MAXIMILIAN
MAXIMILIAN JEWELRY HOUSE IS KNOWN WORLDWIDE. HE IS INTO THE ELITE OF HIGH JEWELRY ART. HIS BOUTIQUES ARE OPENED IN ALL CITIES WHERE THE FUNDAMENTAL FINANCIAL MARKETS ARE FOCUSED
In 2013, the head of the House, a successful businessman, jeweler and collector, MAXIM ARTSINOVICH was also talked about as a generous philanthropist, whose unique gift was received by the State Hermitage Museum, one of the main museums in Russia.
WHILE THE WORLD AROUND DECLINES, EVERY DAY EVERYTHING KNITTING MORE IN THE SWAMP OF THE GLOBAL CRISIS, THE MAXIMILIAN EMPIRE IS WALKING AND PROSPERING. EXPERTS EXPLAIN THIS PHENOMENON BY THE LITERATURE STRATEGY OF THE FOUNDER OF THE ENGLISH JEWELRY HOUSE - A TALENTED BUSINESSMAN, JEWELER AND MOSENO MAKSIM ARTSINOVICH. AUTHOR'S UNIQUE SYSTEM OF ALTERNATIVE INVESTMENTS.
It is he who explains to wealthy compatriots how to better manage their capital and what alternative investments are most effective in the era of the global crisis and the depreciation of national currencies. And since the magazine Russian Emirates has a long-standing friendship with Mr. Artsinovich, during his next visit to Dubai we asked him to introduce our readers to alternative investments in precious stones.
You encourage highnets to invest actively in gems. Do you really think this is the best alternative investment? But do stones guarantee safety? History has shown that nowadays any state is capable of arresting cells, safes and jewelry itself ...
M. A:Of course. Everything in the cells can be arrested. It is impossible to resist the state machine. For example, if you become an enemy of the United States ... And the enemy of the United States can be declared at any time. And at any moment you can be considered a terrorist. There is no legal and no other defense against this. And people are actually left without everything.
But you need to be smart and cunning. And do not store all the eggs in one basket. And open cells in banks, where the main accounts are, where the assets are tied ... There are many different legal forms for holding assets abroad. Trusts are opened in Liechtenstein, real estate is issued under trusts ...
But the question is different ... Today, during all these ethnic and ethnic conflicts, jewelry - jewelry, stones and physical gold (something that can be touched) sometimes turn out to be the only lifesaver for rich people. The only asset that remains if banks turn off credit cards. And you can’t pay anything anywhere.
But what about the millions and billions in the accounts?
M. A:It seems to you that you have millions of dollars in your account. But the bank disables credit cards and that’s it! Another option ... Cash in a certain country suddenly ceases to exist. Who rules out this possibility today? But what if the US suddenly stops changing its dollars for something else? Or will they default in the coming weeks?
Or, for example, will not introduce a new currency to save the nation.
M. A:This country has such an acute crisis situation that the government has not been going to work for three weeks ... The US government has not been going to work for three weeks! And a huge budget deficit! The US is on the verge of default. And all the agencies of the world trumpet this. If tomorrow they decide to default, they simply say: forget about your dollars, your dollars no longer exist And the whole world will swallow this pill! Because it just teaches everyone that there is nothing more stable in the world ...
Therefore, when I, as a consultant, are asked about alternative investments, I say right away, honestly and frankly, that buying jewelry from famous brands has never been a good investment. This is all a lie when they write that you need to invest in Graff, Cartier, Harry Winston, Chopard, Van Cleef & Arpels or in the same MaximiliaN! Because jewelry companies take a premium for a brand. We do not sell stones and jewelry at cost. And we earn, for example, on design, on marketing ... Otherwise - it is impossible in any way! Companies that produce clothes, cars, yachts - all take a certain premium for their brand. And this is completely normal.
