Drudge: "Diamond Prices 'To Jump 20%', Outperform Gold..."
Goldbully
Posts: 17,303 ✭✭✭✭✭
Never thought of diamonds as a big investment opportunity!!!!
Drudge links to CBS Minnesota..........
Jeweler: Expect Significant Price Increases For Diamonds
MINNEAPOLIS (WCCO) — Intense sparkle may not be the only thing that deserves a double take when it comes to diamonds. Take a look at the price-tag.
Jewelers say you can expect to see price increases ranging from 10 percent to 20 percent depending on the quality of the diamond.
Why the price of diamonds could outperform gold — and a fashion trend that could save you money.
Diamonds may be a girl’s best friend, but new price hikes show they could become a man’s worst nightmare.
“I’ve seen things happen last year that I would not have believed,” said John Sorich, owner of jewelry discounter, Diamond Direct.
Sorich has spent the last 30 years keeping a close eye on market ups and downs.
“We’ve been in the business since 1981,” he said.
He said the latest price increases are some of the most dramatic he’s ever seen.
“This diamond right there has gone up about $5,000 in cost,” he said, adding that’s because the more quality diamonds are the ones increasing the most.
It all goes back to supply and demand, only this time, you have to take a global market into consideration.
“There seems to be more and more people reaching this middle-class level, that once they get there, they become consumers,” Sorich said.
India, China and the Middle East make up for 40 percent of global demand.
If you were to buy a three-and-a-half carat ring last year, it would’ve cost you around $16,000, but thanks to that emerging international market, this year, it’ll cost you $19,000.
Sorich said he has no choice but to pass much of the burden onto consumers.
“My percentage of profit that I make on a sale has not changed, but if the cost price does, then of course, the end price is going to be a little bit more expensive for me, as well as the consumer,” he said.
The saving grace for jewelers is universally, diamonds given to signify marriage are more about timing for the couple than the market.
“It’s more of an emotion, spirit-filled thing between a man and woman, than it is, how much is it going to cost you,” he said.
With diamond prices so high, a hot new trend is to buy a gemstone to make up of the bulk of the ring. And then surround it with several smaller diamonds.
Link with video
Drudge links to CBS Minnesota..........
Jeweler: Expect Significant Price Increases For Diamonds
MINNEAPOLIS (WCCO) — Intense sparkle may not be the only thing that deserves a double take when it comes to diamonds. Take a look at the price-tag.
Jewelers say you can expect to see price increases ranging from 10 percent to 20 percent depending on the quality of the diamond.
Why the price of diamonds could outperform gold — and a fashion trend that could save you money.
Diamonds may be a girl’s best friend, but new price hikes show they could become a man’s worst nightmare.
“I’ve seen things happen last year that I would not have believed,” said John Sorich, owner of jewelry discounter, Diamond Direct.
Sorich has spent the last 30 years keeping a close eye on market ups and downs.
“We’ve been in the business since 1981,” he said.
He said the latest price increases are some of the most dramatic he’s ever seen.
“This diamond right there has gone up about $5,000 in cost,” he said, adding that’s because the more quality diamonds are the ones increasing the most.
It all goes back to supply and demand, only this time, you have to take a global market into consideration.
“There seems to be more and more people reaching this middle-class level, that once they get there, they become consumers,” Sorich said.
India, China and the Middle East make up for 40 percent of global demand.
If you were to buy a three-and-a-half carat ring last year, it would’ve cost you around $16,000, but thanks to that emerging international market, this year, it’ll cost you $19,000.
Sorich said he has no choice but to pass much of the burden onto consumers.
“My percentage of profit that I make on a sale has not changed, but if the cost price does, then of course, the end price is going to be a little bit more expensive for me, as well as the consumer,” he said.
The saving grace for jewelers is universally, diamonds given to signify marriage are more about timing for the couple than the market.
“It’s more of an emotion, spirit-filled thing between a man and woman, than it is, how much is it going to cost you,” he said.
With diamond prices so high, a hot new trend is to buy a gemstone to make up of the bulk of the ring. And then surround it with several smaller diamonds.
Link with video
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Comments
Many members on this forum that now it cannot fit in my signature. Please ask for entire list.
Diamonds
In God We Trust.... all others pay in Gold and Silver!
You may as well be trying to sell your turds back to McDonald's.
