"The diamond market is about like the 'Precious Moments'
figurines market, with Debeers replacing the ceramics co."

That's a bit of a stretch.  While it's true that Debeers screws with the
market, the makers of figurines and other similar collectibles are dealing
in an inexpensive, easy-to-reproduce mass market, whereas quality diamonds
are a definitely finite commodity.

There is a tremendous amount of "smoke and mirrors" play in the diamond
industry, and it certainly doesn't stop at Debeers' front door.  The New
York diamond market is an unbelievable sucker trap, with consumers paying
three-digit markup on the ground floor for stones the man in the kiosk
purchased in the same building, but on a different floor because he's a
"dealer."

Look at retail stores, such as Kay Jewelers.  There are typically very few
truly high-quality stones in establishments such as these, and any
knowledgable source can get you similar pieces (and sometimes the exact
same pieces from the exact same sources) for 50% to 25% of the retail
price.

Look at diamond "investment" specialists.  A Google search will produce
countless stories of people being ripped off, due to misrepresentations
made by con artists.

But even with all of those layers to the onion, at the end of the day a
diamond is not a trinket poured from a mold by some $ 1.80 a day Chinese
factory worker.


Frank




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