Should You Buy a Diamond For the "Investment?"

Many people over the years purchased diamondshim, as they had no interest in buying his diamond.
as an investment. Some made the purchase withOne agreed to meet with him, though I felt it
the idea of a future goal - a child's wedding, orwas more of as a favor to me that out of any
the like. Others bought it simply thinking diamondsreal interest in buying this diamond.
would be a good investment, considering theI put my friend in contact with the diamond guy
intrinsic value pretty much always goes up overand they meet. Being that this was his only option
time. They figured if they bought some diamondsafter many attempts, he basically felt like he had
and put them away for a few good years, theyto take what was offered. He had to sell the
could eventually sell them for a nice return ondiamond, as he needed money to pay for the
investment.wedding. They meet, he shows the stone, and
The truth is that "buy diamonds as anthe die guy ended up buying the diamond. My
investment" was always a big scam and youfriend sold the diamond at far less than he had
should never buy a diamond thinking of it as aever expected - he sold it at a loss from what he
good investment. It is a horrible investment.had paid for it 25 years earlier.
There are other reasons to buy diamonds - love,Can you imagine that? He bought a diamond as an
romance, beauty - but "investment" is not one ofinvestment, being told by diamond sellers at the
them.time that diamonds are a great investment, he
A friend once approached me, knowing I workedholds the stone for 25 years and then sells it at a
in the diamond industry. He was looking for aloss. Amazing!
contact - about 25 years prior he had purchasedDiamonds are not a good investment. The
a diamond thinking it was a good investment. Hismarkup a stone goes through before you buy it
daughter had just been born and he figured if heon the retail market is so great that there is no
bought a diamond and put it away, he could sell itway you can make that back reselling it back to
eventually to pay for her wedding, or at least athe diamond market at wholesale prices, which is
nice portion of it.what they will pay. The only way you can make
So 25 years later his daughter is engaged to beyour money is if you find an unsuspecting buyer
married. He contacts me and asks if I can helpwilling to pay retail value, which is never going to
him with finding someone who will buy his diamondhappen. The only place for you to sell your
from him. I ask around and most of the diamonddiamond is to a diamond dealer, and they only
guys I spoke with had no interest in meeting withpay wholesale prices marked down.