Jeweler: Expect Significant Price Increases For Diamonds

MINNEAPOLIS (WCCO) — Intense sparkle may not be the only thing that deserves a double take when it comes to diamonds. Take a look at the price-tag.

Jewelers say you can expect to see price increases ranging from 10 percent to 20 percent depending on the quality of the diamond.

Why the price of diamonds could outperform gold — and a fashion trend that could save you money.

Diamonds may be a girl’s best friend, but new price hikes show they could become a man’s worst nightmare.

“I’ve seen things happen last year that I would not have believed,” said John Sorich, owner of jewelry discounter, Diamond Direct.

Sorich has spent the last 30 years keeping a close eye on market ups and downs.

“We’ve been in the business since 1981,” he said.

He said the latest price increases are some of the most dramatic he’s ever seen.

“This diamond right there has gone up about $5,000 in cost,” he said, adding that’s because the more quality diamonds are the ones increasing the most.

It all goes back to supply and demand, only this time, you have to take a global market into consideration.

“There seems to be more and more people reaching this middle-class level, that once they get there, they become consumers,” Sorich said.

India, China and the Middle East make up for 40 percent of global demand.

If you were to buy a three-and-a-half carat ring last year, it would’ve cost you around $16,000, but thanks to that emerging international market, this year, it’ll cost you $19,000.

Sorich said he has no choice but to pass much of the burden onto consumers.

“My percentage of profit that I make on a sale has not changed, but if the cost price does, then of course, the end price is going to be a little bit more expensive for me, as well as the consumer,” he said.

The saving grace for jewelers is universally, diamonds given to signify marriage are more about timing for the couple than the market.

“It’s more of an emotion, spirit-filled thing between a man and woman, than it is, how much is it going to cost you,” he said.

With diamond prices so high, a hot new trend is to buy a gemstone to make up of the bulk of the ring. And then surround it with several smaller diamonds.

Comments

One Comment

  1. Mike says:

    I am very happy that I will be able to use the line of reasoning that it is entering an economic bubble to dissuade the wife from ‘needing’ more diamond jewelry. If is actually worth so much more than yesterday, she can sell what she has and buy a jet.

    1. Pawnbroker says:

      This is a joke! Diamonds have droped 50% since 2006, That’s on the wholesale market. They don’t tell us that. This is just a bunch of BS. Wonder who paid for this one.

      1. Spiro Andritsis says:

        You must be nuts…diamond prices are clearly up…when is the last time you looked at rap…

      2. Marina says:

        Diamond prices are definitely only going to increase and that is why they are a great investment – http://www.serendiamonds.com/diamonds-investment

    2. daddy warbucks says:

      The MSM NWO shills want you out of physical gold and silver to protect their fiat debt scam

      Take physical gold and silver off the market and crash JP Morgan (and NATO)

  2. poopy says:

    Well, they have to pay for all their jeweler commercials on the radio somehow.

    1. I P Standing says:

      Does that mean glen beck will be hustling diamonds instead of gold

      1. jen says:

        Are you angry Glen was right?

        1. Jack Kennedy says:

          of course, he is very angry that the real Americans like Glen dared to speak the truth as we all told them so………….but they would just not listen

          so, America pays the price

  3. Garbage says:

    That market is such an artificial racket. People shouldn’t have to go bankrupt to buy an engagement ring. Who can even really tell a CZ from a diamond, and who even cares?

    I get a kick out of the comment that more people are achieving ‘middle class’ in this awesome economy. I thought the separation between wealthy and poor was increasing?

    1. Citizen says:

      The middle class is increasing . . . can’t be . . . every day we hear some Democrat telling us the middle class is disappearing and we have to tax the rich more in order to save the middle class. They wouldn’t lie to us. Obviously this article is flawed!

      1. Chris says:

        Its an international market. People exist outside of the US do buy diamonds, and those numbers are growing.

        1. John says:

          They can have them! I have a lock on the world’s supply of Lincoln Logs!

