Diamonds have always been considered as a girl’s best friend. More and more men out there try to woo their women with a sparkling diamond in return for a pretty smile on the faces of their lady love. While men still continue to buy exclusive diamond presents for the women in their life, the amount of money spent for such gifts are reducing nowadays. Going by the latest trends in the diamond industry, this is surely going to be the state of affairs for some time now.

The major reason behind the stagnation is that the market is now flooded by, what are known as, the ‘recycled’ diamonds. The term recycled diamonds indicates those jewels that have been used for quite some time. People who are in need of some immediate money are looking at selling their diamonds online or to pawn brokers. There can also be instances of a broken relationship or memories of a deceased family member that people want to stay away from. This is particularly a growing trend among the North Americans. A diamond engagement ring, for instance, will always remind you of the unhappy times you spent with your ex. A better idea is to sell the ring in the market or to a pawn broker and make some quick money. With more and more people opting for this option, there is a lot of increase in the supply of used or recycled diamonds in the market.

A huge mining industry convention (PDAC) was held in Toronto lately. Chaim Even – Zohar from Israel’s Tacy Ltd reportedly said during a presentation here – that the prices of diamonds will stagnate for a long time due to the increase in the supply of recycled diamonds in the market. He even projected that recycled diamonds of about $ 1 billion in value to be back in the market by the end of this year.
Coming to Toronto, Russell Oliver who is a popular jeweler here claims to have bought about 30% more diamonds in 2011 than the previous years. Such jewelers buy old jewelry, which is usually in gold or silver where the diamonds are removed and the metal is melt. The melted gold or silver is sold to the wholesalers while the diamonds are polished and brought back into the market.

Asian market however, shows a different picture. The demand for polished diamonds rose by about 25% in China and by about 31% in India. While the diamond markets are stagnating elsewhere, Asia-Pacific zone is sure to provide new avenues for diamond dealers to expand.

The general perception is that the prices of diamonds will stagnate for a while even though there is shortage of supply due to the current global economic condition. But the problem is that even when the global economic condition will stabilize, recycling will still continue to pose threats to the diamond industry.

The Kimberly Process Certification Scheme seemed like a brilliant method of furthering global human rights when it was introduced in 2003. It was designed to certify the origin of diamonds to ensure that the sources were free of conflicts funded by the production of diamonds. The Kimberly Process was meant to define rough diamonds, also known as blood diamonds, in order to keep them out of the markets. Now, on of the founders of the Kimberly Process is withdrawing its support due to glaring flaws in its implementation.

Global Witness, a human rights watchdog organization, pulled its support of the Kimberly Process on December 5, 2011. Like many other critics of the Process, Global Witness explained that the system is not effectively addressing many problem areas regarding non-compliance and human rights violations. Countries such as Zimbabwe are producing, what many feel are, conflicted diamonds into the diamond market. They are able to do this because of flaws in the definitions within the Kimberly Process.

The Kimberly Process prevents the sale of diamonds that are financing rebellious movements. Zimbabwe’s Marange mine is run by a legitimate state government, not a rebel group. Human rights groups have sited terrible violations, including the deaths of at least 200 miners in 2008. However, because the mine is operating under a legitimate government, the diamonds are entering the market with the Kimberly Process Certification. The end consumer has no knowledge of the true origin of their diamonds.

This loophole, along with other claims of abuse and inefficiency, are causing a strong demand for a re-structuring of the Kimberly Process. The Process could be improved through the redefining of rough diamonds to include human right abuses perpetrated within government-sponsored mines. This would place mines, such as Zimbabwe’s Marange mine, under higher scrutiny.

Getting governments to abide by strict regulations will be an uphill battle. Countries do not want to add any regulations to an industry that provides them millions in revenue each year. If the Kimberly Process Certification Scheme remains as it is, it could be doing more harm than good. With the certification in place, consumers become complacent and believe that the blood diamond problems have been dealt with satisfactorily. Obviously, there is still a long way to go, and more work to be done.

The elegance of diamonds cannot be challenged in today’s world of sparkling jewelry. Nothing says “look at me” like a finely set diamond. If one looks around, diamonds appear almost everywhere and in many different settings. Taking that one step further, you may take the same diamond and place it in two different settings and realize two different effects on the visual presentation. The diamond, without a doubt is the most flexible of the fine stones.

