It’s a topic that’s in the press more and more these days and the BBC ran a feature on it a not long ago. I’m talking about boiler room salesmen conning people into parting with their hard earned money for not a lot back in return. In these instances I’m referring to diamonds.
Boiler Room definition as on Wikipedia
In business, the term boiler room refers to an outbound call centre selling questionable investments by telephone. It typically refers to a room where salesmen work using unfair, dishonest sales tactics, sometimes selling penny shares, private placements or committing outright share fraud. The term carries a negative connotation, and is often used to imply high-pressure sales tactics and, sometimes, poor working conditions.
In the last few months, I have had a numerous amount of people calling me to sell me their diamonds. Their sad story usually goes like this. "Hi Lewis, I came across your blog on the internet regarding selling my diamonds and wondered if I could see you. I have some diamonds to sell." We make an appointment to meet up and I look at what the client has on offer. At first all I’m usually asked is to give a valuation for the fancy coloured diamond/s which the client has purchased. After a conversation along the lines of where the diamonds were purchased and how long have you owned them, I discover that they’ve only been in possession for a few months and that they paid anywhere between 500-1000% the cost price. Yes, this is not a typo, as high as that.
It’s people like this who are giving my trade a bad name. It’s easy to say well they should have known better, but when you’re in a position like they are at the end of the phone with a professional con-man at the end of the line, it’s difficult to say no.
Do I think coloured diamonds are a good long term investment? Yes. Do I think there is any value buying off someone who pressure sells? No. Have diamonds gone up over the last 40 years? Yes. Well when I say yes, I mean as a whole they have, but let’s not forget there are over 12,000 different characteristics which make the fixed price of a diamond impossible to know. This is the reason why diamonds aren’t listed on the stock market. A few of the smaller diamonds have had a roller coaster ride, however, all stones over 1.50ct have continued to grow year after year. The only way you will get value for money is if you can buy from a wholesaler like me.
Here are my tips for getting the best for your money.
1) Only trade with someone in who is a member of the London Diamond Bourse and/or the World Federation of Diamond Bourses.
2) Never buy from salesmen on the phone who will guarantee a return pretty much over night. It will never happen.
3) Always put all your money into one diamond at a time. The value of larger stones is greater than that of three smaller ones at the same purchase price.
4) Only buy from someone who is happy for you to come in and view the diamond prior to purchasing it.
5) Make sure the diamond has an accompanying certificate from a recognisable gem laboratory such as the GIA.
If you would like an appointment, then please do call for a free consultation in our central London Hatton Garden office and we would be glad to try and help you. Our details are on the main page of the Lewis Malka London website.
Lewis Malka is a recognized expert in making diamond rings as well as being a famous jeweller to the stars. All his blogs are his own opinions. He is a member of the London Diamond Bourse (LDB) and is currently the Chairman of the Young Persons Committee within the Diamond Bourse. You can follow him daily on Facebook - Twitter - and Instagram.
If you would like any bespoke jewellery made, then please visit his website.