    2. GEE BA says:

      debeers in africa has kept the market artificially high FOREVER! They have VAULTS FULL OF DIAMONDS

    3. Gar says:

      I think the only thing we can really grasp from this article is that, Metal and Precious materials are going up in price. Alot of economic factors all play a role, and people diversifying into other areas.

      http://www.dailyjobcuts.com

      1. daddy warbucks says:

        The MSM NWO shills want you out of physical gold and silver to protect their fiat debt scam

    4. ralph evens says:

      Moisenite is like a diamond but more specatular in sparkle and clarity
      much better lloking overall than diamonds and thier price is way less but not cheep

    5. LEL MN says:

      Who can tell the difference? The typical real diamond has flaws. The perfect natural diamond is expensive because it’s so rare. BUT, if you buy your girl a CZ, she’ll think you don’t love her enough to go for the real deal.

    6. Mike Myers says:

      This article is NONSENSE. The diamond market is massively controlled by the DeBeers company. There is no diamond shortage. As a matter of fact, if the Russians were allowed to put the diamonds they have stockpiled on the market, prices would plummet.

      1. Derek Elliot says:

        Mike, you are absolutely correct. The De Beers controls the diamond market from production to wholesale distributions. Other producers go along with them to maintain the high prices that they would not enjoy if there was a free market for this semi-recious stone.

      2. BethCB says:

        This is absolutely true. Diamonds are far more common than supposed, and prices are kept artificially high by deBeers and others — including the Russians who in the Soviet era stockpiled them. This seems to be a marketing ploy, and is hardly based on any facts. Of course, the entire diamond fad is just that — they have no value in the sens of gold as a back up to currency etc, and they were just another gem until the 20th Century. Beware!!!!

  4. legal immigrant says:

    The middle class is increasing in China, India, and The Middle East perhaps… increased demand from there means increased prices. Anyways… since diamonds are not actually necessaray for life, I don’t see the problem…

    1. Pawnbroker says:

      Yes and they export the I-3 yellow junk that they sell in the good old USA. This is what AOL Huff out of a bag is all about BS. Time for me to find a new ISP not this one.

      1. Sherry says:

        I like the cut of your jib.

  5. goob says:

    Who cares about diamonds…sheeeesh…when there’s a beer shortage, you will have my attention..

  6. Mike0oSS says:

    Diamonds are a terrible buy at any price. You pay through the nose for the workmanship on a ring, then you get divorced, take the ring to a pawn broker or jeweler and you get the price of the weight of the stone and material. I bought one ring at the jeweler, bought the rest at the pawn shops, saved an arm and a leg. The ladies always appreciated the thought. Later, Mike

    1. Dave says:

      Sounds like you know more about diamonds than women Mike…seem to be going through a lot of both…

  7. Joe Blancher says:

    Other posts are totally correct. DeBeers has zillions of diamonds locked up in vaults to create artificial supply and demand. Diamonds are a HORRIBLE investment!

  8. gcnh says:

    who the hell is buying diamonds anymore?

    Can’t sell them for anything, just more junk

  9. dad says:

    What a Joke. Diamonds are as COMMON as dirt in parts of Africa. It was ONLY becasue of some shrewed Jews and MARKETIONG that make diamonds APPEAR to be “expensive” On top of that, this is another attempt to get some to put their (almost) worthwess papar dollars into something that really is NOT AS VALUABLE as Gold… NOT even Close

    1. LEL MN says:

      Absolutely correct.

    2. jen says:

      let me guess, you’re some hick who thinks deer antlers have more value than diamonds.

      1. Dave says:

        No let me guess, you’re a fat, ugly, angry woman who would value the stone more than the man that might go with it.

        Beauty and value are in the mind and eye of the beholder darlin….ask your boyfriend when ya get one.

      2. JD says:

        I concur with Dave’s remark about Jen. Do you concur, yes he concurs. We all concur. Jen is a fat, ugly, angry woman who would value the stone more than the man that might go with it. Probably why she is still single.

