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In this lesson, we will discuss preparing to buy a diamond. When a customer indicates they want to buy a diamond, I typically ask their time frame for the purchase. If the answer is more than 60 days away, I don't budget much time for the appointment. My tires are full, it is not necessary to kick them. Very few diamonds last more than 60 days in the open market and even if they do, there is too much price volatility in the market to quote more than 60 days out. After all, some days there are international tariffs, some days Russian diamonds are banned, sometimes the stock market goes down by 5% and then comes back 7% the next day.
When a customer comes in to buy a diamond, my first question is what their budget is. 90% of the time, the answer is "I don't know". Would a realtor be judiciously using his time showing you a $1,000,000 house if you have no downpayment and both your parents and your banker start laughing hysterically when you ask for money? While I understand that most first-time shoppers don't know what a diamond will cost, I firmly believe that everyone has a budget or at least knows what they can (or want) to afford. If you are truly clueless, you can go to the web to establish a range plus or minus 30%. This will also give you the opportunity to scratch your itchy scalp trying to figure out why two diamonds with the same grade are different in price (this web site would explain the difference if you can only just plow your way through it). Of course, I will quote you a far lower price than any comparable diamond on any other website. But, your preliminary research regarding your budget is important because I can’t throw you a life jacket until I can locate you.
The next thing you will need to decide is whether you want a natural diamond or a lab grown diamond. Don't let anyone try to sell you a natural diamond based upon the inferior appearance of a lab grown diamond. A lab is like buying a great copy of the Mona Lisa. Lab and natural look the same and have the same hardness and it takes a testing machine to determine natural from lab. People choose lab for price. People choose natural for value. A lab diamond has 0 resale value, and the prices have gotten cheaper and cheaper. If what you want is a lab, I can sell you the lab diamond of your choice cheaper than anyone in the world, but I will ghost you when you call me to buy it back.
Contrarily, over the years, natural diamonds have gone up in price. Here is a google quote:
“While the overall health of the economy influences diamond prices, this precious gemstone has consistently gained value over the years. Data indicates that diamond prices have risen by approximately 32-33% over the past decade, resulting in an average yearly increase of 4%.Sep 19, 2024.”
So, is buying a natural diamond a good investment? Absolutely, if you buy it at the right time and price. Timing is almost everything, pricing is almost everything, and timing and pricing together are everything. If you bought a diamond 36 months ago, you bought it at the wrong time. If you buy a diamond today, it is my opinion that you are buying it at the right time. Why the difference? Russia needed funds to finance a war. India obliged by flooding the diamond market by cutting inexpensive Russian rough diamonds. I now believe the time to buy a natural diamond is right.
But is the price right? I will sell you a diamond for less money than anyone in the world. How do I know that? Because I have access to unpublished dealer to dealer pricing information. I know 100% that I can sell you a diamond for the same price or less than what a New York or overseas diamond dealer is selling a comparable diamond for on the dealer-to-dealer market. And my 90-day buyback price on a natural diamond is no less than 10% below my selling price so your downside risk is minimal.