But when we are talking about investing in precious stones or in precious metals, we are discussing exclusively the purchase of stones. With all the certificates, in sealed boxes ... Or we’re talking about gold in small bars, 20 and 50 grams each. Remember the history of the XX century ... What happened in Russia during the October Revolution?
Are you about the expropriation of expropriators?
M. A:I about what happened during the Second World War. And during the siege of Leningrad, in those very 900 days and nights! At all times when social upheavals, revolutions, and wars occur, it no longer matters which coinage is on the coin. Nikolaev is rubles or Soviet coins. All that matters is that for this gold you can buy life for yourself and your child ... You can buy bread, food and a ticket to fly somewhere ...
A descendant of Bolin told me that during the revolution his grandfather, a jeweler and supplier of the royal court, broke his unique jewelry and gave stones to cross the border ...
M. A:I have information that is confirmed by photographs and documents: my economists worked for two weeks in the Holocaust museums in Jerusalem ... So it is documented that during the Second World War the Nazis sold Jews from concentration camps. They were taken out by entire families. But only those whose relatives through Swiss bankers could pay them. Personally, I consider Swiss bankers to be prostitutes. I have never respected or respected them. Today they are all doing the same thing.
Collecting money of dictators. It is in their hands that the regime be overthrown, and the dictator hanged or shot, because all the money will remain in their accounts. So, we have evidence that Swiss bankers acted as intermediaries during the Second World War and sold Jews to relatives who had money. They sold Jews for diamonds. And for diamonds. For each head, several tens of carats were prescribed. But for prisoners of concentration camps they took not gold (it is heavy), but with stones! And when the war ended, the Nazis, who managed to escape, for example, to Argentina or Brazil took away stones with them.
Therefore, I affirm, and will always affirm, that stone is the only material asset created by nature, which, with its supercompactness, has enormous material value. That is, stones always and at all times easily move between boundaries. And they always have a huge fortune. For example, today a kilogram of gold costs US $ 45 thousand, and ten kilograms of gold costs US $ 450 thousand - half a million! But half a million is little money. Try it, transport 10 kg of gold across the border - you won’t pass any customs! A load of 10 kg is hard to hide. And a stone worth half a million dollars can simply be put in your jeans pocket or picked up in your hand, sit down and fly away. That's all! Let me give you an example with the Shah Reza Pahlavi. His wife was the largest jewelry collector and main customer of the jewelry houses Cartier, Boucheron, Van Cleef & Arpels on Place Vendome. But when the Iranian revolution happened and religious fanatics and Ayatollah Khomeini came to power, the Shah of Iran was overthrown. And the shah with his wife and children moved to America. Jewelry saved their life. Because they took a few suitcases of jewelry with them. And today at Christie's and Sotheby's auctions periodically appear products from the collection of the shah, which are either the family itself or intermediaries put up what has already been sold.
But all these things are now sold for tens of millions of dollars ... Brand jewelry is also growing in price, but not due to the fact that it is made by Cartier or Van Cleef & Arpels. But because precious stones are growing in price.
So investing in a brand is unreasonable?
M. A:If we talk about investing in precious stones and gold, then today, of course, brands do not bring income. I have always affirmed and affirm that jewelry is simply the preservation of capital. Imagine that the "end of the world" in the world will come. As it was during the week in America, when the electricity did not work. Got up Wall Street. And all world markets collapsed. And all bank accounts in the form of electronic numbers on computers collapsed!
And people could not buy bread, eat, pay for gas, go somewhere, return ... Therefore, my alternative investment method is very primitive ... And sends a person back to the times when there was no paper money in everyday life. And they paid for everything with gold coins, small bars of gold, stones ...
In the 21st century, money has become an ephemeral quantity. Wealthy people care about saving money. They first earned ... And then they earned their millions or billions.
And they are sausage. They do not sleep at night: binges, stress ... They do not know how to save! I tell them how to do it. Earth is a very good asset. As you know from the book "The Little Prince", the land is no longer produced! And so buying land, forests, rivers and fields is always a good investment to save capital.