  10. Brian A. says:

    Sorich is a degenerate liar. Other jewelers are constantly delivering bad news to his FORMER clients when they properly evaluate his fraudulent appraisals and such.

    1. egl says:

      Surprising that the whole story is based on speaking to one jeweler. If he sold a 3 1/2 carat diamond for 16,000, it had to look like frozen spit.. Doesnt that tell you the type of store he has. Way to go , CBS, thats in depth reporting.

  11. Hampton says:

    People are just looking for another store of value. Inflated metals prices make people nervous– almost as nervous as fiat currencies and stocks.

    1. LEL MN says:

      The price of gold is not inflated, its value is what it has always been. It’s the value of the Dollar that has dropped, and rightfully so it takes more Dollars today to buy a piece of gold. The higher price for gold should make you nervous. Post WW1 Germany had to use a wheel barrow to carry enough Marks to the store to buy a loaf of bread.

  12. LEL MN says:

    I believe diamond prices to be artificially controlled and valued far beyond their worth. A Cubic Zircon is every bit as beautiful as a natural diamond, but don’t tell your female recipient that, she measures your love and stature be how much you spend on her.

  13. Bob Dobbs says:

    This is called “talking your book” and it’s what everyone who has an asset and wants to dump it does. They do everything they can to make other people want to buy it so they can get out of a losing position before the price drop that they anticipate.

    Sweetheart, you got a pretty face, too bad you didn’t get a brain with the package.

  14. Randy Brown says:

    DIAMONDS THE BEST EXAMPLE OF PRICE FIXING IN THE UNIVERSE, NEARLY ALL CONTROLLED BY ONE ENTITY….. DIAMONDS A MARKET CREATED OUT OF WHOLE CLOTH

  15. SilverStacker says:

    The price of the diamond did not go up, the value of the fraudulent monetary systems currencies around the world went down.

  16. Bruce Frykman says:

    Who paid for this BS?

    1) Spend 1600 dollars for Gold and $1600 for a diamond

    2) Sell each

    get $1600 for the gold…$200 for the diamond

    case closed

    1. James says:

      Depends where you buy the gold. You buy it from one of them rip-off companies like Goldline and you spend 1600 for gold, you sell it for significantly less because they threw a huge markup at you and you didn’t even know it.

      It’s the same with diamonds when you’re buying finished products in small quantities. You’re paying retail with a markup for a finished product, not the raw material. The diamond market isn’t as liquid as gold so it’s harder for the average consumer to get a fair price–and every diamond is different so it’s a little harder to judge absolute value for the layman.

      1. John Galt says:

        Example:
        Provident Metals, 12/27/2011 One Troy Ounce of Pure Gold.
        $1626.80 for a Canadian Maple Leaf, Random Year
        Same date, they purchase same gold coins for
        $1596.80
        That is a $30 spread between the buy and sell price – the percentage is 0.9815588886156872
        Now you show me a jewerly store who will have a less than 1% spread between the buy and sell price.
        Diamonds are not an investment. They are a way of prepaying for sex.

    2. JD says:

      AWESOME! Maybe not exactly $1600 but the point he’s making is pretty much the truth!

  17. Joe bob says:

    Price hikes before valentines day what a surprise. Nothing like making an excuse before a invented holiday

    1. theo says:

      Amen, Brother! Completely manufactured “holiday” which I have refused to acknowledge for years now.

    2. Dave says:

      You mean like Kwanza, eh?

  18. Eric P Turner says:

    funny and who controls the diamond markets enough said.

    1. James says:

      Yeah, blame it on the Jews, you stupid anti-Semite.

      There is absolutely no logic or sense to this statement. Think about it, if the only reason for the price to go up was because Jews run it, then the price would already be that high, because they already have been in the diamond market for a long time. They didn’t just get there.

      It’s as stupid as blaming “greed” for recent economic problems. Like people suddenly became greedy, but weren’t before. You can’t blame something that was constant for something that recently changed.

