Wednesday, February 1, 2012

Diamond prices goes up as demand increases

Everybody say diamonds are a girl's best friend, but they could be a man's worst enemy--if predictions of increasing prices come true.

Experts be expecting double-digit increases by the end of the year or early next year and they say prices will keep rising over the next four years.

Experts say the biggest increases will be for the really superior diamonds, with the best cut, clarity, color and size--as opposed to diamonds that are less perfect or rare.

But Jay Feder Jewelers says the increasing direction of diamond prices is not a sure thing--thanks to European and U.S. economies slowing the economy of China and India.

"The buying in Indian and Chinese markets has dried up a bit. So, it does not signify we are not expected to see price increases. We very well could, particularly if their trade starts to go one more time. Currently, we’ve seen quite a pullback from the Indian and Chinese markets," says JJ Slatkin of Jay Feder Jewelers.

The potential for price hikes doesn't seem to diffuse the sparkle in the eyes of potential future buyers.

"It's about the person I'm giving it to. And how much it would mean to them. It doesn't subject how much it costs," says Denver resident David Chung.

However others say even though a diamond is forever--a flush bank account isn't.

"Whatever would fit in my budget," says Bob Cook of Denver.

Diamond experts say India, China and the Middle East will account for 40-percent of the global diamond insist in three years.

Just six years before, they accounted for 8-percent.

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