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
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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
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----- 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"?
Seiji
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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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