OMG, prices of big stones have gone through the roof!!

[Phoenix]

I swear to God, *IF* we ever won the lottery, I would go into the diamond business. I'd be doing something that I LOOOVEEE / absolutely crazy abt and still be able to make decent money. Here's why:

Just 3 weeks ago, I was surfing the JA and BN websites (as you do, he he

), well actually I was doing some pricing for an acquaintance and noticed these stones. And guess what? their prices have shot through the roof. Here are the links to these stones and the corresponding prices 3 weeks ago (prices are for wire transfer):

http://www.jamesallen.com/diamonds/G-VS2-Ideal-Cut-Pear-Diamond-1153645.asp
(three weeks ago, the price after wire discount was $159,410. Ignore the striked out price - that's obviously a mistake)

http://www.bluenile.com/cushion-cut-diamond-7-carat-very-good-cut-g-color-vs1-clarity_LD01029717?__fun_frm=i&filter_id=0#grading_report
(three weeks ago, this was $384,545)

Crazy, huh (?!). I know the US dollar has had something to do with the increasing prices of diamonds listed on these websites - which are denominated in USD, but the magnitude of these price increase are MUCH MUCH MORE than the decline in the dollar in the past 3 weeks [SIGH!!].

I wonder if the experts on this forum or anyone else for that matter can explain such crazy increases in prices? Is this typical of the larger stones? (at this rate, I will *never* be able to afford my *dream 5ct diamond ring* , EVER!!

).

 

[John P]

Hi Phoenix,

The latest price hike by Rapaport impacted goods across the board 5-25% a few weeks ago. Whether the increase is realistic or not is a point of debate across the industry.

There is some information in this thread which may interest you.

 

[dennyr]

You might want to rethink whether you would want to get into the diamond business. Just because prices are going up does not mean that most people in the industry are making more money. In fact, the industry is going through some of its most trying times now with many stores, wholesalers, and cutters going out of business.

The price of rough diamonds has gone up even more than the retail prices reflect so cutters are telling us to expect more price increases. It is true that if industry members own large (two carat and above) diamonds, their inventory has gone up in value. However, if they have to buy those types of diamonds, they are having a harder time finding them they are paying a premium for them.

While some of the high price is due to speculators holding on to diamonds, the basic reason for the increased prices is that production is going down and demand is continuing up, especially in China and India.