Mineral Review

Why shouldn t we buy diamonds?

Wife: Can you buy me a gold ring this year as a birthday present? Me: Of course, I will buy you a beautiful diamond ring for your birthday. Wife: I don’t want a diamond ring – I want a gold ring. Me: But why, dear? Wife: I want to buy a gold ring as an investment. Me: Buying a diamond ring can be a great investment if you buy a large stone. Wife: Diamonds have no intrinsic value – I cannot resell them at the same price or higher than the one at which you buy them; So, this is an investment of money without profit. Me: Okay, I see your point, but I am an expert on rough and polished diamonds. I will buy an excellent round cut stone, weighing 1 carat, color F, clarity VS. This is a good investment product and even the price will increase over time. Wife: If I need or want to sell my ring someday, where will I find the right market to sell it? Secondly, if I find somewhere to sell it, how do I know the current price of my diamond? Unlike gold, which has a uniform price per gram throughout the world, when selling my diamond, I have to trust the seller’s price because I don’t have a reference price for diamonds. Me: Okay honey, I’ll buy a gold ring. In the above conversation with my wife, you may have noticed that I was unable to convince her to buy a diamond ring. She asked direct questions, but they addressed a serious problem: as a diamond dealer, selling millions of dollars worth of diamonds my entire life, I could not answer these simple questions asked by the consumer. Why couldn’t I answer my wife? Pricing transparency at the consumer level: Diamond traders, diamond manufacturers and governing bodies emphasize the importance of traceability of provenance information to set standards so that consumers know the origin of the diamond they buy. Regulators ensure that diamonds are not sold with illegal financing, are not used for money laundering or that diamond mining does not cause harm, and they stress the importance of due diligence. YET NO ONE IS TALKING ABOUT TRANSPARENCY IN THE PRICING PROCESS, FROM TRADERS TO RETAILERS TO CONSUMERS. Clarity in the pricing process is key to a consumer purchasing a diamond for wealth preservation. 1. Diamonds are not sold like any other product: Diamonds are a commodity and their value can rise and fall like any other commodity. However, there is no universal price index available to consumers when buying and selling diamonds. For example, transaction prices of gold and silver are available in ounces, grams and kilograms in the market tracking section of almost every newspaper or online platform. However, such information is not available to consumers purchasing diamonds. There is a counter-argument to the problem associated with the fungibility of diamonds as a commodity. However, significant higher quality diamonds could be formalized to indicate prevailing prices to the consumer, or something like a Rapnet price list, available only to traders, should be made available to the consumer, allowing diamonds to be purchased as a commodity and for the purpose of preserving wealth. 2. Consumer-oriented pricing system: Today, the Internet makes some information freely available to all people around the world. It is almost impossible to keep the prices of any product secret. Social networks and consumer reviews make it difficult for a company to set its own prices. The same formula applies to trading diamonds as a commodity: let the consumer decide which diamond to buy and set the price he is willing to pay for it. Retailers should focus on providing general education to consumers to understand the characteristics listed on a particular diamond’s certificate that factor into its value. Allow the consumer to analyze the characteristics of the diamond and compare them with the price list to determine the true value of the diamond. How can a layman buy a diamond? Diamonds are luxury items and only the rich can keep them in their investment portfolio. This statement is true to some extent, but diamonds can also be part of the investment portfolio of the average person. The question is, what type of diamond should I buy so that it can be easily resold for an increase in value? The most important thing is to buy a certified diamond. When I say certified, I mean certified by a genuine laboratory such as GIA and HRD. DO NOT BUY A DIAMOND WITH A CERTIFICATE ISSUED BY A STORE. Secondly, buy round cut diamonds because they are the most popular diamond cut and have a higher resale value. Finally, I don’t think a huge diamond is more valuable than a smaller stone, and this is the most common mistake people make when purchasing a diamond for the purpose of preserving wealth. Always buy the best quality diamond, this means a superior Excellent Cut, higher color and clarity. Any round cut diamond from 0,39 to 10+ carats with the best characteristics is an asset to add to your investment portfolio. It should be understood that there will be a shortage of diamonds because the rough diamond industry is dominated by a handful of companies such as De Beers, Alrosa and Rio-Tinto. They account for more than 60% of the world’s diamond production. Last year we witnessed a shortage of diamonds, which led to a sharp decline in meeting consumer demand. We need to increase price transparency from trader to retailer to consumer by introducing an easy-to-understand Diamond Price Book For The Consumer for significant small diamonds. A layman can buy a diamond at a low price in order to sell it at a higher price. We must give consumers a compelling reason to add diamonds to their investment portfolio, and diamonds must be sold like any other product. I continued the conversation with my wife, explaining to her the value of buying a diamond to preserve wealth: Me: I’m sure now you understand why I suggested buying you a diamond ring. Wife: Okay, I know you tried your best to convince me to buy a diamond, but let’s try to buy a small half-carat round diamond with excellent cut quality. The opinions expressed here are solely those of the author as an individual. No person should act on any opinion or information without consulting a qualified professional advisor. Man has always sought to decorate himself – earrings, rings, bracelets and headdresses have existed since time immemorial. And the modern world is no exception. With the help of jewelry, we emphasize our style, mood, and attitude towards the world. Jewelry art – one of the most beautiful arts in the world – today offers the widest selection of jewelry. But one thing has remained unchanged for many decades – the main gemstone is the diamond. Why him?

