There is a very specific system that diamond professionals follow when evaluating diamond price and determine what they are willing to spend for a particular diamond or parcel of diamonds. Every full cut polished diamond will have traits that all diamonds have, and it is from these universal diamond characteristics and market trends related to them that diamond value for negotiations is formulated. Watch Doug quickly explain the process diamond dealers follow when determine diamond cost.

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?