Diamond price fluctuations?

[californiabiker]

I have been lurking on Pricescope since I got engaged last month, but this is my first post. I have a question regarding the price of diamonds.

I saw on a thread a couple of weeks ago that Tiffany reduced the price of their diamonds. I have also seen some news stories that indicate that the price of diamonds are predicted to fall next year:

"Diamond prices are poised for their first annual drop in five years as a recession in major consumer markets and rising U.S. unemployment crimps demand. Prices may slide further next year as the U.S. economy, which makes up almost half of world demand, continues to shed jobs"
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a9a0DxMAyyF0

What does all of this mean for a consumer in the market for a diamond? Is there usually (economic situation aside) a decrease in diamond prices after Christmas? In light of the current economic situation, does it make sense to wait a couple months to buy?

Many thanks for any help you can provide.

 

[strmrdr]

depends on what size range your shopping in.
But if you want or need one now get one.
Most of the reduction has been in larger sizes and internet prices are already low margin so they will drop the least.
Tiffany can cut prices 50%+ in some cases and still be far over internet retail.

 

[Indira-London]

Only if you are in US dollar based country would you have noticed a price drop in the past month or so (diamond trade prices via Rapaport are reported in dollars per carat)
For example, Tiffany in the UK have actually put up their prices as the pound is so much weaker than the dollar now compared to in August. Overall the pound is much weaker than the dollar by a far bigger amount than the small price corrections to diamond prices thereby leading to an increase in prices when paying in sterling.

 

[CRB82]

Date: 12/17/2008 9:20:08 AM
Author: Indira-London
Only if you are in US dollar based country would you have noticed a price drop in the past month or so (diamond trade prices via Rapaport are reported in dollars per carat)
For example, Tiffany in the UK have actually put up their prices as the pound is so much weaker than the dollar now compared to in August. Overall the pound is much weaker than the dollar by a far bigger amount than the small price corrections to diamond prices thereby leading to an increase in prices when paying in sterling.

As a londoner looking at a Tiffany ring, if you account for VAT and duty it actually appears to be a pretty level playing field between US and UK Tiffany prices, with the Uk perhaps even being slightly cheaper... The US certainly isn''t way cheaper on prices than the UK at the moment as regards Tiffany and as a UK buyer with a budget in Sterling.

 

[dbsdiamonds]

If the economy is the house of cards it appears to be then everything is going to come crashing down. If the sky doesn''t fall then you will see little movement in the industry and if suppliers have to get out of inventory to stay alive anything is possible.

There is just not much history of what we are going through or what we may be heading towards...I think it is pretty simple...if the sky falls it all goes down. If
the economy recovers to an extent in the short term then prices will be stable and start lurching higher as the lower priced best goods are sold.

Given 100 years of business cycles and one major sky falling down scenario the odds are that there is not a bad time to get the best diamond for the proper best price.

On another note diamonds have certainly done a helluva lot better than most portfolios and stocks in the market and they can be enjoyed by the wearers rather than some piece of paper saying "AIG Stock, 1 share, $1.68".

Marty
CEO/Pres
Diamond Brokerage Service, Inc
www.dbsdiamonds.com
"guaranteed best for less"

 

[beach]

If you buy a diamond with an upgrade policy you are safe Many companies say that all you need to do is spend more than your original purchase price. Stay away from companies that say you need to spend double. If the price drops then upgrade.... No worries, so buy now if you want.