Canadian dollar impact of buying loose diamonds

[jobelle]

I have been doing a lot of self-educating on PS. I (ignorantly) never knew there was so much to learn about diamonds. I have read a ton of helpful posts on some of the online vendors (WF, JA, GOG, etc.) and had a thought... Given how far the Canadian dollar has fallen, is it still worth it (in people’s opinions) to still purchase from these online vendors? I realize that these vendors have access to a much larger selection compared to the Canadian vendors, but from a dollar value perspective, it would appear that Canadians will now be paying a lot more than in the past number of years.

 

[dk168]

I am in the UK and cannot comment on the currency market and situation. However, since jewellery in UK is so expensive, I import from abroad all the time regardless of exchange rate.

However, I have fond memories of those happy days when 1 GBP was nearly 2 USD a good few years ago!

DK

 

[kmarla]

The short answer is that yes, it can still be worth it. You really need to do your homework however. The current exchange rate is making it more difficult for sure. I recently purchased a super ideal cut RB and was still able to save significantly compared to the Canadian vendors. It's hard to believe that just a few years ago we were trading at par. Good luck!

 

[maccers]

Agree with kmarla's comments.

It can still be worth it provided you've done some research but an additional factor that makes ME hesitate is shipping/returns. If there's a possibility that I'll need to ship it back to the vendor (for example, repairs/alterations) or if the purchase isn't to my satisfaction (e.g. buying coloured gemstones is tricky) and I have to pay for the shipping/insurance, that contributes to my decision to buy from the US. An item from the US could start off as cheaper but depending on what needs to be done, you could end up paying the same or more.

So, I think it depends on what you're buying (diamond, gemstone, setting) and if you've been able to see the item in person already (e.g. Tacori setting at a local jeweller in Canada but you buy it from the USA because it's cheaper). I think everyone has slightly different ways of factoring in the risk (or what they perceive as risk).

ETA: I bought my OEC from Jewels by Grace in the states. She provided lots of photos and videos which was really helpful but because you can't buy OECs 'by the numbers', it's an issue of personal taste. There was the possibility that I wouldn't like the OEC once I had it in hand.

 

[Paul-Antwerp]

The basic price of diamonds is set in USD. Where the diamond is sold basically has no impact, since the basics always refers back to USD.

In that sense, a Canadian vendor may have purchased inventory when the CAD was stronger, seemingly owning a relatively cheap stone if the CAD went down in the meantime. Still, faced with having to buy a new stone for inventory, that will be more expensive because of the exchange-rate only.

So, in all countries where the stronger USD has made diamonds more expensive in the past months, the question is: Is the rise of the USD at its end or not? If not, as I personally believe, diamonds in all non-USD-countries are going to become more expensive still, simply because of the exchange-rate.

For that same reason, a lot of Asian countries consider diamonds an investment or rather a store-of-value. Many such countries have regulations which make owning foreign currency difficult, and a purchase of diamonds indirectly is a purchase of USD. If you are in a country of regular devaluation of your local currency compared to the USD, the simple purchase of diamonds is a store-of-value, as it is an indirect purchase of USD.

Live long,

 

[jobelle]

@paul_antwerp - I suspected as such. Thanks for your input