Is it a smart to buy a diamond now that you can''t set until later?

[prettyinpave]

I''ve found a diamond that I like for a pendant (what I''m looking for isn''t hard to find). However, if I buy it, I''ve spent my jewelry budget for right now on the diamond itself and can''t set it right away. I was thinking of waiting until the fall to set it.

Is it smart to buy it now or wait until I can purchase the whole thing? The flip side is that I will have a diamond sitting in my jewelry box that I can''t wear, and if I buy it now, my money won''t be earning interest in the bank. However, I like the diamond and the fact that I''m most of the way there in getting my pendant.

Hmmmm....Thoughts?

 

[Jennifer5973]

Recent evidence suggests that dimaond prices will continue to rise, so it might not be bad idea to get the stone now before its price increases 5-15%.

Do a search here on "price increases" and you''ll be able to read all about it.

 

[belle]

when i read the title of this thread, thought ''if you can''t afford it, don''t buy it.'' however, in reading your post, it seems that you have allocated a jewelery budget, which shows that you have some sense of financial responsibility. my thinking is, if you have thoughtfully set aside this money for a diamond and that is what you intend to do with it anyway, get it now. yes, you could leave the cash in the bank, but even at the best interest rates, you may not be able to make up for a possible price increase that is going to hit the diamond industry. if i recall correctly, weren''t you thinking of possibly getting a 3-prong setting? another option would be to go down in color/clarity on your stone. you could easily make up the difference of the setting by going down a notch or two in those areas. a pendant stone is a great way to save money....no one will be that close to your neck to notice some small inclusions or a slightly warmer color!

it''s up to you, but i would seriously consider getting the stone now, even if you do decide to set it later. best of luck in your decision!

 

[strmrdr]

Date: 6/21/2005 8:43:35 AM
Author: Jennifer5973
Recent evidence suggests that dimaond prices will continue to rise, so it might not be bad idea to get the stone now before its price increases 5-15%.


Do a search here on ''price increases'' and you''ll be able to read all about it.

unfortunatly thats pretty much the way it is.
If you can afford it and find the right diamond your better off buying now.

 

[prettyinpave]

Belle, you''re right. It''s my jewelry budget, set by me, not the actual amount I can afford. It''s really just a goal for myself, since saving for retirement and our (future) children''s education is a bit more important than diamonds. Who knew?

I got a little bit of money as a gift from my grandmother, so I am attempting to stay close to that amount.

I am pretty set on the color and clarity I have chosen.

 

[baltneu]

As usual, Belle, makes a good point with lots of merit.

My only 2 cents is, if you are "definitely" buying it, and it sounds like you are, you just have to ask yourself "if I wait, and invest the money, can I get alteast 10% on the money without putting my principal at danger of going down or losing some of it?" The answer is, there are no financial products out there to give you that return, right now without putting the principal at risk. If you shop around for a 6 month CD, at best you will get a little over 4%, taxable, of courrse. Best of luck.

 

[strmrdr]

I also wanted to add that I do this all the time with colored gemstones.
I see one I like and I have the extra money ill buy it and decide on what to set it in later when I have some extra money again or a birthday comes up or something.

 

[aljdewey]

Buy it now. If you wait until the fall comes, you may not be able to find a stone that fits your criteria as well as this one does. You're only talking about 3 mos....not much time. How much interest is that money really gonna earn in 3 mos?

And yes, price increases are a factor. Hard to imagine the interest on 3 mos is going to offset the rise in prices if you buy after an increase.

A bird in the hand......

 

[Dancing Fire]

Date: 6/21/2005 12:02:25 PM
Author: aljdewey
Buy it now. If you wait until the fall comes, you may not be able to find a stone that fits your criteria as well as this one does. You''re only talking about 3 mos....How much interest is that money really gonna earn in 3 mos?

And yes, price increases are a factor. Hard to imagine the interest on 3 mos is going to offset the rise in prices if you buy after an increase.

A bird in the hand......

i agree with al. if you find the right stone,buy it now!!

 

[Kaleigh]

Yup buy it now, before the price increases.

 

[Mara]

cherry stones can be hard to find, if you have found something that fits all your criteria and it''s a good price, get it now. i agree with ''a stone in the hand''...esp since you have no idea what inventory or pricing will be like later.

 

[IrishEyes]

Buy now, buy now, BUY NOW!!!

Seriously, you should do it now, the big increases are coming very soon. I was talking about this myself on another thread, as I am looking for an upgrade and the prices are already starting to slightly increase, therefore making the caratage on the stone I want to get decrease. Not good. So I would say go for it. You can always find a setting later. IMO, that would be kind of fun. Maybe for a special day or celebration or something, you can treat yourself to having it set one day when you find a good setting. at least you won''t have to worry about spending more on the stone then!

Let us know what you decide!