Diamonds: Commodity and Beauty
Diamonds are commodities. They have a price like any other commodity, but unlike others, they possess a criterion that sets them apart—their beauty.
When you examine gold, silver, or wheat, there are no such criteria. People primarily consider purity and weight. However, diamonds, much like the tuna trade, have a beauty factor. Just like tuna traders who can discern the quality of a tuna by examining its fin, a factor that no machine can replace.
When you look at a diamond, the most important aspect to consider is not just its specifications but its beauty. While high color, clarity, carat weight, and cut contribute to its beauty, it is the combination of all these factors that makes it shine. Sometimes, for a specific budget or design, it may be wise to choose lower clarity or lower color to achieve the desired look. Many people have been influenced by the notion of D color, the highest and clearest color on the diamond scale. However, once that D color stone is set in a ring on your finger or in a necklace and worn for a couple of weeks with our body oils and creams, it will likely appear like an H or I color—indistinguishable from an F color (two colors down).
The same principle applies to clarity and cut. If I show you a 1-carat diamond with an excellent cut and a 1-carat diamond with a very good or good cut, without knowing which is which, you will probably choose the one that is not labeled excellent.
The Beauty and Meaning of Diamond Jewelry
Diamond jewelry serves as a status symbol that reflects our personality. Diamonds enhance our beauty, much like makeup—they are not inherently beautiful without the person wearing them. They hold no story without YOU.
Diamonds also serve as an investment that lasts a lifetime and can be passed down to future generations. They represent a way to transfer wealth to our descendants without paying taxes. Throughout our lives, we work hard, saving for our children, paying taxes on every yen earned, and then relinquishing almost half of it, whether in cash or real estate. Diamonds are not only an investment but also a source of enjoyment. When you invest in stocks or other financial instruments, there is very little or no added value to be gained.
Make no mistake—should you purchase a diamond from us and attempt to sell it the next day, similar to selling a car, you will incur a loss. The reason being, we too need to make a profit to sustain our business. However, unlike cars, diamond prices appreciate over time. In the past decade, they have doubled. The Earth provides us with limited supply, and rough diamonds are becoming scarcer. If you hold onto your diamond for a few years and the timing is right, you may even profit from selling it—similar to the stock exchange.
Unveiling the Truth about Retail Diamond Prices
Retail prices for diamonds in Japan are exorbitantly high. We sell to shops and jewelry manufacturers, and often our own merchandise can be found in stores with price tags that are sometimes six times higher. Individuals who purchase their jewelry from department stores and later decide to sell it find that they must accept a substantial loss. Naturally, department stores incur costs such as rent, staffing, and advertising. Brands are purchased based on the prestige created by years of advertising. Consumers trust brands blindly, enabling brands to generate profits. However, if you visit a Cartier store and purchase a 1-carat diamond ring or necklace, receiving royal treatment and leaving the store with a small Cartier bag while store staff wave goodbye, the ring is essentially the same as any other we can create, and nobody would ever know the difference. Furthermore, if you take this Cartier ring to a 'kaitori' shop, you will discover that its value is not even half of the ring we can create for you within a lower budget. In the realm of jewelry, unlike cars, shoes, and clothes, the brand loses significance once it enters your home—much like makeup.
