If "A Diamond Is Forever" , why is the value of a diamond not forever?

Have You Ever Tried to Sell a Diamond?

Selling diamonds can be a frustrating experience for private individuals

Retail jewelers, prefer not to buy back diamonds from customers, because the offer to buy a diamond ring or other diamond jewelry they would make would be considered ridiculously low.

The retail markup on a diamonds and diamond jewelry ranges from 100 to 200 percent, to buy diamonds back from customers, they would have to buy them back at wholesale prices. Most jewelers shy away from making an offer to a customer that could be considered insulting and would dispel the notion that diamonds only go up in value.

On a business level, most retailers get diamonds from wholesalers on consignment, and only need to pay for them when they are sold, so they prefer not to layout their own cash to buy diamonds from customers.

Rather than offer customers a fraction of what they paid for diamonds, retail jewelers recommend to customers, companies that specialize in buying diamonds such as JewelryWay Inc.

Example, a woman wanted to sell back a diamond ring she had bought from a fifth ave jeweler for $115,000 and use the cash for a necklace of matched south sea pearls. fancied. The sales executive explained, the 'store' had "a strict policy against repurchasing diamonds." He did assure her, however, that the diamond was extremely valuable, and suggested another Fifth Avenue jewelry store. The woman went from one leading jeweler to another, attempting to sell her diamond. One store did offer to accept the diamond "on consignment" and pay her when they sold it. None of the jewelers she approached offered her cash to buy her $115,000 diamond ring. She finally gave up and kept the diamond ring.

Selling individual diamonds at a profit, even those held over long periods of time, can be surprisingly difficult , if not impossible... While those who attempt to sell diamonds often experience disappointment at the low price they are offered.

The Diamond Invention

"the diamond invention" - a phrase Edward Jay Epstein uses to describe DeBeers psychological marketing of diamonds that seeks to perpetuate the idea that diamonds are rare and valuable, as an essential part of their diamond trade.

Almost every diamond cut and polished still exists today and are held in the public's hands. Hundred's of million women wear diamonds, while millions of others are tucked away in safe-deposit boxes as family heirlooms. It has been estimated that the public holds more than 500 million carats of diamonds, which is more than fifty times the number of gem diamonds produced by the diamond cartel in any given year.

The amount of diamonds needed for diamond engagement rings and other diamond jewelry is currently satisfied every year by the world's diamond mines production. So it is easy to understand why the half-billion-carat supply of diamonds in the public hands must be prevented from ever being put on the market.

In developing a strategy for De Beers in 1953, N. W. Ayer said: "In our opinion old diamonds are in 'safe hands' only when widely dispersed and held by individuals as cherished possessions valued far above their market price."

"safe hands" of course meant , women psychologically conditioned never to sell their diamonds. The diamond-holding public, which includes people who inherit diamonds, had to remain convinced that diamonds retained their monetary value.

Could you imagine what would happen if a significant portion of the diamonds held by the public began selling their diamonds?

The price of diamonds could not be sustained, clearly for the diamond invention to survive in DeBeers eye, the public must be dissuaded from ever selling diamonds.

Joke

Son asks his father: " Dad is there anything harder than a diamond?"

Father replies:"The only thing harder than a diamond is paying for one"

Or perhaps before Jewelryway trying to sell one!