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Diamond prices up but

Person24

Shiny_Rock
Joined
Apr 9, 2008
Messages
209
Why are diamond prices going up if more and more people are selling their gold and diamonds for cash? I'd think there would be more of an over supply. I don't get it?

Explain. Thanks!
 

stone-cold11

Super_Ideal_Rock
Joined
Sep 9, 2008
Messages
14,083
Because the other side of the world is buying much more than this side of the world is selling. Also, inflation, USD is not worth as much as it used to.
 

jaebond

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Joined
Jun 25, 2011
Messages
222
I am by no means an expert and have no idea if this is true, but I would venture a guess that the diamonds that are being sold are not up to the standards of most of the people here...
 

Person24

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Joined
Apr 9, 2008
Messages
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I just thought it sounded strange because I was at a jewelry store the other day and the owner said they have stopped purchasing diamonds from people that come in because they have so many. But I live in an area that was hit hard by the economic decline.
 

TristanC

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Jun 6, 2011
Messages
995
jaebond|1309739566|2961312 said:
I am by no means an expert and have no idea if this is true, but I would venture a guess that the diamonds that are being sold are not up to the standards of most of the people here...

I am also not an expert in this, but for some east asian markets, what you have said is actually not true. In the jewellers here, it is actually common to find diamonds on shelf that range from D to H colours. I and below are actually rarer. than the near colourless and collector colours.

I think that locally people here prefer not to have diamonds of an extreme size - preferring quality for the middle to lower income classes. We have mass market chains selling Canadian diamonds as well, and also chains selling a large number of GIA certed stones. GIA certification is the prevalent certification locally, which from forum comments I understand is different than in the US B&M stores.

I would imagine that Hong Kong is very much like Singapore too. I don't quite know about china yet, but Japan, HK, Singapore would consume the better quality gems rather than the lower quality ones. China and India, as they mature into diamond demand markets, might be different. I would venture that they would prefer higher quality though - if you look at luxury wine consumption and liquours. All the good stuff is going there too.

This is chiefly speculation though for the two large markets (india/china). Singapore and HK are quality markets however.
 

Lula

Ideal_Rock
Joined
Apr 5, 2009
Messages
4,624
Person24|1309742356|2961332 said:
I just thought it sounded strange because I was at a jewelry store the other day and the owner said they have stopped purchasing diamonds from people that come in because they have so many. But I live in an area that was hit hard by the economic decline.

Yes, I've heard one of my local estate jewelers/pawn stores say the same thing. This thread https://www.pricescope.com/community/threads/the-diamond-overhang.109251/ contains an interesting article about the possible effect on the market of people selling their family or "heirloom" diamonds.
 

Person24

Shiny_Rock
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Apr 9, 2008
Messages
209
Lula it is a Diamond conspiracy!!!
 

Lula

Ideal_Rock
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Apr 5, 2009
Messages
4,624

Person24

Shiny_Rock
Joined
Apr 9, 2008
Messages
209
I live in Florida! No wonder the jeweler's don't want to buy anything! :errrr:

Too bad they aren't willing to give some diamonds to me for a lower price so I can start on one of my dream projects . . . . . :evil:
 

jaebond

Shiny_Rock
Joined
Jun 25, 2011
Messages
222
TristanC|1309746290|2961360 said:
jaebond|1309739566|2961312 said:
I am by no means an expert and have no idea if this is true, but I would venture a guess that the diamonds that are being sold are not up to the standards of most of the people here...

I am also not an expert in this, but for some east asian markets, what you have said is actually not true. In the jewellers here, it is actually common to find diamonds on shelf that range from D to H colours. I and below are actually rarer. than the near colourless and collector colours.

I think that locally people here prefer not to have diamonds of an extreme size - preferring quality for the middle to lower income classes. We have mass market chains selling Canadian diamonds as well, and also chains selling a large number of GIA certed stones. GIA certification is the prevalent certification locally, which from forum comments I understand is different than in the US B&M stores.

I would imagine that Hong Kong is very much like Singapore too. I don't quite know about china yet, but Japan, HK, Singapore would consume the better quality gems rather than the lower quality ones. China and India, as they mature into diamond demand markets, might be different. I would venture that they would prefer higher quality though - if you look at luxury wine consumption and liquours. All the good stuff is going there too.

This is chiefly speculation though for the two large markets (india/china). Singapore and HK are quality markets however.

I should have said it better, but I meant the diamonds that are being sold back to jewelers, so they aren't really helping with the supply of the higher quality diamonds.
 
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