any comments if diamonds appreciate in value?

[scarleta]

Since joining this forum I am learnig a lot and I wonder if diamonds do apprecieate in value? Any comments would be great.. I am currently waiting to receive a prices of stones I mention on this board yesterday and I am wondering what your opinion is on that. Thanks again and I surely learned a lot from here in such a short time...

 

[XChick03]

I''ve actually been wondering this also, especially with the prices of diamonds inflating by the day.

 

[valeria101]

Date: 2/26/2006 4:34:16 PM
Author:scarleta
Since joining this forum I am learning a lot and I wonder if diamonds do appreciate in value?

Yeah... in about 7-10 years prices may have just gone high enough for you to recoup precisely what you'd pay today for a diamond! Just look at auction prices for single-diamond rings and loose stones sold by private sellers. Or just ask around to find out what you could sell a diamond for today

relative to what you could buy the same for / slice that by the average rate of price increase for the past couple of years and that starts to answer the question I would think

My 2c.

I doubt the same applies to rare colors or very large stones - those live in a separate universe

 

[ChooChoo]

It will appreciate in replacement value (as in, how much it would cost you to buy an equivalent), and it might appreciate in resale value but it will be a long time before you can sell a diamond for as much as you paid for it, let alone more.

 

[Modified Brilliant]

Date: 2/26/2006 4:34:16 PM
Author:scarleta
Since joining this forum I am learnig a lot and I wonder if diamonds do apprecieate in value? Any comments would be great.. I am currently waiting to receive a prices of stones I mention on this board yesterday and I am wondering what your opinion is on that. Thanks again and I surely learned a lot from here in such a short time...

Hi Scarleta,
This was a thread from last month that you might find interesting regarding your question.

https://www.pricescope.com/community/threads/inflation-appreciation-insurance-coverage.38322/=


www.metrojewelryappraisers.com

 

[kenny]

Yes diamonds do go up in value.

The problem is you buy at retail but have to sell at wholesale, which is about half retail.

So value has to double for you to just break even.

Yes diamonds DO go up in value, but diamonds are a horrible investment.

 

[oldminer]

One must decide what is important to them and what are their goals when deciding on an investment. It is unlikely any regular diamond purchase will prove financially rewarding no matter how long you can or do wait. However, diamonds can be sold, albeit at a price you may find less than pleasant, they are easily transported, and best of all, someone gets to enjoy wearing them. How much is the pleasure of giving them as a gift worth? How much does recieving a diamond as a gift count to the recipient?

Diamonds are tangible symbols of love. Love itself is elusive and intangible. Diamonds add something more to your feelings by being something you can hold, look at an admire. That is worth a lot of money if one''s love is worth something.

 

[scarleta]

Thanks for the info on value appreciation. Do you think that the better ratedc stones would be easier to resell or perhaps the bigger ones would with time apprecieate more? When my grandmother had a rubby and had to part with it one day she got back more than she paid for it... It was long ago and I do not know how good or big it was... Thanks again...

 

[Richard Sherwood]

The wholesale value of diamonds steadily appreciates each year. The key is to purchase your diamond as close to wholesale as possible (either over the internet or through another competitive source). That way, in a few years the wholesale value will overtake what you paid (via appreciation) and continue to increase in value.

The second key is to be wise in how you resell your diamond, if you should ever decide to do so. This is best accomplished by selling to the same market diamond vendors do, the public. If you resell for wholesale or close to it, you'll be undercutting the vendors yet still be getting far more than if you resold your diamond back into the industry (who will only usually pay you half to two-thirds of wholesale for a cash purchase).

In this manner (depending on how long you wait to sell) you can usually recoup what you paid and often make a profit as well.

You can also recoup about the same amount of money if you allow a jeweler to sell the diamond for you on short-term consignment. Many are happy to get "free" inventory at wholesale value from which they can make their normal profit. Some auction houses also do a good job of getting you close to wholesale value. You just have to let them know that you're aware of the value of your gem, and not willing to take less than a certain amount.

Diamonds will always hold their value on a trade-up basis as well, either with the company you purchase from or another company that is confident in their buying and selling.

