Is it likely that diamonds will always go up?

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#3
I think they fluctuate, but from what I understand, they are not a good investment re: resale. I've never heard of someone getting more than what they paid for a diamond.
 
#4
As a whole, the fluctuation is not great, rarely do they go back down. They level off and may not go up for a while but they rarely "go down". When supply is great and demand is not they may go down but the way the holders work, supply is always going to be less than demand. They control that. But as stated in that particular link, yes they do go up yearly, the percentage varies, and where the increases go based on carat weight also varies.

As far as what you currently own/recently purchased...the stones would be worth more and gain in value in terms of insurance and replacement value in the retail market, not in terms of secondhand resale. Diamonds themselves for the average person are a horrible investment. They don't resell well secondhand unless they are a branded or particularly special stone of important provenance, like the Hope or the Wynn. Branded stones--IN THEIR ORIGINAL BRANDED SETTING, will retain value, say a Tiffany or Cartier piece. As long as it remains perfectly intact from how it was sold, anyway. Non-branded will rarely resell for anywhere near what was paid.
 
#5
I paid $7k (with setting) for my 1.5ct diamond 5 years ago. Granted it was a steal of a deal then, but it was still probably worth 9 at the time. It'd cost me $14k+ to buy it now. In FIVE years!!!!!!!!!
That being said, after I bought mine the price of diamonds did go down for a while. But now they are skyrocketing. As an investment though, I think gold would be a safer bet than diamonds. Only because you can rarely sell a diamond for what you bought it for. Usually it's only a small percentage. I might just now be able to sell my diamond for close to what I paid for it, and that's only because there seems to be a shortage of 1.5ct diamonds out there.
 
#7
I also think the economy plays a big part in diamond re-sales. Not so much for branded names/jewelry...no matter how bad the economy, they always seem to have plenty of customers.
 
#8
ame said:
As a whole, the fluctuation is not great, rarely do they go back down. They level off and may not go up for a while but they rarely "go down". When supply is great and demand is not they may go down but the way the holders work, supply is always going to be less than demand. They control that.

As far as what you currently own/recently purchased...the stones would be worth more and gain in value in terms of insurance and replacement value in the retail market, not in terms of secondhand resale. Diamonds themselves for the average person are a horrible investment. They don't resell well secondhand unless they are a branded or particularly special stone of important provenance, like the Hope or the Wynn. Branded stones--IN THEIR ORIGINAL BRANDED SETTING, will retain value, say a Tiffany or Cartier piece. As long as it remains perfectly intact from how it was sold, anyway. Non-branded will rarely resell for anywhere near what was paid.
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Agree with everything especially the bolded sentences. Even then should you need to sell your branded items, you will be hardpressed to find a buyer (stores or individuals) who will pay your asking price. From the POV of jewelers, the profit margins on diamonds are not as high as some of other precious stones or gold or labour.

OP, if you want to invest in diamonds or precious stones then buy shares in mining companies or companies making synthetic diamonds. However do your due diligent first. :smile1:
 
#10
Mimster said:
Even then should you need to sell your branded items, you will be hardpressed to find a buyer (stores or individuals) who will pay your asking price.
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The majority of branded items are going to take a hit in price. Even at the reputable auction houses where you might get 25 to 30% of what you paid new, especially if you bought in the last 5 years. (Then you have to pay a seller premium if they even consider taking your item.) I would love to buy great jewelry from an individual but feel the protection a reputable auction house offers is worth the buyers premium. I also have piece of mind knowing what I buy from them, they will take back to sell.

Reputable auction houses are getting picker at what they will take.
 
#11
Vegas Long Legs said:
The majority of branded items are going to take a hit in price. Even at the reputable auction houses where you might get 25 to 30% of what you paid new, especially if you bought in the last 5 years. (Then you have to pay a seller premium if they even consider taking your item.) I would love to buy great jewelry from an individual but feel the protection a reputable auction house offers is worth the buyers premium. I also have piece of mind knowing what I buy from them, they will take back to sell.

Reputable auction houses are getting picker at what they will take.
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That's interesting. I didn't know was only about 25-30%.
 
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