Best Time to Buy?

[sweetpea&babycorn]

Hi everyone, it's been a little while since I posted here!

I had some questions about diamond prices based on the following:
- fluctuations in diamond prices
- price jumps with carat jumps
- times of year when diamond prices increase
- GOLD prices

I had a discussion with my boyfriend about the best time to buy a diamond. We were both in line with talking more seriously about the logistics of getting engaged and when we could see having a wedding at the end of the year. We both would like to be married to each other in the future (say in the next 2-4 years) but with my career path and geographic uncertainty, there needs to be some planning.

I've been lurking around the second hand market, just to see what's out there and how competitive prices are. I asked my boyfriend how he felt about buying a ring well before a proposal just because of the rise in the price of gold and the fluctuations in diamond prices. I read one outlook report that predicted diamond prices will recover by the end of the year. I'm no expert in this area, which is why I've turned to you wonderful folks here. When do you think is the best time to buy a ring? I heard that around the holidays prices can rise temporarily. I can only imagine prices going up from here, especially in the gold market. My boyfriend believes that diamond prices will plummet, "just like the housing market." He has no experience in the diamond market, and majored in psychology in college and graduate school. What direction do you all think the diamond market will go in the next 6 months or so?

I have no problems accessing the secondhand market to find an engagement ring, but I would like to find a good deal compared to going through vendors. If it makes no difference, I'd prefer to go through a vendor due to their reliability, expert eye, and saving me the time in looking for a stone. If we decide to go through a vendor, would we definitely be saving money by finding a stone just a smidge under those price jump carat marks? If so, it sounds like the wait would be quite a long time since vendors seem to be carrying less of those to maximize profits.

 

[diamondseeker2006]

Hi, good to see you SP! First, he is unfortunately wrong about diamond prices plummeting, and that is because the diamond market is being driven by sales in China and India as their middle and upper classes expand and buy diamonds. If anything, prices will continue to rise. The best time to buy a diamond was before 2011, but since that is impossible, I think the sooner the better is a good idea. Or as soon as you see a great deal on a high quality diamond or ring. I would closely watch the Pre-Loved section here because there have been some ideal cut diamonds for sale there around 20% or so off current retail. And I am sure you know that Good Old Gold, Pearlman's, and JBEG have consignment pieces. Second hand can be good if the diamonds were purchased before 2011.

The smidge under the magic numbers doesn't always work because those are usually higher due to the fact they are just under. In fact, when I was recently looking at 1.5 ct. stones, the 1.4's were close to the same price per carat so there was no real reason to go with 1.4.

You will see everything on the secondary market. But I do encourage you to watch the Pre-loved forum and the other places I mentioned. Can you tell me what your budget is or the kind/size diamond you hope to get? We can help you watch for diamonds!

 

[sweetpea&babycorn]

Hi Diamondseeker! Thanks for replying.

Budget wise, I have absolutely no idea, but I DO have an idea of what I like, and that is an antique stone in the 1.5-2.0 ct range. I think my color tolerance goes as low as a J (without fluorescence) and eye-clean is good enough for me. I've become more indecisive than ever regarding settings, but I am leaning towards a classic solitaire, like the Vatche Swan or the LM solitaire that lily1120 is selling in the pre-loved section.

I am loving OECs right now, as well as old mine cuts and antique cushions. I've been checking out the Pre-loved section on a weekly basis, as well as eBay. Right now, I'm actually communicating with someone who purchased a 2ct OEC ring from a coworker who got divorced, and is asking for a smidge under 10K for it. He says it's a J VVS1/2 OEC and was willing to get more pictures for me and email them to me. I'm trying to negotiate a return policy with him as well. He says he knows nothing about diamonds and if afraid of diamond switching. I told him all I want is an opportunity to get an appraisal on it since he knows so little about the ring, and that if I returned it, I would cover the costs of him getting an appraisal to make sure it's the same stone.

I've also been lurking on JbEG and looking at OWD, but I find that JbEG has nicer images, and I've worked with Grace before and would have no hesitation doing business with her again. Once he gets pictures, I would be happy to post them here to get everyone's thoughts.

 

[kenny]

Unless you are psychic or have a time machine the best time to buy is today.