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Diamonds-why buy them

Posted By: PSJ Yeovil, 14th April 2016 Tags: Gemstones , Diamonds

 

We have recently been contacted by several unfortunate individuals who were encouraged to buy diamonds for all the wrong reasons. Three people with whom we have had personal contact were persuaded to "invest" sums ranging between £12,000 and £80,000, apparently through cold-calling by a company based in Amsterdam. In each case the stones were bought unseen and without appraisal by a third party----astonishing considering the sums of money involved!

In each case these diamonds are yellow "fancy shaped" (example above) and therefore cut from odd-shaped natural rough. These have very limited use in jewellery and are of minimal market value as loose stones; furthermore the selling company has little or no interest in buying back the diamonds. Regrettably it seems from our evidence, that the target market for this form of selling are those amongst us who may  be vulnerable and easily susceptible to persuasion.

Diamonds have a very questionable track record as an investment commodity. For example, a one carat top-quality white round brilliant cut stone bought in thirty years ago in 1985, costs almost exactly the same today in real terms.* Clearly therefore, you would have been far better investing in stock & shares or an endowment policy than investing in a fine white diamond. *(Rapaport Diamond Index)

Buying loose diamonds unseen, albeit with a certificate might seem a sound basis on which to make a confident purchase, however, diamond certification is now being carried out by several different organisations. The most reliable may be the GIA* but by contrast many certificates are frankly not worth the paper on which they are written, being based on somewhat "flexible" standards. Consequently, a "certificate" on its own can no longer be viewed as a guarantee of diamond quality. It is also worth saying that there are many synthetic (manufactured) yellow diamonds on the market as well as increasing numbers of synthetic white diamonds appearing together with natural stones. *(Gemological Institute of America)

So going out or online to buy that diamond might not be as simple as it sounds!

 

On a lighter note, Despite all the above, you still want to buy loose diamonds? My advice is simply--be clear about your motives. The diamond will never wear out, so it's a perfect token of love and everlasting commitment; but if you already have one on your finger, perhaps it's time to think about an eternity ring? As I overheard recently... "she married you for better or worse--- let her know how it's going" !

 

Anthony White  (Fellow Gemmological Association 1961)


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