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Diamonds: Not A Girl's Best Friend

Tyler Durden's picture




 

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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Wed, 11/14/2012 - 15:58 | 2981159 fightthepower
fightthepower's picture

Fuck you Bernanke!

Wed, 11/14/2012 - 16:04 | 2981172 idea_hamster
idea_hamster's picture

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).

Wed, 11/14/2012 - 16:05 | 2981196 whatsinaname
whatsinaname's picture

Jill Kelley had no shortage of diamonds ? 

Wed, 11/14/2012 - 16:16 | 2981254 idea_hamster
idea_hamster's picture

I think she likely has quite enough diamonds.  Brains and common sense may be another matter....

Wed, 11/14/2012 - 16:18 | 2981266 DoChenRollingBearing
DoChenRollingBearing's picture

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.

Wed, 11/14/2012 - 16:24 | 2981295 seek
seek's picture

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.

 

Wed, 11/14/2012 - 16:31 | 2981331 Beam Me Up Scotty
Beam Me Up Scotty's picture

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.

Wed, 11/14/2012 - 16:50 | 2981432 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

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!

Wed, 11/14/2012 - 20:19 | 2982159 dvfco
dvfco's picture

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.

 

Wed, 11/14/2012 - 18:10 | 2981802 Yellowhoard
Yellowhoard's picture

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.

Wed, 11/14/2012 - 18:56 | 2981922 yoshinator
yoshinator's picture

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.

Wed, 11/14/2012 - 19:07 | 2981941 kekekekekekeke
kekekekekekeke's picture

marry me

Wed, 11/14/2012 - 23:17 | 2982810 seek
seek's picture

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.

Fri, 11/16/2012 - 20:21 | 2990193 kekekekekekeke
kekekekekekeke's picture

thank you :3

Wed, 11/14/2012 - 19:20 | 2981972 Hard1
Hard1's picture

Don't marry him, engage me!!! 28K on a piece of carbon!!! wow! you must be either a .01 percenter, an idiot or both! 

Wed, 11/14/2012 - 19:36 | 2982021 overbet
overbet's picture

At least you avoided the trap. Well worth the haircut.

Wed, 11/14/2012 - 23:09 | 2982781 seek
seek's picture

More truth to this than you can imagine.

Wed, 11/14/2012 - 18:40 | 2981891 yoshinator
yoshinator's picture

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.

Wed, 11/14/2012 - 19:14 | 2981950 fiddler_on_the_roof
fiddler_on_the_roof's picture

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.

 

 

Wed, 11/14/2012 - 20:12 | 2982135 dvfco
dvfco's picture

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.

Wed, 11/14/2012 - 21:27 | 2982426 Tapeworm
Tapeworm's picture

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.

Wed, 11/14/2012 - 16:19 | 2981270 NotApplicable
NotApplicable's picture

Diamonds: Beanie Babies for the rich.

Wed, 11/14/2012 - 16:20 | 2981280 JPM Hater001
JPM Hater001's picture

So I spent upwards of 15K for my wifes diamond.  Are you telling me it's down?

Wed, 11/14/2012 - 16:25 | 2981300 BKbroiler
BKbroiler's picture

sucker

Wed, 11/14/2012 - 16:51 | 2981443 THECOMINGDEPRESSION
THECOMINGDEPRESSION's picture

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..

Wed, 11/14/2012 - 18:35 | 2981880 GubbermintWorker
GubbermintWorker's picture

Your wife or the diamond?

Wed, 11/14/2012 - 18:36 | 2981885 ilovefreedom
ilovefreedom's picture

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.

Wed, 11/14/2012 - 16:03 | 2981186 redpill
redpill's picture

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.

Wed, 11/14/2012 - 16:09 | 2981214 SemperFord
SemperFord's picture

Some guys are actually this lame, I demand blowjobs, I am not pleased and I tell her to kick rocks.

Wed, 11/14/2012 - 16:09 | 2981215 Tinky
Tinky's picture

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?

Wed, 11/14/2012 - 16:15 | 2981246 redpill
redpill's picture

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.

Wed, 11/14/2012 - 16:24 | 2981297 Beam Me Up Scotty
Beam Me Up Scotty's picture

Isn't it more fun to give a pearl necklace than diamonds?

Wed, 11/14/2012 - 16:31 | 2981325 Tinky
Tinky's picture

You know, it's sub-threads such as these that ZH readers are particularly lucky to have for reference.

