Though It may sound a bit weird to hear this question from a fine jewelry shop such as ourselves that should sell diamonds, we think it’s more important that we share some lesser-known facts about diamonds, so anyone thinking of buying diamond jewelry has sufficient knowledge on the intrinsic value of diamonds. This will then enable buyers to make an informed decision before making a purchase.
Is investing in diamonds a good idea?
No, it really isn’t. Unlike the gold market which is quite active, the market for diamonds is neither liquid nor are they easily tradeable, making it difficult to resell. Even if individuals do manage to sell the diamonds at a wholesale price, they will often suffer enormous losses because of the steep markup they paid to buy diamonds.
Are diamonds rare?
Nope. Not only are diamonds in ample supply in various different regions of the world, there are distribution centers full of diamonds waiting to be sold. The perceived rarity is only due to an intentional decision to control the market supply. Emeralds, rubies, and sapphires are all rarer than diamonds (and much cheaper).
Are diamonds indestructible?
Wrong. It is possible to break diamonds; otherwise, it would be impossible to cut diamonds into the variety of shapes and sizes used for jewelry. Although they are the hardest naturally occurring substance, it is a common misconception that they are virtually indestructible. As a matter of fact, diamonds can be scratched and broken if they are poorly cut or inappropriately treated.
Then why are diamonds so expensive?
One diamond cartel, De Beers, has artificially increased the price of diamonds for decades. A 1940s advertising campaign launched the idea that diamonds are an expression of love. This notion has endured since with the popular phrase that “a diamond is forever”, encouraging young men and women to view diamonds as an integral part of any romantic courtship.
Many of us have taken for granted the fact that diamonds are inherently expensive, but now you know that they shouldn’t be. Of course, not all diamonds are overpriced and there are relatively affordable ones with inferior quality. Then again, why would you buy low-quality diamonds when you can buy a better alternative at a much lower price?
We are not saying diamonds are not beautiful. We just want consumers to know what they’re paying for and make a thoughtful decision rather than blindly accepting the inflated value. Thus, if you’re not buying diamonds as a status symbol or because you are rich that you don’t care about the price, we would highly recommend that you go with Cubic Zirconia, which is colorless and has excellent clarity, or other cheaper gemstones such as sapphires or moissanite. Though diamonds are more durable and last longer, we certainly don’t think that should justify the absurdly expensive price of diamonds.
Furthermore, the smaller the size of a diamond is, the lesser the need to buy it because most people cannot tell the difference between the two by sight alone and it becomes even harder if the size is small.
Click here to read why we currently do not sell diamond jewelry.