The precious metal that you select as the setting is almost as important at the diamond itself. There are many fine choices that will set the diamond off in fine style. The neat thing about setting a diamond is that a diamond will look good in every setting providing that the workmanship is good and clean. Sterling silver is often the choice of more budget constrained purchasers. Sterling is the cheapest way to go when mounting a diamond and it is more than successful in displaying the stone. Also to be considered is the fact that Sterling wears much better than the other settings.

Gold settings generally give your diamond a more traditional setting. The presentation of a diamond set in Gold is an excellent presentation in varied lighting arrangements. The one real problem with gold is the fact that it is a soft metal and being soft, it attracts dents and scratches more easily. Being very careful with the gold set diamond is necessary, but it wears regardless of how careful one is with the setting. White gold also needs to be considered when selecting a setting. It is cheaper than platinum and the setting will compliment any diamond you might purchase. One thing that must be watched with white gold is the compounding agent in the metal. If there are traces of nickel in the agent, allergic reactions could be realized.

Platinum is the choice of well-heeled individuals who really want to show off the beautiful stone. Without a doubt, platinum is a super excellent setting for any diamond. It is even said that platinum will work wonders on a little cheaper stone with its presentation being almost doubled by the addition of platinum. Be very careful shopping for platinum and always do business with a jeweler who has a good reputation.

t is human to always be looking for something that will make money for a person, a good investment. The term “investment” needs to be defined and defended in order to really answer the question of what is a good investment and what is not a good investment. The amount of money a person has to invest must also be considered before any choice can be made. The more liquid cash one has to set aside and not use for a time will determine how much of a plunge an investor can take. As an investment, a diamond can be a safe and wise investment or it can just tie your money up. If part of the investment is having something you can look at and hold is important that will impact your decision as well.

Many people like to invest in something that will pay monthly and if that is your idea of an investment, a diamond is not necessarily a good thing to have. The longer that you can hold a precious stone, the more it will pay when you are ready to divest yourself of your holdings, but that is the only time you will receive money for what you are holding. If you enlist in an investment group that has the intention of purchasing gem stones and turning them over monthly, then you might be able to make a little each month. This investment group will be a very private gathering and might be hard to negotiate if making money, monthly, is your only goal.

There is an emotional side to investing in precious stones that must be considered. A Certified Diamond can make money when sold, but when you sell it, you might feel as though you are losing a part of your family. If the diamond is wearable and it is worn on a regular basis, you might experience an attachment that will not allow you to sell. This happens more frequently than many people would like to admit. When it does, one then becomes the owner of an expensive diamond that provides a certain feeling to the owner and not an investor bent upon realizing a profit from the diamond.

In closing, a holding of diamonds can be a good investment or a bad investment depending upon the mindset of the investor. To include other gem stones with the diamonds one might hold is not a bad idea. In buying enough gem stones one could actually work his way into becoming at the least a small wholesaler and by building a good reputation, could realize a monthly income from the stones you are holding and turning over on a regular basis. If you have the needed money, jump in. The water is fine!

There comes a point in every sale my client asks, ” Is this diamond a good investment?” This is an important question on everyone’s mind! The simple answer is no! Of course we need to define investment before the complete answer is fully understood. Everyone defines “Investment” in his or her own way.

My personal definition is that an investment must pay a dividend every month to qualify as a financial investment. However how can I or anyone else value the Emotional Investment of a fine Certified Diamond? The fabulous feeling one gets wearing a top quality diamond with all of the sparkle, brilliance, and scintillation may be the best personal investment one can make. How can anyone place a value on the comments of friends or the admiration of a stranger when viewing the baby on you hand! What better investment could one make!

Perhaps a more accurate question would be, “Is a diamond a good value when spending my hard earned money?” This answer is much simpler, a great value! Ask yourself what item can I purchase other than a diamond, that holds it’s value and can actually increase in value over time other than my house?

Buying a diamond is like gaining a friend for life. It is the only Gemstone, which is universally recognized, the hardest known substance in existence and talks to you everyday! That’s what I call a great investment!