Wed, 11/14/2012 - 16:47 | 2981419 tsx500
tsx500's picture

....and much , much cheaper ! go to 2:56 of video

http://youtu.be/PIUBLyUYDG4

Wed, 11/14/2012 - 16:55 | 2981461 i_fly_me
i_fly_me's picture

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."

Wed, 11/14/2012 - 16:16 | 2981241 TruthInSunshine
TruthInSunshine's picture

 

 

#6: Convince The World That A Common Substance is Real

 

So, why do you think diamonds are valuable?

 

Most people will probably tell you the same reasons: they're very strong and visually striking, but most importantly, they're rare.

 

There's only one problem with that: that last one isn't true. To explain why you think diamonds are scarce, let's rewind about a hundred years.

 

For much of human history, diamonds were valuable because they could only be found in a select few places in the world. In the 19th century, however, that actually changed as people started to find massive deposits, most notably in Africa. Those deposits were large enough that the rarity of diamonds was quickly becoming a thing of the past.

 

Faced with stockpiles that were on the verge of being significantly devalued, the owners of those deposits had three options:

 

A) Compete against each other and watch the value of their diamonds plummet as the law of supply and demand drove prices down;

 

B) Forget the diamond market and just use their land to invest in Six Flags Over Zimbabwe;

 

C) Band together to form an evil multinational monopoly that would inflate prices and earn them billions upon billions of dollars.

 

Go figure, they chose the third option, forming the cartel we know as De Beers. To maintain the perception that diamonds were rare, De Beers not only significantly limited how many diamonds they mined each year, but also literally started buying up all the other diamonds and just stockpiling them (along with their own excess supply). Combined with a decades-long advertising campaign, they created a perception out of thin air that diamonds were rare and valuable, and that you had to drop thousands of dollars on one to prove you loved your spouse.

 

So, if all that's true, how in the hell do they get away with it? Shouldn't it be illegal?

 

Actually, it totally is. The monopoly De Beers holds is so blatantly illegal by U.S. antitrust laws that they've been banned from selling in the U.S. (they're forced to sell to intermediaries on the international market). Until they pleaded guilty to price fixing charges in 2004, their executives wouldn't even set foot on American soil because they feared they'd be arrested on sight.

 

While there are indications that the cartel might finally be slowly losing its grip on the market, it's been a pretty damn impressive run.

 

 

 

Wed, 11/14/2012 - 16:18 | 2981263 blunderdog
blunderdog's picture

Fortunately the Feds haven't started interfering too much in that market yet...

Wed, 11/14/2012 - 16:48 | 2981422 TruthInSunshine
TruthInSunshine's picture

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.

Wed, 11/14/2012 - 20:00 | 2982092 Bicycle Repairman
Bicycle Repairman's picture

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?

Wed, 11/14/2012 - 22:20 | 2982609 squexx
squexx's picture

They don't call it JEWelery for nothing!

Wed, 11/14/2012 - 16:19 | 2981258 Iconoclast
Iconoclast's picture

 

 

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? 

Wed, 11/14/2012 - 16:15 | 2981249 Stoploss
Stoploss's picture

Anybody see my dow 11,000 hat lying anywhere?

Wed, 11/14/2012 - 15:59 | 2981162 Karlus
Karlus's picture

Gold bitchezzzz

Wed, 11/14/2012 - 16:19 | 2981271 THX 1178
THX 1178's picture

Trade that Au in for Ag. It will increase by a larger multiplicand.

Wed, 11/14/2012 - 16:01 | 2981171 ZDRuX
ZDRuX's picture

Diamond Backed Securities from subslime borrowers?

Can't burst this bubble for sure, it's made of diamond!

Wed, 11/14/2012 - 16:04 | 2981173 BKbroiler
BKbroiler's picture

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.

Wed, 11/14/2012 - 16:12 | 2981232 fuu
fuu's picture

An Impact Diamond says, "I love you with the heat of an asteroid collision".

Wed, 11/14/2012 - 16:14 | 2981237 BKbroiler
BKbroiler's picture

"This diamond represents the devastating impact you had on my life"

Wed, 11/14/2012 - 16:18 | 2981265 robertocarlos
robertocarlos's picture

Sorry I crushed your pubic bone.

Wed, 11/14/2012 - 18:03 | 2981765 ParkAveFlasher
ParkAveFlasher's picture

Mysteriously enough, I tend to Tunguska - that is, explode before actual impact. 

