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.

  • Mike

    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.

    • Pawnbroker

      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.

    • daddy warbucks

      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)

  • poopy

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

    • I P Standing

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

      • jen

        Are you angry Glen was right?

        • Jack Kennedy

          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

  • Garbage

    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?

    • Citizen

      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!

      • Chris

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

        • John

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

    • GEE BA

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

    • Gar

      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.

      • daddy warbucks

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

    • ralph evens

      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

    • LEL MN

      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.

    • Mike Myers

      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.

      • Derek Elliot

        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.

      • BethCB

        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!!!!

  • legal immigrant

    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…

    • Pawnbroker

      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.

      • Sherry

        I like the cut of your jib.

  • goob

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

  • A A
  • Mike0oSS

    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

    • Dave

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

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  • Joe Blancher

    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!

  • gcnh

    who the hell is buying diamonds anymore?

    Can’t sell them for anything, just more junk

  • dad

    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

    • LEL MN

      Absolutely correct.

    • jen

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

      • JD

        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.

      • Dave

        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.

  • Brian A.

    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.

    • egl

      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.

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  • Hampton

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

    • LEL MN

      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.

  • LEL MN

    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.

  • Bob Dobbs

    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.

  • Randy Brown


  • SilverStacker

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

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  • Bruce Frykman

    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

    • JD

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

    • Off Duty


    • James

      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.

      • John Galt

        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
        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.

  • Joe bob

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

    • theo

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

    • Dave

      You mean like Kwanza, eh?

  • Eric P Turner

    funny and who controls the diamond markets enough said.

    • James

      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.

      • John Galt

        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.

  • Dave

    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.

    • Jack Kennedy

      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

  • Iambic PentaMaster

    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.

  • Adam L Tucker

    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.

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