ASK A JEWELLER --- investing in diamonds?

This weeks instalment of Ask A Jeweller looks at whether a diamond makes for a good economic investment.

This week we decided to answer a question we have been asked again and again over the last 40 years we have been in business - are diamonds a good financial investment. A lot of the time, this question arises when a client is determining the quality of diamond they are hoping to buy, believing that a higher quality diamond will hold a higher resale value. Does purchasing a diamond make good economic sense?

Absolutely, unequivocally, not. No. Nope. If you view the purchase of a diamond as anything more than an investment in a relationship (engagement ring) or an investment in your jewellery collection (treat yourself!) - you are making a very expensive mistake. Diamonds in no way retain their value, as a matter of fact they depreciate faster than a new car the moment it is driven from the lot.

(In 1947 marketing firm N.W. Ayer coined the phrase 'Diamonds are forever' which would become the enduring slogan for De Beers the following year.)

First consider the concept of intrinsic value versus market value. Intrinsic value can be thought of as the true value of an item whereas the market value can be thought of as the amount someone is willing to pay - very often these are two different things. Gold for example has an intrinsic value, it is a commodity that is traded on the global markets. Gold once it is made into jewellery, also has a market value that includes labour costs, retail mark-ups, and is priced to fit into what one may be willing to pay for it. It's market value as a finished product far exceeds its intrinsic value. If you were to decide to one day to sell that piece of jewellery, it will always be worth something - it's intrinsic value - based on the commodity prices. It will never be worth what you paid for it, but it will never be worth nothing.

A diamond is a different matter. They do not have an intrinsic value or commodity value the way gold does - there value is determined to a large extent by what the market is willing to pay for them. Contrary to what many of us believe, diamonds are not all that rare - there is certainly enough supply to meet our current demand. 

This plays a very important role when it comes to reselling a diamond - most jewellers, us included, have several suppliers with diamonds only a phone call away. Why would we be interested in purchasing a stone from someone other than a supplier - that means you, diamond investor - unless it presented itself as being a fantastic-once-in-a-lifetime deal? In other words, cheap. If you are hoping to sell your diamond to an individual, they will still be looking to purchase something that is less than what is available retail - they will also expect rock-bottom prices. You as a seller are at a serious disadvantage - diamonds lack liquidity; the ability to sell at will.

Diamonds do not pay interest, nor will they earn you dividends. 

There are many reasons why we purchase diamonds. They have been used for centuries as symbols of everlasting and enduring love. They dazzle us with a breathtaking sparkle. We purchase them for the enjoyment they bring ourselves and others. It is an emotional connection, not an economic one. 

Have a question? Email them to us at service(at)18karat.ca with the subject line Ask a Jeweller. We will answer your questions here, every Thursday.

SUMMER LOVIN' GIVEAWAY at 18Karat

You have heard us say it before - jewellery is special in the way that it carries our stories and shares our history. It commemorates our past and our future and some of our most major milestones. It reminds us of important people and places.

But sometime the best gifts are the ones we give ourselves.

That is why this August, 18Karat will be giving away a $150 Gift Card to one lucky winner of our Facebook Giveaway.

Use this gift card to purchase a beautiful ring, pendent, bracelet, or earrings handcrafted by our Master Goldsmith Dino Giannetti.

Visit our Facebook page and view the gift card terms and conditions here.

18Karat goes live...

Over the next week you can expect the blog post to come short and fast, as the flurry of activity related to the Uniti Collection grows.... (1 WEEK TO GO!!!)

But tomorrow morning, between 11 and 12, 2/4 of 18Karat will be live on CIUT 89.5fm
on a program titled, Career Buzz, where we will chat about the Uniti Collection
and the exciting things our shop gets up to.

Super excited!

The Uniti Collection - Launched!!

Where do the hours go in a day?
Where do the days go in a week?

Our jewellery auction in benefit of the Red Door Family Shelter is up and running, and will continue until November 26th.

The Uniti Collection isn't just about pretty and precious gems - every piece is inspired by the people closest to our hearts: our parents, our children, our spouses, and our friends - the community we all belong to.

Every piece in this collection has been donated by the artist who created it, and the sales from each piece will go directly to the Red Door Family Shelter.

For a list of the designers and celebrities who have collaborated on this piece, and to view each beautiful creation (and where to place a bid.. hint... hint..) visit www.uniti.ca

All of these pieces will be on display at 18Karat throughout the auction.

Amy Kovach – Uniti Designer

Electric excitement is zipping through 275 Dundas Street West, and no it has nothing to do with the rainstorm hitting the streets outside. No this excitement is all about the young jewellery artists creating beautiful gems that are due to begin arriving any day now.


But until they do, perhaps a little teaser - another little peek into what these very talented individuals have in store for us in the upcoming Uniti auction.

Amy Kovach has a keen eye for graceful organic shapes with an obvious appreciation for the simplicity found in nature. A few months ago, Amy met with singer Justin Hines, with popular songs 'Wish You Well' and 'Say What You Will'.

Amy's piece will be a stacking three-band ring that symbolizes what family and community means to both Amy and Justin.

