Diamonds as an investment?

Considering getting some "large-ish" diamond earrings or upgrading the wife's ring. In looking online, I've found that the things I've bought in the last couple of years have actually appreciated slightly in value.

 

So, are diamonds an investment-worthy buy? Or should I just get what I want to get so my wife enjoys it and I know if it ever comes down to it, I can get all/most of my money back on the stones?

Considering getting some "large-ish" diamond earrings or upgrading the wife's ring. In looking online, I've found that the things I've bought in the last couple of years have actually appreciated slightly in value.

 

So, are diamonds an investment-worthy buy? Or should I just get what I want to get so my wife enjoys it and I know if it ever comes down to it, I can get all/most of my money back on the stones?

 

People like you and me can't afford investment grade stones. Your wife's stones may have more 'value', but try to sell them and see what you get for them.

 

 

People like you and me can't afford investment grade stones. Your wife's stones may have more 'value', but try to sell them and see what you get for them.

 

 

What do you think the price point of an "investment-grade" stone comes at? Anything over $100k? or higher?

 

Just curious...

I don't think diamonds have appreciated. Are dollar has depreciated.

Not as a rule. Buy what you like and enjoy it. The alternative is to buy a flawless stone and park it in the safe.

What do you think the price point of an "investment-grade" stone comes at? Anything over $100k? or higher?

 

Just curious...

 

I honestly don't know, but I know I can't afford it. G-force probably knows best since that's what he does. If you are looking to upgrade for the Mrs. I can tell you my experience in upgrading. I'm sure though that there are many on here who have bought multiples of what I've bought.

This thread has an interesting premise, because actually, if the economy literally was to collapse, high-quality jewelry is historically one of the stores of value that is tradeable in such instances. It is easily transportable and easily-hidden. When the Japanese invaded China and took control of Hong Kong in World War II, some wealthy Chinese families were cut off completely from their assets. Their Asian assets were either seized or not generating money, and their overseas assets htey had no way to get ahold of. To be able to get food and survive during the occupation, the women traded their jewerly. The girlfriends of Japanese officers in particular liked high-quality jewelry and wanted it, so it was very tradable. Gold, on its own, was not very valued (although jewelry that has gold on it can be very valuable).

 

Same with Germany and Jewish families that had to flee, many just grabbed jewelry and used that to trade when they escaped to the United States. So if you want a store of value in case the economic system shuts down, high-quality jewelry could be one form that might work.

Diamonds have gone up 50% since 2004 from 2 ct and up. Like Assman said, it's not like you can sell it for a profit easily though. The fastest appreciation was in 2004-2006, about 25-30% in this period.

 

Here is a real story:

I bought an engagement ring in 2006 in anticipation of appreciation. Back then, I was single.

Started looking at rings again in 2011, sure enough, there is at least 15% increase. I felt good about it.

Forward to 2012, I found out my ring is worn by my mom. Told her to keep it as she loves that rock. Bought another one in 2012!

 

Moral of the story:

You just never know! LOL...

It depends on the quality that you purchase and how long you are willing to hold onto the stone for.I don't think a consumer/end user is going to make money right away but if you buy right and hold onto it long enough it should not lose money.

Good responses. I've upgraded the engagement ring once already, but considered doing it again as opposed to earrings (2 carat+ each) because of the size appreciation that was mentioned above. I also was thinking that bigger stones would hold their value and/or have the potential to appreciate more when compared to smaller stones.

Good responses. I've upgraded the engagement ring once already, but considered doing it again as opposed to earrings (2 carat+ each) because of the size appreciation that was mentioned above. I also was thinking that bigger stones would hold their value and/or have the potential to appreciate more when compared to smaller stones.

 

It's true better quality rocks hold their value better, but on the inverse usually earring rocks can get away with being lesser quality than a ring solitaire because they get less scrutiny, so 2 2ct earrings may cost you the same or less than a 2 ct finger ring stone.