Thu, 11/15/2012 - 01:59 | 2983183 jonjon831983
jonjon831983's picture

I was very optimistic about that  - but these Russian diamonds are diamonds good for industrial use - not jewelery :(

Wed, 11/14/2012 - 16:02 | 2981175 Thisson
Thisson's picture

Uh, this is a supply issue.  Diamonds were once rare, but are now commonplace.

Wed, 11/14/2012 - 16:26 | 2981306 infiniti
infiniti's picture

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

Wed, 11/14/2012 - 16:03 | 2981184 kito
kito's picture

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......................

Wed, 11/14/2012 - 16:20 | 2981276 Dr Benway
Dr Benway's picture

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?

Wed, 11/14/2012 - 16:24 | 2981296 kito
kito's picture

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.....................................

Wed, 11/14/2012 - 16:44 | 2981413 Kastorsky
Kastorsky's picture

There is no "supply", there is only "supply/demand".

And "demand" part soon will cease to exist.

Wed, 11/14/2012 - 16:23 | 2981292 NotApplicable
NotApplicable's picture

Well, "luckily" kimberlite is merely processed carbon.

Alchemy not required.

Wed, 11/14/2012 - 16:29 | 2981315 kito
kito's picture

sorry for my rant the other day......it wasnt directed at you........

Wed, 11/14/2012 - 16:32 | 2981335 Bansters-in-my-...
Bansters-in-my- feces's picture

Kito... Sounds like you are holding a couple (or more) sparkly rocks.

Sucker.

Wed, 11/14/2012 - 16:39 | 2981384 kito
kito's picture

im talking my book, which is titled "cliffs notes".....................

Wed, 11/14/2012 - 16:04 | 2981188 lizzy36
lizzy36's picture

BULLSHIT!!!

Life-time soul mates is always best expressed by 5 carats of emerald cut love. (Goldman Mingle client)

Wed, 11/14/2012 - 16:04 | 2981190 sharky2003
sharky2003's picture

Time to trade up!!!

Wed, 11/14/2012 - 16:05 | 2981191 Conman
Conman's picture

You can make diamonds, can't make gold.

Wed, 11/14/2012 - 16:08 | 2981206 Abitdodgie
Abitdodgie's picture

You can make Diamonds , there is a company in Florida that makes them. But i belive they are only industrial use , the differance been ?

Wed, 11/14/2012 - 16:14 | 2981243 blunderdog
blunderdog's picture

The manufactured ones are too small to make jewelry with.  They look like sand.

But who cares? 

Moissanites are better, anyway.

Wed, 11/14/2012 - 16:09 | 2981204 robertocarlos
robertocarlos's picture

You can turn lead into gold.

Edit: Sorry, you can use lead to obtain gold.

Wed, 11/14/2012 - 16:13 | 2981234 ziggy59
ziggy59's picture

You can turn toilet paper into gold

Wed, 11/14/2012 - 16:28 | 2981311 Beam Me Up Scotty
Beam Me Up Scotty's picture

For now.  In the future you will have to turn said toilet paper into heat.

Wed, 11/14/2012 - 16:08 | 2981212 ziggy59
ziggy59's picture

Compressed Carbon...bahhh

Wed, 11/14/2012 - 16:10 | 2981222 JSD
JSD's picture

And now we know what the traders at De Beers are doing.

Wed, 11/14/2012 - 16:11 | 2981225 swissaustrian
swissaustrian's picture

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...

Wed, 11/14/2012 - 16:50 | 2981439 DosZap
DosZap's picture

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.

Wed, 11/14/2012 - 16:15 | 2981238 Iconoclast
Iconoclast's picture

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?

Wed, 11/14/2012 - 16:17 | 2981248 ziggy59
ziggy59's picture

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

Wed, 11/14/2012 - 16:18 | 2981256 drB
drB's picture

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.

Wed, 11/14/2012 - 16:17 | 2981259 SheepDog-One
SheepDog-One's picture

'Brilliant Earth' diamond ring ads on the right...lol.

Wed, 11/14/2012 - 16:18 | 2981260 Frastric
Frastric's picture

Diamonds are a subprime's best friend...

Wed, 11/14/2012 - 16:19 | 2981269 ParkAveFlasher
ParkAveFlasher's picture

"Why not diamonds?" - Ron Paul questioning Ben Bernanke regarding gold's reserve status

Wed, 11/14/2012 - 16:22 | 2981277 Bansters-in-my-...
Bansters-in-my- feces's picture

Theres that damn word again"Jeweler".

