Diamonds: Better Than The Mattress?

Thanks for the interesting article.

Diamonds are NOT a good investment. Gold is OK but you need to hold it long term. Most of the diamond market is actually for diamonds as abrasives for metal tools, gem diamonds are a small part of the market. The market is not controlled by DeBeers anymore, the Russian Mob almost broke them a few years back as there are a lot of good diamonds coming from Russia and they can dump them and forced Debeers to match. That's why the price drop. It's cartel vs Mob. Good investment stones would be high quality REAL emeralds (be careful.most are oiled some are glass filled), sapphires, mandarin orange and blue garnets (garnets come in every color but green), good tanzinite, good LapisLazuli (hard to get with Taliban stronger in Afgahistan), and others. Diamonds are actually not that rare and of the diamonds the colored ones such as blue or yellow bring more $$$. Unless you get nearly flawless diamonds with a GIA certificate and from a well known house (you got to be in the business or know someone who is) you are paying way too much and will get very little back.

I have been watching gemstones at auctions, especially USMS and US Treasury's goodie bag. Seems a $22,250 16.15ctw Diamond and Emerald Necklace -14K can not even get a bid above USD $2,600. I think it would look lovely on you! http://www.bid4assets.com/auction/index.cfm?auctionid=397563&gallery=1

The diamond market is a true "Insiders Market". Even using the Rap report you will never really know the true dealers market in a particular gem; you have to have access to the actual transaction prices that large dealers are paying in order to have an indication of actual value. Actual dealer and wholesaler prices trade at various discounts to Rap and unless you are a dealer doing business in the wholesale market you will not know what the actual discounts are; they vary by day to day demand and by color, cut, size and clarity. Buying diamonds as an investment generally means paying retail but when you sell you will sell at less than wholesale - that's what dealers pay to individuals. The guy who thinks he has "realized better than 50% increase in appraised value" is in for a big surprise when he goes to sell.

You "Must Have Shares in DeBeer's"! Sorry to be "Cynical", but the "Film" could not"Forsee the Future"!!!!

I have personally invested in hundreds of diamonds over the last 4 years and have realized better than 50% increase in appraised value. I have helped most of my friends do the same with nice results for them as well.

Quality Firearms are the best bet for investments provided you can store them safely. They will trade as cash or gold when times are perilous and you can hunt for food or protect your family if needed. certainly a more practical investment then precious metals or diamonds. peace of mind for uncertain times.

Check the rappaport sheet first. I may be wrong, but I think diamond prices are falling for the first time in years. perhaps it is a good time to buy them? They say luxury goods are still to remain strong.

OK so I buy some diamonds. Who is going to buy them back when I need the cash to feed my family? The jeweler? Some other poor schluck trying to feed his family? Somebody has to want them more than food to keep the demand and price up. And here's a riddle I can't understand. If diamonds are so rare, like the commercials tell us, why are there at least 4 or 5 jewelry stores in every mall? How about a story about GOLD! There seems to be no shortage of folks wanting to sell me gold on TV. Why do I get the feeling it's all a pump and dump scheme? Could somebody help me understand? Am I missing something?

You had this guy on the other day and he was pushing his stuff and saying what a great investment diamonds are. Then today you have that woman with her new website selling diamonds that when bought you can't get your money back so she was selling them at huge discounts. Diamonds for an investment is foolish. I could tell that E-mac was bitting her tongue when that guy was spouting off. Although pretty and shiny diamonds are priced fixed and pulled out of the ground with slave labor. The blood and tears that a diamond brings are not worth the price you have to pay.

CC DO I NEED TO BUY A YOU JARRED'S DIAMOND RING FOR CHRISTMAS?

Don't forget that the entire diamond market is controlled by DeBeers. They control mining, stockpiling, and distribution, thus controlling prices. Doesn't this seem a bit similar to the oil cartel. If you want to invest in something, pick something that is actually needed, not something that is simply wanted.

C.C. $$$ in diamonds? This is dumb, the economy is in deflation and diamonds are a good investment? Buy basic human needs like food.........