Confidence in Diamond Investment

[richwalt]

I really want to be comfortable in making a significiant investment in a diamond purchase. Although I'm fairly confident that I will never be selling this diamond ... I do want the peace of mind of knowing that I COULD sell it for the equivalent buying power in the future as that of the purchase amount of today.

What I'm asking for is any information / articles that might re-enforce or negate this confidence in regards to new technologies towards man-made diamond materials. These technologies claim materials produced ( and I believe are true ) are identical to physical, chemical and optical properties as that of natural diamond.

Do you have any information that can assure me that the future market value of natural diamonds will remain constant should production of man made equivalents boom in growth ... I understand there is a push for this technology to support other industries outside of the jewelry industry, for optical, hardness, accoustic, and resonance characteristics?

Thanks in advance your earenst reply, I'm hoping to make a purchase soon base on the confidence you're able to instill.

best regards,

Richard Walters

[color_rings]

is there really an assurance when it comes to investing in diamonds?!

thanks...

[Mervyn L. Cohn ASA]

Hi

Since any market is contingent on the two basic concepts of 1) supply and 2) demand, those parties who own the ability to produce Diamonds that are equal to the natural they claim to replace, would it make sense for them to price them to a point where they kill their golden goose. I think not. On the other hand why do you think that you are entitled, not being in the diamond business, to buy diamonds at a level at which we, those who are, do?

Mervyn L. Cohn ASA
Senior Appraiser American Society of Appraisers Retired
www.e-praise.com
home to eCS

[gaeshe]

Mervyn, this is the second time you have asked that question (...entitled...), there may be more as I've only been on the site for 5 minutes.

It seems that you have decided to kill any thread where someone is trying to decide on something other than diamonds from a local retailer. Maybe you should back off and realize that people are entitled to get the best price they can for their diamond, just as you are entitled to set you price at what ever you want. I think given the control of the supply and the manipulation of the demand by the diamond idustry renders your argument moot.

Richwalt, I am in the same situation as you are in deciding on what to purchase and I have done some investigation into the new technologies. I have come up almost empty handed execpt for a few questionable websites and wikipedia. I, however, have come to the decision that my soon to be fiancee will accept nothing other than a real diamond (despite her understanding of the ethical dilema in which I am embroiled).

That being said I think the only way to truly compare natural vs. man-made is through look. Markets are too volitile and the wearer or admirer most often won't care about the physical properties.

If you are looking for something besides diamonds that compare, I have heard that clear sapphires are nearly compareable in looks, a less expensive, and truly rarer than diamonds.

Good luck.

[jewelelegance]

Get this and get this straight "In the world of marketing nothing is constant";.Prices rise and fall.Similarly with diamonds today one stone might rule the market where as suddenly another day another gemstone takes over and then the first one is forgotten.It is wise to deal in complete jewelery rather then invest completely in one particular type of diamond.

[Mervyn L. Cohn ASA]

Mervyn, this is the second time you have asked that question (...entitled...), there may be more as I've only been on the site for 5 minutes.

It seems that you have decided to kill any thread where someone is trying to decide on something other than diamonds from a local retailer. Maybe you should back off and realize that people are entitled to get the best price they can for their diamond, just as you are entitled to set you price at what ever you want. I think given the control of the supply and the manipulation of the demand by the diamond idustry renders your argument moot.

Richwalt, I am in the same situation as you are in deciding on what to purchase and I have done some investigation into the new technologies. I have come up almost empty handed execpt for a few questionable websites and wikipedia. I, however, have come to the decision that my soon to be fiancee will accept nothing other than a real diamond (despite her understanding of the ethical dilema in which I am embroiled).

That being said I think the only way to truly compare natural vs. man-made is through look. Markets are too volitile and the wearer or admirer most often won't care about the physical properties.

If you are looking for something besides diamonds that compare, I have heard that clear sapphires are nearly compareable in looks, a less expensive, and truly rarer than diamonds.

