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)