sales. Additionally, fancy colored diamonds are highly desirable by private collectors, serve as effective inflation hedge as they are a natural resource and hard asset, bear low correlation to traditional markets, and have very low volatility compared to equities, cryptocurrencies and even gold.4
The current economic backdrop is essentially a perfect storm of macro geopolitical demands and extremely constrained supply. Whether you are an investor, a collector or a luxury enthusiast, we invite you to conduct a deeper dive into the materials we have prepared and look forward to welcoming you into our community.
The Fine Print
This offering is made in reliance on Regulation A under the Securities Act of 1933. The securities offered are speculative, illiquid, and an investor could lose the entire investment. Investors should read the relevant Offering Circular and consider the risks disclosed therein before investing.
IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. REGULATION A OFFERINGS ARE SPECULATIVE, ILLIQUID, AND INVOLVE A HIGH DEGREE OF RISK, INCLUDING THE POSSIBLE LOSS OF YOUR ENTIRE INVESTMENT.
LUXUS, through its affiliated entities, is offering securities through the use of an Offering Statement that the Securities and Exchange Commission (‘SEC”) has qualified under Tier II of Regulation A. While the SEC staff reviews certain forms and filings for compliance with disclosure obligations, the SEC does not evaluate the merits of any offering, nor does it determine if any securities offered are “good” investments.
This profile may contain forward-looking statements and information relating to, among other things, the company, its business plan and strategy, and its markets or industry. These statements reflect management’s current views regarding future events based on available information and are subject to risks and uncertainties that could cause the company’s actual results to differ materially.
Investors are cautioned not to place undue reliance on these forward-looking statements as they are meant for illustrative purposes, and they do not represent guarantees of future results, levels of activity, performance, or achievements, all of which cannot be made.
The securities herein offered by this issuer as herein above mentioned are highly speculative, investing in such securities involves significant risk, including possible loss of principal amount of investment.
FROM TIME TO TIME, AFFILIATES OF LUXUS WILL SEEK TO QUALIFY ADDITIONAL SECURITIES UNDER REGULATION A. FOR OFFERINGS THAT HAVE NOT YET BEEN QUALIFIED, NO MONEY OR OTHER CONSIDERATION IS BEING SOLICITED AND, IF SENT IN RESPONSE, WILL NOT BE ACCEPTED. NO OFFER TO BUY SECURITIES CAN BE ACCEPTED, AND NO PART OF THE PURCHASE PRICE CAN BE RECEIVED, UNTIL AN OFFERING STATEMENT FILED WITH THE SEC HAS BEEN QUALIFIED BY THE SEC OR UNLESS AS STATED IN THE OFFERING MATERIALS RELATING TO AN INVESTMENT OPPORTUNITY, AS APPLICABLE. ANY SUCH OFFER MAY BE WITHDRAWN OR REVOKED, WITHOUT OBLIGATION OR COMMITMENT OF ANY KIND, AT ANY TIME BEFORE NOTICE OF ACCEPTANCE GIVEN AFTER THE DATE OF QUALIFICATION BY THE SEC OR AS STATED IN THE OFFERING MATERIALS RELATING TO AN INVESTMENT OPPORTUNITY, AS APPLICABLE. AN INDICATION OF INTEREST INVOLVES NO OBLIGATION OR COMMITMENT OF ANY KIND.