Diamond Engagement Rings

You’d think in times of inflation or in a not so promising financial climate diamond prices would go down – but no – they have been steadily increasing at an over 12% rate year on year. Why, if you were to follow the Diamond Price Index closely, you’ll find this upward trend very visible even on a month on month basis.

Taking an even closer look, where the price rise is most obvious is in the larger diamonds. If you were to look at the over-3 carat diamonds, the prices have gone up between 47% and 77%. May this year saw the sharpest rise in prices and this could just be because there is a demand for these large stones from new markets. Usually, when there is an economic slowdown in the US, diamond prices also tend to get affected as they are the largest buyers. This time around however, there are markets like India, China, Russia and Brazil that are opening up and there are people with the money who are on the lookout for diamond engagement rings sporting the most expensive stones.

Well, the future augurs well for diamonds. While new diamonds also have a great global market today, even old ones are breaking the mould. Late last year, a blue diamond which was over six carats sold in Hong Kong for a phenomenal amount. While there seems to be a slight decrease in the American markets, it would seem that the new emerging markets with their new millionaires just cannot get enough of the top of the line diamonds. Many of them seem to be snapped up as soon as they make an appearance. Private collectors are adding diamonds to their secret cache like never before.

It goes against all the laws of economics. This is the time of the huge sub prime crisis in America. This is the time of spiralling oil prices. This is the time of grain shortages and looming food shortages. It’s also the time when diamonds are cocking a snook at global trends and selling like they never have before.

Ask the people at Sotheby’s and Christie’s and they will tell you that the gems on auction are going at record prices and there has been a sales increase of six percent the previous year. Let rare or royal jewels find their way into the market and there are so many people making a scramble for them.

One reason could just be that investing in diamonds and other precious stones and jewellery could be some kind of a safety measure against rising inflation. Is it because of this that people are buying? Or is it because of the new emerging economies that seem to be flush with funds even as they throw up any more millionaires each year into the world arena. More and more Chinese, Russian and Indian buyers are making their presence felt at these auctions.

What’s going to go under the hammer soon are two incredible diamonds – one, the largest blue diamond that is almost 14 carats and the other a yellow diamond which is a perfect heart shape and is a over 21 carats. It would be interesting to see how quickly these get picked up.

Ever since KimCor acquired the South African Nooitgedacht alluvial diamond mine, there’s been a buzz in the diamond industry. The news is that from .55 carats for every hundred tonnes, the recoverable diamond grade has gone up to 1.40 carats. Now this is the average sales value for the company and that’s a great way to go.

If you were to take the sales price for a carat at budget levels as around £250, KimCor diamonds, according to the company, sell at an average rate of £650 a carat. So when a 31.4 carat diamond that was discovered in their diamond mine gets sold for £3600 a carat, which is record-breaking. The diamond was sold at approximately £113000 and that is a cool £3350 more for every carat than a regular selling diamond and £2950 per carat more than KimCor’s average price.

Diamonds might have their highs and their flat periods when it comes to price per carat but there’s no holding a good diamond down. Come what may, it soars in price way above the estimated value. That really is the wonder of a rare gem and diamonds really top that list. It never fails to amaze just how high prices can go when it’s a diamond that stands out from the rest. Snob value, investment – whatever the reason, a great diamond will always find a buyer. Now we wonder just how much the asking price is going to be for the 18.5 carat stone that was mined recently at Nooitgedacht. We hear that it comes into the market sometime this month and will probably be sold by tender.

Diamonds, according to a well-known manufacturer, have been increasing 15% as far as their price is concerned every year since 1949. This in itself makes it an asset worth having. With increased demand coming from an affluent middle class that is making its presence felt in emerging economies, diamonds just seem to be in demand all over the world.

This is specially the case when it comes to very rare diamonds. Take the case of rare coloured diamonds for instance. Their values have shot up in the recent past. When you have such intrinsic worth in the palm of your hand, does any economic downturn or recession really have to bother you? This is probably the safest bet you have against any kind of eventuality, more so because you can carry it around with you if you want to.

Granted that the availability of the regular diamond to the rare coloured diamond is 1:10,000 – however, if you can afford one, you know you’ve got a winner when it comes to investment. Take into account that the mines where the coloured diamonds are mined, especially the pink ones, are producing less and less each year and you’ll figure just how demand and supply are going to push the prices even further up.

Does all this take away from the romance of the diamond considering that what it signifies on an engagement ring is a declaration of love? Well, more and more couples, even the young ones, are tempering romance with a strain of practical thinking and coming out in droves and buying. So you might never think of selling your precious diamond but it’s great to know just how much it is worth. A diamond really is forever – especially when its worth only keeps going up.