Jump to content

Any experience buying diamonds in Thailand???


dw00001
 Share

Recommended Posts

Hello,

 

I'm new to this site, but after a few hours of reading through the tutorials, board, etc, I have gained much more insight into selecting the diamond that is right for us. Many thanks to people who effortlessly provide good information.

 

We have been staudying in the U.S. for 9 years and plan to go back to Thailand. Does anyone here know if there is a major price difference between diamonds here and there? Of course, I mean the comparison is done after converting the Thai currency into the U.S. equivalent. I heard my friend in Thailand mention that a 5-ct diamond there costs around 25,000 U.S.$ equivalent. But of course, color, clarity, cut, shape, certificate are all important parameters and without these information, the 25k figure is quite useless. I'm asking becasue if there is a well-known difference in the price here and there, then I can choose where to buy the diamond then.

 

My guess for now is that there is little price difference becasue, from my understanding, the De Beers cartel has a major control over the supply and price of diamond worldwide.

 

Thank you in advance for your time!

Link to comment
Share on other sites

I'd be sure to definitely check the grading reports on any diamond there. I don't know anything about diamond sellers there (although you could always buy them online?), but I do know that $25,000 for a 5 carat seems REALLY cheap. Even a lesser quality 5 carat would go for more around $40,000 (and that's already fairly cheap). A much higher quality one could go for well over $250,000 (yikes! I'd rather have a house for that!).

 

And yes, most of the diamonds are controlled by a single diamond entity, so it would be rare to find places that offer them significantly cheaper (although I'm sure there are some a bit cheaper). There is a slight possibility, though, that diamond prices might shift in the near future due to some finds in Australia. I don't keep updated here, but the last time I checked, several smaller companies were refusing to be bought out and this could increase some competition.

 

Diamonds actually aren't as rare as some in the industry would claim (don't get me wrong, they are rare, but the high prices are more so due to great control over the pricing and the fact that most people don't resell a significant amount of diamonds). If they were so rare, then people would be able to resell "used" diamonds a lot easier.

 

Just a little off-topic ramble. :) And hope you enjoyed your studies and good luck on your trip back!

 

Take care,

 

Brian

 

brian@beforeproposing.com

 

www.beforeproposing.com

Link to comment
Share on other sites

There’s something to be said for buying from a dealer who is close to home but if the only issues are price and quality, diamonds are less expensive and easier to buy in the US Internet market than any other consumer accessible market on earth. DeBeers has very little to do with it. The stability is because diamonds are easy to ship around and a dealer who is interested in maximizing their profits, which is all of them, can easily ship stones around the world for a tiny fraction of their value. If they could raise prices by even a few percent by moving from one market to another there would be a flood of stones doing exactly that. The advantage the US has is in good consumer protection law, sensible taxes and easy infrastructure for payment, shipping and similar logistics.

 

Neil

Link to comment
Share on other sites

Dear briankoz and denverappraiser,

 

Thank you very much for your information. I agree that 25k for 5 carat is very cheap and that there would be a flood of diamonds from cheaper places to more expensive places. All of the reasons in the above posts made me feel that the price shold be roughly the same here and there. Maybe the 25k figure is for a diamond in a pawn shop! You know... in Thailand people usually spend and borrow more than what they can earn. Some take their valuables to pawn shops when they need money to pay for debts. Also, the interest rate has risen from virtually zero to almost 5% in Thailand now, so those with big mortgage payments may have been pushed above the limit that they can pay. In any case, I don't think that I will ever want to buy an engagement ring from a pawn shop! :) Considering everything, it definitely seems to be much better buying in the U.S.

 

I will check out the news about the finds in Australia then.

 

Have a nice weekend!

Link to comment
Share on other sites

Just a little added note. The Australia stuff has happened in the past decade or so -- nothing really "new" in that sense. It's just that one entity controlled most of the diamonds for over a century and finally towards the end some smaller companies refused to go along. However, I'm guessing that the big guys will win on this one as usual, so probably not much going to happen ... although who knows.

 

Brian

 

brian@beforeproposing.com

 

www.beforeproposing.com

Link to comment
Share on other sites

I guess it depends on what you consider to be small.

 

The primary 'small' company operating out of Australia is Rio Tinto. This is no tiny company to be bullied. They are one of the largest mining companies in the world and had over $20 Billion dollars in revenue last year!

 

BPH Billiton and ALROSA are some other small players in the diamond mining business. Both are multi-billion dollar companies and although BHP has Aussie roots, they don't mine diamonds there. Both Rio Tinto and BHP are public companies by the way -- you too can be in the business if you want.

 

(Here's how BHP stock has been doing since 2001. So far, betting on the underdogs looks pretty good :) )

 

Neil

post-2-1155073224.png

Link to comment
Share on other sites

  • 10 months later...

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

×
  • Create New...