Diamonds

[Pep04]

I am in the market for some diamond studded earrings for my wife. I know a little (not much) about diamonds. I got ripped off in 2008 when I bought her some, so I figured maybe there are members here that know about them.


I know that diamonds are very subjective and no two are alike so comparing prices is very difficult. I understand that GIA certification is the way to go.


I went to a jewelry store today that my partner knows the owner. We built the store for him so he gets a good deal. I never met him because my partner is the one that dealt with him. He gives him a good deal on anything he buys there and he has earned my partners trust. For example, he bought his son a G-Shock that was $120 at Macy's for $55. You get the idea as to their relationship.


In any case, we walked in and started talking diamonds. He offered me a clarity enhanced diamond for what seemed like a good deal. He explained what that actually meant. His offer was 1.68 total karat for $1500. I forgot the particulars on the diamonds but they were BEAUTIFUL. He explained that it was that nice only because they were enhanced. He further explained that they are not certified by GIA because they don't certify altered diamonds. I read on line already that enhanced diamonds are not going to appreciate and can actually be damaged.



My questions are:

1. What is a fair price to pay per karat on a G-H color VVS-2 certified by GIA?

2. Do they appreciate as much as precious metals (I know precious metals are a commodity)? The jeweler said that you will get a 1/3 of what the diamond is worth retail if you ever want to sell it. I don't agree with that because a karat is worth more today than it was say back in 1990. Inflation, value of the dollar amongst other factors have to come into play right?

3. Would you ever buy an enhanced diamond?



Thanks for the insight and if there is something that I should be asking or things that I haven't taken into account, please explain.