Good luck.

Perhaps we have a slight misunderstanding of what we mean by markets. It seems to me that wholesalers sell to retailers who in turn sell to consumers. If this has changed I'm not aware of it.

Gemologically there is no difference between a natural and synthetic diamond, this is why they have been trying to get the manufactures to dope the synthetics so that they can be more readily identified. As to colorless Sapphire, Though there are similarities they don't look enough like a diamond to fool a potential Mother-in-Law but they do look like what they are CHEAP. Cheap
enough to use them to make watch crystals.

[rodman86]

It is very uncommon for a consumer to purchase a diamond as a profitable, or even a break even investment, (Unless your speaking about an extremely rare and valuable diamond that was found by a friend of yours who somehow smuggled it back to the united states and made you this proposal?

....A little far fetched, I know, my point is this; Do not...I repeat...Do not...purchase a diamond from a retailer, or a wholesaler, with the intentions of being able to get the same amount you paid (or even 50-75%). Here's why;

Example: Diamonds are originally purchased in the wholesale market with the intentions of selling them to other wholesalers who then sell to other wholesalers who then sell to retailers who then sell to the public. Every step of the way, a profit must be made and the end consumer pays a premium. Diamonds can be "cherry picked" from wholesalers at anytime for somewhere around 1/2-2/3 of what you paid. A retailer will pay more to a wholesaler (much more) for the same stone, than to an individual (it's just the way of the world). If you buy a diamond from I.W. Marks tomorrow for $50,000 and try to sell it to a business 6 months later, you probably won't get anymore than 20-30% of what you paid (if that much).

[tita]

Do not...I repeat...Do not...purchase a diamond from a retailer, or a wholesaler, with the intentions of being able to get the same amount you paid (or even 50-75%).

what about diamonds with GIA / AGS certification?

[rodman86]

what about diamonds with GIA / AGS certification?

I like GIA, but then again my opinion may be a little biased due to the fact that I learned through GIA! Being in the industry of wholesale, retail, and even purchasing/selling 2nd hand merchandise, I have learned that a customer is not going to be able to get anywhere near what they paid for a diamond (if they sell it to a business....if you can find an individual however...that's a different story!) I personally can tell you that I can pick up the phone and purchase a 1.00ct G/SI1/Excellent Cut GIA diamond for no more than $4,000...if I shop around, I could probably get it for around $3200-$3500. Now on the other hand if you as a consumer wanted to purchase this stone from a retail outlet (such as the mall...jared's...Robbins Bros...etc.) you would probably be paying $6,000 - $7,000 (even more at other retailers) of course, if you shop around online however, you could probably pick one up for $5,500 - $6,000.

If I can pay $3,200 - $4,000 at any given time by picking up the phone...and getting the stone only when it is needed for a customer...how much do you think I'm going to pay an individual for the same diamond that I could very possibly be holding onto for a year (or more)?

Not anywhere $3,200 (Unless you bought if from me, then I would give you 60% of whatever you paid (if you simply wanted to sell it back)...or 100% if you wanted to upgrade!)

Long story short...Diamonds are not usually a money maker for a customer who is buying it from a business, with the intentions of selling it back to another business. (Even the 2.00ct D/FL/Excellents!) Businesses must make a profit!

[tita]

Well, I really dun know what to say.. You are just a very honest person, but thank you is the right word.

At the first time I bought myself a GIA, just because I dun want to spend my money to useless things like LV, Gucci or Prada or other designer handbags like many of my friends did. I thought having a diamond would be great, but then am totally fall in love with it, and keep buying and buying.

I never asked the jewelry store about buying back or something, but yes I was (maybe) thinking that diamond could be counted as a liquid assets.

I hope, I will never have to sell all of my diamonds, but your information really-really wake me up..

So next time I dun have to choose a loose diamond from the certificate, just what catch my eyes.. just which I love the most seen to the naked eyes.