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RNZ News
02-06-2025
- Business
- RNZ News
Diamonds and their pearls moment
Lab-grown diamonds, indistinguishable from mined diamonds, are flooding onto the market, at a tenth of the price of those that came out of the earth. Photo: Alexia Russell Diamonds are having a pearls moment. Once upon a time pearls were the world's most valuable jewellery item - their extreme rarity making them the way to display wealth to the world. But in the early 1900s Japanese pearl famers worked out how to culture them and for the first time, a string of round pearls became affordable and obtainable. Now, lab-grown diamonds, indistinguishable from mined diamonds, are flooding onto the market at a tenth of the price of those that came out of the earth. But before you rush out to buy a ring that will give you more bang for your buck, think again - the price of yellow gold has risen so much that if you want your sparkler set in a gold band, it could well have cancelled out your savings. "We've had big movements in diamond prices, in both mined and lab diamonds, over the past five years," says Newsroom senior business reporter Alice Peacock. "A lot of jewellers, a lot of retailers have been getting into the lab space, and manufacturing of lab diamonds has increased a lot over the last decade. They've been around for a few decades but have really taken off in popularity over the last 10 years. "There's a bit of confused terminology around what lab diamonds are, but they are real diamonds. The chemical and the physical makeup of them is exactly the same. Essentially you can't tell the difference. I think people have different ideas about the ethics of them, but again that's a bit of a murky area." The split between customers who want a lab or a mined diamond varies greatly between outlets, but Peacock says Michael Hill Jeweller told her it's still lower than 50 percent. In its Canadian and Australian stores however, the demand is higher. In the US demand is soaring. Zoë and Morgan is a bespoke jeweller in Auckland. If you look at the company's website you will see side by side two rings, a two-carat lab diamond for $6,000, and a mined diamond of 1.01 carats for $16,700. Zoë Williams is the co-owner of Zoë and Morgan, a bespoke jeweller in Auckland Photo: Alexia Russell Zoë Williams is the co-owner and says at the moment more than half of her customers are opting for a lab-grown diamond - but it's a really changeable situation. She tells The Detail that many customers come in who don't know what lab diamonds are, or who think they're fake. "It's been fun just to be able to chat about the different processes ... obviously the way diamonds have been extracted through history is really horrible." However, the increasing popularity of lab diamonds has forced the "natural" diamond industry to improve its game, with more ethical operations and giving back to the communities they're taken from. Williams explains how jewellers can trace the origins of mined stones using the code each one comes with. "In modern times, all of those mining processes have had to become much more ethically-minded to come up to speed with how we should be treating our humans in the world. "And that's a fantastic thing. That's what I personally quite like about the lab diamonds coming onto the market, is it's .... caused the other side of the industry to really tidy up their act and to really become a lot more responsible. And within all of these things there's pros and cons ... but I do feel like we've made some great advances in the last few years." But lab-grown diamonds aren't spotless when it comes to sustainability - it takes an immense amount of energy to make them and there are nasty chemicals involved. Williams says the diamond market is also no longer just about engagement rings, but people are buying them to mark special moments in their lives - from the 21-year-old who's celebrating getting a job, to someone who's not waiting for someone to give them a diamond, to those who've made it to 40 and are happy with where they are in life. They might not be quite the investment they used to be sold as, but Williams questions if that really matters. "Sometimes I like the idea that it doesn't stand up financially, but it holds an incredible story and it holds a lot of personal value, and I think that's really important as well." Check out how to listen to and follow The Detail here . You can also stay up-to-date by liking us on Facebook or following us on Twitter .
CBS News
19-05-2025
- Business
- CBS News
What to do (and not to do) when gold's price drops
A recent gold price drop opens up new opportunities (and risks to avoid) for precious metal investors. Getty Images/iStockphoto Investors who got accustomed to a consistently rising gold price in recent years have had to readjust slightly in recent weeks as the price of the metal has declined. After surpassing the $3,400 price per ounce record in April, just weeks after breaking through the $3,000 price milestone in March, gold on May 19 was listed at $3,238.88. While not dramatically lower than what it had been, that marks an almost 6% decline since late April. And it opens up new opportunities and, perhaps, closes off others for investors and beginners considering gold now. In this climate, then, and understanding the broad, long-term dynamics of gold investing, it helps to know what to do when gold's price drops and, perhaps more importantly, what not to do when this happens. While this can be specific to the investor in question, generally speaking, there are specific tactics to take into account. Below, we'll detail six of them. Invest in gold before the price rises again here. What to do (and not to do) when gold's price drops Here are six things gold investors should consider doing (and avoiding) when the price of the metal declines, as it has this May: Do: Re-evaluate your gold holdings A decline in the price of gold could impact your wider portfolio. While the amount of gold is typically recommended to be kept at a 10% limit, a decline in the price could impact that threshold, so use the price decline to re-evaluate your gold holdings. You may want to use this time to buy more or, if worried about broader trends, sell off a portion. Only you will know what's right for your investment goals. Use this time, then, to do a closer evaluation. Speak with a gold investment advisor now to learn more. Don't: Panic Remember that the recent gold price decline is minor, so there's no need to panic. And, more importantly, remember the historic trends in gold prices, specifically that a decline in the price usually precedes a rise, perhaps to a significant degree. Avoid making any hasty, panic-induced decisions for your gold investments. Instead, take a broader look and evaluate ways in which you can potentially exploit the price decline in your favor. Do: Consider buying more A lower entry price point offers both current and new investors a rare opportunity to buy below cost. Consider buying more, then, to take advantage while the opportunity is available. Several factors that have recently driven gold's price down could easily reverse course and make buying the metal more costly. Don't wait for that to happen, then. Consider buying more now instead. Don't: Forget gold's long-term benefits Constant discussion around gold's price developments can understandably cloud the judgment of even the more seasoned gold investors. In times like these, the long-term benefits of gold mustn't be forgotten. Remember that gold is less reliable as an income producer and more dependent as an income protector, used ideally to hedge against inflation and diversify portfolios thanks to a steady value in turbulent times. That's no different now, so don't invest as if that's changed, even with the price a bit lower. Do: Explore alternative types There may have been a gold type that you were avoiding when the price was high, like 1-ounce gold bars or coins, that you feel more comfortable pursuing now that the price is a bit lower. On the other hand, gold types that you bought just to get involved in the gold market, like fractional gold coins, could be less advantageous if you can buy in at a higher weight now. It's important, then, to explore alternative gold investment types besides the ones you're invested in currently during this price decline. Don't: Rush to sell In any market, when the price of an investment declines, some investors may be inclined to rush to sell. But that's often a mistake, particularly when it comes to gold. As mentioned, gold price declines are natural and somewhat predictable as they often come right before a price surge and, potentially, a new record price high. Avoid the temptation to rush to sell now, as the next price increase and, thus, profit-earning opportunity is likely soon to come, perhaps even earlier than you'd expect. The bottom line While the above dos and don'ts can help gold investors navigate this drop in gold prices more carefully, it's not exhaustive and the optimal approach will be largely dictated by your specific investor profile and your short and long-term goals. Consider the above carefully, however, as it can better inform your approach both now and to gold investing over time. Learn more about your gold investment options here.
