Is Jewelry worthless due to synthetic gemstones and diamonds?

Well my journey began a short time ago when gold and silver seemed too pricey to purchase (as I don't want to sell just buy as part of my 10-year investment plan). I decided to look into other forms of investing and found out hard and fast that this whole entire line of work is basically something out of Indiana Jones where a few good gems exist, and the rich own them-verbatum. The jewelry we purchase is usually good fakes, worth nothing because their is no real or pure gold in them, and also due to the fact that gems lose their luster and need maintenance to revive themselves.

Russia is creating lab diamonds, rubies, and more. Synthetics are very hard to distinguish real from fake, and even Macy's has been charged with selling Christmas jewelry that is treated (apparently in some gems that is a bad thing) also filled with other materials to make the gems look better and sell for more.

Fake Diamonds in only 4 days! Very cool video (but what bastages these guys are!)


They aren't only making synthetic diamonds, but every gem you can think of (as far as I know).

I now feel that Jewelry is more of a "family gift" type of thing and worth only the memories it encountered along its journey. I have looked far and near and realized their is no way to just hop into purchasing (nor investing) jewelry like you can with silver or gold. I feel confident when purchasing my silver or gold from bullion companies (I love my PAMP). But truth is I feel like I am always buying from the "Gem Lady" you find at flea markets.

I am finding out the hard way about these gems as I recently purchased this:

There were numerous bids on the gem and for $40.00 I bought myself a 50ct Purple Amethyst. I later found out that Amethyst sells for $30.00 per carat, and I took it to 2 different jewelers who said it is very very beautiful. They both examined it, while one used a big microscope but neither could confirm it is real or fake. They both said that if it is fake then it is a damn good fake because they couldn't find the line that would be left over if someone had grown it in a lab like a crystal growing set. It does not have any flaws at all. The stone does have a solid vibrant color that is almost too perfect. The seller I bought it from said they purchased it as an authentic Amethyst.

My jeweler said if this thing is real it is worth $1,000 at least, so I will know in a few weeks weather or not it is real. I am guessing that the guy I bought it from would've sold it for $1,000 instead of trying to deliberately give away thousands of dollars just because. Why am I still hoping? Can't I just accept this darn thing is fake?

Can anyone lead me in the right direction to purchase real quality gems with real certifications? I found all my local jewelers really have some expensive (yet lovely) items, but I am keeping "investing" in mind, as all I can really find is a bunch of junk estate jewelry they call it (dirty ugly jewelry from the 50's with diamonds that are SI quality-or really weird exquisite jewelry...)

I find Jewelry to be both priceless and worthless at the same time.
Sorry to horribly deviate your thread but i've never understood the fascination to place a worth on something like a jewel where the numbers are fabricated off a whim. Continue.

reply to post by samlf3rd


Dear samlf3rd,

Please do not invest in jewelry. Ian Fleming (the man that wrote James Bond novels) was a reporter for the London Times and in the 60s did a series on diamonds, it was called "The Diamond Smugglers", in it he pointed out that Russia had more diamonds than the rest of the world and could dump them at any time. Invest in the giant agribusinesses. Stock can go up and down; but, in the end we will pay for food. Gold and silver can be confiscated and the Patriot act requires all transfers of gold worth over $500 to be reported, though many are not. If you cannot prove how you got the gold, the government can confiscate it, that case was settled this year. $80 million in gold coins were taken from a family that could not document how they got it. Just some thoughts.

reply to post by AQuestion


Wow, that is crazy. I purchased my silver and gold from Apmex and SilverTowne. I have all my receipts I am glad now that I kept them.

Originally posted by samlf3rd
reply to post by AQuestion

 

Wow, that is crazy. I purchased my silver and gold from Apmex and SilverTowne. I have all my receipts I am glad now that I kept them.

Dear saml3rd,

Yeah, a lot of people didn't read the law, including the people who voted on it. I know that there are some people that make a lot of money from buying gold'; but, during the depression it had to be turned into the government. I would invest in it, my opinion. My favorite investment (sold all of mine so my kid could have a down payment on a house, is Berkshire Hathaway B, it is the stock that Warren Buffet manages and has had a better return for the past 40 years than any other company; but, I like agribusinesses, not as diversified; but, very attractive in a wildly fluctuating stock market. Eventually food finds a real value, you are guaranteed some return.

reply to post by AQuestion

I am going to look into that right now. Thanks for the tip, and it makes sense.

I am a jeweler by trade, manufacturer not sales. If you like a piece of jewelry buy it and wear it. Never buy it as an investment. I disagree with the member who advises against metal investment, I buy and sell silver and gold all the time and never had a problem, just look on ebay.

