SOURCE: WP Diamonds

WP Diamonds

March 11, 2014 10:50 ET

Gold Has Lost Its Luster, but Diamonds Continue to Shine, Expert Says

Prices for Aftermarket Diamonds Remained Stable in 2013, Creating Strong Opportunities for Consumers Who Are Eager to Sell Their Diamond Jewelry

NEW YORK, NY--(Marketwired - Mar 11, 2014) - Recent headlines about last year's 30 percent drop in gold prices may highlight the end of the bullish "We Buy Gold" era. WP Diamonds, the consumer division of White Pine Trading LLC ("White Pine"), one of the world's largest recycled diamond companies, contends that the comparatively strong demand for aftermarket diamonds means consumers still have an excellent way to transform their jewelry into cash.

"The volatility of gold, which had spiked to $1,800 an ounce a couple of years ago but is now off by almost a third, has attracted plenty of media attention around the world," said Benjamin Burne, CEO of White Pine. "Less frequently discussed, however, is the traditional stability of diamond prices relative to asset classes like gold or stocks."

Consumers who are interested in selling engagement rings and other diamond jewelry should be encouraged by diamond prices relative to the sharp decline in gold. "Relatively speaking, diamond prices are higher than they were 5 or 10 years ago," Burne said. "Consumers are waking up to this, which is why our WP Diamonds consumer division now receives more inquiries and buys more diamonds than ever." Indeed, by leveraging the scale and reach of its global business network -- comprised of more than 1,000 diamond wholesalers, traders, brokers, retailers and manufacturers in 11 countries -- WP Diamonds is able to help consumers get the best possible prices for their diamonds.

"While there is no universally accepted index for the value of aftermarket diamonds, the industry consensus is that second-hand diamond prices have been stable and continue to hold their value," said WP Diamonds General Manager Matthew Howe. "According to IDEX Online Research, new-to-market, polished diamonds held their value in 2013, and this is a good barometer for the value of aftermarket diamonds as well. Meanwhile, sales trends in retail jewelry continue to be encouraging. All in all, this spells great news for consumers who are interested in leveraging the value of their diamond jewelry."

Burne added that sellers of diamond jewelry need not be concerned about the effects of gold-price volatility on the value of their pieces. "On average, gold represents about 3 percent of the value of the average piece we purchase," he explained. "Thus, in many cases, the gold value represents substantially less than 3 percent. The disproportionate value of diamonds by weight, combined with the small amount of gold in most of these pieces, bolsters the value of diamond jewelry in general."

The full article with more detailed information and graphics can be found on http://www.wpdiamonds.com/articles/2014-excellent-time-to-sell-your-diamonds

About WP Diamonds: WP Diamonds is a leading purchaser of diamond jewelry and loose diamonds directly from the public. The Company has operations in the United States, Europe and Asia, and it purchases diamond items of all sizes and qualities. WP Diamonds is part of White Pine Trading LLC, one of the world's largest recycled diamond companies, which buys recycled, polished diamonds either loose or in second-hand diamond jewelry, from the very smallest melee to one carat and above. White Pine Trading maintains offices in New York, Birmingham (U.K.) and Tokyo, with a network of buyers across the United States, United Kingdom, Europe, Japan and Australia. White Pine sells its loose diamonds in global sales events, daily brokerage and the remainder in the jewelry it manufactures. The company's White Pine Jewelry Solutions division provides consulting and other services to retailers, manufacturers and wholesalers, as well as the industry's asset-based lenders. 

Contact Information

  • Media contact:
    WP Diamonds
    Matthew Howe
    General Manager
    (646) 758-0271
    Email Contact