Diamond prices will be cut by up to 30%!!!
- Thread starter losttiff
- Start date
- Status
neatfreak
Super_Ideal_Rock
- Joined
- Feb 17, 2007
- Messages
- 14,174
strmrdr
Super_Ideal_Rock
- Joined
- Nov 1, 2003
- Messages
- 23,295
customandrew
Rough_Rock
- Joined
- Aug 24, 2008
- Messages
- 73
Kaleigh
Super_Ideal_Rock
- Joined
- Nov 18, 2004
- Messages
- 29,571
- Joined
- Sep 7, 2008
- Messages
- 294
- Joined
- Apr 3, 2004
- Messages
- 33,852
diamondfan
Super_Ideal_Rock
- Joined
- Jun 17, 2005
- Messages
- 11,016
customandrew
Rough_Rock
- Joined
- Aug 24, 2008
- Messages
- 73
- Joined
- Jul 21, 2004
- Messages
- 9,159
I wouldn’t bet on it. On an individual basis pretty much anything can happen and certain categories, like industrial grit may take a hit but I don’t see any serious drops in the bigger and better stones.
1) Contrary to how it feels here in the US with the state of the banks and such and how bad the media likes to portray things, there ARE people out there who are doing just fine. We are in the midst of one of the biggest transfers of wealth in history and although that changes who is buying discretionary things like diamonds but I don’t see the demand for them changing seriously. If anything, the continued growing prosperity in India and China as well as the accumulating wealth in Russia, the Middle East and elsewhere are likely to increase it.
2) The prices on ‘mainstream’ diamonds at retail HAVE dropped seriously in the last few years. Probably by more than the predicted 30%. The prognosticators are just slow to pick up on it. The key to this is the moving of the marketplace from the mall to the Internet and the need of successful B&M dealers to compete with that. Dealer margins have plummeted. Although there’s a bit more of this to go in bringing down the ‘average’, the places I expect to see changes aren’t at the discount dealers. Put another way, Walmart has become the #1 jewelry retailer in the world for a reason. Low prices. People who are competing in that marketplace need to drop prices or perish and traditional jewelers are suffering badly as they deal with it. On the other hand, there’s really rather little overlap in what’s being sold at Walmart and what gets discussed here on Pricescope.
3) The secondary market, meaning consumer resale opportunities, continues to be a mess but, if anything, I see that improving, especially with bigger stones. Currently everything is sort of frozen up and hardly anyone is buying much of anything but the dealers are getting better at finding buyers on the other side of the world for such things and it’s getting easier for a well heeled buyer to find things in what, until recently, were well hidden markets.
Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver
1) Contrary to how it feels here in the US with the state of the banks and such and how bad the media likes to portray things, there ARE people out there who are doing just fine. We are in the midst of one of the biggest transfers of wealth in history and although that changes who is buying discretionary things like diamonds but I don’t see the demand for them changing seriously. If anything, the continued growing prosperity in India and China as well as the accumulating wealth in Russia, the Middle East and elsewhere are likely to increase it.
2) The prices on ‘mainstream’ diamonds at retail HAVE dropped seriously in the last few years. Probably by more than the predicted 30%. The prognosticators are just slow to pick up on it. The key to this is the moving of the marketplace from the mall to the Internet and the need of successful B&M dealers to compete with that. Dealer margins have plummeted. Although there’s a bit more of this to go in bringing down the ‘average’, the places I expect to see changes aren’t at the discount dealers. Put another way, Walmart has become the #1 jewelry retailer in the world for a reason. Low prices. People who are competing in that marketplace need to drop prices or perish and traditional jewelers are suffering badly as they deal with it. On the other hand, there’s really rather little overlap in what’s being sold at Walmart and what gets discussed here on Pricescope.
3) The secondary market, meaning consumer resale opportunities, continues to be a mess but, if anything, I see that improving, especially with bigger stones. Currently everything is sort of frozen up and hardly anyone is buying much of anything but the dealers are getting better at finding buyers on the other side of the world for such things and it’s getting easier for a well heeled buyer to find things in what, until recently, were well hidden markets.
Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver
- Joined
- Apr 3, 2004
- Messages
- 33,852
about2begin
Shiny_Rock
- Joined
- Oct 16, 2008
- Messages
- 121
If this happens, when will this be reflected in the cost of stones listed with some of the online vendors? I have a stone on hold somewhere but I''m open to anything until I pay and am out the door.
I recall vendor prices rose about 3 months ago when the price of rough went up. The rise in the cost of rough was reflected in the price of the inventory they already had listed at the time (there was a thread on here but I dont recall the title). Will prices of their available stones drop or will the change impact only newly acquired inventory?
I recall vendor prices rose about 3 months ago when the price of rough went up. The rise in the cost of rough was reflected in the price of the inventory they already had listed at the time (there was a thread on here but I dont recall the title). Will prices of their available stones drop or will the change impact only newly acquired inventory?
kcoursolle
Super_Ideal_Rock
- Joined
- Jan 21, 2006
- Messages
- 10,612
Luckily i am not after a large stone. What would the trend be for stones around 1-1.5ct in the next 2-3 months?