      1. John Galt says:

        Interesting, the same group who controls diamonds are responsible for recent economic problems. The problem isn’t that greed is new, the problem is they have stole so much there is not enough tangible goods in the world to equal the fake [fiat] money they have created out of thin air.

        Example: In 1964 a gallon of gasoline cost $0.31, you could pay for it with silver quarters. Today, the same gallon of gasoline can be purchased with silver 1964 coins, cost? $0.15 a gallon. You cannot create trillions of dollars of debt out of thin air and expect the system to go on endlessly. The parasites have mortally wounded the host, and it is dying. The problem is that it takes a host nation a hundred years to die from this parasite, the Federal Reserve was created in 1913, so we have about 1 year left.

  19. Dave says:

    Diamond dealers trying to INVENT value by claiming it’s there. All they’re doing is shrinking their market in a panicked attempt to regain what was lost over the last few years of economic downturn. Diamonds will NEVER outperform Gold-ever. Apples and oranges.

    If this were true a friend of mine who is a broker would be happy instead of looking for high places to jump from if it gets much worse…..

    Nice try. Jewelers are now attempting what politicians have been doing for years; Repeat the lie often enough until people start believing it’s true.

    Epic fail.

    1. Jack Kennedy says:

      diamond dealers have seen the obamanuts convince America to elect him and now the obamalies are running rampant, so they are beginning to believe the obamalie syndrome can for them

      obamaliar……………..repeat lies till is believed to be true…………..especially when you have the obamamedia helping

  20. Iambic PentaMaster says:

    The Obama Depression trend,
    Seems to be nowhere near its end,
    The young and the old,
    Have opted for gold,
    But diamonds are a girl’s best friend.

  21. Adam L Tucker says:

    Diamonds are a currency for the wealthy elite; light weight, untraceable and never inventoried by the public, diamonds are used to launder money and move wealth around the world.

    http://abcnews.go.com/Blotter/story?id=5394214&page=1

  22. Off Duty says:

    Eat your diamonds.

  23. James says:

    It has less to do with supply and demand, than it does with inflation and the fact that people are buying diamonds to get out of dollars the same as they are with gold, silver, and even oil.

    Just as quickly as foreigners are rising into the “global middle class,” Americans are going to fall out of it. It’s not that we aren’t a great or hardworking people, but we’ve essentially put government barriers in the way of every single thing that made us successful in the first place.

    It takes some time for things to settle where they’re going to be ending up, but the long and short of it is that we will be poorer, both relative to the global mean, and in absolute terms.

    All we’ve seen so far, including 2008, are tremors. The temblor has yet to arrive but when it does it will include a dollar crash and a drastically worse economic picture than we are seeing here right now.

    Get ready, because there is nothing in the works that might resolve our problems in the near term, before the crash can happen. We’re speeding toward a brick wall, but we don’t see it because the only people with their eyes open, aren’t in charge and are laughed at by the “mainstream” (no matter how many recent events they’ve correctly forecasted, compared to the “mainstream,” which saw none of our recent problems coming ahead of time).

  24. rowley says:

    Newt’s Wife made a smarter money investment in Jewelers than in Wall Street. The Politico Pundits should have seen her economic savvy not extravagance.

  25. Spanky T Smackme says:

    Several years ago they started mining from the 7 NEW kimberlite deposits in Canada and increased supply by several MILLION carats a year. Problem is, the prices went UP instead of DOWN, and Debeers had aquired control on 4 of the 7 deposits.

    This is all a shell game practice by Debeers and the rest of their corrupt buddies hoarding the product to keep the price high…….

    The true value of a diamond is only a dollar a carat, but they only release an amount eqaul to thier estimared need for jewerly for that year. and ONLY that amount…..If the selected few who are invited to buy miss out, they wait for the next release to get any more…Exxept that is for black market uncontrolled sources.

