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Diamond Value Appreciation

Topic: Other

Q

In late December 1999, I purchased a magnificent Hearts on Fire diamond ring for my wife – .773 Carat, EVS1, Cut Ideal. I paid $7,650 plus sales tax. In February 2001, after being unemployed for 1 year, we decided to sell the ring. Unfortunately, the jeweler who sold us the ring said that because of slow sales, he couldn’t buy it back right now. As a result, I went to another jeweler to see if he’d be interested in buying it. When he told me that I’d be lucky to get $4-5k, which he wasn’t willing to give me, I became alarmed and took the ring to a second jeweler for an informal appraisal. This jeweler told me that they wouldn’t sell my ring brand-new for more than $6,100. When confronted with my findings, the jeweler I bought the ring from told me diamonds depreciate just like cars – a diamond depreciates the day you take it home. What?!?! Also, he told me to name any product where you can get 2/3 of the purchase price after a period of time. Again, what?!?! I only had the ring for just over 1 year. And I realize that my diamond is not bonded so there is no guaranteed, fixed appreciation rate per annum. However, I was always under the assumption that gemstones, especially diamonds, appreciated in value unless, of course, it’s a low quality diamond. Who’s right? By the way, the situation got uglier when I found out, after some more digging, that they misrepresented the HOF diamond which induced me to buy it. As a result, I sent a complaint to the owner and asked for a full refund in exchange for my returning the ring. The owner sent me a nasty reply and basically said no way. I contacted the Better Business Bureau, but their correspondences to him did not waver his position. If you’d like, I can e-mail my complaint to you for your review and advice. Also, if intertested, I can fax their response to you – I don’t have it in an electronic format so I can’t e-mail it to you. Thanks for your help in sorting all this out. Take care and have a great week.

Mike

A

Hi Mike,

Good diamonds don’t depreciate! Heres what I need, all the facts and paperwork on your diamond that you have. Plus all the responses or letters you’ve received from the jeweler or BBB.

The Diamond Guy