7 replies to this topic

[AN0NYM0US]

I started this thread mostly for discussion sake. I already made my choice, but wanted to know what the forum thought. Please pull out your crystal balls to view these apples and oranges.

Given the current market and its recent trends...which of the two stones in your option would be the better long term investment and which would be easier to sell later?

#1
Argyle Pink -laser inscribed
Fancy Intense Pink
SI2
.49ct
Heart Shape
sym good
polish good
5.05 x 5.30 x 2.95

#2
Fancy Light Yellow
VS2
4.09ct
Radiant
sym VG
polish VG
9.90 x 8.40 x 5.42

I know there is no real answer. I just wanted to see what people thought.

[davidelevi]

"Better long term investment" - neither. Honestly - from a dealer in coloured diamonds. And in any case, the investment potential depends strongly on the price at which you purchase (and whether it is "adequate" for what you are buying).

Assuming you have cash burning in your pocket and that financials are a consideration, assuming that both prices are equally "reasonable" and assuming the two stones are equally nice examples of what they are, I'd buy the pink. It's a LOT rarer, it comes with cachet of the Argyle mine, and frankly the only thing that I could lay against it in terms of resale is that it is a heart rather than another shape. However, as you may have noticed, there are quite a few assumptions in the above - and you know what they say about ass-u-me as a verb...

[denverappraiser]

The problem with 'investing' in diamonds is when it comes time to sell. Buying is easy. SELLING is hard. The people who are good at it do a LOT better than the people who are terrible at it. What's the difference? That's a tough question but you're going toe to toe with people like David (Davide's boss) who have been working at it full time for decades and who have hundreds of thousands of dollars invested and folks like Tiffany who have been spending multi-million dollar advertising budgets for literally hundreds of years. That's tough competition if what you're looking for is the elusive retail customer or collector. Your ONLY advantage is the ability to offer low prices and the haircut can be severe. Buy a diamond today and sell it tomorrow and you're likely to take a hit of 50% or more. If you buy wrong or you're a bad seller it can be quite a bit more. That gets offset by the appreication that happens over time but it takes an awful lot of appreciation to offset that load and be able to walk away feeling like you were a savvy investor.

Edited by denverappraiser, 07 December 2011 - 05:52 AM.

[AN0NYM0US]

I guess when I say investment I don't mean to necessarily profit. Diamonds are bad investments. I was wondering which is more likely to not lose you as much money if you ever HAD to sell it.

The hobbyist in me agrees with Davide 100% that the argyle intense pink heart is a much rarer and cooler stone. But something tells me I could find more buyers for the 4 carat yellow. I just assume most woman would rather have a big honkin' "canary" diamond on their hand compared to a half carat pink that will probably get mistaken for a gemstone. Maybe I am wrong though.

BTW the prices were only a few thousand different.

I buy diamonds as a hobby, not as as an investment. But I always try to buy at a good prices because a) It allows me to buy more diamonds and If, IF, I had to sell any (thankfully has yet to happen) I could try to minimize my loss. The thought of resale is always in the back of my mind when I make a purchase.

Edited by AN0NYM0US, 06 December 2011 - 08:28 PM.

[davidelevi]

You know, I agree with you that the 4.09 may appeal to a broader audience. However, talking of reselling, you have a lot more competition on it too, precisely because it is a much easier find. We have about a dozen stones advertised between 3 and 5 carats in FLY +/- 1, but practically no "competitors" for a 0.50 FIP. And 95% of the time a reasonably priced, reasonably sized pink appears on DBL, it's gone very quickly - although Argyles are rarely either...

And to some extent, although the price may be roughly the same, considering the type of buyer, I believe the deck is stacked against a private seller more on a large "commercial" stone than on a collectors' item. The buyer of the pink is more likely to know what they are buying, and won't be particularly deterred by a private sale, even at a relatively premium price.

In the end, it depends on whether you look at liquidity or margin; as a private seller, I'd privilege the latter. If I were you, I'd make the decision on how beautiful the two are. Go with the one you like most - your "profit" is going to be in the enjoyment of the stone.

[AN0NYM0US]

Thank you Davide and Neil for the responses. This thread sounds almost exactly like the "conversation" in my brain all last week...me playing the side in favor of the yellow. I really thought more (any) would say the yellow would be their preference. I'm kinda shocked...and relieved.

I already put an offer on the pink. I should know hopefully by the week's end.

Oddly enough one of the deciding factors was the size. Most of my current colored diamonds are around half a carat and this heart just seems like it would fit perfectly. Now fingers cross they accept the offer

[jan]

I think the pink diamonds are more rare. I happen to have a small pink mounted and a yellow mounted that are close in price. They both come with GIA lab reports.

http://www.dbof.com/...o-diamond-ring/


http://www.dbof.com/...d-diamond-ring/

[davidelevi]

Good luck - and please post photos!!!