Is now the time to buy? And why is that diamond RED!!
Rapaport Diamond Report is stating 1ct. diamonds are trading at a discount of 18.3% from a year ago. How long will this take to positively influence your purchase price and when will we see a reversal?
If you are buying from a jeweler that is bringing your diamond in today – you may see it today.
It has also been reported that suppliers of choice have rejected sites because of rough prices from the Diamond Trading Company. Diamond Rough is at a high!
All this mean is the first update is most likely short term…
This will eventually filter down to supply and availability. If polishers aren’t polishing – and sales keep occurring, naturally the prices will return to their pre-discount levels. It’s all dependent upon sales at the retail level.
Could prices go lower? Yes. The largest market in the world continues to be the U.S. If sales are soft this holiday season, I could see the prices going lower. However, for dealers I believe that is OK! They need to turn inventory! And stop thinking like they are banks… sometimes you make money and other times you lose money…ask any retailer. The market will adjust!
As a side note for reasons unrelated to diamonds. The gold market could go a lot higher in my opinion. I have been tracking gold and platinum for years and 4 years ago I stated that platinum would be bested by gold. Anyway – this is not a gold investors site… sorry for the digression.
Back to diamonds, If you are getting engaged today – its all relative. The prices today in my opinion on newer diamonds could be a very good buy.
Diamonds over the last week or so have reported to be flat as far as costs go.
The most popular color and clarity ranges over the last week have been 1ct. G-H, SI1 diamonds in all shapes.
It will be hardest to negotiate in these ranges and if you haven’t yet I suggest you listen to my series on BPS it will help point you in the right direction for making a confident decision. My wife wears an F/VS1 diamond – why not a G SI1 or 2? Well, because I can see the inclusions without magnification and I didn’t what that! It was all about how I felt about it. And because in the early years of becoming the diamond answer man – I had access to diamond cutters/polishers and I was able to experiment early on with cutting. I was able to custom cut her diamond into a modified round brilliant. Different than any other diamond out there. I used the BPS technique early on to figure out what I wanted to present her with as a diamond engagement ring.
Now let’s talk about performance.
Why do you hear about performance? Well frankly it matters when it comes to the diamonds beauty. On my podcast “Diamond Cut – The Most Important “C” you can learn more about performance.
In this and future series I will talk about tools used for diamond performance grading – just so you know I am biased. I am the self anointed Diamond Performance Evangelist – traveling about the country training jewelers and staff in the art of performance grading –and way, way back I even used windows net-meeting and the whiteboard to educate or as I might say Evangelize later performance proponents. I fully believe that you can buy diamonds that can consistently be the most beautiful they can be, if you buy the highest performing diamond. I know it sounds redundant – but performance is everything.
So together over the next few podcasts I will give a short explanation of the different analog performance tools.
We will talk about the FireScope / SymmetriScope and how it works.
This is a rendering and some generated computer images of what happens in a firescope/symmetriscope. This is my own rendering and I’m sure some science guys like my friend Michael Cowing might laugh at my rendering but take a look!
When you look at a diamond for the first time – just about every diamond is beautiful! Then when you start comparing and your eye gets used to seeing the little differences – you start to wonder why? Well the firescope was invented for that reason. If a dealer said a diamond was “Ideal” how was a consumer or jeweler supposed to know. In Japan, a man by the name of Takanori undertook the whole movement to push the industry to a higher level of honesty and awareness. Today you find generic variations of this tool in just about every jewelry tool catalog and on the internet. The original Japanese Firescope is in the jewelry market in few locations. My guess is that there are less that 60 original Japanese Firescopes in the U.S. All the rest are generic versions sold under names like Symmetriscope, IdealScope, IdealLoupe and others. One new variation to the very powerful performance tool is the AGS – A.S.E.T.
Look for more in another post…