As with coins diamonds need top of the line top 5% of the market is where its constantly gaining.
Dreck (I1 quality diamonds or worse l, Color I or worse, clarity enhanced, color enhanced, pointer diamonds) are generally not paid for.
Diamonds that are SI but less than .1 carat sell for $50 a carat on wholesale. Retail can be up to $1500
1 carat SI diamonds generally go for $1000 wholesale
The market is complex and essentially geared for retail purchases.
Also since its practically impossible to destroy a diamond through normal jewelry use, the supply is constantly increasing with a minute attrition rate.
<< <i>You may as well be trying to sell your turds back to McDonald's. >>
https://www.pcgs.com/setregistry/gold/liberty-head-2-1-gold-major-sets/liberty-head-2-1-gold-basic-set-circulation-strikes-1840-1907-cac/alltimeset/268163
What it doesn't say is what you all ARE saying: the resale remains dismal at pennies on the dollar.
But that doesn't matter, guys will still buy their ladies the diamonds. It's an investment, but the returns aren't finanacial
Liberty: Parent of Science & Industry
<< <i>Diamonds are also not rare at all. There is a cartel that controls how many are brought to market so the prices stay high. Bad bad investment. >>
The cartel is De Beers.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
Gold can be sold quickly and easily in relation to spot. Diamonds are a complicated to sell and you really need to know how to grade them if you want to sell them for a decent price.
This is an excellent point, don't confuse jewelry store junk diamonds with investment grade diamonds... there are folks who will buy nice 2+ carat diamonds from the GIA cert.
These are usually well cut (round "ideal cut" with great proportions and flash) DEF color, VVSI or better clarity. Over 2 carats (or even 1.5) such stones are indeed rare (as diamonds go)
go to Blue Nile and browse if you're interested in nice stones. They'll probably even buy them back from you, but I imagine the spread is quite a bit wider than with precious metals. (i.e. you ain't making no easy 20% by buying and reselling a diamond a year later, period)
If you were to buy a three-and-a-half carat ring last year, it would’ve cost you around $16,000, but thanks to that emerging international market, this year, it’ll cost you $19,000.
The above quote does not describe the value of a NICE 3.5 carat stone. they left off a zero
Liberty: Parent of Science & Industry
<< <i>Small and low quality diamonds have massively dropped in price the last few years. I don't see them getting significantly more valuable anytime soon. Large, high quality ideal cut rounds(2 carats or more) are going up because the demographic that buys such stones are doing very well financially even though the middle and working classes are in a recession.
This is an excellent point, don't confuse jewelry store junk diamonds with investment grade diamonds... there are folks who will buy nice 2+ carat diamonds from the GIA cert.
These are usually well cut (round "ideal cut" with great proportions and flash) DEF color, VVSI or better clarity. Over 2 carats (or even 1.5) such stones are indeed rare (as diamonds go)
go to Blue Nile and browse if you're interested in nice stones. They'll probably even buy them back from you, but I imagine the spread is quite a bit wider than with precious metals. (i.e. you ain't making no easy 20% by buying and reselling a diamond a year later, period)
If you were to buy a three-and-a-half carat ring last year, it would’ve cost you around $16,000, but thanks to that emerging international market, this year, it’ll cost you $19,000.
The above quote does not describe the value of a NICE 3.5 carat stone. they left off a zero
True "investment grade" diamonds are 8+ carats white with VVS clarity, round cut, and the DEF color already mentioned. There have been about 50-60k total mined. To the best of my recollection, "investment grade' diamonds have never declined in value year-over-year even during the worst economic times. Fat colored diamonds are in a league of their own.
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<< <i>No Thx, look at Craigslist and see how many are selling diamonds for cheap even though they paid a few thousand, etc. They are not liquidable. >>
I agree! I've been trying to sell a friend's engagement ring on eBay for almost half a year now! Comes with official appraisals showing over $6k in diamonds and I've been lowering the price more and more each listing. Down to $2k and still no takers! He just told me to take any offers of $1,800. Toughest thing I've ever sold in eBay in my 10 years, you can't get rid of these things on the secondary market.
<< <i>Read this
Diamonds >>
This was a great piece. I re-read it every so often. Required reading for anyone considering a diamond purchase.
<< <i>I would never consider diamonds any kind of investment. Looks like some marketing hype to me. >>
Bingo---someone gets it and I totally agree.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire