HUGE Light Brownish Yellow Diamind - HELP is it worth it?

[lucida]

Hello All,

I need help in deciding on an emerald cut diamond. I don't have much knowledge about emerald cut diamonds and am not in the industry but love diamonds. Here's the dilemma - this diamond is available for sale. Is it a good investment piece and what amount would be a good amount to buy this for?
It's GIA certified with the following from GIA and the picture is below. Any professional thoughts, comments or suggestions would be appreciated.
Emerald Cut
Measurements
15.74 x 14.08 x 11.03 mm
Carat Weight
22.84 carat
Clarity Grade
VS2
Origin
Natural
Grade
Fancy Light Brownish Yellow
Distribution
Even

Depth
78.4 %
Table
65 %
Girdle
Thick to Very Thick
Culet
None
Polish
Excellent
Symmetry
Very Good
Fluorescence
Very Strong Blue
Clarity Characteristics
Crystal, Cloud, Extra Facet

 

[Rockdiamond]

Re: HUGE Light Brownish Yellow Diamind - HELP is it worth it

HI Lucida,
Interesting stone!
When you asked about it being a "good investment"- if we're speaking of money, no, it's likely not.

If you're buying it as an "investment" in your pleasure of ownership, and you want to wear it, yes, it can be a great investment.

For it to be a financial investment you'd need to pay a crazy low price, and have a mechanism in place to sell it.
Since the seller is likely to be asking a price which relates to "retail" and I don;t believe you're in the diamond business, it's likely a horrible investment financially.

As a side note the Strong blue fl in this color is also a red flag.
It might not be a problem, but in may cases it will be in this color.

 

[lucida]

Re: HUGE Light Brownish Yellow Diamind - HELP is it worth it

Hello Rock Diamond,

Thnak you for your response. Is there anywhere I can look up prices? the seller wants $200k for it and I'm trying to negotiate it down. But what would be considered it's wholesale and retail prices? Thanks.

 

[Rockdiamond]

Re: HUGE Light Brownish Yellow Diamind - HELP is it worth it

There's no accurate method to do what you're trying to do.
No wholesale price list.
I'll find much better uses for your $200k

Seriously - let me pose this question- say you bought the stone today for $150k- and you needed to sell it.
How would you go about doing that part?

 

[lucida]

Re: HUGE Light Brownish Yellow Diamind - HELP is it worth it

Yes you're right. The problem is that I don't have $200k or anything close for that matter. Is $50k worth it or not? That's my budget. I am not sure where I would be going to get this to sell afterwards either. That's a good point. The only type of diamond that has increasing value is only a perfect diamond in every way, correct?

 

[aftereffects15]

Re: HUGE Light Brownish Yellow Diamind - HELP is it worth it

I wouldn't pay $50k for it for whatever that's worth... much less $200k

 

[Rockdiamond]

Re: HUGE Light Brownish Yellow Diamind - HELP is it worth it

Hi Lucida,
This forum is a great place to learn more about diamonds.
I'd be quite sure the seller's not going to accept $50k for the stone.

It's a very tough business to get into. More so today than ever before.
If you want to invest the $50k in a diamond, make sure it's one you want to own , cherish and enjoy.

 

[Rockdiamond]

Re: HUGE Light Brownish Yellow Diamind - HELP is it worth it

I wouldn't pay $50k for it for whatever that's worth... much less $200k

At $2189.14 per carat ( $50k) I'm a buyer

Ain't happening. As it happens I have had the opportunity to see this stone a few years back.
It's lovely in person- but even at a reasonable per carat price, it's crazy lot of money.

If we're talking sheer investment for dealers, pinks and blues have been rising steadily for years.

 

[aftereffects15]

Re: HUGE Light Brownish Yellow Diamind - HELP is it worth it

touche

Is there a way to invest in pink/colored diamonds through stocks/funds instead of buying individual diamonds (which would be very difficult to sell as you correctly pointed out) just out of curiosity? Totally agree with the trend observation

 

[lucida]

Re: HUGE Light Brownish Yellow Diamind - HELP is it worth it

Yes, a blue diamond has been my dream for years, but I came to the realization that I can't afford it. I would rather purchase a smaller more perfect diamond, however at the end of the day you give and take since I don't have a $200k budget. If I had $200k, there's another diamond I've been eyeing that I'd rather buy.
I also remember looking through your blue diamonds a few years ago. I've been searching for over 5 years to buy something affordable and an investment and something I'll enjoy. What I really want I can't afford. So even at $50k this is a bad investment...

 

[yssie]

Re: HUGE Light Brownish Yellow Diamind - HELP is it worth it

This will probably come off very poorly, but...

In the diamond world $50k is just not a lot of money.
When I think "investment" pieces (rather, specifically, "investment" pieces standing only on financial merit, sans heritage or provenance) I think of pieces that are special, unique, too valuable for "commoners" to own in quantities sufficient to detract from their exclusivity... And I think that calibre of stone just isn't achievable at $50k, or even $100k.

I'll just echo prior advice - I really, really don't think diamonds are good investments for anyone who doesn't know the ins and outs of the trade. Even for someone who has the budget to buy a kingdom or two - but yeah, that guy's odds as an outsider are better

 

[yssie]

Re: HUGE Light Brownish Yellow Diamind - HELP is it worth it

I love your username, lucida I had the pleasure of trying on a pair of lucida studs last year and they were spectacular - luxury at its finest, most definitely!

 

[chrono]

Re: HUGE Light Brownish Yellow Diamind - HELP is it worth it

This will probably come off very poorly, but...

In the diamond world $50k is just not a lot of money.
When I think "investment" pieces (rather, specifically, "investment" pieces standing only on financial merit, sans heritage or provenance) I think of pieces that are special, unique, too valuable for "commoners" to own in quantities sufficient to detract from their exclusivity... And I think that calibre of stone just isn't achievable at $50k, or even $100k.

I'll just echo prior advice - I really, really don't think diamonds are good investments for anyone who doesn't know the ins and outs of the trade. Even for someone who has the budget to buy a kingdom or two - but yeah, that guy's odds as an outsider are better

Well typed, Yssie. Buy an FCD because you love it, will wear and enjoy it. Don't buy it as an investment - you are better off investing your hard earned money elsewhere.

 

[lucida]

Re: HUGE Light Brownish Yellow Diamind - HELP is it worth it

Yes I agree with all of you, and yes to buy something completely rare and unique you'd need to add anoer "0" to my 50k. This 50k is hard earned money for the past 17 years. I really want something unique and an investment piece. My first pick was a blue diamond, but at this price I'm looking at a third of a carat at best.

I appreciate all of your comments and suggestions. I guess my quest continues...

 

[Rockdiamond]

Re: HUGE Light Brownish Yellow Diamind - HELP is it worth it

touche

Is there a way to invest in pink/colored diamonds through stocks/funds instead of buying individual diamonds (which would be very difficult to sell as you correctly pointed out) just out of curiosity? Totally agree with the trend observation

Interesting thought!
I can't see how it would work though. One reason that comes to mind: the effort and resources required to effectively sell the diamond mean that whoever is responsible for that aspect would need to take too big a slice of the pie.

 

[ADN]

Re: HUGE Light Brownish Yellow Diamind - HELP is it worth it

touche

Is there a way to invest in pink/colored diamonds through stocks/funds instead of buying individual diamonds (which would be very difficult to sell as you correctly pointed out) just out of curiosity? Totally agree with the trend observation

Interesting thought!
I can't see how it would work though. One reason that comes to mind: the effort and resources required to effectively sell the diamond mean that whoever is responsible for that aspect would need to take too big a slice of the pie.

Now, I’m not a financial advisor or an investment professional, this is my personal experience with pinks (specifically Argyle) – so if anyone is thinking of investing in diamonds (or anything else) seek professional investment advice first (don't get it from an online chat forum...or at least not all of it... ) - - anyway...here's my small contribution to the conversation...for what it's worth...

Upside…Pink diamonds have seen remarkable growth over the last few years. Over the last decade, tender prices for Argyle pink diamonds have outperformed other major equity indices. Even during the global financial crisis, record prices were being recorded for tender stones. Millions of new luxury consumers in China, India and Russia are creating an unprecedented demand for diamonds, and in particular natural coloured pink diamonds.
This increasing demand, coupled with diminishing supplies represents an exciting opportunity for investors looking for an inflation hedge or hard tangible assets with less frenetic price swings than other investments. With pressure on supply already driving prices, and few or no mines expected to emerge in the next 10 years, and existing mines past their peak, supply is already on the decline. The supply/demand gap will most certainly demand a premium greater than the appreciation rate of around 20% per year they've already been experiencing. This is a great time to purchase natural fancy coloured pink diamonds...before they are simply unobtainable.

Now the down side…Access to goods. Once a year, the more exceptional polished Argyle pink diamonds from the annual production are sold individually. This invitation only blind auction is known as the Argyle Pink Diamond Tender. For every million carats of rough diamonds produced at Argyle, less than one carat will meet the criteria to be suitable to go into the tender. Like Rockdiamond mentioned, buying individual diamonds to sell at a profit, even large pinks, can be surprisingly difficult; and selling diamonds can be an extraordinarily frustrating experience for private individuals. The average investor will generally not be able to purchase a large enough pool of diamond assets with diverse characteristics in order to create a diversified portfolio; a $300,000 pink diamond has more 'investment' potential than a $10,000 colourless diamond. You don't buy a $1,000 painting hoping to sell it in a few years for $5,000. And on the sell side, the average investor will be limited in his or her ability to liquidate the diamond assets at fair market value. To make a profit, investors must at some time find buyers who are willing to pay more for their diamonds than they did; and because there is no unified market in which to sell diamonds, an investment diamond needs to be purchased at a price that is reasonably close to the price that you can easily resell it. Buying at retail and reselling at wholesale is a bad idea, so you need to have direct access to international dealer prices and markets.
I would offer these additional suggestions before you invest in pink (or any) diamonds:
Meet the following minimum requirements - Resale liquidity, market access, quality certification, and expert guidance.
Investors should investigate the bid/ask spread (the price difference between buying and selling prices for diamonds) before buying.
Lastly, when buying a diamond as an investment, it’s a good idea to find out what you would get if you were selling the diamond on the same day.
Hope this helps

 

[Rockdiamond]

Re: HUGE Light Brownish Yellow Diamind - HELP is it worth it

touche

Is there a way to invest in pink/colored diamonds through stocks/funds instead of buying individual diamonds (which would be very difficult to sell as you correctly pointed out) just out of curiosity? Totally agree with the trend observation

Interesting thought!
I can't see how it would work though. One reason that comes to mind: the effort and resources required to effectively sell the diamond mean that whoever is responsible for that aspect would need to take too big a slice of the pie.

Now, I’m not a financial advisor or an investment professional, this is my personal experience with pinks (specifically Argyle) – so if anyone is thinking of investing in diamonds (or anything else) seek professional investment advice first (don't get it from an online chat forum...or at least not all of it... ) - - anyway...here's my small contribution to the conversation...for what it's worth...

Upside…Pink diamonds have seen remarkable growth over the last few years. Over the last decade, tender prices for Argyle pink diamonds have outperformed other major equity indices. Even during the global financial crisis, record prices were being recorded for tender stones. Millions of new luxury consumers in China, India and Russia are creating an unprecedented demand for diamonds, and in particular natural coloured pink diamonds.
This increasing demand, coupled with diminishing supplies represents an exciting opportunity for investors looking for an inflation hedge or hard tangible assets with less frenetic price swings than other investments. With pressure on supply already driving prices, and few or no mines expected to emerge in the next 10 years, and existing mines past their peak, supply is already on the decline. The supply/demand gap will most certainly demand a premium greater than the appreciation rate of around 20% per year they've already been experiencing. This is a great time to purchase natural fancy coloured pink diamonds...before they are simply unobtainable.

Now the down side…Access to goods. Once a year, the more exceptional polished Argyle pink diamonds from the annual production are sold individually. This invitation only blind auction is known as the Argyle Pink Diamond Tender. For every million carats of rough diamonds produced at Argyle, less than one carat will meet the criteria to be suitable to go into the tender. Like Rockdiamond mentioned, buying individual diamonds to sell at a profit, even large pinks, can be surprisingly difficult; and selling diamonds can be an extraordinarily frustrating experience for private individuals. The average investor will generally not be able to purchase a large enough pool of diamond assets with diverse characteristics in order to create a diversified portfolio; a $300,000 pink diamond has more 'investment' potential than a $10,000 colourless diamond. You don't buy a $1,000 painting hoping to sell it in a few years for $5,000. And on the sell side, the average investor will be limited in his or her ability to liquidate the diamond assets at fair market value. To make a profit, investors must at some time find buyers who are willing to pay more for their diamonds than they did; and because there is no unified market in which to sell diamonds, an investment diamond needs to be purchased at a price that is reasonably close to the price that you can easily resell it. Buying at retail and reselling at wholesale is a bad idea, so you need to have direct access to international dealer prices and markets.
I would offer these additional suggestions before you invest in pink (or any) diamonds:
Meet the following minimum requirements - Resale liquidity, market access, quality certification, and expert guidance.
Investors should investigate the bid/ask spread (the price difference between buying and selling prices for diamonds) before buying.
Lastly, when buying a diamond as an investment, it’s a good idea to find out what you would get if you were selling the diamond on the same day.
Hope this helps

A lot of good points ADN!
The last part is, I think, dicey.
If a seller is pushing the idea that they are selling an investment, there's a lot of motive not to let the seller know what' they'd pay for the same stone they are offering.
Unless it's a distress sale it's a sure bet any professional seller would expect to pay less than they're selling it for.
So where would the buyer be able to get accurate information on how much they can sell it for?
To me, that's a million dollar question

 

[aftereffects15]

Re: HUGE Light Brownish Yellow Diamind - HELP is it worth it

Yeah I think that's the tricky part, seems like much more variance in colored diamond prices than white fungible ones. I could imagine a fund existing (like all the real estate funds) with a number of properties (pink diamonds) and experts figuring out what to buy.