Today’s market, and the world economy, has proven a challenge for those that work in the diamond industry. Although many people that a diamond is forever, and rightly so given its durability and resilience, many people are not able to present their symbol of forever to a loved one at this time.While it’s true that small and lower-quality diamonds are not producing the sales that they once did, it has more to do with buying on credit and less to do with the quality of diamond. Regardless of quality, if they do not have the money and cannot qualify for the credit terms, they cannot get their engagement ring, earrings, necklace, or bracelet.
For some, qualifying for credit is possible, but the idea of having anything on credit can be a cumbersome idea with the number of layoffs that are presented on a daily, if not weekly, basis around the United States. Furthermore, many people are realizing that although credit allows them to purchase the diamonds now, it ends up costing them much more than the diamond is worth once the diamonds are finally paid off.
However, those who can afford to purchase the practically flawless diamonds, the large diamonds, or the rare diamonds, are not in a position to worry about credit. In fact, none of these diamonds are purchased on credit, although some of them, like the latest purchase of the Empress Eugenie diamonds for the French Crown Jewels at the Louvre were paid for with the assistance of a private donation. Nonetheless, cash transactions are the only way to purchase these types of quality diamonds.
Part of the reason for large stone purchases is that they will retain their value far better than their counterparts. Small stone purchases are available through any jeweler, retailer, or personal sale. Even pawn shops, which provide money to those who need it through the sale of their diamonds and other items, have multiple diamonds and jewelry sets on hand at any given time.
One reason the larger stones will retain their value is because they are more and more rare. As the market turns to multiple outlets for its sales, a quality, large, white diamond is one that will fetch a fair price for rights of ownership.
Still, top-quality large and small stones will attract a decent price, while fancy-colored diamonds manage to attract top prices in the market for purchase. The market for fancy-colored diamonds is a growing one with no stopping point in the near future.
Much like rare diamonds, these diamonds present a look and feel that is unique to the world. With colors like gemstones and the strength and style of diamond, a colorful diamond often presents the best of both worlds for the person who owns it. In addition, it provides a much more unique quality than does a traditional diamond, regardless of cut or carat.
Statistics for the larger stones are provided by Gem Diamonds, a mining company that produces both colored diamonds and large stones. Gem Diamonds does not believe that these types of stones will be affected by any economical downswing or any type of credit crunch.
However, some auctioneers, like Sotheby’s are not showing that they are as confident in the market. Recently, a Sotheby’s auction house in Hong Kong failed to sell a large and rare diamond by the end of the sale. Falling short of the reserve price, Sotheby’s was eventually about to procure a buyer for the diamond, but not before sending out waves of doubt about the strength of the rare gemstone market.
An upcoming sale for a squash ball-sized diamond by Christie’s auction house in Hong Kong will prove whether the Sotheby’s sale was a fluke or a trend in the sales of large and rare diamonds in the trade and auction business. The diamond, which is priced at $8 million, is expected by market analysts to sell for around $7 million, which would fall just short of the initial price.
When viewing the economic outlook for the United States, as well as the rest of the world, it is not unreasonable to think that the prices of diamonds would hit an all-time low, or at least decrease in the number of annual sales. With the price of gas, food, and other basic necessities on the rise, more and more people are faced with the decision between wants and needs.
With the exception of financial tycoons around the globe, this logic applies to everyone, regardless of status. Although they may be able to spend the money to secure a large and/or rare diamond, only time will tell if they are truly still in the market or if they will sit back to see what turns the economy makes as well.
Other articles of interest:
