Gold Has Lost Its Luster, But Diamond Prices Continue to Shine, Expert Say
NEW YORK, NY–(Marketwired – Mar 11, 2014) – Recent headlines about last year’s 30 percent drop in gold prices may highlight the end of the bullish “We Buy Gold” era.
Diamond Prices Remained Stable in 2013
NEW YORK, NY–(Marketwired – Mar 11, 2014) – Recent headlines about last year’s 30% drop in gold prices may highlight the end of the bullish “We Buy Gold” era. WP Diamonds contends that the comparatively strong demand for second-hand diamonds means customers still have a great way to transform their unwanted jewelry into cash.
“The volatility of gold, which had spiked to $1,800 an ounce a couple of years ago but is now off by almost a third, has attracted plenty of media attention around the world,” said Benjamin Burne, CEO of White Pine. “Less frequently discussed, however, is the traditional stability of diamond prices relative to asset classes like gold or stocks.”
Consumers who are interested in selling engagement rings and other diamond jewelry should be encouraged by diamond prices relative to the sharp decline in gold. “Relatively speaking, diamond prices are higher than they were 5 or 10 years ago,” Burne said. “Consumers are waking up to this, which is why our WP Diamonds consumer division now receives more inquiries and buys more diamonds than ever.” Indeed, by leveraging the scale and reach of its global business network — comprised of more than 1,000 diamond wholesalers, traders, brokers, retailers and manufacturers in 11 countries — WP Diamonds is able to help consumers get the best possible prices for their diamonds.
“WP Diamonds is able to help consumers get the best possible prices for their diamonds.”
“While there is no universally accepted index for the value of aftermarket diamonds, the industry consensus is that second-hand diamond prices have been stable and continue to hold their value,” said WP Diamonds’ CEO. “According to IDEX Online Research, new-to-market, polished diamonds held their value in 2013, and this is a good barometer for the value of aftermarket diamonds as well. Meanwhile, sales trends in retail jewelry continue to be encouraging. All in all, this spells great news for consumers who are interested in leveraging the value of their diamond jewelry.”
Burne added that sellers of diamond jewelry need not be concerned about the effects of gold-price volatility on the value of their pieces. “On average, gold represents about 3% of the value of the average piece we purchase,” he explained. “Thus, in many cases, the gold value represents substantially less than 3%. The disproportionate value of diamonds by weight, combined with the small amount of gold in most of these pieces, bolsters the value of diamond jewelry in general.”