Diamond Jewelry World on Purchasing Diamonds in Platinum Engagement Rings In the reality regarding diamond jewelry as an investment decision, it has been revealed that a properly picked out even larger, quality diamond on the cathedral engagement rings could possibly produce a financial return on your investment. Why does the jewelry market not really market diamond rings as investment vehicles?
Historically, expensive diamonds on solitaire engagement rings have not been acknowledged as well-liked investment strategies becauseof (1) restricted assets due to lacking a powerful buying and selling marketplace (2) the inability to evaluate the high quality of person diamond rings along with their amazing value/price, and (3) they had to be bought from retail stores. Wise purchasers merely is not going to purchase expensive diamonds at the high prices needed in a retail store at a cost that might or may not reveal their true level of quality and then sell the diamond returning to the retailer at a considerable discount, if instructed to do so. That is simply not an efficient market and why most consumers buy diamonds only for special occasions and long-term enjoyment.
Bella Ideale Details on the Wall Street Impact
In the late 1970sand early 1980s,certain high quality diamonds were purchased as investments, becauseWall Street investment firms sponsored their purchase and commercial banks supported trading by making loans for investment. Inflation was high in the US at the time and investors were eagerly seeking ways to beat the high cost of inflation via the purchase of undervalued assets.
According to bidiamonds.com, Wall Street professionals believed they had mitigated the historic concerns mentioned above by creating an active market for diamonds and by getting diamonds certified as to quality by independent gemological grading laboratories. Professional, objective grading allowed market action to establish appropriate pricing/values for diamonds. Professionals in the diamond platinum engagement rings trade did little to discourage investment, because, like Wall Street, they were making big money by the trading activity.
Everyone was happy until speculation drove the pricing of a high quality, one carat, certified diamond in his or her cathedral engagement rings from approximately $20,000to over $60,000 before subsequently plummeting to $15,000.When the diamond â€œbubbleâ€? burst, a huge amount of money was lost. It was not a happy time for investors and diamond professionals.
Chagrined and embarrassed diamond professionals tried to re-establish credibility in diamonds with advertising campaigns that promoted a mantra that diamonds should be purchased for special
occasions and long-term enjoyment. Even today, the diamond industry remains dedicated to the same theme and remains sensitive to discussions about diamonds as investments.
Back in Today's Periods
Things have changed in recent years with the advent of several new international diamond exchangesand on-line trading venues. The Internet venues provide a market for certified diamonds in the most lovable solitaire engagement rings - those that have been graded for quality, according to specific, well-defined criteria, by independent grading laboratories, such as the highly regarded Gemological Institute of America and American Gem Society Laboratories. An identifying number is often laser engraved on the girdle of the diamond so that the grading certificate and diamond are not separated.
The availability of thousands of graded diamonds on-line from the reputed companies like Bella Ideale and in exchangeshas helped define the trading range of wholesale prices for specific grades of diamonds, thereby allowing investors and consumer's better transparency of diamond prices. Similar to other stock or commodity exchanges, investors need professional help to accessthe exchangesand on-line venues to get accurate information. Thesevenues are currently not as efficient as other longer established commodity exchanges, but they do exist and should improve with time.
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