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Diamond Dcotor


yellowledbetter
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I haven't had the pleasure (or otherwise) of dealing with them, but after visiting their site, I don't think I ever will. Please bear in mind that I am writing the observations below as a somewhat informed bona fide consumer, not in any way as a competitor of Diamond Doctor:

 

"Now we are offering you the same high quality diamonds as we do to our retailers. Thus you will find top GIA certified diamonds for a fraction of the price you would pay either online or with a retailer."

 

They may well be a genuine supplier to retailers, but 1) implying that they are a wholesale business when selling retail is being economical with the truth; 2) I have spot checked their prices and they are not lower than those of reputable online dealers; 3) GIA does not "certify" anything or anybody.

 

"buying a diamond isn’t like buying a car, something that depreciates over time. Diamond jewelry will stay in the family for generations and tends to hold its value or appreciate."

 

This is utter BS. While it will not depreciate in the same way as a car, a diamond will get a single huge hit (for a consumer) the moment it is brought out of a dealer. The hit will be anywhere between 30 and 80% depending on dealer policies, stone quality and market conditions at the moment. From there, it becomes largely subject to market laws and it may appreciate - but even being generous and assuming a 5% pa increase, it will take 6 years to recover the lowest drop... Don't consider a diamond as an investment, unless you have more money than you know what to do with.

 

"Our exquisite diamonds are directly sourced from South African mines and sold to the public at wholesale prices."

 

If they sell to the public, they are not selling at wholesale prices. That's partly out of definition, and partly out of economics.

 

"The chart below lists various diamond types, their characteristics and the proportions from ideal to poor."

 

If only it were that simple... apart from that, I doubt very much that their guidelines for fancy cuts have any value, given the variety of the ways in which fancies can be faceted.

 

"The GIA grading report does not offer a cut grade but does provide the numbers for the cutting factors that we have seen so far."

 

Yes it does, since January 2006. Also, the old style GIA report did not provide much critical information for assessing cut, such as crown height and pavillion angles.

 

I could go on. I realise that it is all too easy to take shots at a website, but this one does not strike me as much more than a marketing exercise, containing inaccurate information. I can only assume that the rest of the operation is oriented in a similar fashion.

 

Having said that, their return, and upgrade policies are good. I still think you can find better - perhaps not in Dallas, but certainly in Texas.

 

Edit: fixed typos

Edited by davidelevi
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Anyone had any experience with the Diamond Doctor in Dallas?

 

 

Never heard of them but sounds like another online dealer. One thing I need to comment on is the comment below. "Utter BS"??? I can show you millions of $$$ in sales since I've been online since 1999 where EVERY customer has seen a NOTICEABLE appreciation in their diamond purchase. For you the customer, if you are buying a diamond at virtual cost then there is NO 30-80% drop. This drop occurs ONLY when you overpay right out of the gate like a quasi retail to retail scenario.

 

For example, I can recall a 5ct G VS2 client back early 2000 that paid $75k. Today it is a $200k diamond. The list goes on and on, certainly diamonds bigger than 2ct have seen the bigger increases. These increases may be behind us for now due to the economy but this statement really jumped out at me as pretty bogus. Not defending the Dr., I have no idea who they are and couldn't care less. But geezzzzz

 

Marty

CEO/Pres.

Diamond Brokerage Service, Inc

www.dbsdiamonds.com

 

 

"buying a diamond isn’t like buying a car, something that depreciates over time. Diamond jewelry will stay in the family for generations and tends to hold its value or appreciate."

 

This is utter BS. While it will not depreciate in the same way as a car, a diamond will get a single huge hit (for a consumer) the moment it is brought out of a dealer. The hit will be anywhere between 30 and 80% depending on dealer policies, stone quality and market conditions at the moment. From there, it becomes largely subject to market laws and it may appreciate - but even being generous and assuming a 5% pa increase, it will take 6 years to recover the lowest drop... Don't consider a diamond as an investment, unless you have more money than you know what to do with.

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Marty, I'm pleased to know that you are confused as usual. Please re-read my post and tell me exactly where you disagree with it.

