– Why diamond has little to no resale value?

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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

34 Answers

Anonymous 0 Comments

You can determine a diamond’s resale value by selling it. The price it sells at is its resale value. If you have a diamond that has effectively identical properties to one that sold at a particular price, you should expect a similar resale price for yours.

The diamond market is an example of a market where consumers have poor information, which prevents them from effectively price shopping. This allows jewelry stores selling to consumers to inflate their prices. It’s all a bit of a racket.

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