Paying retail prices is not investing; it’s buying a luxury good.
The moment you walk out of a retail store, the value of your diamond will be its wholesale market price. If you paid more than that, you will have lost that much from an investment perspective. Retail diamonds today are fundamentally a luxury item just like a Vuitton bag or Louboutin shoes that you buy and wear because you love it, not because you plan to resell it.
There exists a niche market for collectors of unique million-dollar diamonds. This market behaves much like Picasso art. But retail diamonds are not part of this market.
How the wholesale market prices for diamonds develop in the future is solely a function of supply and demand. The extent of past price stability is a clear indication to any economist that the diamond cartel has been doing a good job managing supply. Recently they have not done a good job as mined diamond prices keep dropping:
How About Aboveground Diamonds?
Because our diamonds are direct from our foundry, you save two dozen incremental markups added by the many middlemen of the traditional supply chain, even towards the wholesale market pricing. At Diamond Foundry, we are sufficiently confident in our diamonds that we warrant and back up 100% of the value of our diamonds for a lifetime. Then priceless: You make a statement about being thoughtful and your values.