Reply To: Diamonds Are Overrated!

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Reality check time:

This is America (or maybe you are in EY). o tell a young lady that she is not worth the price of a diamond at her engagement and instead she’ll receive another gemstone you consider a better buy>>>>

You will be seen as not caring enough for her, she will feel that the other girls will snicker about her ring…she’ll stand out as different with that colored stone, and her family will lower their opinion of you. Better to give a smaller diamond you can afford than a colored stone.

As for a better gemstone…that is a very subjective word. Diamonds are traditionally known as the hardest gemstone on the MOHs and Vickers scales.

You claim the price is overinflated,it is all about supply and demand determining the market price. Chances are you will not be buying the benchmark D Flawless investment grade diamond that currently retails at about $29,000 US. It has risen dramatically in the last few years since the 2007/8 international banking collapse, the rise of Muslim Terror attacks, political instability in many areas and the restrictions on ‘blood’ diamonds. It is far easier to shift a small envelope of diamonds across a border than kilo bars of gold.

This is also a time of conspicuous consumption in the world. With banks paying next to no interest on money deposits, people are willing to spend large amounts on diamonds. There is also the phenomenon of the newly wealthy Russian and Chinese billionaires who have driven up demand for the finest quality stones.

We have seen changes in the diamond market over time. I can remember one of my trust clients having to insure a particular diamond for $70,000 in the early 1980s. When it came time to distribute the assets of the trust about 10 years ago the market value was only about $35,000.

I am not in the diamond or jewelry business nor are any of my relatives. However, I am both a husband and father of three daughters and I know that neither Mrs. CTL or my girls would have wanted a colored stone for an engagement ring.

Remember, one should buy what one can afford, whether a diamond, house, car or cost of a wedding.