Honestly, i really think everything will drop when inflation is turning into deflation.
Everyone is cutting back so much, not just Americans. Luxury items including jewellery will be on the drop out list.
Honestly, i really think everything will drop when inflation is turning into deflation.
Everyone is cutting back so much, not just Americans. Luxury items including jewellery will be on the drop out list.
Totally agree!!! This financial crisis has gone bigger than I thought. American economy turning downhill has truly influenced lots of countries. I am from China, I know the situation is pretty bad in China now. The Chinese stock market has crashed from 6000 to 1800 in the last couple of months. Lots of factories have shut down and unemployment has increased. One of my dad''s friend used to work for a big American company in Beijing and his salary was very very high comparing to normal Chinese workers. I heard he got laid off last week. It''s shocking and very scary that the bad economy has already influenced someone around you.
pocahontas
Brilliant_Rock
- Joined
- Aug 14, 2003
- Messages
- 1,348
tradergirl
Brilliant_Rock
- Joined
- Jan 26, 2008
- Messages
- 868
Dancing Fire: as usual, you are right on target vs. the "dealers" whose livelihood and future profits depend upon the buying pool''s belief that prices will not go down. The China, India and Russian markets have also crashed and this is a global problem. Yes, there are a few billionaires and shieks still running around but that crowd does not shop for the same products that the rest of us do.
strmrdr
Super_Ideal_Rock
- Joined
- Nov 1, 2003
- Messages
- 23,295
- Joined
- Oct 21, 2004
- Messages
- 5,096
Karl..., a lot of news is coming out these days...., but almost no actions!
Business in the cutting centers is pretty much frozen as is the wholesale segment.
We need to let the (economic turmoil) dust settle before any real numbers show up.
Asking prices are pretty steady (except for cash hungry dealers who must sell to cover debts)...
Buyers are siting on the sidelines waiting to see where the wind blows..., and not jumping in any waters as of now.
The news that is being published these days has the same value as trying to value the true value of stock/commodity etc... prices!
Once the dust settles..., that''s when we can figure out the true value of Diamonds.
Thats my opinion...
strmrdr
Super_Ideal_Rock
- Joined
- Nov 1, 2003
- Messages
- 23,295
sounds about right to meDate: 10/26/2008 12:32:15 AM
Author: DiaGem
Karl..., a lot of news is coming out these days...., but almost no actions!
Business in the cutting centers is pretty much frozen as is the wholesale segment.
We need to let the (economic turmoil) dust settle before any real numbers show up.
Asking prices are pretty steady (except for cash hungry dealers who must sell to cover debts)...
Buyers are siting on the sidelines waiting to see where the wind blows..., and not jumping in any waters as of now.
The news that is being published these days has the same value as trying to value the true value of stock/commodity etc... prices!
Once the dust settles..., that''s when we can figure out the true value of Diamonds.
Thats my opinion...
really depends on who has enough cash to wait it out and how long it takes.
- Joined
- Oct 21, 2004
- Messages
- 5,096
Yep..., and the rough producers have the strongest hands economically...Date: 10/26/2008 12:35:52 AM
Author: strmrdr
sounds about right to meDate: 10/26/2008 12:32:15 AM
Author: DiaGem
Karl..., a lot of news is coming out these days...., but almost no actions!
Business in the cutting centers is pretty much frozen as is the wholesale segment.
We need to let the (economic turmoil) dust settle before any real numbers show up.
Asking prices are pretty steady (except for cash hungry dealers who must sell to cover debts)...
Buyers are siting on the sidelines waiting to see where the wind blows..., and not jumping in any waters as of now.
The news that is being published these days has the same value as trying to value the true value of stock/commodity etc... prices!
Once the dust settles..., that''s when we can figure out the true value of Diamonds.
Thats my opinion...
really depends on who has enough cash to wait it out and how long it takes.
I dont believe they will sell for 30+/-% less..., if they will..., I will be more than happy to buy
strmrdr
Super_Ideal_Rock
- Joined
- Nov 1, 2003
- Messages
- 23,295
No one really knows.Date: 10/26/2008 2:58:04 AM
Author: losttiff
Does anyone know how long it would take to find out if prices are gonna drop or not?
My ring has become more and more unaffordable with USD going up so much in the last few weeks. Waaaa!!!!
Even if prices in USD do drop who knows what the dollar is going to do vs other currencies.
- Joined
- Oct 20, 2007
- Messages
- 6,418
neatfreak
Super_Ideal_Rock
- Joined
- Feb 17, 2007
- Messages
- 14,174
- Status
How Are Diamonds Made? Natural vs Lab-Created Explained
How Are Diamonds Made? Natural vs Lab-Created Explained - 08/05
Top Wedding Ring Brands for Every Style and Budget
Top Wedding Ring Brands for Every Style and Budget - 08/05
Where to Buy Lab Grown Diamonds: Best Places Compared
Where to Buy Lab Grown Diamonds: Best Places Compared - 08/05
300x240.png)