There is a common thread running through the spending habits. People share a fervent interest in diamonds. Demand for diamonds has shown consistent growth over the past three years, and this year too.
Though treasured by most, diamonds do not make for as good an investment as gold. Not in the short term, certainly not in the long term,for reasons ranging from ambiguities over pricing to grading and buyback opportunities.
Price of the diamonds are based on 5C’s
Carat , Colour ,Clarity , Cut and Cost.
Price mentioned remains on paper,and jewellers are entitled to certain discount which varies.Above all there is no standardized benchmark for pricing. There is a lot more difficulty in diamond grading, which is graded from D to V with D being the best.Diamonds are best graded in raw form.As regards clarity, the clearest diamond is the rarest and hence the costliest. Many jewellers are hesitant to buy back a diamond because they may be unable to cough up money. The market is today flooded with American Diamonds of poor quality, which is crafted so stunningly that it is difficult to identify even with several lab tests.
The bottom line is that if you are buying diamonds for ornamental value, be warned of these disclaimers. If investment is in your mind, think twice..given the ambiguity and lack of standardisation.People value diamonds highly because they perceive them to be scarce.They are not.
Unitedworld Executive.
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