Diamond as a investment| Boston Diamond Exchange

depends on how close to dealer market value you can buy. because it is such a tightly regulated industry consumers are hard pressed to find sources willing to sell at close to wholesale.

bostondiamondexchange.com diamond partners are some of the most competitive places to buy high end diamonds in the country. many are willing to work on 5-10% above import cost... this means that when values increase in 6 -24 months from the time you bought, you've made up that margin... and when it goes up again, you are now theoretically making money.

It's expensive to do so, but those that can afford to buy large diamonds and at 5-10% above dealer cost will make more money more quickly. This is b/c diamonds are valued on a per carat basis. you have a 1 carat diamond that has a Rapaport value of $6500 per carat, and that particular type stone jumps up in value to $6800/ carat.... well that's almost 5% increase but relatively speaking the return in dollars is small.

you have a 5 carat diamond whose value is say $17,500/carat and you get a 5% increase your stone just jumped from $87,500 to $91,875. If that happens half a dozen times over the course of 6 months (like it did this past year), you can make some fast money. Being able to exercise that value.... well, that's a different beast. Which brings us full circle to the question of weather diamonds are a "good investment".... my answer: unless you are in the industry or sitting on a bundle of cash that's making you 3% annually in a CD .... stick with buying right with your jewelry purchases.