ARE DIAMONDS AN INVESTMENT?

 

About 80% of the world diamond production is “managed”. All diamonds of gem quality are sent to the Diamond Trading Company ( DTC) in London, where parcels are made up for particular customers. Only a few diamond manufacturers are “invited” to buy these “lots” at fixed prices. They cannot buy part of a parcel, and it has been known that if you refuse a parcel too many times, you are never “invited” to buy again. Further sales and sorting happens by members of diamond “bourses”, clubs or  wholesalers. Bourses are found in Antwerp, Amsterdam, New York, Israel, Johannesburg, London, Milan, Paris and Vienna. This is how the producers control the prices of rough diamonds in order to maintain the value of diamonds. In other words, the price of diamonds is controlled. I always think it is better to decide what you would like to spend on a stone, and then choose the stone that best fits your budget. If you are paying a commercial or retail price for something, and you wanted to sell it a year after buying it, you would not be able to resell it near the amount you paid for it. You must buy it because you love what it looks like, and that you are going to get pleasure out of wearing it or giving it to someone to mark an occasion.