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Diamonds: Not A Girl's Best Friend
On the day when the 76.02-carat 'Archduke Joseph Diamond' sells for a record $21.5 million, we thought it intriguing how even these incredible high-end status symbols are seeing prices collapsing at the low-end...of the high-end. It seems the 'wealthy' just can't afford 1-carat diamonds anymore as the price has plunged by over 25% in the last 15 months. Perhaps it is only the 1% of the 1% that can now afford their baubles as like everywhere, there is a growing divide between the 'haves' and the 'have-mores' (in this case). Coincidentally, heading into the stock market slide of 2008, we saw Diamond prices plunge and Gold prices rise - but we are sure it's different this time...
and meanwhile, all those tungsten gold bars have gained significant value against their sparklier cousins over the last few years...
- 3-carat diamonds (D, IF) are trading just above their average price from the 2009 lows (around $76,500)...
- 1-carat diamonds (D-H, IF-VS2) are trading 3% below their average price from the 2009 lows (around $8,300)
and per Miller Tabak:
"[jeweler] Zales will offer a financing option to customers with sub-prime credit profiles in an effort to drive sales"
Charts: Bloomberg
(h/t Last Crusader)
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Fuck you Bernanke!
There is no diamond shortage in the world -- only a rather effective diamond cartel.
When significant finds were located outside ZA in Russia and Canada, it was all over for diamonds as a store of value.
Granted, they still do a good job getting through airport security, and they don't have to be declared (unlike your pre-paid Best Buy gift card).
Jill Kelley had no shortage of diamonds ?
I think she likely has quite enough diamonds. Brains and common sense may be another matter....
The other BIG problem with diamonds is that you cannot get a decent price for them if you want to sell. Once we got a diamond as a gift that we did not want! So, we took it down to the "Diamond District" of our city to sell. Although there were a number of jewelers and similar there, the best we could get was about 35% of retail price. So, we took it.
With gold Eagles, you pay (say) 6% over spot, but you will get spot plus 1% or so from your coin shop if you sell.
Diamonds are pretty much a closed business. You cannot get what they are worth unless you "are in the club." You would have to hold diamonds a LONG time to make a decent return.
I'll throw in another datapoint. I had a failed engagement, the ring was $28K ($25K diamond, $3K setting) I picked up from Blue Nile.
The ex shopped the ring to multiple stores (brought the certificates, etc, which helped) -- $19K was the best deal. SO 67% percent recovery, and it likely was only that high because I was pretty careful in picking out the rock and bought from a discount place.
So I'd agree, diamonds suck as an investment, store of value, or anything else for that matter.
Also, there are too many variables with diamds. The whole 5 c's thing makes knowing if you got a good deal real hard. If I buy an ounce of silver, its pretty easy to tell if its an ounce and its silver. But a shady retailer can tell you how great your diamond is, and how are you to know, unless you are a diamond grader yourself? Way to easy to overpay for something that isn't nearly as nice as advertised.
My friend's Russian grandmother left the old country with a whole mess of them crammed up her ass...wipe 'em off, good as new!
What did she cram up there - gold bars, silver or diamonds?
It's too bad she didn't bring over some real local caviar up there. I love that stuff. Ah, I guess I wouldn't want her to have to clean it. I'm even nervous eating muscles unless I know the chef. Keister Kaviar - no, that doesn't sound so good.
Blue Nile is not a discount site. Go to Pricescope for competitive diamond pricing, you'll discover that there are many better sources than Blue Nile.
http://www.pricescope.com/diamond-prices/diamond-prices-chart
Also, if you are buying for an investment, buy at an auction.
You actually did allright only loosing 67%. 3 grand for the setting sounds like you got ripped off unless it was something crazy detailed with a shit load of specialized work.
marry me
Not a practical option for me anymore, but after snooping around, you're both super cute and you have your shit together, so you're a catch and shouldn't have any problem scoring a such a ring from someone.
thank you :3
Don't marry him, engage me!!! 28K on a piece of carbon!!! wow! you must be either a .01 percenter, an idiot or both!
At least you avoided the trap. Well worth the haircut.
More truth to this than you can imagine.
Well wholesalers usually buy at whats called a back number. It could be 20 30 40 or 50. That means between 20 and 50% off the retail price. If you want to buy diamonds you want to buy wholesale unless you work on or around the industry its very hard to get in. That is the retail market in diamonds is for suckers. As far as getting spot +1% for your gold eagles tell me where this guy is the best I can get is 3% bellow spot for any .999 gold bars and 22k coins. Silver much worse for eagles if I want immediate cash and don't want to wait for a buyer to come to me the best I can get at todays price 32.70 is about 27 bucks. But then again I get cash and none of that cashiers check bologne. If you want physical silver and gold to pay back in a big way you better be expecting some big price movements up from the price you buy. Silver would have to rise about 11% and gold about 5%.
