Is the economy changing your diamond purchase?

[jerichosmom]

My apologies if this is an inappropriate first post from a long-time lurker (5+ yrs) but we literally decided on buying my dream e-ring (3 ct in vintage setting) the week before the US markets crashed. I''ve been hesitant to make the plunge because everytime I open the paper or turn on the tv, it''s all doom, doom, doom. My husband now wants to hold off a $20k+ purchase but I think that a diamond''s price is only going to go up. It''s gone up so much since we last looked 3 yrs ago.

I wanted to ask around to see if any of you who are in the purchasing mode have made any adjustments due to the economy.

Are you postponing the purchase?
Are you spending less?
Are you spending more?
Are you holding off hoping that an impending recession will bring down prices?
Are you negotiating more now because you think that there are less buyers available?

I would also like to hear from any e-tailer perspectives also if there are any around.

I have barely been able to sleep since finding the ring but just can''t quite pull the trigger without feeling an immense amount of guilt. A little background on me...I''m a stay-at-home mom (for now), been married 3 years and never got a ring because I kept insisting on saving for our dream house. It doesn''t help that my husband totally believes that one day the DeBeers doors will open wide and the hoarde of diamonds they''ve been hiding will flood the market bringing the value down to nothing.

Thanks for allowing me to post this.

 

[honey22]

Date: 9/25/2008 2:12:20 AM
Author:jerichosmom
My apologies if this is an inappropriate first post from a long-time lurker (5+ yrs) but we literally decided on buying my dream e-ring (3 ct in vintage setting) the week before the US markets crashed. I''ve been hesitant to make the plunge because everytime I open the paper or turn on the tv, it''s all doom, doom, doom. My husband now wants to hold off a $20k+ purchase but I think that a diamond''s price is only going to go up. It''s gone up so much since we last looked 3 yrs ago.

I wanted to ask around to see if any of you who are in the purchasing mode have made any adjustments due to the economy.

Are you postponing the purchase?
Are you spending less?
Are you spending more?
Are you holding off hoping that an impending recession will bring down prices?
Are you negotiating more now because you think that there are less buyers available?

I would also like to hear from any e-tailer perspectives also if there are any around.

I have barely been able to sleep since finding the ring but just can''t quite pull the trigger without feeling an immense amount of guilt. A little background on me...I''m a stay-at-home mom (for now), been married 3 years and never got a ring because I kept insisting on saving for our dream house. It doesn''t help that my husband totally believes that one day the DeBeers doors will open wide and the hoarde of diamonds they''ve been hiding will flood the market bringing the value down to nothing.

Thanks for allowing me to post this.

Not going to happen buddy

BUT, can you imagine the PSers that would rock up if it did

If you have the funds available and it won''t put you under financial strain, then go for it. I honestly can''t see diamonds dropping in price. Overtime everthing increases in price, they are even more expensive now than we I purchased mine in January. So, if you are comfortable financially, go for it.

Don''t forget to post pics!!!

 

[precious jemz]

Truly, the last few weeks have been quite nerve-wracking in the US economic front and it seems like your ring purchase timing has just hit when the future seems so uncertain. As Honey has just said, if you are comfortable financially, costs keep climbing so go for it.
Naturally, Economics 101 tells us that supply/demand drives prices, but we''re talking about the luxury market here! In the year since we purchased our 3+ carat, it has gone up over $15,000 from the price searches I''ve seen. If we didn''t jump in when we did, I feel that we would have been priced out for what I had wanted.
One of my relatives bought their diamond approx. 2 years before we did and with the same cost, has the same size but color in the top range as well as a couple clarity grades higher. All things being equal, it looks the same on the hand and I''d like to think that I did my research on PS for the best cut

!

 

[Dancing Fire]

if the world economy go south so can diamond prices . everything goes in cycles. JMO

 

[precious jemz]

I remember diamond prices in the early 80''s ... about $2000 for a decent one carat stone and gold at $700/oz.

 

[edl]

>Are you postponing the purchase?
>Are you spending less?
>Are you spending more?
>Are you holding off hoping that an impending recession will bring down prices?
>Are you negotiating more now because you think that there are less buyers available?

No, no, no, no, no.

I''m actually spending more now because the depressed market in the US has created a good atmosphere for purchasing assets & capital improvements (real estate & development). Labor cost has come down a lot, and some materials (like wood) have dropped in price so it''s a good time to be building, ironically.

Back on subject - if you can afford it, don''t let recent events in the US economy affect your purchase. Especially if you''ve located the stone and setting of your dreams.

 

[crown1]

i don''t really have a good answer to your questions but it has made me wonder if some nice diamonds may not become available on the secondary market.

 

[bgray]

if you have the money budgeted and dont NEED it then i say do it. Nothing is for sure--house prices do not always go up as peope are learning and diamond prices rarely come down but in a depression they sure could. that being said we purchased my stone 2 years ago for $80,000-it is not impossible to fnd anything comparable below $200,000. Its a good thing I have it as I would never buy it for that amount of money even if I had it to spend

 

[vespergirl]

I''ve been wanting a new setting for my diamond - I changed from an asscher to an RB last year, but just kept the old solitaire setting, because I really wanted to take my time to design a new setting and get it for our 3 yr. anniversary. Now that the economy is bad, I have decided to wait another year or two and see where the economy is. My husband makes a good salary, and even got a promotion & raise recently, but the settings I''m looking at are $5-7K, and I just can''t justify spending that much on a luxury item right now, especially since we are a one-income family.

