"investment grade" diamonds

[jewerlylover]

My parents have quite a few diamonds that they bought as an investment back in the ''80''s. I know(I am sure that they do now) that wasn''t the best idea. Is it worth trying to sell them or could they be traded in? I think most of them are .33 some may be as big as .67. You can only do so much with this size. Would anyone take several of them to go towards a purchase of a bigger stone? What are the options?

 

[kenny]

Diamonds are a terrible investment because we, the public, buy at retail but must sell at wholesale - which is about half of retail.
You'd have to wait for diamond prices to double to just break even.

I hate to say it but you aren't going to get much for them compared to what you think they are "worth".
Unfortunately a diamond's worth depends on who is selling it.
You and I would get very little for the same stone that Tiffany would get a lot for.

Have you considered saving them and have them set for very special gifts for family members on important occasions?

 

[denverappraiser]

As I’m sure they’ve discovered by not, their ‘investment’ was probably questionable at best. There are dealers who will buy these sorts of things and who will be happy to take them as a trade in on something else but it will be entirely on the merits of each stone. Ignore the documents they came with. Most of the ‘investment’ stones of the 80’s were poor to fair cuts that were accompanied by seriously overgraded reports and appraisals with ridiculous values, even for then..

There may be one token bright side. If they bought them investment property, have an appropriate paper trail and they sell them at a loss, they may be eligible for a tax deduction as a long-term capital loss. It usually requires selling to have a tax effect but, depending on their tax situation and what they paid in the first place, this deduction may be worth more to them than the resale value. Talk to a tax professional.

Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

 

[in-situ]

At least you do not have unrealistic expectations regarding the value of the Diamonds now in your possession.

DenverAppraisers tax deduction idea is potentially a possibility, but I personally prefer Kenny''s recycling idea.