When buying, make sure you purchase a "no apology" diamond. A "no apology" diamond is a stone which has good color to the eye, is eyeclean, and has a fine make or better. Don't buy any diamonds with a "problem", as this dramatically reduces the number of people who might be buyers down the road. Buy a diamond that appeals to as wide a market as possible.

Additionally, don't purchase too high a quality a stone, as the market for rarified qualities (I'm speaking of DE/IF-VVS qualities) is dramatically less as well. I say this just in regards to "popular" demand, connoisseurs will always be interested in these stones and keep this market healthy, but with not as rapid a turnover as more "mainstream" quality stones.)

Keep also in mind that round stones command the largest share of the market, and are the easiest to resell.

When I was in the estate business, I resold many individual's diamonds for them. If they purchased smart and enough time had passed for appreciation, I was usually able to get them their money back and often make them a profit.

A typical example is a grandmother who came in with a 3 carat stone that she had bought for $6000 twenty years earlier. She wanted to help her grandson with his college expenses. I resold the diamond for $19,000, kept $2,000 for my profit and gave her $17,000. She was thrilled.

 

[Modified Brilliant]

Date: 2/26/2006 10:25:16 PM
Author: Richard Sherwood
The wholesale value of diamonds steadily appreciates each year. The key is to purchase your diamond as close to wholesale as possible (either over the internet or through another competitive source). That way, in a few years the wholesale value will overtake what you paid (via appreciation) and continue to increase in value.

The second key is to be wise in how you resell your diamond, if you should ever decide to do so. This is best accomplished by selling to the same market diamond vendors do, the public. If you resell for wholesale or close to it, you''ll be undercutting the vendors yet still be getting far more than if you resold your diamond back into the industry (who will only usually pay you half to two-thirds of wholesale for a cash purchase).

In this manner (depending on how long you wait to sell) you can usually recoup what you paid and often make a profit as well.

You can also recoup about the same amount of money if you allow a jeweler to sell the diamond for you on short-term consignment. Many are happy to get ''free'' inventory at wholesale value from which they can make their normal profit. Some auction houses also do a good job of getting you close to wholesale value. You just have to let them know that you''re aware of the value of your gem, and not willing to take less than a certain amount.

Diamonds will always hold their value on a trade-up basis as well, either with the company you purchase from or another company that is confident in their buying and selling.

When buying, make sure you purchase a ''no apology'' diamond. A ''no apology'' diamond is a stone which has good color to the eye, is eyeclean, and has a fine make or better. Don''t buy any diamonds with a ''problem'', as this dramatically reduces the number of people who might be buyers down the road. Buy a diamond that appeals to as wide a market as possible.

Additionally, don''t purchase too high a quality a stone, as the market for rarified qualities (I''m speaking of DE/IF-VVS qualities) is dramatically less as well. I say this just in regards to ''popular'' demand, connoisseurs will always be interested in these stones and keep this market healthy, but with not as rapid a turnover as more ''mainstream'' quality stones.)

Keep also in mind that round stones command the largest share of the market, and are the easiest to resell.

When I was in the estate business, I resold many individual''s diamonds for them. If they purchased smart and enough time had passed for appreciation, I was usually able to get them their money back and often make them a profit.

A typical example is a grandmother who came in with a 3 carat stone that she had bought for $6000 twenty years earlier. She wanted to help her grandson with his college expenses. I resold the diamond for $19,000, kept $2,000 for my profit and gave her $17,000. She was thrilled.

All great info Rich. I also would like to emphasize your comments that CUT will be a big issue when one decides to sell or trade-in. I cringe when a client brings in a poorly cut stone that was just purchased. Luckily pricescope readers are attuned to the "CUT" issue even though mainstream America jewelry buyers unfortunately are not.

www.metrojewelryappraisers.com

 

[pwings]

Is wholesale really 50% off retail? What do you guys think of wholesale prices are when compared to the rap sheet? If a diamond lists for 30k on rap for example, you think wholesale is 50% off that? That would mean he purchases it for 15 k, and makes 100% profit? I am assuming retail is more or less close to list price on rap, maybe + or - 5%. What you guys think?

 

[pwings]

any thoughts on that last one?

 

[scarleta]

Thanks for the link It is very well written article.