And yachts, planes, luxury cars?
M. A:Super-rich people have boats, planes, steamboats ... And this is always a net loss. The maintenance of all these fleets, liners, and the car fleet is by no means income. And we say that alternative investment is approx. Even if the portfolio contains only 5% of the size of the fortune - and this is an alternative investment in art, wine, precious stones or gold, then this is already good. Because sometimes, unfortunately, life can turn out so that these 5% they will be the only money that you have left.
Would you like to invest in diamonds, emeralds, rubies and sapphires?
M. A:I speak now not as the owner of the jewelry house. And not like a person who urges you to invest in precious stones and precious metal. For example, in gold, in terms of generating income. It must be very clearly understood that I do not urge people to invest in precious stones, jewelry or gold to generate income. In no case! I’m saying that the conscious purchase of precious stones and gold is the preservation of capital. Not a multiplication, not an increase in its value and the capitalization of its portfolio. It is only the preservation of capital. Diversification of our own portfolio, some liquid assets ... We say that America has announced the "gold standard". But today paper money is not tied to any standard!
And not protected by anything?
M. A:In the West, they have been taught to keep money in banks for decades. But, unfortunately, the presence in the bank account of millions, tens of millions and even billions of dollars does not guarantee today to the hinet (hinet is a buzzword!) That this money is in complete safety. And the example of Cyprus showed it! But I think that the situation with Cyprus is only the beginning. For some reason, everyone forgot that just a few years ago in the UK there were lines for receiving money ... Remember?
The sight was unforgettable!
M. A: Banks went bankrupt. And people destroyed banks ... The fact is that if a person has savings - whether they are pension or for other purposes, or simply are on the bank account, on deposit, some money, then this does not guarantee that the bank will collect these money back. If people today consciously buy stones, there are guarantees. Of course, everyone has their own strategy. Someone who is very wealthy buys pink and blue diamonds. Because they are very expensive and very rare. Someone buys white diamonds - the first color, the first clarity of DIC. Everyone chooses their own strategy.
For example, I personally created my own pension fund for myself. I buy stones one and two carats, white diamonds. Because they are the most liquid. Some people say: ok! Diamonds are an exchange commodity. And they fall in price as soon as a global crisis occurs. But I apologize when the global crisis occurs, in some states national currencies cease to exist ...
But what about all these banking obligations?
M. A:If the money is in an electronic bank account, then these are just numbers on the computer. Allegedly, there are some millions of dollars in the bank on the currency account! But here is the situation with Cyprus ... People had money. And they just got robbed. It doesn’t matter (we’re not talking about that now!) That someone has evaded taxes because Cyprus was a tax haven. But people made money. And the right to decide where to store them. To pay or not to pay taxes in their country ... But no one ever allowed a single state to simply rob people. Let's call a spade a spade!
What happened in Cyprus was a robbery. And it happened in 2013! Look what is happening today ... Serious ethnic conflicts. Wars between countries. Algeria, Iran, Iraq, Afghanistan, Syria, Libya, Egypt ... Each of these countries had its own businessmen. And not only rich and corrupt officials, as journalists like to write ... Many people were engaged in road construction, development, hotel business, telecom ... And not all of them evaded taxes.
What is happening today? All rich people took their families and relatives to safe places. To Dubai, Abu Dhabi, Qatar, Canada, Europe ... Who could where.
But the USA, for example, says ... This man was a minister in the government ... in Libya at Muammar Gaddafi. So, we’ll block his accounts! And that person was in charge of healthcare. We’ll also block his accounts! But this person is a close businessman to the president of Syria ... In fact, people around the world are faced with the fact that bankers at the direction of the United States, just in case, arrest their assets, accounts, real estate ...
Do you teach hinetet competent strategy for investing in stones?
