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
Diamonds don’t drop in value the second you buy them…diamond jewellery bought new is subject to a markup by the store, even more so if you’re buying non-fine jewellery from a big name jeweller. This is just the difference between what the retailer paid to buy or produce the product and what they are charging you for it. Everything you buy new in a shop is subject to a markup, that is how the retailer makes money. Diamond jewellery is not an exception.
But diamonds, good quality ones of size anyway, have an inherent value that is not related to being previously owned or not. They are a commodity, albeit not a standardised and traded one. A 90 year old diamond of a certain size, quality and condition is not worth less than an exactly equivalent “new” diamond.
Because the value is emotional to begin with.
My fiancee and every other woman I know would not ever consider a used diamond. “Its bad luck” “it has bad juju” “it brings bad energy and so we will be more likely to divorce”. No amount of “it’s 80% off if we get a used one, so I could get you an EVEN BIGGER ONE for the same $$$” would sway the opinions.
That and there are very few markets for it to transact on to find a price, so prices are depressed that way too. But mostly the first one
The reason it loses value immediately is because they were charging you 25 to 50% more than it was worth. Because the entire diamond industry is a complete scam. They marked it up because you were willing to pay it. People don’t buy diamonds for their usefulness, they buy them because they’re expensive, so a larger price tag is a selling point for some people.
People who actually know how much diamonds are really worth are buying them wholesale and selling them to us.
Reading these comments, I have only one questt: where can I buy used diamond ring?
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.
Main portion is the original selling price is bad based off the fact that they are rare. Resale sucks because they are infact not rare and everyone has a diamond something
My wife told me she had heard that heirloom diamonds (and other types of jewelry) were passed down so that they could be sold if there was an emergency, like losing a house to a fire or becoming a widow. We did inherit some “expensive” jewelry from my wife’s grandmother, and, when times got particularly rough for us, we took it to a jeweler to see how much we could get for it. He said it was practically worthless, it looked too gaudy, he couldn’t resell it, and stripping down/melting it would not yield much money. He gave it back to me and said no thanks. He said “I do appraise jewelry for insurance, though. That’s another matter. These are probably worth a few thousand dollars insured. The insurance company would pay that much if it was lost.”
I came away feeling like I had pulled back a paving stone and seen the squirming creatures beneath it. Jewelry is not an investment and insurance is a scam.
>low key de beers bullshit
just want to point out, not anymore. prices have stayed the same in 30 years, despite inflation,
at least according to this video: https://www.youtube.com/watch?v=GzXeWlRzBqs
Same reason why a gold necklace you buy at a jewelry store has a lower resale value. You pay a markup in the store. Literally every luxury good works like this.
Because they are not valuable to begin with. They are just artificially scarce and monopolized.
Offer and demand. As long as dummies keep paying those prices, they will not drop in price.
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