I am often asked this question. Each time I give the same (cheesy) reply; “Think of them as an investment in love”.

The reality is, unless you are buying a beautiful pink over 0.25 or some other very rare diamond, then ‘investment’ and ‘diamond’ are not usually words that partner well.  It really is best to buy them for their beauty rather than thinking of them as something to sell off down the track.

After all, a diamond (or other gemstone) engagement ring is a symbol – a reflection of a relationship, not an addition to your investment portfolio.

That aside, I thought I would have a look at what has been happening with prices.

I used to blog about prices but found that it was pretty meaningless unless I updated regularly. However, I have decided to take a different approach today as I am fascinated by the effect that the dollar (and demand) has on diamond prices.

I found a post from the 16th of May last year. In it I was talking about the difference that the colour, clarity grade and cut quality has on diamonds of the same size. I looked at a selection of one carat round diamonds to illustrate the point.

I thought it would be interesting to do the same exercise at today’s (May 18th, 2011) prices. Currently the dollar is sitting at $1.05 (ish) US at the time of writing the original post it was $0.87 (ish).  This time I would use the data to see what (if any) effect the current high dollar has had on prices.

I have been able to find a comparable selection for most of the original diamonds.

As at 16^th May, 2010

As at 18^th May, 2011

Please note, the big drop in the E Si1+ is due to the fluorescence – I couldn’t find one without it.

So what can we conclude from this exercise?

I could analyse it to pieces, but I think the simplest answer is that demand has risen for lower priced diamonds in this size, so the market has been able to bear price rises (or maintain price).  Higher grade, top end stones will always have a market, however, when pennies are tight, it is pretty common to save where you can.

Whether the extra bucks make a difference is entirely dependent on what you want from your diamond.

Until next time.

Melinda Nugent FGAA

www.ethicaljewels.com.au

About the Author

Melinda, a jewellery designer and qualified gemmologist, is the founder and driving force behind Ethical Jewellery Australia (EJA) and The Promised Ring.

• Website
• Twitter
• Facebook