Agreed here...
Well, honestly, the pawnshop is the last place one should ever go to... period. That being said, larger size well-cut diamonds do hold their value, or even appreciate over time. I did a presentation to OCBC Relationship Managers a few weeks ago at OCBC Centre, and I presented this price evolution graph (Source: Diamond Industry Report 2011 by Bain & Company).
Basically, what we see is that larger diamonds over 1-2 carats have appreciated substantially, and over the past 5 years outperformed the MSCI World Index. What this means is not that you can buy now, and sell tomorrow at a profit.
It means that, over time, it would be better to buy sooner rather than later, as polished diamond prices are under pressure to rise because of imbalance of supply and demand.
If I am not wrong, other than property in Singapore over the same period of time, no other asset class increased in value to such a degree and with so little volatility as diamonds.
Again, agreed. Pawnshops are the last place one should go to.
This would be the golden rule for choosing diamonds. If it does not look beautiful, no criteria on any certificate would convince you to buy the diamond.
Regards,
Stephen Tan