July 31, 2009
The Closing Bell
Diamonds are a girl’s best friend. Buy a diamond – make a friend.
Diamonds are Forever – James Bond is not.
Diamonds for investment – risky.
Diamonds for love – priceless.
Have a scintillating weekend… Dii
July 30, 2009
Big Investments
Neil Lane diamond and platinum ring. (PRNewsFoto/TK Archives)
There are some big diamonds available – for big bucks. Mostly, we’ve seen these purchased for love and as apologies. Kobe Bryant gave his wife a fabulous 8-carat purple diamond ring worth about $4 million. We just heard about the $60,000 diamond engagement ring the selected bachelor presented to Jillian when she professed her love to him. This is some BIG LOVE!!
The truth is, the larger and more unique the diamond, the better the chance that it will increase in value over the years. There just aren’t that many 8-carat purple diamonds! And, provenance can help too. Perhaps Jillian and Ed are famous today, but they aren’t Liz and Richard. Given that Liz loved diamonds, when one of her diamonds went on the auction block, it brought attention and a lotta dough!! Too bad Richard didn’t get to see a return on his “investment”! …Dii
July 29, 2009
Have Diamond Can Travel
There are some differences in my comparison materials, though. A diamond can be cleaned up (polished) and sold again as if it were “new”. Of course, diamonds are never “new” – they’re millions of years old by the time man finds them in the ground!! It’s best to consider diamonds as “timeless”. Appliances and cars wear out. Models change; features improve. You can’t just clean them up and sell them again. Eventually, they can only be destined for the dump. Diamonds can be reset, easily transported, and passed on to another generation and another, and another! That’s kind of an investment…
The main investment when purchasing a diamond is an investment in LOVE! Yes! When you invest in Love, the relationship grows, right? So, maybe a diamond’s value will grow as your loved one (or you, because you love yourself), enjoys wearing it day after day. Those compliments make you feel good, even when you’re down.
And speaking of down – you don’t have to check the charts to see how today’s market is doing. You don’t have to consider the ups and the downs of day-to-day trading. (Work on the ups and downs on your relationship instead). You can take it with you wherever you go. You can give it away without paying taxes on it. And, if you must, you might just decide to sell it for cash. The best return? Trade it in for a bigger model. She’ll love that – and you!! …Dii
July 28, 2009
Diamonds and Refrigerators
Diamonds are sold in a jewelry store – or online – but there are few open markets for you to return to if you wanted to sell it. In fact, just like a car, it loses “value” as soon as you wear it off the lot!! Unless your jeweler offers a return or exchange privilege, you won’t be getting all of your money back.
It’s not as bad as it sounds. If you think of purchasing a new refrigerator, you wouldn’t expect to go back to the store and ask to sell it back. The store is in the business of selling fridges, not buying them back from previous sales, cleaning them up and selling them again.
If you decided to sell your fridge, you’d probably place an ad on Craig’s List or somehow advertise it for sale. To know what to ask for it, you’d probably search other sites with refrigerators for sale that are similar in age and function as yours. What you hope for is a nice down payment on your new fridge, right? And, if it’s really old, you might donate it to a local charity or leave it on the sidewalk in front of your house until someone takes it. (Thank you very much).
For diamonds, the jeweler or the internet site is in the business of selling – not buying. They have sources for buying their inventory and established relationships with those sources in order to get payment terms, special pricing, or first choice in selection. If they’re going to purchase an individual diamond from someone – use their cash, take the responsibility of repolishing it, (because it most likely needs some clean-up), and then try to sell it again, they want to purchase it for less than it would cost from their regular supplier! It has to be at a bargain basement price!! But diamonds are not like fridges. Tomorrow learn why… Dii
July 27, 2009
Investing in Diamonds? Here’s the Hot Tip…
One question I receive over and over is, “Are diamonds a good investment?” This may be a thought that’s popped into your head recently – because of the economic situation today.
Historically, diamonds usually have been purchased as a symbol of love, either to commemorate an event or make an apology. As investments, they really haven’t a track record of performance in the same way that stocks have. You could track the price of your diamond from the date of purchase to today. For example, if you paid $5000 for your 2-carat diamond in 1975, what would you have to pay today for the same size and quality? But there are no buy/sell records to consult.
The price of your diamond has probably gone up over the years, (with few exceptions), but that doesn’t mean it was a good investment because there really isn’t a good “place” to unload it. When you purchase a stock, you know where you can sell it and the market will tell you what to expect to receive for it on any given day – less commissions for your broker. So what would make you think it’s an investment? Find out more tomorrow! …Dii
July 24, 2009
Friday’s Hot Flash!
As if diffusion confusion isn’t enough, now you know that ruby may not be all that’s it’s cracked up to be. What else is there? Imitations and synthetics. Remember from an earlier post, (May 21, 2009) a synthetic gemstone has the same chemical, physical, and optical properties as its natural counterpart. An imitation merely “looks” like something else. Both synthetic ruby and imitation rubies are available.