Take a hammer to a one carrot diamond and see how well it does.

Wed, 11/14/2012 - 16:21 | 2981283 catacl1sm
catacl1sm's picture

Been a heavy news day for Tyler. Hope he gets some rest.

Wed, 11/14/2012 - 16:22 | 2981287 buzzsaw99
buzzsaw99's picture

I have a cubic zirconia the size of my fist that only cost $5 bitchez.

Wed, 11/14/2012 - 16:35 | 2981358 Atlantis Consigliore
Atlantis Consigliore's picture

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.

Wed, 11/14/2012 - 17:05 | 2981454 DosZap
DosZap's picture

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.

Wed, 11/14/2012 - 17:17 | 2981561 Dr Benway
Dr Benway's picture

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?

Wed, 11/14/2012 - 20:05 | 2982112 puckles
puckles's picture

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.

 

 

Wed, 11/14/2012 - 16:35 | 2981362 Bansters-in-my-...
Bansters-in-my- feces's picture

I'm getting diamond ads right now......

Coincidence...???

Wed, 11/14/2012 - 16:40 | 2981395 jvetter713
jvetter713's picture

Hoarding diamonds is like hoarding new Chevy's.  Dumb fucks.

Wed, 11/14/2012 - 19:59 | 2982086 dvfco
dvfco's picture

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.

Wed, 11/14/2012 - 16:44 | 2981407 Bansters-in-my-...
Bansters-in-my- feces's picture

...Lab created diamomds......

Makes it more affordable.

Diamond Nexus......

Too too funny.

Wed, 11/14/2012 - 19:56 | 2982077 dvfco
dvfco's picture

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.

Wed, 11/14/2012 - 17:03 | 2981496 Silversinner
Silversinner's picture

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)

Wed, 11/14/2012 - 17:42 | 2981687 Poor Grogman
Poor Grogman's picture

Cryptocurrency is clearly better than  diamond in this regard.

Wed, 11/14/2012 - 18:09 | 2981799 ParkAveFlasher
ParkAveFlasher's picture

Better than both diamonds and cryptocurrency, are the round little rainbow-colored twinkle turds that the Easter Bunny leaves behind.

Wed, 11/14/2012 - 17:04 | 2981504 Peter Pan
Peter Pan's picture

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.

Wed, 11/14/2012 - 22:13 | 2982590 squexx
squexx's picture

And as usual, it's a certain evil, Satanic tribe behind it all!

Wed, 11/14/2012 - 17:11 | 2981531 Saucy-Jack
Saucy-Jack's picture

The only way to make money on diamonds is by insurance scam. Insure the hell out of them and then get them stolen.

Wed, 11/14/2012 - 17:14 | 2981549 riphowardkatz
riphowardkatz's picture

I prefer... it was a once in a lifetime event. 2 major collapses don't happen within a 5 years of each other.

Wed, 11/14/2012 - 17:32 | 2981639 dinastar2
dinastar2's picture

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...

Wed, 11/14/2012 - 17:39 | 2981670 devo
devo's picture

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.

Wed, 11/14/2012 - 18:31 | 2981868 Sweet Chicken
Sweet Chicken's picture

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. 

Wed, 11/14/2012 - 18:49 | 2981910 Sweet Chicken
Sweet Chicken's picture

To be clear this was only a search of diamonds listed in the US. 

Wed, 11/14/2012 - 19:47 | 2982045 puckles
puckles's picture

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.

Wed, 11/14/2012 - 19:11 | 2981948 kekekekekekeke
kekekekekekeke's picture

Once I asked a boyfriend for sapphire earrings and he got me diamonds

 

I was a little disappointed but I didn't show it 

Thu, 11/15/2012 - 02:35 | 2983216 are we there yet
are we there yet's picture

This is an addbot selling jewelry.

Wed, 11/14/2012 - 22:11 | 2982578 squexx
squexx's picture

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!

Thu, 11/15/2012 - 07:23 | 2983387 tocointhephrase
tocointhephrase's picture

Well the Jews have 12 tribes so care to share?

Thu, 11/15/2012 - 00:38 | 2983036 steelrules
steelrules's picture

Tel Aviv worlds largest diamond exchange, dumping diamonds to finance the coming war?

Thu, 11/15/2012 - 07:22 | 2983384 tocointhephrase
tocointhephrase's picture

Diamonds are not a girls best friend, just ask my Wife, she buys Gold & Silver!

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