    Technology has been able to make artifical diamonds that identical to the real things, and Debeers has spent billions to stop production and keep them off the market, and force the makers to add a trace material so they can tell real from created.
    There are many substitutes that outshine the diamond, one is MOISSONITE which when it was released, the Debeers wnt nuts trying to make a tester to tell the difference so they could keep branding them as not real.
    MY favorite comericiali is when they put a diamond and a Moisonite in a furnace and heat them upo, they both glow then the diamond VAPORIZES and only the Moissonite survives….

    Diamonds are forever ??? Only in your dreams…….High dollar for a COMMON mineral element in a severly restricted artificial market is NOT a good investment.

  26. no says:

    YEAH RIGHT. The analysis must be done by DeBeers.

  27. fish says:

    Diamonds are grossly overpriced to begin with by a global wide monopoly. Examples of good investments include those needed for survival …Guns and ammo for hunting for food, seeds and garden tools, smokes for trade, well maintained old vehicles in good running condition, land with access to clean non public water.

  28. DaveAgain says:

    What a funny article. I guess a whole new generation of the sparkly-eyed needs to be educated as to the realities of market manipulation. When the going gets tough, who is going to bother trading diamonds for anything? You may as well have a billion dollars in defunct currency at that point.

    You can’t eat them. You can’t subdivide them (and retain their supposed value). They won’t keep you warm. Buying a diamond simply shows the world that you have so much money to burn that you can afford to toss it on essentially an industrial abrasive. They aren’t really a commodity because their artificial value is also set according to some arbitrary features. When the going gets really tough and the rest of the diamond stash is dumped so the manipulators can survive, the average person’s piddly little shiny will simply plummet in value, which is exactly why no one in their right mind would accept them in trade.

    Gold on the other hand can at least be divided, purified, alloyed, assayed and independently valued on a pretty consistent basis. Exactly the properties that make it a hateful thing for market manipulators. Gold, strange as the case may be, is the anti-diamond. In a crisis situation, diamonds are like the expensive case of obscenely overpriced wine. Sort of anyway – at least you can drink the wine. Gold is like the guns and ammo..

  29. Gerry Merce says:

    Took a nice gold ring with 5 diamonds in to a gold buyer yesterday – he said there is a glut of diamonds on the wholesale market – the diamonds aren’t worth anything now. I paid $2000 for them in 1987,

    1. Ayn Rand Paul says:

      Sounds like a great investment. I just checked the price of gold in 1987, $2000 would have purchased 4.78 troy ounces at the spot price, [avg annual price in 1987, $446.88 a troy ounce]. In 2011 that gold you purchased would bring you $7511.87 [avg annual price in 2011, $1571.52 a troy ounce], a profit of $5511.87. If you sold it today, spot price $1616.60, you would get $7727.35, a profit of $5727.35.

      I do not see diamonds as an investment for anyone but idiots and women who drink too much flouridated water.

      1. egl says:

        Jewelry should never be purchased as an investment. I wonder if any of the geniuses posting here bought their cars by the pound? Talk about depreciation.

  30. Metfan Lou says:

    Gold and other precious metals You can follow their prices everyday and have a buy/sell spread. What do you do with a diamond, be at the mercy of a pawn shop or jeweler? Buy a diamond for a gift of love and nothing more and pass them on to your children.

  31. rosietheterrorist says:

    It used to be that the price of diamonds was determined by how many engagements there were in the U.S. in any given year, supposedly that was the governing factor. Personally, meaning me, as a person, I think the high price is ridiculous because they have MILLIONS OF DIAMONDS that they are hoarding, so the price is artificially high. Think about it, they only let a tiny fraction of the amount they have out onto the market.
    Go buy a fake diamond instead, who’s going to know? And if your wife or girlfriend wants an expensive one, how are you to know that she won’t sell it, get a fake one in its place, and then pocket the cash? (I know women who have done this).

  32. Handmade Jewellery says:

    Hello there, I discovered your site via Google whilst looking for a similar matter, your website got here up, it appears great. I’ve added to my favourites|added to bookmarks.

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