Diamonds: Cost is the Fifth “C”
by Randy Lapointe on March 1st, 2009
At Betteridge, we balked at buying many fine diamonds early last year, because prices had climbed to unsustainably high levels.
Given the substantial volatility in global economic markets, high quality diamonds had moved out of simply the spheres of fashion, and use, and into investor’s portfolios. This rush to a “safe haven” investment did not indicate increased consumer demand; rather a heightened risk that diamond prices would crash in the near future.
Since we have to pass on the costs of the raw materials that go into our designs to our consumers, we did not feel comfortable buying many fine diamonds, so we relied on diamond inventories that we had built up in prior years.
Over the past few months, fine diamond prices have decreased by 30-40%, which has brought prices back in line with demand.
Betteridge’s mission has always been to provide the best quality, materials, workmanship AND value. We welcomed this necessary price correction, and as markets have stabilized, we are actively buying and selling fine diamonds again.