Does a Diamond Lose Its Value?
For those of you in the market for a diamond or an engagement ring, you're naturally going to ask the question: is a diamond going to lose its value the moment I purchase it?
The answer is complicated, because it depends on how and where you buy the diamond.
Private jeweler and diamond expert Dan Moran spoke with financial advisors at GoBankingRate.com about luxury items that don't lose their value the moment you purchase them.
Natural diamonds are included on this list, but only if you avoid paying retail. Lab grown diamonds, or synthetic diamonds, are not. Why? Read on for the answers below.
How can you avoid paying retail on your diamond and engagement ring?
There are several ways you can avoid paying retail on your diamond and engagement ring and one of those ways is to work with a wholesaler, like Dan Moran and his team at Concierge Diamonds.
Another thing to consider is avoiding purchasing lab grown diamonds.
Dan Moran explains:
"Diamonds have and retain a market value that is either consistent or increases over time," said jeweler and diamond expert Dan Moran of Concierge Diamonds Inc. However, it's important to note that unless you are buying wholesale, you will end up paying more than the price of the diamond itself.
"Any time you pay retail for something, you're paying for a lot more than the product you're purchasing," Moran said. "You're paying for advertising, staff, lighting, inventory — all the expenses that go into running a retail business get bundled into the retail price."
Moran also warned against buying lab-grown diamonds, which do not retain value. "A diamond retains its value because there is a finite supply," he said. "The basic laws of supply and demand maintain that as demand increases, value goes up. With lab-grown diamonds, there is an ever-growing supply but not an overwhelming demand. So naturally, the lab-grown diamond loses its resale value."
To see the full list of luxury items that retain their value, check out the article here.
And for more information how to save money on a diamond and engagement ring, read Dan's tip sheet here.
This tip sheet includes advice such as which of the 4 C's you can be flexible with and which one you should never skimp on.
Ready for a free consultation? Contact Concierge Diamonds.
Want even more information?
Download our free PDF: How to Buy A Diamond in 10 Easy Steps.
And for ladies, read Dan's interview with Rustic Wedding Chic about how to get the ring of your dreams at the price they can afford.
See what others are saying about working with Dan Moran and Concierge Diamonds in our Client Reviews section.