 

I'd like you to show me WHERE precisely a consumer can avoid at least a 30% drop in value as soon as the diamond sale becomes final. Please. Not at DBS - or at least not on the policies you publish on your site. Do tell me that you unconditionally guarantee your buyers cash back of 100% or even 80% at any time they wish to trade in their diamond, or perhaps that if the stone was trading at 10 below you'll buy it at whatever 10 below is, if you prefer an index-based concept of cash-in.

 

(If you can guarantee that, I can guarantee two things:

 

1. I'll become your customer very quickly - I'm looking for a fancy-coloured diamond right now.

2. You'll soon be out of business)

 

On large and/or rare stones - which are far from representing the majority of trades - since the margin is proportionally lower, the hit will be also lower, but there's no way to avoid it. If anything because of taxes (and no, by being a virtual seller and drop-shipping out of state the consumer does not avoid taxes as you say on your site - unless they are willing to break the law or they live in a no use tax state) and the dealer's overheads and margin. Being online lowers your overhead, but you still have some, and you need to make a profit to keep the business going

 

By the way - I heavily resent allusions to hidden agendas or ulterior motives. I am a bona fide consumer and I have no interests in the diamond trade. If you think my statements are incorrect, you are welcome to refute them with facts. I haven't seen a single thing in your statement that contradicts my post above. As I said, after the initial hit (which you are vehemently denying exists, but have not supplied any facts), since there is a market for diamonds, they will follow that market. It so happens that over the last 10 years they have appreciated; so have stocks and real estate (turmoil of the last few months excepted, and here diamonds have performed better). But ask any consumer who bought a diamond in 1980 whether they have made any money out of it. And I maintain that transaction costs for consumers are much, much higher for diamonds than for either stocks of housing.

 

Edit: added last paragraph

Edit: fixed punctuation and dangling sentence

Edited by davidelevi
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Marty,

 

Ehem. Davide is nicely defending his position but I’ll pursue your example.

 

If a consumer were selling your 5ct VS2/G, and even assuming the grading is accurate, that they have the proper GIA paperwork to back it up, that there are no hidden zingers about cutting, fluorescence or whatnot, that there is no damage and that it’s a cut design and proportion set that has remained in constant demand, where do you think a consumer could go to get $200k for that stone? In the current economic environment it would be hard for most individuals to get even half of that in a cash sale, especially if there’s time pressure on the deal.

 

Equally importantly, that was a long list of terribly critical assumptions I just made. I see stones in the database here that claim those stats being offered for sale by dealers here for as little as $120k and even a single grade difference is a huge deal. The list, by it's nature, consists of stones that remaining unsold I might add. Marquise cuts were hot in 2000 and they’re dead as a doornail now. The ‘ideal’ cuts and H&A symmetry that are all the rage at the moment were just becoming popular in 2000. ‘Faces up like a 6 carater!’ would have been a persuasive pitch then and possibly even have cost a premium in that marketplace. I’m not saying dealers back then were wrong, that’s what people wanted, but what was popular then isn’t the same as what’s popular now. Who knows what it’ll be 10 years from now but it’s sure to be different. That’s the way markets go.

 

That makes for a 30% ‘appreciation’ over 8 years even if all goes well and considerably less if there’s a snag, which is nearly certain. That's an upside potential of an effective ROI of about 4% with a considerable risk. At best that’s a mediocre investment, and that’s for a stone where the numbers are among the absolute best in terms of price appreciation and over a period where the growth in diamond prices were at a historic peak 2nd only to the run up in the early 80's (and which were immediately followed by a crash as I"m sure you know). A 2008 resale value of $50k or less on a diamond bought in 2000 for $75k not only isn’t out of the question it’s typical. If we were talking about the ROI on a 1.5ct./I1/J/marquise that ‘faces up like a 2 carater’, it would be far worse.

 

Neil

 

ps. Not that this has anything at all to do with the original question or the title of this thread. I've never heard of the Diamond Doctor of Dallas, which isn't all that this is surprising and nothing to hold against them. I'm a long way away. Since Yellowledbetter seems to have lost interest in the thread it seemed reasonable to let it devolve into something unrelated.

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