Diamond Deals
The value of diamonds in the wholesale arena have been quite volatile over the past two years. Diamond dealers have watched Rapaport Diamond Report hike the cost of diamonds over and over again. In the past, once or twice a quarter, the industry prepared for a price change and reacted accordingly; the most dramatic changes in diamond price were almost always limited to the ultra rare.  But throughout 2007 and 2008, the effects of the housing and subsequent credit crises on the global economy, weakening dollar et al brought about huge up swings in the Rapaport demand value of most diamonds above 1ct.
The theoretical return on investment for diamond dealers in the past 2 years has been unprecedented.   The value of diamonds has outperformed almost every other conceivable investment.  But as is the case with all commodities, shift in demand, supply chains, and world power currency value is apt to change that trend in diamonds as it has for oil, gold and platinum. So the question is, will the importers and manufacturers who have safes full of diamonds be willing to cut deals on their diamond inventory in order to exercise their possession and guarantee return before prices fall?  Will prices even fall fall?
I have been speaking with industry insiders in an attempt to glean their perspective on the type of impact today’s economic uncertainty will have on our industry. Perspectives are varied, but a common theme in industry trends seems to emerge among the more “advanced” players. That is that the type of spontaneous or impulsive luxury mindedness that yields high end finished good sales will dissipate. But regarding full cut gem quality loose diamonds such as those used for engagement rings, we think demand will remain high.  One engagement ring per couple and two subsequent wedding bands 6 months to a year after is volume I think we can count on. So while the $15,000 budget may drop to $10,000, the $5000 budget to $3500, I believe diamonds will continue to be in demand and therefore valuable for even until the end we know that “They ate, they drank, they married wives, they were given in marriage…”.

The perpetual but illusive quest to buy your diamond at truly wholesale prices. .. The Boston Diamond Exchange web site is designed to get consumers as close to the wholesale end of the diamond industry as possible. More importantly, we are transparent with diamond value showing clients how dealers buy diamonds, the pricing structures used by industry professionals when negotiating.  Our network of diamond wholesalers and affiliate reputation are in effect leveraged on behalf of the consumer to locate the best diamond deals.  As a naturally formed substance and with more than 10 cost influencing components to each stone, shopping for and buying your diamond in person if possible is strongly recommended. And this isn’t a line to promote local business by any stretch. We’ve been and continue to sell diamonds to clients sight unseen all over the country. It’s just that similar clarity grades will show in diamonds differently. Cut grades may be deemed “excellent” but any diamond professional will tell you that doesn’t guarantee you it’ll be the most brilliant diamond. The effect of fluorescence, how it shows in the diamond, certifications, their stringency, color variances… the list goes on.  The best way to shop for your diamond is to call or email us, set up a no pressure in person diamond viewing appointment where we can look at diamonds objectively and in varying light conditions and figure out collectively what components of the diamond make sense for you to spend money on and which don’t.  No pressure, casual environment, personal attention … in about 35-45 minutes learn how dealers buy stones and how to scrutinize stone traits and value.

The diamond and jewelry industry is changing. Some of this is due indubitably to the world economy and credit crisis. Some of this change is due to what Martin Rapaport calls market transparency. This transparency in the diamond industry is the result of a number of different factors. For example, the ease with which consumers can access diamond inventory specs by looking online at sites like Bluenile.com or the bostondiamondexchange.com. Being able to shop online by diamond spec. and the confidence that consumers have in the grading accuracy of gemological companies like GIA forces market transparency. Remember the days when you had to go from jeweler to jeweler to see what options were available to you? Remember how you were limited to their inventory? Remember having to “trust the jeweler” that sold you that you were getting a fair deal? Those days are over. The commoditization of diamonds is happening and the importers and dealers that refuse or are too lazy to adjust business strategy are going to be in for a rude awakening.

Welcome to WordPress. This is your first post. Edit or delete it, then start blogging!