I only buy scrap gold now and I buy it at refining cost or less. I know exactly what its worth and sometimes I get it even cheaper from people off the street 14k at $25 bucks a gram I profit immediately.
In Northern California at my local dealer, you can buy 24K Gold maples for $spot + $45 and sell it at $spot +$10. you cannot beat that other than Tulving.
You are getting royally screwed. I feel like I'm getting screwed when I get only 2.5% premium on Gold Eagles. Buying and selling silver (aside from American coins) I pay a few percent on either side. However, right now I could buy a 100 oz. silver bar for no more than $3,400 - and that's without going into NYC. If I took my stuff to 47th St., I could do a little better.
Where do you live, on the Continental Divide? Don't feel bad though, living in NYC and its environs is expensive - and dark, cold and Sandy lately.
I have a pawn broker friend that deals in higher end and the metals. He called me on a custom ring thet was done by a jeweller in Billings, Montana with a 2.73 main and two sides of about .8 Ct. each. The thing was realistically appraised at 47k. (not the phony appraisals of the chain stores). I told him that I'd look at it as an investment because it was under 14k.
When I got the thing I was shocked at how good it looked as I have little interest in diamonds. My mistake was showing it to my wife who glommed it instantly. It gives her great pleasure even after several years. That is important to me, and besides, I can get more for it now than what I paid, maybe not by much, but one does not have to take a hit if bought right.
Diamonds: Beanie Babies for the rich.
So I spent upwards of 15K for my wifes diamond. Are you telling me it's down?
sucker
I bought a zirconia knowing I would get a really CHEAP diamond soon. They will soon be the same price..LOL..I'll flip it even steven..
Your wife or the diamond?
Not to mention DeBeers has resorted to buying up companies that specialize in artificial diamond production as these are now becoming so similar in quality to actual diamonds the majority of consumers wouldn't be able to tell them apart.
A monopolized product by any other name would still be overpriced.
Every kiss begins with Kay skullfucking retarded men with usury consumer loans so they can buy their shallow fuck partners tasteless and cliche diamond-studded heart pendents in order to get an extra blowjob on Christmas Eve.
Some guys are actually this lame, I demand blowjobs, I am not pleased and I tell her to kick rocks.
Your analysis is intriguing, yet also a touch confusing. Would that mean that the retarded men were already going to receive Christmas Eve blowjobs, and the diamond-related ones would be a sort of bonus? Or were they completely out of luck on Christmas Eve until they sprung the glittery surprises?
One would only be able to know definitively if they got the first BJ prior to producing the sparklies; therefore it's key to sit on your overpriced, ugly, shitty jewelry as long as possible to extract maximum ROI.
Isn't it more fun to give a pearl necklace than diamonds?
You know, it's sub-threads such as these that ZH readers are particularly lucky to have for reference.
....and much , much cheaper ! go to 2:56 of video
http://youtu.be/PIUBLyUYDG4
Agreed ... unfortunately it does complicate sharing some of these posts with certain relatives. "Hey, Mom, read this article, but uhm, what ever you do, don't read the comments ... trust me."
#6: Convince The World That A Common Substance is Real
Fortunately the Feds haven't started interfering too much in that market yet...
That headline was supposed to end in "Is Really Scarce" regarding diamonds.
But gold (non-tungsten filled kind) actually is rare! 2 Olympic sized swimming pools full in all the world, bitchez!
Golds pwns diamonds.
Let the reality of the diamond market sink into your head. It is a complete and utter fraud that has been well maintained for decades.
Which markets are more like the diamond market than a free market?
They don't call it JEWelery for nothing!
Every kiss begins with Kay skullfucking retarded men with usury consumer loans so they can buy their shallow fuck partners tasteless and cliche diamond-studded heart pendents in order to get an extra blowjob on Christmas Eve.
Just one extra and only on Xmas Eve?
Anybody see my dow 11,000 hat lying anywhere?
Gold bitchezzzz
Trade that Au in for Ag. It will increase by a larger multiplicand.
Diamond Backed Securities from subslime borrowers?
Can't burst this bubble for sure, it's made of diamond!
maybe cuz Russia just announced it has a friggin whole mountain made of diamond.
http://www.sbwire.com/press-releases/trillions-of-carats-found-in-russia...
"trillions of carats" might just affect the market.
An Impact Diamond says, "I love you with the heat of an asteroid collision".
"This diamond represents the devastating impact you had on my life"
Sorry I crushed your pubic bone.
Mysteriously enough, I tend to Tunguska - that is, explode before actual impact.
I was very optimistic about that - but these Russian diamonds are diamonds good for industrial use - not jewelery :(
Uh, this is a supply issue. Diamonds were once rare, but are now commonplace.
