diamond prices rises 5% each year?

[mbn]

Is it true that diamond prices increases 5% each year?

 

[Garry H (Cut Nut)]

no!

1ct D IF is still not back to the heights it reached in 1980.

But GHF - SI VS have performed well over the past 20 years and have made up the gap from say 1/6th the price of D IF to now around 1/2 to 1/3rd the gap (ie a g SI2 1ct costs about a third as much as a 1ct D IF).

Smalls have become far more competitive and production costs have fallen thanks to many factors, so they have actually fallen in price over 10 years in many qualities.

There aint no simple rule.

 

[mbn]

I have found the following at drostes.com contrary to what you said in diamond prices not rising!
Comments?

The History of Diamond Prices:


It is likely that the value of the diamond you select will rise over the period of years you own it. Diamonds are a better investment than most objects of adornment because they are so very hard that they display very little or no wear over the course of time.

Although diamonds are most often purchased for their intrinsic beauty and personal enjoyment, history shows that diamonds prices have increased significantly. The charts provided show the price performance for diamonds since 1986.

The following charts illustrate the average percentage of price increase that diamonds have made in three quarter, one carat, two carat, and three carat round diamonds.

The following charts are based upon the average prices paid by diamond dealers for diamonds in a range of diamond qualities. These charts show what diamond qualities have appreciated in value the most.

The diamonds with qualities of F, G, H, I in color and VS1, VS2, SI1, and SI2 in clarity have shown the greatest increase in prices paid by dealers. These qualities have increased as much as 80% since 1986.

 

[pricescope]

What do you think Garry?[/u]

 

[Garry H (Cut Nut)]

someone said "There are lies, lies and dam statistics"

I could put up charts from the same source that showed poor price performance too.

Buy dimaonds because you like them and they will still be around in hunders of years. If you need to sell them they will still be sought after and have value, and there are not many things you can own and enjoy that do this.

investment = something you buy to sell for a profit. Diamond profit = mostly pleasure (girls like looking and boys get other benefits (he he he))

 

[Garry H (Cut Nut)]

From Droestes site
'This is due to lower demand for the highest quality diamonds. Most buyers are unwilling to pay higher premium prices for diamonds that show little if any significant noticeable difference in beauty.

Our Certified Gemologist-Appraisers recommend buying a diamond for beauty, enjoyment and personal preference and not on investment potential alone"

I agree with them!

 

[Richard Sherwood]

Notwithstanding the fluctuations which occur from time-to-time, like the "spike" in diamond prices (along with gold prices, silver prices, oil prices and everything else in the 1979-1980 Carter double digit inflation years), the average annual wholesale price increase in diamonds (averaging all gem qualities) has been over 5% since 1948.

That's an average increase. Some years you may have no or little increase, which is then balanced by a larger increase.

 

[Richard Sherwood]

Yeah, the records are only accurate for wholesale pricing, as retail pricing is all across the board.

I like Fire&Ice's description of the investment potential of a diamond. She describes it as while not necessarily being a good investment, it has "staying power".

That sounds good to me. Staying power. I think the Jews who fled Nazi Germany with only their diamond jewelry as a grubstake would agree with that.

 

[Richard Sherwood]

Cheers.

 

[rbjd]

Diamonds are not very liquid (pun not really intended). I've seen some diamonds sit on seller's inventory lists for months and months, maybe years.

However, high quality well cut diamonds which are purchased at near wholesale prices OVER TIME (say a few years) should hold their value well (assuming the market doesn't completely collapse).

Another thing to consider: diamonds wouldn't be such a hot ticket money laundering instrument if there wasn't some truth to the "portability versus worth" argument. Some consumer here described a diamond as the smallest representation of his cash that he had seen. No wonder people fleeing war would take diamonds over cash.

I'd venture to say that anybody who spent $10,000 in 1999 on a really nice well cut diamond (say D to H, FL to SI1) instead of tech stocks could probably sell that diamond now for more than the stocks. It's all relative.

 

[optimized]

I'll just throw in a link to a pretty interesting thread about diamonds as "investments" that was debated pretty heavily a while back. I enjoyed that thread immensely.

( https://www.pricescope.com/community/threads/investment.4346/ )

-Tim

[/u]