M. A:Wealthy people know how to count their money. We have created a special style of work with the client. First, he must study the situation in the gem market. And to understand what he likes best: diamonds are white, yellow, pink or blue? Does he recognize the value of rubies, emeralds, or sapphires? And what kind of stones are: heated, unheated, having undergone a certain treatment for color change? That is, we give knowledge about stones. And they created a whole formula for work. For example, first a person buys a stone to make jewelry ... A ring or earrings, or a complete set. He picks up the stones. He thinks about design: somewhere he saw something, for example, at a star on the Oscars ... He wants the same. Or "slightly change." In fact, jewelry is being made to order. The client talks about his desires. Artists are painting. With a pencil. Then in color. Five to six options are made. Then all this is offered to the client. We stop at something. We change everything that the client wants. And we make a unique piece of jewelry. In a single copy in the world. The client receives it for a reasonable price without overpaying. And our formula works!
And if the client wants to redo all this?
M. A:Stones are purchased at the current market price. And they always keep in their family. That is, it is about creating a collection of family jewelry. We provide services that no one else provides. If a person already has a stone of 1520 carats, then after several years, when directions, trends and trends change, jewelry can be redone. Leave the same stone. But remake one ring into another. Or make a brooch from a ring. We do a lot of transformers so that the client himself can combine.
Tell me, if a client decides to sell stones, can you find a buyer?
M. A:Naturally! We all do it. Gems are always a long-term investment.And especially valuable stones always have a market price. And the main assistant for their sale are auctions. Because bidding always shows demand from buyers. They are voted by professionals, bought by jewelers, private clients. The market always knows what it needs. And therefore, the prices that are visible and heard at the auction - these are the very market prices that a particular client is willing to pay for a particular stone. Auction houses Christie's and Sotheby's hold four auctions annually - in Geneva, London, New York and Hong Kong. You can always look at the results of these auctions. November 12th will be a luxury auction in Geneva. I am going to take part in it. I will buy stones. And already received the auction catalog in advance. I know what stones I will fight for ...
Share market information with us?
M. A:I will share, of course. But the gemstone market is sluggish. These are not actions: he opened a computer, looked at how much it costs, and then sold it at the current price ... The point is different ... Thanks to our research, which covers a hundred-year period (from 1913 to 2013), we proved that the annual growth of stones amounted to an average of 57% per year. And colored stones grew by 121520% per year. For the last 15 years after the millennium, I personally observed a growth of 400% - 500%. And every year, taking part in exhibitions in Basel and in Hong Kong, I see that raw materials are becoming less and less ...
Are prices higher and higher?
M. A:Yes, and this is due precisely to the fact that stones are not mushrooms. He tore it off, and a year later another got out of the mycelium ... Stones formed 57 and even 10 million years ago. At a certain temperature, at certain depths ... But the fact is that the birth of a stone can take a very long time. And humanity is developing rapidly, and scientists say that in 2030 we will already be 9 billion people ... And a hundred years ago we were only 2 billion. And then there were thousands of rich families less than now. Therefore, people bought the best, most valuable stones. And they were considered valuable investments for the aristocracy and wealthy families. Today, gems, for example, the smallest sizes have become available to almost everyone. They are simply exhausted. And therefore, today the best representatives of emeralds, sapphires, rubies, diamonds go to the best jewelry houses. And the number of rich people has increased many times, compared with what it was, for example, a hundred years ago. So the stones are becoming less and less, and the population more and more. This is what determines demand. And high prices. The stones end ... But for some reason, when I talk about creating some kind of personal investment fund, no one remembers, for example, that Russia has a Diamond Fund. And it is controlled by the Ministry of Finance. This is a reserve.
Stock for a rainy day?
M. A:Yes. Russia has gold and foreign exchange reserves. In gold - this is understandable. But the dollar and the euro are some mythical accounts in some mythical world banks. Some obscure asset. But the fact that the Ministry of Finance has a Diamond Fund, the size of which varies from US $ 200 to US $ 300 billion, then this is a little pill for a rainy day, which periodically opens when crises occur.