#1. Good investment

Diamonds are one of the most reliable investments, if not the most reliable. Diamonds, in principle, do not fall in price, and the demand for precious stones remains stable. And, importantly, this type of investment is not subject to taxes. At the same time, diamonds are relatively unpretentious in terms of storage. Paradoxically, they can even be stored in a stocking – nothing will happen to them or to their value. In a word, diamonds are forever.

#2. Status

It’s no secret that high-quality expensive accessories are an important part of a business image. Diamonds are an invariable attribute of a successful person and, like nothing else, they can emphasize the status of the owner. Of course, the absence of a diamond ring on a finger does not indicate a lack of business qualities, but, as you know, people are greeted by their clothes. If a person can afford status jewelry, then with a high degree of probability he is doing quite well, and cooperation with such a person can be useful.

#3. Social events

Diamond jewelry does not have to be worn every day, but there are events when they are not only appropriate, but even necessary. Evening reception, corporate event, wedding of loved ones – these are some of them. Diamonds are wonderful evening stones for special occasions. They look gorgeous in artificial light or candlelight – then they sparkle especially brightly. By the way, another additional reason to buy jewelry with diamonds is to increase your knowledge of “diamond” etiquette. Where and what kind of jewelry is usually worn? At what age and what is appropriate to wear? How much diamond jewelry can one person wear? The answers to these and many other questions have been shaped in society for decades, and this is interesting, at least from an educational point of view.

#4. Slow fashion

In the last 10-20 years, the world has been experiencing a “fast fashion” boom, when new collections of clothing and inexpensive jewelry appear every month, or even every two weeks. Things are no longer durable – fashion trends are rapidly replacing one another, and there is no need to purchase quality items if tomorrow they will no longer be needed. But people are tired of the constant race, and analysts note the emergence of a new trend, which, by analogy with “fast fashion,” was called “slow fashion.” This indicates the return to the arena of the habit of buying things seriously and for a long time. High-quality fabrics and tailoring, classic style, durable jewelry. Diamonds become part of this culture, part of the new “good old taste”. Therefore, jewelry with diamonds is a must-have for those who follow fashion trends.

#5. Self-expression

Today, in the era of digitalization and globalization, self-expression is becoming one of the most important human needs. And finding your own style is one of the components of this process. Modern jewelers understand this very well: the jewelry market is developing rapidly, and today, in addition to the “classics,” you can find vintage, youth, and even children’s jewelry collections. Rings, earrings, brooches and pendants of the most unusual shapes with diamonds of different colors, the use of a variety of frames (not only gold and platinum, but also silver) allow you to select jewelry to suit the individual taste and needs of a particular person.

#6. Best gift

It is difficult to think of another gift that would so accurately express the attitude towards the most valuable people in our lives. A diamond is an exclusive stone, and with the help of such a gift you can express your love and respect for your mother, sister, wife or other important woman in your life without words. By the way, a gift with diamonds is also quite appropriate for men – these can be cufflinks, tie clips, watches and even rings.

#7. Wedding tradition

In recent decades, the tradition of buying a diamond ring for a wedding has taken root in Russia. This tradition appeared in the world in the 19th century and is connected with the fact that a diamond is a symbol of eternity. It is like nothing else suitable for a wedding, when two people unite to go through life together.

Another reason

Diamonds are an opportunity to touch eternity. The age of diamonds, according to some studies, can be from 100 million to 2,5 billion years. And this is a real miracle!

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