The once steadfast and reliable commodity of gold is on the downslope for the first time in a long time. Since 2011, when gold hit an all time high of $1,900 an ounce, it has plummeted down by 30% (to $1,330/ounce), a profound low. This could possibly coincide with the fact that another precious material is seeing one of its first significant boosts in an equally lengthy period. That security is diamonds.
There are several concrete factors that could be drawing investors towards the sparkling assets, but a few intangibles as well. One of these being the fact that diamonds have never really had a “spot price” (a current price a commodity can be bought or sold at a specific time or place) or a rigid market; they are a more fluid and erratic commodity, with the only sure annual demand stemming from jewelers. The elastic nature of the diamond market can thus cause demand to fluctuate in an unpredictable manner. Continue reading Diamonds Outshining Gold as an Investment: The Eastern Explanation
Sometimes life just isn’t fair. This applies to relationship savviness, athletic prowess, work place politics and…diamonds.
The primary properties which dictate a diamond’s worth are slightly subjective. One gemologist may categorize a diamond’s clarity as VS-1 (very slightly included 1) and another may say that same diamond is VS-2. This seemingly small discrepancy in grading can actually have a quite an impact on the diamond’s value. The same goes for a diamond’s cut and color; both of these are determined by (the albeit expert) eye of a human. Hence, there can be a disagreement from one diamond professional to the next if a diamond is K or J in color, or if its cut is ideal or not. Continue reading How Carat Weight Affects Diamond Price
Earlier we talked about treatments that enhance the clarity of diamonds and why you should probably stay away from them. Today we’re talking about the other enhancement: color treatments. These treatments are generally performed on diamonds that would receive a low color grade from the GIA. They can turn a diamond white or colorless, or if desired, can create fancy colored diamonds. Just like clarity enhancements, both the World Jewelry Confederation and the Federal Trade Commission require any color treatments to be disclosed at the time of sale. So what are these color treatments? And are they to be avoided like clarity enhanced diamonds? Let’s start with the different types of treatments. The three most common color treatments are coating, irradiation and “High Pressure, High Temperature,” or HPHT.
Continue reading Diamond Enhancements – Part 2: Color Enhancements