A little birdy told us that this piece is ready and on its way to our shop. Hands up who's excited?

www.amykovach.com

Look Who's Talking Now............

We are!!
This morning the CBC aired a truly wonderful piece on our little shop.
Who would have thought they could pack so much punch into a 7 minute segment, but boy are we overjoyed.

Thanks to Mary Wiens and the CBC!

Please Welcome...

Our Emerge exhibit has entered it's second week and I am pleased to introduce you to our third young designer – Margo Glenn.

Margo is from a small farming community in South-western Ontario. She globe trotted extensively before studying Jewellery Arts at George Brown, and will be starting her Masters Degree in Architecture in September.

Drop Earrings
14k white and yellow gold, diamonds

She is inspired by nature, the innate qualities of the material at hand, and the introspective and expressive journey of creation. She works in gold, silver, copper, and has developed a unique line of jewellery based on an ancient leather hardening technique.

Anwedah Necklace
14k white and yellow gold,
diamonds


Perhaps her most ambitious piece, titled Anwedah, is a celebration of her Aunt's journey with Bariatric Surgery. Created in 14 karat yellow and white gold and diamonds, it contains a mechanical clasp, hand-made chain, and computer modeled components.

The wings of the butterfly move individually, and glitter with eight diamonds.

"Not only was this piece emotionally challenging to design, but it was by far the most complex and difficult piece I have created."

Margo's work will be on display as part of our Emerge exhibit which runs from August 1- September 30.

18Karat will be hosting a reception for this event on August 13th from 5pm-8pm. Not only will the designers be in-store, we are also happy to announce that the Jessica Stuart Few will be providing the live soundtrack to the event.
Drop by for an evening of local art, music, and unbridled creativity!

Remember that gem?

Mother's Day brought with it a super 18Karat-meets-Bijouxbead promotion.. remember that stellar necklace by Darlene Martin...
If not, here it is gracing the very lovely neck of Whitney, our winner, who just received it via snail-mail.
Congratulations again to Whitney. Couldn't imagine that gem finding a better home.

So Pretty!

Mother's Day G I F T I N G

To celebrate not only mother's and mum's but all of the strong women who have helped form us, 18Karat and Bijouxbead have teamed up to say Thank You!

Starting today, subscribers to our blog.. (this very one!).. will have a chance to win a one-of-a-kind necklace designed and crafted by Darlene Martin of Bijouxbead herself.

Have My Eye On You (pictured above and valued at $190) will be given to one lucky subscriber or follower on our Mother's Day Draw to be held May 10th.

So.
One more time.. For those in the back..
Subscribe to our blog here.. and this baby could be yours.

(Also.. if subscribing .. make sure to follow up with the link that is emailed to you to confirm your subscription, or else... you won't be verified!)

Organic Simplicity - ReceptionR E C A P P E D

Thanks to everyone who came out last night for our Organic Simplicity reception. We love getting to meet local artists and jewellers –– and they abounded last night.

If you missed it, don't fret!
We will continue to feature Inna's work until the end of this month, and we will continue to carry her pieces into the future.

So a big thank-you to Inna and don't forget to check out her work at www.ingojewelry.com

And now... for some pictures.







Don't underestimate the complications of window dressing.. Visual merchandising is tough.. but it turned out great.










Inna, chatting with a fellow jewellery designer.













Inna and Vanessa – winding down the reception.

Organic Simplicity - Reception

Put on your party shoes because 18Karat is hosting a reception in honour of Inna Gorshtein.

On April 23, from 5pm - 8pm, drop by the shop to meet the artist and view the pieces on display.
For more information, visit www.18karat.ca or call 416-593-1648.

We have enjoyed having this artists work on display, so drop by and support Toronto's amazing artisans.

Oh April..

Maybe it's the April showers, but this month I have found myself drawn to dramatic blues – the lucid shades of aquamarine and vibrant blue topaz especially.

So why not indulge in a little tour of some of the stunners at 18Karat?



Inspired by a floral bouquet of traditional and regal form – to me this stone seems reminiscent of the historical aristocracy... maybe a trinket of a French lady, or a Marie-Antoinette....

And we are back from my romantic wanderings.

This beautiful pendant features a striking 1.52ct. blue topaz, as well as 4 marquises cut diamonds and baguette accents – set in 18k white gold.

$895





If you think size is what matters, then this 9.5ct. giant will certainly drive you wild – not only is she big, but beautiful as well.

This fancy floral cut aquamarine takes me to a remote Hawaiian beach with exquisite Polynesian flora... not to mention the cocktails.

Like everything else we build, this gem is set in 18k white gold.

$2450

The bezel is the oldest setting for a gem to occupy, and maybe that helps to explain the inherent romance this ring seems to hold – or possibly the intricate heart detail.

The setting, shape, and detail of this ring speaks to a Renaissance design sensibility, and for that, we love this little Romeo and Juliette ring.
Set in 18k white gold, with a 0.35ct. aquamarine at its center and 4 round cut diamonds flanking it.

$890




Enjoy the sunshine between the showers!