Diamond jewelry is part of our culture. Diamonds symbolize wealth, status, commitment and love. For the past century a handful of diamond companies have had a monopoly on the diamond industry, dictating the market value of diamonds. That monopoly, however, has come to an end, and, for the first time diamonds are subject to supply and demand market forces. In addition to the end to the long monopoly on the diamond trade, increased wealth in other countries such as China, Russia and India have led to an increase in demand.
Experts are predicting that over the next ten years diamond prices will skyrocket. The supply of diamonds is almost certainly not expected to increase as rapidly as demand, as some of the older diamond mines are nearing depletion. With investors looking for the next safe haven commodity, diamonds may become as reliable an investment as gold. Just as the the upswing in gold prices sparked a gold rush with people rushing to pawn shops and gold buyers to liquidate their gold jewelry and other scrap, the value of diamond jewelry is about to increase.
Consumers are already beginning to see this increase. On the higher end, a flawless 101.73-carat diamond sold at auction for $26.7 million in 2013, breaking the previous sale record by more than $10 million. In the last year the prices of rough diamonds have increased by about 10%. The rising demand for diamond jewelry over 1-carat has caused prices to increase for large diamonds by 30% or more.
Whether you want to invest in diamonds or you want to buy diamond jewelry for your personal collection, now is a good time to buy. If you already own diamond jewelry you should consider having it reappraised to make sure it’s properly insured. Modell has an extensive selection of diamond jewelry, rare diamonds, colored diamonds, loose diamonds and more. We also buy and import diamonds. Stop into one of our locations in New York City.