Not very many 3+ carat colorless IF's are found each year, thus high and stable prices
0.75 carat VVS and below... gazillions of them
diamonds have a supply problem going forward. there has been very little kimberlite found in the world recently. like everything else, the world is at peak diamond......................
Only a fool would use as an investment something that loses half its value the moment you walk out the store
Have you ever tried to sell a diamond?
dont be hatin on me people!!! im just talking about supply!!!!.......facts are facts.........i have only one diamond, and as long as i stay faithful, it will hopefully remain on her finger............whats hers is hers, whats mine is ours, and whats ours is hers.....................................
There is no "supply", there is only "supply/demand".
And "demand" part soon will cease to exist.
Well, "luckily" kimberlite is merely processed carbon.
Alchemy not required.
sorry for my rant the other day......it wasnt directed at you........
Kito... Sounds like you are holding a couple (or more) sparkly rocks.
Sucker.
im talking my book, which is titled "cliffs notes".....................
BULLSHIT!!!
Life-time soul mates is always best expressed by 5 carats of emerald cut love. (Goldman Mingle client)
Time to trade up!!!
You can make diamonds, can't make gold.
You can make Diamonds , there is a company in Florida that makes them. But i belive they are only industrial use , the differance been ?
The manufactured ones are too small to make jewelry with. They look like sand.
But who cares?
Moissanites are better, anyway.
You can turn lead into gold.
Edit: Sorry, you can use lead to obtain gold.
You can turn toilet paper into gold
For now. In the future you will have to turn said toilet paper into heat.
Compressed Carbon...bahhh
And now we know what the traders at De Beers are doing.
The diamond market is going to experience supply shortages starting in about 5 years: See http://www.olivut.com/vm/newvisual/attachments/743/Media/OlivutPowerPoin... Seems like somebody needs a good entry point.
By the way: All this BS about the major discovery by the Russians in the Popigai Astroblem is nonsense. These are industrial diamonds. MSM doesn't get that:
http://www.huffingtonpost.com/2012/09/18/russian-diamond-popigai-astrobl...
By the way: All this BS about the major discovery by the Russians in the Popigai Astroblem is nonsense. These are industrial diamonds. MSM doesn't get that: http://www.huffingtonpost.com/2012/09/18/russian-diamond-popigai-astrobl...
Doesn't matter, DeBeers has had this market on major leauge FAKE supply, forever.They dole em' out as they see fit.
This is why only EXTREMELY rare/large one's are of any real value.
Esp for wealth protection.
noticed this on the uk high st, a grand for a carat cant be too far off. But what about the quality, these diamonds (and rings) could have tungsten in them from fake gold shipments :-0 Us retail chumps havent got a clue what we're buying really have we?
I liked Jill St. John in Diamonds Are Forever..
https://www.google.com/search?q=jill+st+john&hl=en&client=safari&tbo=d&s...
She should avoid yachts with Robert, tho
Just say'n
One can easily make artificial diamonds these days, so without pussy-whipped idiots and De Beers cartel diamonds would be nearly worthless. One can not make gold or Ag, so these are fundamentally different.
http://d.neadiamonds.com/real-synthetic-diamonds
Edit: and yes, these days they make relatively large, jewelry-quality artificial diamonds as well. The techniques are not that new either.
'Brilliant Earth' diamond ring ads on the right...lol.
Diamonds are a subprime's best friend...
"Why not diamonds?" - Ron Paul questioning Ben Bernanke regarding gold's reserve status
Theres that damn word again"Jeweler".
Take a hammer to a one carrot diamond and see how well it does.
Been a heavy news day for Tyler. Hope he gets some rest.
I have a cubic zirconia the size of my fist that only cost $5 bitchez.
I only invest in 3 karat IF D colour GIA certified diamonds, very very rare, very very easy to appraise, certify sell, move, vs
tungsten/gold, or fiat currency devaluations.
I only invest in 3 karat IF D colour GIA certified diamonds, very very rare, very very easy to appraise, certify sell, move, vs
Not rare at all, just CONTROLLED release.................................there is a difference.
If you control the supply of almost anything, percieved VALUE goes exponential.
Would you care to illuminate us on the buy-sell spread your fine dealer provides you for these great investments you speak of? Have you ever sold one back or are you just assuming that's gonna be fine?
The real scared money right now is going into natural colored GIA diamonds, especially the pink, blue, and canary ranges.
This stuff cannot currently be counterfeited accurately, and is easy to check for heat treating, etc.
The same phenomenon happened in the early 1930's, when my great grandfather bought his mate an enormous canary diamond (4+ carats) as a 35th anniversary present from his long term friend and wholesale dealer in NYC. It kept gaining value over the years, until it was stolen from a locked safe, along with many other Tiffany and Cartier Art Deco items, in 1990. All were a total loss, and uninsured; so beware. Yes, they are portable, but they are also easily stolen, and unless you have insurance, which is typically prohibitive-- good luck with that.
