Re: Diamond Arbitrage?
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___Seiji Steimetz Office: Social Science Tower 305University of California, Irvine Email: [EMAIL PROTECTED] Department of Economics Web: http://zotnet.net/~steimetz 3151 Social Science Plaza Office: (949) 824-1372Irvine, CA 92697-5100 "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 - From: Fred Foldvary To: [EMAIL PROTECTED] Sent: Sunday, July 09, 2000 8:09 PM Subject: Re: Diamond Arbitrage? Can anyone explain to me why several diamond retailers advertise that theirdiamonds are "guaranteed to appraise for double their purchase price"?Seiji---It sounds like they are selling at the "wholesale" price and appraising atthe retail price, but the "wholesale" is a fiction, actually being the realretail price, and the "retail" price is a fiction that few would actuallybuy at.Fred Foldvary
Re: Diamond Arbitrage?
It seems the "retail" price would serve a function. It seems to me that the "retail" price of any particular diamond would be standardized accross diamond sellers and a central tendency of how much a seller discounts from that price would allow for easier comparison of diamond retailers than the prices of individual diamonds, which vary in several quality measures that affect their price and are each like no other diamond. Pat McCann GMU Undergrad On Mon, 10 Jul 2000, michael gilson de lemos wrote: > I agree with Fred. Something similar goes on in stamp and coin collecting, > and to some extent with auto appraisals.However, diamonds are a very > controlled market. > > Best Regards, > MG > 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 > >
Re: Diamond Arbitrage?
I agree with Fred. Something similar goes on in stamp and coin collecting, and to some extent with auto appraisals.However, diamonds are a very controlled market. Best Regards, MG 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
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 --- 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
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___Seiji Steimetz Office: Social Science Tower 305University of California, Irvine Email: [EMAIL PROTECTED] Department of Economics Web: http://zotnet.net/~steimetz 3151 Social Science Plaza Office: (949) 824-1372Irvine, CA 92697-5100 "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___
