Diamonds Only Increase in Value Over Time: Many people falsely believe that diamonds always increase in value over time. This is a fallacy as it is highly dependent on market conditions, supply and demand, market influences and economic conditions like any other asset. In the USA and many other European countries, the resale price of a diamond may drop at an average of 30-60% as soon as the purchaser leaves the store. It may take a few years to a decade in order to recoup that cost with the assumption that diamonds will hold its value for that long.
Diamonds Are an Easy Investment: Diamonds can be seen as an investment, but it is important to remember that it is actually a very high-risk venture. Many investments in diamonds go wrong, and buyers should never make any sort of purchase without seeking independent, expert advice.
Diamonds Are Resold Easily: It is easy to think that a diamond can be quickly sold off in order to make money quickly. However, this is not always the case. Selling a diamond through a reputable dealer make take weeks to months, since the diamonds must be examined before they can be sold. In addition, many retailers will not purchase a diamond at retail price as they can get it for much less. Reselling a diamond below retail market price is very common as done quite often at pawn shops.