As an international wholesaler with over 25 years of experience in the industry, DJP Diamonds offers the best value for your diamonds, gold, watches, and other jewelry. We have an inventory to fill and will never pressure you into selling. Contact us today at (832) 721-7261 to find out how much your diamond is worth. Or, reach out to us online for a free appraisal.
Have you been holding onto your unwanted gold or diamond jewelry for years? Never quite sure when the right time would be to sell? Read on to see why the right time is here and now!
An all-time high
Gold is making news headlines as prices surge to the highest levels since 2011. What’s driving them? Several factors, including growing U.S. political tensions, expectations that Covid-19 infections will rise, and a weakening U.S. dollar. Despite its undeniable allure as a precious metal, gold has long been considered a safe-haven investment compared to conventional assets, such as stocks and bonds. As such, prices are typically higher during an economic downturn, so much so that the latest figures show gold hitting $1,940 per ounce, its highest level ever.
Gold jewelry demand
While the demand for gold as a financial asset comes from various sectors, the largest global market is for gold jewelry. Over the last decade, an average of 2,229 metric tonnes of gold was purchased annually in its jewelry form – over 53 percent of the average demand!
What about the current supply? Given the Corona pandemic, several gold mines have halted production, thus reducing supply. Moreover, strict travel restrictions, border closures, and a reduction in commercial flights have impeded the flow of gold along the supply chain, pushing up prices of delivery. Even gold refineries are facing a lack of input and suspension of work.
Overall, Covid-19 has created the perfect storm for gold by disrupting the global supply chain when investor demand exploded. The result? Gold prices skyrocketing. Given the above, this is the ideal time for anyone wanting to sell their unwanted gold jewelry.
All that glitters
It isn’t just gold that is shining. Diamonds are primarily a smart investment, a traditional gift of love, or both. Like the state of the gold market, the pandemic has impacted supply, thus inflating diamond prices. With government-imposed shutdowns, quarantines, and new outbreaks, the supply chain has been hard hit. From diamond mines, down to cutting factories, major diamond bourses, and ultimately, jewelry stores – all have had to shut their doors at some point or another. Also, the same impediments to gold distribution apply to diamonds.
According to Liu Houxiang at the National Gemstone Testing Center, China: “Cut diamonds cannot get to the end markets. Mining countries like Russia, South Africa, and Canada have all reduced production. We predict diamond production in 2020 will drop by more than 15 percent compared with 2019.”
Economic slowdowns always affect consumer demand for goods, so who is buying diamonds and at such a price? Firstly, some buy diamonds as an asset, similar to investors currently buying gold over other assets. Secondly, weddings (even with limited guests) and celebrations will always be marked by the gift of diamond jewelry. For example, Chinese brides are significant contributors to global diamond buying, making China the second-largest consumer after the U.S.
If you think that the only way to sell diamonds is online, think again. According to new research by De Beers Group, the world’s leading diamond company, more than 62 percent of U.S. consumers prefer to buy diamond jewelry at a physical store over buying online, as long as the environment is considered safe.
During times of uncertainty and crises, specific patterns prevail. Investors flee to safe-haven assets like gold, people buy diamonds as an investment, and others buy them as gifts of love. Whatever the reason, demand for gold and diamonds is outweighing supply. If you decide to part with your gold and diamond jewelry, this is the time to achieve top dollar!