For generations, diamonds have been one of the most expensive and sought-after jewels. However, diamonds don’t hold up as well as other investments in terms of their resale value. This has a complex cause that is caused by many different things.
The lack of a uniform pricing structure is one of the key causes of the low resale value of diamonds. In contrast to gold, which has a set price per ounce, the cost of a diamond varies substantially depending on the stone’s quality, cut, and size. As a result, rather than having a fixed market value, a diamond’s resale value is frequently influenced by the buyer’s perception of worth.
The substantial markup that is added to the retail price of diamonds has an impact on their resale value as well. Since diamonds are frequently marked up by 100% or more, their actual value is far less than their retail price. Due to the large markup, the seller might not be able to return their initial investment when it comes time to sell the diamond.
Furthermore, diamonds are not a very liquid asset. Diamonds can be challenging to sell quickly and may involve a lot of work to locate a buyer ready to pay a fair price, in contrast to stocks or real estate, which are simple to acquire and sell. The value of diamonds might be further depressed by this lack of liquidity.
It can be difficult and demanding to break into the jewelry industry. Regular training and education are essential to stay current with the industry’s continuously changing trends and procedures, and a formal education and an apprenticeship are frequently prerequisites. However, it may be a profitable and meaningful career for people who have a passion for jewelry design and craftsmanship.
Depending on their level of expertise and skill, jewelers can earn a wide variety of salaries. The median annual income for jewelers and workers with precious stones and metals was $42,320 in May 2020, according to the Bureau of Labor Statistics.
For people with a strong sense of creativity and an entrepreneurial spirit, jewelry creation can be a successful profession. Depending on their level of achievement and the demand for their designs, jewelry designers’ pay might vary substantially. The average annual compensation for a jewelry designer in the United States is roughly $52,000, according to Payscale.
In conclusion, a number of issues, such as the absence of a consistent pricing structure, large markups, and insufficient liquidity, can be blamed for the low resale value of diamonds. A formal education and continued training are needed to become a jeweler, yet it may be a fulfilling career with a respectable income. For those with a great sense of creativity, designing jewelry can be a successful job.