How to convince hubby of the wisdom of this?

[Upgradable]

My jeweler is being a giant tempter! He has a old european/mine cut stone on memo that weighs in at 2.21 carats. It is graded as H VS1 and is gorgous!! He's offering it to me at a great price but he only has it through Saturday.

I'm trying to convince hubby that it would be a better investment than our current stock portfolio. After all, if we want to sell it 20 years from now it could help our retirement fund. It's not going to depreciate or go bankrupt.

I know the view on diamonds not being a proper commodity, but it would be a stable concrete asset, would it not? I'll post some pictures and I'd love to hear what your thoughts are!

Wow! I just looked at the picture blown up to this size and realized what a poor job I did capturing this beauty! The top half of the stone is showing reflections of the table facets. The pattern you see on the bottom is really what the stone looks like throughout.

 

[denverappraiser]

I absolutely disagree with your premise. An ‘investment’ is only worth as much as you can get on resale. You then compare this with what it costs and how long you have to hold it to make the sale. You might want to look into what your resale opportunities are on diamonds. This will, of course, depend on your own selling skills, your market access and general fashions at the time you decide to sell but most people are finding it to be extremely difficult to get anywhere near the return that the selling jeweler led them to believe is available.

Incidentally, who graded it H/VS1, what's the asking price and how did you decide that this price was 'great'?

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[purrfectpear]

I would have to say that''s a retail price. You would be unlikely to get back your investment, much less make any money on it. Someone has been trying to sell an EricaGrace ring on eBay for more than a month now. Larger stone, less money including platinum Singlestone mounting.

 

[Upgradable]

Awwww, crap! I was hoping I was on to something here!! Rationalization takes another hit!

 

[Lorelei]

Date: 12/17/2008 11:39:15 AM
Author: Upgradable
Awwww, crap! I was hoping I was on to something here!! Rationalization takes another hit!

Ditto Neil''s advice. Sorry ups!

 

[Upgradable]

You people are NOT very good enablers!

 

[onvacation]

It''s pretty! Well if you really want it, how about a simple "I want it (and we can totally afford it)!"? That''s always rationale enough for me

Ditto to the investment idea though.

 

[Lorelei]

Date: 12/17/2008 12:11:33 PM
Author: onvacation
It''s pretty! Well if you really want it, how about a simple ''I want it (and we can totally afford it)!''? That''s always rationale enough for me

Ditto to the investment idea though.

There you go Ups!!

 

[Moh 10]

Investment?

You and I pay retail but must sell at wholesale.
What "investment" is known by all informed people to go down in value 50% the moment you acquire it?

Please run away from any vendor telling you diamonds are an investment.

Oh and have the seller send it to GIA or AGS to see what the grades really are.
Never trust a seller's word for grades, especially a seller trying to sell diamonds as "investments"

If his diamonds were such good investments he'd keep them.

 

[neatfreak]

Lol...we can enable if you want but you''ll have to phrase it differently than "it''s a good investment".

 

[Moh 10]

" . . but he only has it through Saturday. . .

Hahahaha

Another huge Red Flag Alert.

Run, I say, Run!

 

[kcoursolle]

Sorry, ditto the others that diamonds aren't that great as investments. However, they are in my opinion better investments than "most" cars or electronics that depreciate at a horribly high rate. If he is into cars or electronics you may be able to tell him that while his luxury purchases take a huge dive after a year and longer yours are still worth about 1/2 of purchase cost if you were able to sell them.

 

[anyname]

i have nothing to add that''s different from everyone else. But i have to say that it is no wonder you were so tempted!

 

[kimikocat]

It sure is pretty!

Maybe you should think of your "returns" in other terms...

kimi

 

[Lorelei]

Ok, how about if YOU get the diamond, HE gets a new set of uber golf clubs/ fancy TV, other electronics, car toys, etc etc?

 

[canuk-gal]

HI:

Tempting to be sure, but not from an "inverstment" standpoint! (although I''m not sure how buying this could do any worse than the rest of my portfolio

....

)

cheers--Sharon

 

[Judah Gutwein]

Upgradable,

Ditto Neal B. on this.

My Dad always tells me how he remembers (before my time) when diamonds were bought and sold as investment pieces.
This school of thought doesn''t exist anyomore in today''s market and climate where diamonds have become more of a commodity.

The investment approach is appropriate if you are strictly purchasing this diamond with a "buy / hold / sell" mentality.
However, if you love this stone and wish to enjoy it in health for a long time, perhaps you can take the plunge and not worry for the moment whether you''d be able to recoup your monies down the line!

They don''t say "diamond are forever" for nothing!

Best,

 

[MissDimity]

I would not invest in diamonds.
However, unless they were Argyle pink diamonds ( as the mine is due to close in 201.
Having said that, I think there would be better ways to invest.

 

[Diamond*Dana]

I can see why you love it so much, it is beautiful!!

 

[Fly Girl]

Date: 12/17/2008 11:24:01 AM
Author:Upgradable
My jeweler is being a giant tempter! He has a old european/mine cut stone on memo that weighs in at 2.21 carats. It is graded as H VS1 and is gorgous!! He''s offering it to me at a great price but he only has it through Saturday.

I''m trying to convince hubby that it would be a better investment than our current stock portfolio. After all, if we want to sell it 20 years from now it could help our retirement fund. It''s not going to depreciate or go bankrupt.

I know the view on diamonds not being a proper commodity, but it would be a stable concrete asset, would it not? I''ll post some pictures and I''d love to hear what your thoughts are!

I "invested" in a Crafted by Infinity diamond in September of this year, rather than putting the money into stock. Since our stocks are now worth about half of what they were in September, and I still have the diamond, I figure I did pretty well on this purchase.

As far as that diamond being a better investment than your current stock portfolio, probably not. Should have sold the stock before it tanked in October.

In any case, it''s a beautiful stone, and why not "buy and hold" some diamonds? They are much more fun to gaze at than my current stock portfolio balance sheet.

 

[~*Alexis*~]

Date: 12/17/2008 4:16:18 PM
Author: neatfreak
Lol...we can enable if you want but you''ll have to phrase it differently than ''it''s a good investment''.

its an investment on our love and commitment to eachother....

 

[wishinpink]

IT"S SO PRETTY!! Sorry it's not the best investment =(

ooooh ok! I'm going try to do some enabling here. How about THIS idea-

1. look for a gorgeous diamond similar to this one but buy it second hand from someone who must sell it for cheap due to the economy

2. Your diamond will at least have a more similar/ higher resale value many years from now, since you already got it at a steal?


Does this work? At least the diamond doesn't depreciate like cars do!!!

 

[MMT]

I just have to say it sure is pretty even if it isn''t a good investment