price increases on existing stock -- justified or not?

Written by Lula » June 30th, 2011, 9:38 am:I read PCMusicGuy's post near the end of this thread http://www.pricescope.com/forum/post2959070.html#p2959070 this morning, and thought that his comments about vendors increasing prices on existing stock warranted its own thread. I know that I have wondered aloud, in other threads, why the demand in India and Asia for higher color/higher clarity diamonds means the prices of K VS1 stones (in existing stock!) need to go up -- never got much of an answer.

I believe the argument has been that vendors need to raise prices on all diamonds because replacing any diamond they sell is going to cost more.

But at what point do these uniform price increases become unsustainable, especially in lower-color-lower-clarity diamonds? I know for me, I've reached the "turn-off" point and plan to put my jewelry budget into colored stones rather than diamonds.

What do others think -- newbies and veterans? Do you think that the shortage of quality rough and the increase in demand from emerging markets justifies price increases on existing stock?

Written by mayerling » July 1st, 2011, 3:35 am:

Written by Lula » June 30th, 2011, 9:38 am:I read PCMusicGuy's post near the end of this thread http://www.pricescope.com/forum/post2959070.html#p2959070 this morning, and thought that his comments about vendors increasing prices on existing stock warranted its own thread. I know that I have wondered aloud, in other threads, why the demand in India and Asia for higher color/higher clarity diamonds means the prices of K VS1 stones (in existing stock!) need to go up -- never got much of an answer.

I believe the argument has been that vendors need to raise prices on all diamonds because replacing any diamond they sell is going to cost more.

But at what point do these uniform price increases become unsustainable, especially in lower-color-lower-clarity diamonds? I know for me, I've reached the "turn-off" point and plan to put my jewelry budget into colored stones rather than diamonds.

What do others think -- newbies and veterans? Do you think that the shortage of quality rough and the increase in demand from emerging markets justifies price increases on existing stock?

Caveat: I don't know much about diamond pricing.

But, I guess it makes sense. If there's huge demand and a limited supply, prices go up. It doesn't matter if the supply pre-existed the demand.