Get answers to the following questions:
- Where do fancy colored diamonds come from?
- Are diamonds a good investment?
- Are diamonds scarce?
- Colored diamonds sold as investments
- How to sell diamonds safely
Where Do Colored Diamonds Come From?
Some colored diamonds occur organically: Diamonds form under high pressure deep in the earth. When foreign particulates and trace minerals intrude during the crystallization process, it changes the chemical process — and the outcome may be a uniquely colored diamond. These are actually referred to as natural colored diamonds.
Color-treated diamonds: There are natural diamonds that are purposely color-enhanced. This is mostly done with a process called High Pressure High Temperature. (Conversely, this same procedure can turn a colored diamond into a colorless one.)
Are Diamonds A Good Investment?
Investing in physical commodities, such as buying gold or loose diamonds, can be an attractive proposition. But is buying a diamond for investment purposes actually a good idea? Do all high quality diamonds appreciate in value?
Though sought after for their beauty and sparkle, diamonds are not really scarce. In fact, they’re one of the most common gemstones found. The perceived value of diamonds overall may link to the mistaken but pervading belief in diamond “scarcity.” This belief results from a mastermind marketing campaign by De Beers and because a few diamonds have gained renown for their skyrocket value, like the famed (and, legend has it, cursed) Hope Diamond.
These diamonds, though, tend to be exceptionally large or to possess incredible clarity. Most diamond investments don’t pay off. Pinks, blues, greens, oranges and red diamonds have however appreciated considerably over the last 10-20 years. However, if you buy a diamond at a huge mark-up to the wholesale market price, then you need a tremendous market move in order to ever make money.
Just as a new car depreciates when you drive it off the lot by as much as 9% (per edmunds.com), a diamond drops in value when you walk out of the jewelry store or jewelry department — sometimes by 50% and sometimes even lower, to as low as 25% of the original sale diamond price.
Hold My De Beers: The Myth of Diamond Scarcity
By 1888, following the 1870s discovery of diamonds in South Africa, the De Beers commercial mining company controlled most of the world’s diamond production and distribution; by 1902, the figure reached 90%. Thus, it was to their benefit and continuing profit to create and perpetuate the idea that diamonds were scarce. Beginning around the 1930s, De Beers also successfully marketed the idea that, basically, diamonds = love.
And diamonds remain costly at the original point of purchase because their prices are dependent on market demand, not supply.
Colored Diamonds And Defrauding Victims
These schemes are plentiful, and often target the vulnerable elderly.
A boiler-room operation going under the company name “No. 1 Gemstones” targeted retired British expats living in Spain, cold-call selling worthless “rare” colored diamonds. The companies defrauded victims of about 1 million pounds (about $1.3 million US) before the police caught them.
Another fraudulent colored-diamond operation, CDX Worldwide Ltd. netted $1.2 million pounds ($1.7 million US) by cold calling. The company had a virtual address in London but the website connected targets to a company of the same name in the United Arab Emirates.
A mostly Toronto-based bogus colored diamond company, Paragon International Wealth Management Inc., defrauded buyers of around $1.7 million US, sending them diamonds that did not match the value of their purchases.
At myGemma, we have spoken with numerous clients in the UK, US and Canada that put their life savings into these 'tremendous diamond investment opportunities” only to be told that the diamonds they have purchased are – even many years later – worth a small fraction of the sum invested; and some have even been close to worthless.
How Do These Companies Get Away with It?
There is no retail price guide for colored diamonds, like a Blue Book. Each diamond is unique and there is so little price information out in the market for a consumer to access, so it is extremely hard to do your due diligence. So, when a convincing salesman pitches you on a great investment opportunity, it is hard for some to say no.
How To Sell Diamonds And Diamond Jewelry Safely Online
myGemma provides a safe and reliable way to sell diamonds online, with honest price quotes and fast payment. In fact, our entire process can take as little as 24 hours from start to finish.
Luxury experts: Our team of GIA trained gemologists have the industry knowledge and expertise to accurately price your diamonds based on the current second-hand market. We buy a wide range of luxury items, including engagement rings, luxury handbags and watches.
Free Service: Sell online or via appointment (NYC, Hong Kong, Tokyo and the UK), our service is free of charge, with no fees or commissions deducted from your final offer.
Reputation: We are proud of our A+ BBB rating and over 1,000 customer reviews.
Where To Buy Sustainable Fancy Colored Diamonds For The Best Price?
The most sustainable and environmentally friendly way to buy fancy colored diamonds is to buy recycled diamonds. Not only are they better for the environment, as they do not contribute to new diamond mining, but they also are more affordable.
Diamond mining takes a toll on the environment, as well, through land disturbance, carbon emissions, water depletion, loss of biodiversity, and more. While Canada has some of the strictest environmental standards in the world regarding diamond mining and insists that proceeds go to mining companies and not to groups who profit from forced labor, Canadian diamond mining still results in some eco disruption.
Recycled diamonds offer the greatest assurance that any diamond purchased has not been mined or made anew at the expense of children, adults, or the environment. Browse a wide range of recycled fancy colored diamonds and pre-owned diamond jewelry at myGemma, without ever compromising on quality.
