Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I just saw a commercial on TV for investing in diamonds and I'm shocked anyone would even consider it an investment.
1 oz of gold has a set market price, no matter who values it they would agree it's 1 oz of gold, and gold has a set market value.
A diamond on the other hand has to be graded by an expert, one expert might say a 10k diamond is worth 8k and another say 12k. There a great deal of opinion when grading the quality of diamonds.
I always seen movies about people who are carrying a small pursue full of diamonds, the argument is they are small, portable, valuable and easily exchangeable. The first two might be correct, the the last two are not.
First off no diamond store goes out and buys a million dollars in diamonds. They go to distributors and sell the on consignment. They put very little of there own money up front, they get diamonds, make jewelry and once the jewelery sells, they pay there distributor for the diamonds.
And two, there's a HUGE markup on diamonds. at least 1000%. If you were to walk into a jewelry store with 10 million dollars in diamonds, they are only paying 10 cents on the dollar for diamonds they get legally, why would they pay you anything close to that? I wager you get lucky to cash in 10 million dollars of stolen diamonds for no more than 400k and at considerable risk. OK I understand that as an investor your diamonds are not stolen, but unless your going to open your own jewelry store, who exactly you going to sell them to? Another sucker that thinks diamonds are a good investment?
I think diamonds are the worst possible investment you can possibly make.
60 minutes did a piece on diamonds. Turns out they aren't very rare and are only worth what they are because Debeers and a couple of other companies have cornered the market and won't release their supply. The whole market is a scam.
I would consider diamonds a poor investment. I read somewhere the cost to mine a one carrot diamond is about $3. DeBeers has cornered the market and sets the price. The mined diamond market is a scam. Artificial diamonds are so perfect that the method to defect them is that they have no flaws.
As for the diamond ring I bought back in 1976 for $500...still have it today...not in my hands as I gave it to my first Granson as a future ring to wear after getting married. I wanted it to be passed down to my first greatgrandson and down the family tree.
Bought gold chains for all my Grandaughters and each of my sons got a diamond ring to pass down if possible. Not everybody sells their diamond purchase.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.