Imitations can include glass, plastic, and even assembled stones. Yes, you can glue parts together to look like a gemstone! Parts could be glass, plastic, natural, or synthetic of some sort. Synthetics are manufactured using different processes that cost differently depending on the expense put forth by the producer. There are some very good looking synthetics out there – and they won’t change color and they aren’t filled with cracks! They can certainly be a good alternative to the costly natural ruby.
Don’t know rubies? Know your jeweler – and know that he or she has studied gemology, gemstone treatments, synthetics, imitations, and the gemstone market. And those studies must be current. Times change and technology brings us more and more challenges even in the gemstone department.
With the rarity of high quality natural gemstones, should you consider investing? Ooooooo! Let’s discuss that next week. Have a hot weekend! …Dii
July 23, 2009
More Than You Bargained For
Some “ruby” material needs more than heat to achieve a color worth selling. There are some very smart people out there and they figured out how to add some other ingredients to get that Wah-lah! Along with the heat, elements can be diffused into the surface of the gemstone or forced into the cracks of the stone to make it appear better quality. (In some cases, I question the use of the word gem – it may really start out as just a stone)!
These treated “rubies” most certainly should be disclosed to you before you decide to buy. They have durability issues which means you have to take special care with them and they aren’t worth much. The good news – you get something that looks like a pretty good ruby; the bad news – that “pretty” won’t last long. You get less than you bargained for… Dii
July 22, 2009
The Heat Is On
How does a ruby get to be red? There are a couple of reasons. One is that Mother Nature adds chromium to the recipe along with the other ingredients that make corundum. (When she adds titanium, you get blue sapphire). While still in the earth, and “baked” for enough time at the “right” temperature and pressures, Wah-lah – ruby!! However, man knows how to “finish” the job if the “ruby” isn’t exactly red when it comes out of the earth! All that is required is a bit more heat and pressure. Wah-lah – ruby!
Is this “kosher”? Well, it’s commonly done and accepted by the gemstone trade. However, if you purchase a ruby that is a rare red color (not too much purple) and more than a carat or two, which hasn’t been heated, you can expect to pay more. Just be sure there’s a paper to prove it or a professional gemologist that will be willing to assure you, in writing.
There are independent laboratories that can issue origin reports – but it’s not an inexpensive process of tests. Let’s just say it might be easier to prove the ruby HAS been heated than to prove it HASN’T. Should your jeweler tell you this? Yes – it’s called full disclosure. And what if your jeweler doesn’t know about this type of heat treatment? Go to another jeweler. Seek the advice of a credentialed jeweler/gemologist, such as a Certified Gemologist of the American Gem Society.
You don’t have to worry that this type of heat treatment will affect the durability of your ruby. And the ruby won’t ever change color. But, depending on the other value factors and its size, it most certainly can affect its price. Tomorrow: what if we add something else to the recipe? …Dii
July 21, 2009
Ruby Tuesday
Courtesy of AGTA
Yes, it’s all about the color. Who would guess there could be more than one red? Or that not all rubies are “exactly” red. Most are purplish red; some are orangey red. Which would you prefer? Which would cost you the most money?
When it comes to color gemstones, subtle differences in color can mean hundreds to thousands of dollars difference in price. Why? It’s about rarity – how common is the color? The more rare – the more money. Simple concept and one that you should understand does NOT mean more or less beautiful – to you! The other value factors include the clarity, or transparency of the gemstone; the quality of the cut, which determines the full potential of the gemstone’s color; and the carat weight. Bigger rubies are more rare; bigger rubies (when all other factors are equal) are more money!
Different sources are known for the colors they produce. Historically, Burma has produced the deep “pigeon blood” red that you may have heard of. Frankly, I don’t like my gemstone description including blood from anything, let alone pigeons, which aren’t my favorite flying rat anyway!
Getting back to color. Don’t let someone talk you into the line, “the darker, the better”. Any color, when too dark, is just, well, too dark! On the opposite end of the scale is too light. Light red is pink – and pink “rubies” are really pink sapphires. A completely different variety. Tomorrow – ruby heats up! …Dii
July 20, 2009
Gem of the Month
Red Carpet
It’s a hot month with a hot gemstone to match. Our gemstone for the month of July stands alone – it’s the only choice July babies have – but who needs a choice when the only option is ruby?
Colors are separated into cool and warm. Blue is a cool color and red is a warm color. Actually, red is hot and rubies are red! Red as in red carpet; Red Hots candy; and red hot mama! (Or red hot daddy)!
The most notoriously beautiful rubies have come from Burma. Today, that’s no longer legal – rubies and jadeite are banned from importation into the US from Burma. (Political reasons). But, there are other locales, including Thailand, Vietnam, and Africa. It’s all about the color! Tomorrow – Ruby Tuesday! …Dii
