As much as I love jewelry I've always known the price of gemstones is arbitrary to a great extent. Jewelry is as much of an overpriced luxury item as Hermes handbags, Manolo Blahnik shoes, or Dior pants and coats. They cost what consumers are willing to pay for them. Never think of luxury items as investments but to be enjoyed as things of beauty only. The value of luxury goods is driven by want not need. If you covet investments, take your money to an investment firm to buy stocks, bonds, and mutual funds, where you'll earn returns on your portfolio. You're lucky to break even by reselling luxury goods after you subtract a 15% - 20% commission.
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| Photo: That Guy Osiris - I'll take them! |
(1) Monopoly diamond sellers such as DeBeer aren't as powerful as they once were in setting diamond prices high combined with limiting the supply of gemstones on the market.
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| Photo: istock |
(3) A main reason why the price of diamonds is sinking is the greater acceptance by the public of lab-grown diamonds which cost about 1/3 less than diamonds mined in nature. Diamonds created in a lab are chemically and optically identical to natural diamonds.
(4) The process of making laboratory diamonds is getting better and cheaper all the time, and more companies including jeweler James Allan are offering them. According to Liberum Capital Markets, about 25% to 35% of diamonds sold to customers today are lab-grown diamonds.
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| Photo: That Guy Osiris |
All of this is a win, win, win for customers! If diamond prices keep falling, one day I'll be able to afford my fantasy 4-carat stud diamond earrings (that's 2-carats each ear, sister!!), my 20-carat diamond blingy tennis bracelet, and my 5-carat diamond solitaire ring ... no engagement needed!
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| Diamonds By Bonnie - has an Instagram and a YouTube Channel |
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