Do diamonds have a resale value

Jewelry: Expensive, more expensive, the most expensive: Always new record prices for diamonds

Anyone who would claim that diamonds are nothing more than a piece of pressed coal would have an army of offended billionaires on their necks who would rather spend their money on fine jewelry than ever.

52 million euros for jewelery earrings

Every few months, sometimes every few weeks, large auction houses such as Sotheby’s and Christie’s announce new record prices. An anonymous bidder from Asia has now paid the top price of almost 52 million euros for a pair of jewelery earrings. As recently as April, a Hong Kong jewelery chain had offered 67 million euros for the pink “Pink Star” - more than ever before for a single diamond. Before that, among other things, “Unique Pink”, the “world's largest pink pear-cut diamond” and the “largest oval diamond of the Fancy Vivid Blue category ever auctioned” came under the hammer. The average wage earner and jewelry layman waves disinterestedly when the words "diamond" and "record" reach his ear.

The auction houses outdo each other in presenting each diamond as unique. Vitali Gretschko, who analyzes auction markets at the Mannheim Center for European Economic Research, suspects two reasons for this: "People value things that are unique, worth much more than others," he says. In addition, the auction houses could prevent the products from competing with one another in this way. "People shouldn't have the feeling: If I don't win today, I'll win next week." At the traditional Sotheby’s store, they explain it differently. “The diamonds find their way into the auction precisely because everyone is special in their own way,” says a spokeswoman in the Frankfurt branch. The company's jewelry experts are also in constant contact with their wealthy customers. Anyone who has a weakness for diamond earrings will find out immediately when they are on the market - and enter the auction.

But often the bidders do not want to wear their glittering earrings themselves and do not want to put the finely cut stones in the living room showcase. “People who buy diamonds don't just buy them for themselves,” says market expert Gretschko. "They also set their expectations in terms of the resale value." Each bidder assesses this differently. In the end, the winner is the one who hopes for the highest profit and offers a lot. But it could happen that the buyer is too optimistic in the end. Grechko and his colleagues call this the “winner's curse”. You could also say: he's falling on his face. But the world has a new record.

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