Popularly said that diamonds value drop by over 25-50% the sec you buy it. I know that diamonds value is low key de beers bullshit.
But what I wanna know is how do they calculate the diamond resale value and rational behind 50% resale value of something that never breaks or damages. How do they come up with this shit?
In: 1922
Former diamond salesman here, father in law was well known diamond dealer, wife had GG from GIA. The reason is because the end consumer has very little knowledge of the product and usually no access to the actually diamond market. Diamonds don’t fluctuate wildly in value and there is a standardized pricing model called Rappaport (Rap) pricing that is updated regularly. Usually the pricing is tied to the grade of the diamond. The grading is done by companies which specialize in this with the industry standard being the Gemological Institute of America (GIA). If you buy and trade diamonds for a living, eventually you’ll have the means and experience to determine the pricing and value of a diamond with the Rap pricing and GIA grading as a minimum guideline. Few people will ever have the insight or access to this network. The stores or salespeople you deal with will essentially collude to make their money from the end consumer. The flip side is also true when you want to sell a diamond hence why you would loose value as soon as you walk out of the store.
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