I suppose what bugs me about this (in an economic sense) is if this advertising actually increases diamond sales.  Do diamond consumers have any *rational* incentive to respond to such advertising?
Seiji Steimetz                               Office:  Social Science Tower 305
University of California, Irvine     Email:   [EMAIL PROTECTED]     
Department of Economics          Web:    http://zotnet.net/~steimetz    
3151 Social Science Plaza        Office:  (949) 824-1372
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"Every time a calf is born, the per capita GDP of a nation rises.
 Every time a human baby is born, the per capita GDP falls."
  -- Julian Simon
----- Original Message -----
Sent: Sunday, July 09, 2000 8:09 PM
Subject: Re: Diamond Arbitrage?

Can anyone explain to me why several diamond retailers advertise that their
diamonds are "guaranteed to appraise for double their purchase price"?
It sounds like they are selling at the "wholesale" price and appraising at
the retail price, but the "wholesale" is a fiction, actually being the real
retail price, and the "retail" price is a fiction that few would actually
buy at.

Fred Foldvary

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