What''s up with diamond prices?

[CalFan]

I have recently begun to acquaint myself with the diamond market in preparation for an engagement ring purchase and am astounded at how much the market has moved in the last year. I''m looking for:

- Round
- 2 carat
- VS1 or VS2
- E or F
- Table 55-58%
- Depth 58-62%
- VG or EXC symmetry and polish
- No fluorescence

After going to three jewlers, all referred by friends, the best I have been able to get is 10% back of Rap, which is $13,700 per carat for VS2, E and $13,300 per carat for VS2, F.

A friend of mine purchased a diamond with the exact same specs last Summer and ended up getting a 20% discount off of a VS1, E at a Rap price $10,000 per carat!!! Thus, I am looking at a current price of $25,000 for the same 2 carat diamond that he purchased in July 2003 for about $17,000.

Am I missing something here, how could the price have increased by almost 50% in a little over a year? I either need to drop to a smaller diamond (1.75?) or hold off the engagement until the diamond market becomes rational again.

Help!!!

 

[pricescope]

CalFan, welcome to the forum.

In this thread you''ll find a few charts: Price hike a Hype?

I''ve got to update it though. On another hand, this season the business is rather slow: http://www.gia.edu/newsroom/issue/2798/2234/insider_newsletter_details.cfm#1

 

[CalFan]

Thanks, Leonid. I saw those old charts but they looked like they justified a 5-10% increase.....not 50%. Although, I know they were for 1.00-1.49 carat so perhaps the larger sizes are appreciating more rapidly. However, I still don''t think this explains a ~50% change at the 2 carat level. The other thing I neglected to mention is that I am getting my quotes from the same jewler that my friend purchased his ring from.

 

[Richard Sherwood]

There can be a large variation in price due to cut. For example, your friend's diamond may not have been as well cut as the diamonds you are looking at. The variation can range as much as 50% with just the influence of this one "C".

There can also be a variation according the the lab report documenting the diamond. An EGL E/VS1 might trade at 10% less than a GIA E/VS1, for example.

There can also be a variation if your jeweler is offering you stones brought in on "memo" (short term consignment) this year versus stones he haggled the lowest cash deal possible on last year.

Apples for apples, the 50% fluctuation you're quoting is too much. Diamonds have not increased that much in value in the past year. Given increase in prices, and shortages in fine material 2 carats and over, 20% would be more in line with actual price increases.

 

[mdx]

G''Day CalFan

I think the problem with your calculations is you trying to use Rap prices as a price index. In consumer terms its not what its designed for, It’s a tool used by the trade as a basis for certain calculations and negotiations. Usually in its simplest form, the larger the discount the lower the quality, so your 10% discount could either represent quality or a steeper price. Rather use the Pricing comparison on this forum to address your comparisons, You will get a much more useful result
Johan

 

[strmrdr]

using pricescope your prices arent that far out of line for b&m pricing.
According to pricescope search at the top of the page using e vs2 2-2.1ct the price per ct varies from 11500-13000+ using e-vendors pricing.

using the b&m search which uses a higher markup its in the $13000 range per ct.

So yes prices have went up that much.
Dont look for them to go down very soon if the christmas season is a good one count on a large increase the first few weeks of January end of Feb. at the latest.

 

[ChooChoo]

I would suggest that you go right under 2 carats - you can get a much better deal that way. Check out this:



http://search.virtcert.com/cgi/u/1012/v.cgi?stock=2441346&_s=1012&_p=sdf348gd743&_c=&_fs=1&prestock=&_ln=ps

 

[ChooChoo]

What is your budget, by the way?

BTW, I''m sure your girlfriend would rather get a slightly smaller diamond than wait for the diamond market to become rational again