We are thinking about having another child in the next year or two, so maybe I''ll reset my diamond as a push present, or perhaps push it back to our 5th wedding anniversary. It''s true that at times like this it''s easy to feel a little guilty about spending so much money on jewelery.

In your situation, perhaps you could look at getting a smaller stone for now, maybe 1.5-2 ct, but purchasing from a vendor that has a lifetime trade-up policy. Also, maybe you could get a gold instead of plat setting, to save some money. If everything turns around in a year or two, you could then always upgrade to the 3 ct that you''re dreaming of, and a permanent setting.

 

[Rosa]

Hi JerichosMom and welcome. I lurked for a few years before starting to post, too!

I am in the process of buying piece of jewelry - it may be ready today! Waiting for a phone call... :-}

I got a very good price, partly because, as one of the many vendors on 47th Street said, "It has been *very* quiet around here lately."

I think if you found your dream diamond and dream ring, and you are otherwise financially secure, you should go for it but only after negotiating hard!

Let the vendor know that you can pay cash (often this gives a discount), and let them know you are prepared to wait or walk away. They know the economy has been tanking, bonuses and pay are down, and people will be spending a LOT less at Christmas. So they should be willing to try to make you a happy customer.

At least in NYC, the mood is pretty grim, so I would think you can do pretty well now. Diamond prices may go down quite a bit if things continue on the path they are on, but you are buying this to wear forever, right? You won''t be monitoring the markets like you would with stocks.

Good luck and keep us in the loop with your decision and post pics!

 

[Dancing Fire]

Date: 9/25/2008 2:57:20 AM
Author: precious jemz
I remember diamond prices in the early 80''s ... about $2000 for a decent one carat stone and gold at $700/oz.

i don''t think so

during the 79-80 period a 1 ct D FL was selling for more like $57K

 

[denverboy]

I am currently in the process of buying an Ering (already bought the diamond a few weeks ago, working on the setting right now). The state of the economy (good or bad) didn''t affect my budget at all. However, I do kinda "need" this item, and I wanted to just have to buy something good once and for all. If it was an "optional" item like a necklace that my gf just wanted, then I would definitely hesitate more and say "we don''t need that right now, we can get by without it"

 

[Tuckins1]

Nope. Couldn''t afford another diamond before the economy went in the crapper, and still can''t now

 

[goobear78]

Interesting thread. I was wondering if the economy would effect diamond sales. My personal thought is no, because people will still want to get engaged. That said, they might be buying smaller stones maybe. Me, I want to go bigger and I just got my new stone. Now I'm going to have to wait on that, but still, I know this will not be my last diamond purchase.

ETA: If you can purchase the ring you want without going into debt or hardship, I say go for it. It sounds like a lovely ring.

 

[UCLABelle]

I noticed good prices on the second-hand market, although it also affected my own selling, as well---so I think I am just going to stay in my small condo, and hope the storm blows over without positively or negatively affecting me.

 

[swingirl]

Date: 9/25/2008 7:32:28 PM
Author: Dancing Fire

Date: 9/25/2008 2:57:20 AM

Author: precious jemz

I remember diamond prices in the early 80''s ... about $2000 for a decent one carat stone and gold at $700/oz.

i don''t think so

during the 79-80 period a 1 ct D FL was selling for more like $57K

In 1891 my poorly cut .5 ct was $1000. It was not an D Fl but it was from a NY Diamond District store that is still in business and has been mentioned on PS.

 

[elle_chris]

I can only say what I''ve seen here in NYC.
Since this whole Wall st fiasco started (and i don''t think it''s ended), peoples purchases won''t be as extravagant. They''ll still get engaged, but the diamonds won''t be as large, the wedding bands as blingy. My husband already warned me that bonuses this year don''t look very good. So yeah, putting the more expensive purchases off. Looks like real estate taxes in the city are going to go up as well. 7% last I heard, so I can see lots of people spending less on what they don''t really need.

 

[Dancing Fire]

Date: 9/26/2008 12:44:47 PM
Author: swingirl

Date: 9/25/2008 7:32:28 PM
Author: Dancing Fire

Date: 9/25/2008 2:57:20 AM

Author: precious jemz

I remember diamond prices in the early 80''s ... about $2000 for a decent one carat stone and gold at $700/oz.

i don''t think so

during the 79-80 period a 1 ct D FL was selling for more like $57K

In 1891 my poorly cut .5 ct was $1000. It was not an D Fl but it was from a NY Diamond District store that is still in business and has been mentioned on PS.

you that old? a $1000 was a lot of money back then !!

 

[windy1365]

If you have the money saved up for this specific purchase... and you have an emergency fund already built up, then go for it!! I also like the suggestion that you get a smaller stone at a place that has a trade up policy. That way, you don''t feel so guilty about the purchase. You should not feel guilty about the purchase. It should feel good.

 

[RBD hunter]

Is the economy changing your diamond purchase?

I have a set budget

Too early to tell for me, I have been working with a private party sale for over 6 months.
6 months ago her price was not in my price range........this month she is comming around to my budget area.

Time will tell and I still have more time than money.

 

[LostieLovesBling]

Nope. I ended up spending even more than originally planned. So is the nature of the beast