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Diamonds

Discussion in 'Other Asset Classes' started by hash_investor, 28th Jun, 2016.

  1. hash_investor

    hash_investor Well-Known Member

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  2. Mick Butterfield

    Mick Butterfield Well-Known Member

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    Have you dabbled? I personally don't invest in equities that do not return an income.
     
  3. The Falcon

    The Falcon Well-Known Member

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    one for the wood ducks! just have a look at the ads........
     
  4. Blueskies

    Blueskies Well-Known Member

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  5. mcarthur

    mcarthur Well-Known Member

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    Income - c'mon, be creative :D
    • rent them to A-listers and red carpet snobs
    • rent them for weddings, funerals, and big glitzy events
    • rent them to jewelry shops to get in punters (probably Rose Bay or QVB :rolleyes:)
    • rent them to the movie shops, either to make casts from or actually use so they look much better
    that's from about a minute - lots more opportunities to get income from dem stones :)
     
  6. mrdobalina

    mrdobalina Well-Known Member

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    I've been trying to tell my wife that for years!
     
  7. JDP1

    JDP1 Well-Known Member

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    Unless you buy top quality and that too from a brand name eg tiffany,etc...its going to be even more illiquid than it already is ( which is high illiquidity). Trust is paramount. Knowing people is also very important ( goes back to trust).
    There are not that many channels where you can get a fair price for what you paid. Retailers add on about 300+% margin over cost of their acquisition. Good luck if you have some.
     
  8. MTR

    MTR Well-Known Member Premium Member

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    My favourite topic, I am passionate about diamonds, but not as investment vehicle, just to be worn and loved:)
    Here is a thread I started on SS
    Lets Talk Diamonds

    Many ways to purchase an excellent diamond well below market/retail value ie buy just under each carat, fluorescence on a inferior colour can make the stone look more white, buy loose stone from reputable wholesales and get it set.

    Don't let anyone tell you all about the three Cs, the only one that really matters is the CUT, and its all about the dimensions of the cut, once you understand this you will then work out what is an inferior diamond and what is excellent. Excellent cut is what gives you the sparkle.

    GIA certificate is important, there are lots of shonky certificates that are inferior, standards are poor.

    Never buy a diamond on line/over seas unless viewing it

    MTR:)
     
  9. Greyghost

    Greyghost Well-Known Member

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    Fluorescence is important.
    Correct under shop lights stones with some fluorescence can appear more white, but in ordinary daylight the difference is clear.

    As for cut being the most important "C" I couldn't agree more.
    If the light doesn't reflect properly inside the stone it will not illuminate correctly. Really is engineering at its finest.

    As for online diamonds, majority are wholesale seconds.
    Something to also be careful of is the influx of Indian mined diamonds.
    Their grading of "Si and Si2" is of a lower standard than traditional ones. Thus if you are buying based on this clarity you may be getting ripped. Traditionally S is clean to the eye "inclusions at 10x magnification", however I have seen lots of Si and Si2 of late showing major inclusions at this clarity grade..

    Another thing with online diamonds is that under normal daylight they tend to look "milky" or " brown"..

    For me, I can think of a million ways to spend the money than on an engagement ring. Yes diamonds are capitalism/consumerism at its finest, I'm not disagreeing with that. My Mrs is not a shopaholic or caught in the wheel of buying crap online or having the best of the newest gadget that comes out.
    However some things are more important that money and investments, not every decision in life can always revolve around that.
    Does it make me happy to give her something of quality? Yes
    Hopefully it is the first and last time I give this to a woman.
    Will it hopefully last forever and be passed on down the family. Yes

    So I don't mind spending on quality if it stands the test of longevity as well. So diamonds from a retail chain jeweler are chalk and cheese to that of a jeweller who manufactures pieces themself.

    Would I invest in diamonds? No way..
    It is a controlled market. The diamonds are all stored in a warehouse and a certain supply is released to the top level wholesalers each year who then on wholesale them etc etc. this keeps the price boyant and stable. If they released them as quick as they mined them then they would be worth no where near as much.
    Plus the diamond mining trade is not an ethical one.. (Not that gold is exempt from this either).

    Sorry completely off topic now haha
    Love your work MTR
     
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  10. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Gawd..you would be a very bad influence on my wife.....:eek:
     
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  11. SerenityNow

    SerenityNow Well-Known Member

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    Au contraire - @MTR is a great influence who's making me think about buying some nice rocks for myself ;)

    As an investment though, handbags are better ;)
     
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  12. Leo2413

    Leo2413 Well-Known Member Premium Member

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    The two of you would send me broke....:D
     
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  13. MTR

    MTR Well-Known Member Premium Member

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    You will pay through the nose at Tiffany&Co and even more if it is Cartier.

    Around $95,000? last time I looked (Tiffany) 3.06 carat, take 30-40% if buying through a wholesaler, just make sure it comes with GIA certificate which will also be inscribed on the bottom of the diamond (that's its DNA)
    Actually could be way more now that the Au$ has dropped?

    tiffany solitaire 3.06 carat platinum ring images - Google Search
    ..
     
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