I'm getting diamond ads right now......
Coincidence...???
Hoarding diamonds is like hoarding new Chevy's. Dumb fucks.
Tell that to Cecil Rhodes and now the Russians. Rhodes didn't become one of the richest men in the world by flooding the market with these pretty little rocks.
...Lab created diamomds......
Makes it more affordable.
Diamond Nexus......
Too too funny.
Screw that - real diamond prices have plummeted, but my CZ purchases have all stayed steady and possibly appreciated. /s/
As an appraiser we carry a diamond tester we call 'the Home Wrecker". It's not that uncommon to find fake diamonds in rings - almost always in newer settings. Well, it's never fun explaining it to the widow, but for some reason we never find fakes when hired by the widower. Hmm.
It's really amazing how fucking mad widows get when the find their dead husbands either bought a fake or got duped. The good news, we tell them, is that the value of the real thing has plummeted.
Tell me if there is anything substance which you
could put in the ars and carry,hide and smuggle
a million $ to a new life with.
Not gold->16kg
Diamonds is the most concentrated tangabile asset
of all(not suitable for poor people)
Cryptocurrency is clearly better than diamond in this regard.
Better than both diamonds and cryptocurrency, are the round little rainbow-colored twinkle turds that the Easter Bunny leaves behind.
It is only clever marketing and controlled supply that makes diamonds so expensive. If people knew that there are literally thousands of sacks full of them they would be demanding anything but diamonds.
And as usual, it's a certain evil, Satanic tribe behind it all!
The only way to make money on diamonds is by insurance scam. Insure the hell out of them and then get them stolen.
I prefer... it was a once in a lifetime event. 2 major collapses don't happen within a 5 years of each other.
Diamond extraction /year = 750 metric tons.Gold extraction/year = 2500 metric tons.Gold is 3 times more abundant than diamond, but a one ounce of gold is 1725 $ when one ounce of diamond (150 carats , a carat is 0,2 grams ) is worth from 150 x 3000 $ to 150x 10,000 $ ( from twice to 6 times its weight in gold ).The difference is marketing.Gold is for storage, diamond is for show-off.Gold is easily bought and sold ,diamonds are much more difficult , few people can read a diamond .In time of crisis people are less prone to show-off . But for those who have a strong historic memory , when the Shah of Iran and his wife left Teheran in 1979 , the Shabanou hold under her arm a big withe leather bag.And guess of what this bag was full of ?? So diamonds can be very useful in extreme conditions, when you are on the run etc...
You could invest in art instead....
http://www.latimes.com/entertainment/arts/culture/la-et-cm-mark-rothko-painting-no-1-sells-for-751-million-in-new-york-20121113,0,3205154.story
looks like my 5 year olds work.
I hear the argument that people won't be able to afford gold soon.
I'm not sure what to think about that other than silver might be the beneficiary.
Of course the day when I can't get on Hedge for half the day there's an article on something I am very well versed in. Oh well.
Just checked RAP.net and currently there are 41 3.00-3.99cts Round Brilliant D IF diamonds ranging from $201,670-$362,571
1-1.99 carats search brings up 50 diamonds ranging in price from $9,940-$19,383
These are all wholesale prices which you can purchase at or haggle the price lower. Retail is obviously much MUCH higher.
To be clear this was only a search of diamonds listed in the US.
Exactly, and to even include a retailer like Zales in this story is absurd--they typically take the grade just above industrial for "white" (NOT!) diamonds, with major inclusions, and charge what Tiffany might for something far better. I lived/worked in France during the 1970's, and right before Mitterand came into power, the market for investment diamonds (typically D, IF) was huge, just as it was right before and after Hitler seized power. The rocks were marketed by the Rothschild Bank, which decided to close its doors prior to being nationalized by Mitterand, who nationalized all remaining banks. The new Russian find may change a few statistics, but I rather suspect that the majority is industrial grade, as it nearly always is. So the ratio of perfect rocks is likely unchanged, but demand will increase. The Russians are no more stupid than DeBeers. Burma might become a minor spoiler, however, although I expect that that problem has already been addressed by Hillary.
Once I asked a boyfriend for sapphire earrings and he got me diamonds
I was a little disappointed but I didn't show it
This is an addbot selling jewelry.
Diamonds have been a scam since the days of the DeBeers. But as always, like most of the lies people buy into today, a certain VERY EVIL Satanic tribe is behind it all!
Well the Jews have 12 tribes so care to share?
Tel Aviv worlds largest diamond exchange, dumping diamonds to finance the coming war?
Diamonds are not a girls best friend, just ask my Wife, she buys Gold & Silver!