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How Well Has Diamonds Appreciated?


Greg Y
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HI Greg,

I'm sure someone somewhere has statistical data about the rise in diamond prices over the years.

I don;t reccomend that folks buy them for investment.

It's rare that one can purchase an item retail, and expect it to show any quick appreciation.

Over time desirable diamonds- especially large, well cut ones- have continued to rise.

If someone bought a 5 carat diamond well in 1990- they'd probably show some profit.

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There’s no short answer and the long answer involves way too much typing. Appreciation involves 4 elements. Cost, holding time, selling price and transaction costs.

 

These things will vary wildly depending on the details of the stone, how you bought it and how you sell it. In general, diamonds are a bad investment for consumers because their cost is too high, their selling price is too low and the transaction costs are too much. A chart graphing $/time for some particular stone misses the entire issue.

 

Neil

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I Agree Neil- the factors involved can vary wildly.

 

I also advise folks that diamonds should not be used as an investment tool.

Yet, this year, it really does look like those holding larger diamonds purchased 5-10 years ago would be able to reclaim original investment- and maybe even then some.

A huge wildcard is that a diamond sold on Fifth Avenue for $25,000 may be sold online for $15,000.

BUT- if people bought any desirable diamond over 2 carats reasonably well 10 years ago....that purchase would bring a greater financial return than most any other item people purchase...except fot a home.

Which really does mean something.

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