Originally posted by Quantazero
I am a jeweler by trade, manufacturer not sales. If you like a piece of jewelry buy it and wear it. Never buy it as an investment. I disagree with the member who advises against metal investment, I buy and sell silver and gold all the time and never had a problem, just look on ebay.

Dear Quantazero,

No disagreement, same as I would say for a house. Buy it because you want it and can afford. Jewlerty is a lousy investment, not a bad purchase if you like it. What is the markup on most jewelry, I think it is 900%, that is for the craftsmanship. I will pay for that; but, a bad investment.

reply to post by samlf3rd


Well, I wouldn't buy them for investment. But they are not 'worthless'

reply to post by AQuestion


The gold confiscation was a theft we know that but I theink the US Gov stepped over the line by grabbing 'all' the gold (Jewlers excapted)
The US Gov can confiscate US coins (The technically belong to the US mint) but if the coins were from another countrys mint or or gold nuggets that someone panned with permission the US Gov wouldn't have had any right to confiscate that gold.
Correct?

reply to post by VforVendettea


Dear VforVendettea,

Actually, I believe all non-jewelry can be confiscated. Bars can be confiscated. $500 is between a third and a quarter of an ounce I believe.

reply to post by samlf3rd


Is Jewelry worthless due to synthetic gemstones and diamonds?,

Yes...I will PM you and give you my personal adress. I know you are a busy guy and as soon as I receive your gems I will personally throw them away for you. Don't worry about the delivery costs..I will pay those for you.



No,no,no.... ......just kiddin' ...

reply to post by AQuestion


I gave you a star as I understand and partially agree with your argument. But then you state

Invest in the giant agribusinesses. Stock can go up and down; but, in the end we will pay for food. Gold and silver can be confiscated

In the almost inevitable collapse we are heading I do not see why you put fate in the survivability of agribusinesses.

As society collapses the best option is to have some, not much gold/silver hidden (no registry), for money will quick lose value, this will lead to controlled prices (and actions like you already covered) that will, if the panic already hasn't, destroy your stock values, there will also be an almost immediate nationalization of basic strategic assets food, water, telecommunications and energy.

The best option is investing only in the material goods you can yourself protect (since the state will be in free fall and your personal protection will not count more that a percentage or a number in a statistic). Invest in know-how and land, those with best chances will be the ones that will be self -sufficient and self-reliant...

reply to post by Panic2k11


Dear Panic2k11,

Brilliant post and you got a star. I do not anticipate anarchy, I anticipate fear and a solution that involves an all electronic, IMF or whatever control over the rating of currencies. In the scenario I anticipate, stock will raise and fall with the currencies at a relative rate. Plan for what you anticipate, I plan for nothing, I don't have any cash, lol. Still, what the effect of a complete collapse of all economies would be is less than is claimed. Food would still be produced, water would still be needed, after that, it becomes less important. You cannot eat gold and it is too heavy to take with you in any large amount. If their is no stock market, then my answer is wrong. If one remains than investment in tangibles is best.

reply to post by AQuestion


The coins were inherited, but the Gold Coins were legal tender, which the US sought to withdraw and melt down in the 30s .

Gemstones and Diamons are all about supply and Demand. As long as people are willing to pay high prices for them, then they will sell. Why not? Stranger things happen. My 100 Euro purse is just as good as an 1000 Euro purse, but there are still women whom would rather have the 1000 Euro purse. And Russia is already selling Diamonds. Ever heard of Swarowski?

To summarize, the price of diamonds is kept aloft artificially by the debeers cartel. Diamons are not any more a serious investment, than Classic Cars are. Maybe they are even the worse investment.

in my opinion, 'book value' or any other value put on a gem or piece of jewelry is not important.
what is important is knowing buyers whom may be looking for such things.
think of it like this, you could have a lambrogini parked in the garage.
may decide to sell it, could run adds, talk with professional dealers etc....
or, if you are in the loop, you could make one phone call and have it sold.
many times it does come down to who you know.
personally, i quite buying gold, except for scrap i find here and there.
i did my purchasing back when it was 275-300 an ounce.
so, what am i really saying here?
the faceted amethyst may be worth 50 bucks to 99.9 percent of the population, but if you know that one person who it is worth 1000 dollars to, you know the type of buyer you need.

reply to post by Merinda


you do have a point,

To summarize, the price of diamonds is kept aloft artificially by the debeers cartel.

but, also please keep in mind the imf's roll in gold value.
they have been dumping gold on the market every few months in order to suppress the price.
same basic thing as debeers does with diamond.