Precious metals vs. diamond ring?

[Pelikan]

I have a diamond engagement ring just sitting around. (long story)

Should I try to sell it, take the inevitable hit and use the funds to buy PMs, or will it be usable as a commodity during those uncertain times where precious metals will, if you will excuse me, shine?

 

[Rob Boudrie]

Diamonds are very illiguid and if you thing you are going to get hosed selling one now (and you will) just wait until you are in a position of weakness and trying to sell it to someone without the expertise to determine the exact grade and valuation.

If you get half what you paid you'll probably be doing well in the "buy at retail, sell well below wholesale" market.

 

[MisterHappy]

Precious metals, like anything else, have value because everyone agrees that they do.

A bar of silver, or a K-Rand, is marked as to what it is. A ring is not (well, it might be, but you need a loupe, and a scale, etc.

A diamond may be "forever" but how are you going to convince ME that it's not glass?

If you want to sell, take it to a few places, and see what it's worth, then decide what you're doing.

 

[Mr. Brownstone]

How many Karats? Ill trade you a brick of .22lr for it.

 

[MisterHappy]

what velocity?

 

[Mr. Brownstone]

1235FPS

 

[Pelikan]

Thanks to all, and I'll have to pass on that brick of .22

 

[MetalgodZ]

Diamonds are very illiguid and if you thing you are going to get hosed selling one now (and you will) just wait until you are in a position of weakness and trying to sell it to someone without the expertise to determine the exact grade and valuation.

If you get half what you paid you'll probably be doing well in the "buy at retail, sell well below wholesale" market.

This.

And think about it this way: The situation that you were buying PMs for has materialized, and things are tough. Someone comes to you and wants to buy a couple hundred rounds of 5.56...and he's got a diamond ring, or multiple silver eagles to trade you. The eagles are probably not fake - different dates, alignment and size right, ring is right when you drop them, and all pass each test identically - but you can't verify what the ring is.

Which do you take?

If I had the same issue, and had no sentimental attachment to the ring, I'd dump it.

 

[jtorbin88]

I got some 5.56 and 9 mm ill trade you for it how much cash you looking to get / pictures.

 

[TonyDedo]

Every time things go bad, the market is flooded with jewelry. The ring may be worth less than you'd like now, but the worse things get, the less it will be worth (as everyone else is selling their rings). Get what you can for it now.

 

[Pelikan]

Solid advice fellas, thanks.

Any tips on where not to get totally hosed on prices? I figure the mall store are worst, followed by any big chain? Smaller dealers best?

 

[bbarer]

Just went through a diamond "liquidation"...there is no good place to hawk it. After a lot of research and phone calls the local jewler gave me the best deal at only 35% of what I paid for it. Best of luck, but diamonds are like cars worth nothing the minute you drive them off the lot..

 

[Pelikan]

Just went through a diamond "liquidation"...there is no good place to hawk it. After a lot of research and phone calls the local jewler gave me the best deal at only 35% of what I paid for it. Best of luck, but diamonds are like cars worth nothing the minute you drive them off the lot..

Thanks...at least I learned not to make that mistake again...

 

[Mr. Brownstone]

Remember; Diamonds are a girls best friend.
Dogs: Man's best friend.