 

A lot of the right jewelers will guarantee you 100% credit buy back when you upgrade. It makes a lot of sense in their business practice.

interesting idea, but the quality is what makes a diamond worth what it is; sometime the rarity as well. I know my wife wanted a speciality cut Tycoon... go figure

 

These diamonds are only sold by a few sellers and only cut by one company so they cost more, but are they worth more??? I am not sure. I will say even cuts have changed over the years. I have a FL, D color Miner/european cut stone with a culet... this used to be standard 100+ years ago. Now the Culet and miner's cut are considered to be a lesser cut and not worth as much,

 

So if you get something that is trendy or could become trendy (hopefully pear shapes goes away) then you could be at risk of losing money in the long run.

 

the problem is diamonds are still a very opaque market. Most sales will happen either with a trader who will most likely rip you off if your not also a pro or at auction. So you need to be able to determine what is a quality diamond then either get a good deal buying it to resell it for more or like bmwracer said hang onto it.

The diamond market is controlled and manipulated, Winston, Debeers, etc...for example Rio Tinto has put their diamond mines up for sale..

wholesale diamond prices are down since July...unless China and India pick up the slack for long term growth..and you are getting diamonds at a steal of a price..i dont see any gains...

Im not an expert in diamonds, but a shareholder of Rio Tinto..

The diamond market is controlled and manipulated, Winston, Debeers, etc...for example Rio Tinto has put their diamond mines up for sale..

wholesale diamond prices are down since July...unless China and India pick up the slack for long term growth..and you are getting diamonds at a steal of a price..i dont see any gains...

Im not an expert in diamonds, but a shareholder of Rio Tinto..

China and, India in particular, have huge appetites for diamonds. The demand for diamonds is expected to surge pretty significantly as they both continue to get a large middle class. Rio Tinto is following BHP in selling their diamond stake because they don't fit into their growth strategies. They are focus more on iron and the like, more industrial mining because the economies of scale lend themselves much better to these giants. Plus in diamonds they are both only minor players and no longer want to put in the effort require to run these arms of the businesses that don't add enough to the bottom line to justify keeping them.

China and, India in particular, have huge appetites for diamonds. The demand for diamonds is expected to surge pretty significantly as they both continue to get a large middle class. Rio Tinto is following BHP in selling their diamond stake because they don't fit into their growth strategies. They are focus more on iron and the like, more industrial mining because the economies of scale lend themselves much better to these giants. Plus in diamonds they are both only minor players and no longer want to put in the effort require to run these arms of the businesses that don't add enough to the bottom line to justify keeping them.

If the near and medium term gains were going to be great in the diamond market BHP and Rio Tinto wouldnt be selling in addition to them raising capitol. There is no shortage of diamonds... or shortage of new diamond mines opening up.

I do agree if China and India continue growth...there will be demand, that growth remains to be seen

Diamond value is artificially propped up by DeBeers. Waste of money.

So..who else liked that 2nd South Park episode?

I wouldnt invest in diamonds unless I was living in a rapidly collapsing nation and had to flee for my life with nothing but the clothes on my back, and the rocks in my upper GI tract..

 

We're talking Germany in October of '38,

Saigan in April of '75,

or New Years eve, 1958, in Cuba.

I wouldnt invest in diamonds unless I was living in a rapidly collapsing nation and had to flee for my life with nothing but the clothes on my back, and the rocks in my upper GI tract..

 

We're talking Germany in October of '38,

Saigan in April of '75,

or New Years eve, 1958, in Cuba.

 

Also Hong Kong, December of 1941.

Also Hong Kong, December of 1941.

Ahhh yes,Godzillas first battle with mothra.

Ahhh yes,Godzillas first battle with mothra.

 

Ahhh yes,Godzillas first battle with mothra.

 

Godzilla attacked Japan, not Hong Kong (watching some of those old films dubbed was a comedy in itself half the time :) )

Ha didnt even see this!

 

Interesting reading guys. Clarity rather than simple carat size is the way to go it seems. I've been looking for nice Diamonds to make an Engangement and Wedding set for over a month now and it's amazing to see how much price difference there is with different retailers and online stores!

Great article that might make you think twice - http://www.theatlantic.com/magazine/archiv...a-diamond/4575/