Other countries also have diamond funds. And this shows what the state itself is thinking of holding diamonds as an alternative investment. That's all ... Therefore, we are now talking only about preserving capital. Economists call gems and gold quasi-money. And this is a kind of asset that can be exchanged in case of upheaval: world warrior, economic crises, change of power ... Anything can happen. And then, perhaps, apart from these gold bars and stones, there will be nothing left to exchange for life, saving the children ...
You have created a gem registry ...
M. A:For our clients, we have created a fund in London to help clients engage in alternative investments. And it stores copies of certificates and photographs of stones that are owned by customers. We never keep other people's stones at home. Customers can buy them through us. But then they hold them and hide them in their cells. In Monte Carlo, Geneva, Zurich, Dubai, Singapore ... But when a client needs to sell a stone, he turns to us. And we can also request information: does the client want to sell the stone. And get your bonus.
Is there a similar global certificate storage system?
M. A:What for? So that criminals or the state can take advantage of this? To receive taxes or steal someone else for ransoms ... No, let everything remain exclusively our private practice, which we have come up with for ourselves, for a narrow circle of clients. We help clients make alternative investments, buy stones and physical gold. And in the world today, 92 times more gold is sold than it actually exists. And if people tomorrow physically demand their gold bullion from banks, then banks simply will not be able to give anything back!
You have realized your dream. Or is it still just beginning?
M. A:No, my dream has not yet been realized. We are expanding the business. And now we have created an inexpensive line ... I have already reached heights in creating a company that is among the "top ten" of the world's best jewelry houses. And the level of our jewelry corresponds to the level of Cartier, Graff, Van Cleef & Arpels ... But when we talk about big business and turnover of billions of dollars ... Look who makes money. Tiffany & Co who sell silver. Pandora, which has billions of dollars in turnover ...
If possible, now about patronage ... About your gift to the State Hermitage.
M. A:For me, art is my life. This is better than extreme sports where you can kill yourself to death ... And patronage is just a state of mind.
For example, I have compiled the best collection of stone carving art in Russia. She participated in various exhibitions ... Abroad, in Russia. We published catalogs, magazines. As a result, I wanted more. And it just so happened that the desire of the State Hermitage to have a collection of contemporary stone-carving art that continues the Faberge tradition (and the Hermitage has the largest collection of Faberge works in the world) coincided with my desire to donate ... Because I am a member of the International Club of Friends of the Hermitage.
And this club is located in three cities, in three countries ... In London (where I am a member of the club), in New York and in St. Petersburg. In London, the members of this club are the Rothschilds, Rockefellers, in Russia - the family of Leonard Blavatnik, Vladimir Potanin. And they all help the Hermitage ... When a person achieves some definite success, he has a spiritual impulse. And he wants to share it. Therefore, I strongly believe that people who donate things to museums do not do this for the sake of praise or diplomas ... not for the sake of being mentioned in the press ... This is the call of the heart. And for three years at Sotheby's in London, we held theme nights. In March of each year, we host the Hermitage Ball in London. And we held auctions there. I always exhibited part of my collection on them. And the proceeds from the sales went to the State Hermitage.
For charity?
M. A:For the reconstruction of the Hermitage. Then, on one of these evenings, in 2011, I very much wanted the Hermitage to have my collection in storage. And I made an offer to Mikhail Borisovich Piotrovsky. And so the stars in the sky just so converged that the museum also really wanted to have this collection.
What was the reaction to the gift?
M. A:Everything happened very delicately. For almost eight months, Hermitage art historians have evaluated every work. And they evaluated whether this or that work was worthy of being in the permanent exhibition of the State Hermitage Museum. So wonderful stone-cutting artists, who are young and who still have to create and create, turned out to be accepted into the elite of world art during their lifetime.
