Is it feasible to buy second hand or used diamonds safely? Insiders in the diamond trading industry are scrambling to figure out what diamond prices are going to do in the coming months and years. We’ve watched diamond prices skyrocket over the past few years as the value of the US dollar weakened.  The past 6 months have seen a decline in diamond value and a virtual halt to gem quality diamond production.  Furthermore, many second hand diamonds and used jewelry are being made available at tremendous discounts (relatively speaking) as consumers look for ways to get cash by selling into the market.
If the Obama administrations’ plan to flood the US economy with dollars triggers the type of inflation most economists expect, we expect diamond values to once again rise. If there is limited supply due to the lack of polished good production, this should also bring the price of diamonds higher. This will also make those second hand diamond purchases a tremendous investment for those who chose to buy such. The question for dealers is, how much cash are you willing to convert to inventory?