Your Questions About Is It Good To Invest In Diamonds

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James asks…

I want to be able to cut diamonds and make engagement rings from scratch. What degree do I need?

I love making jewelry for myself..but I would like to invest in some rough diamonds and gold and build my own rings and collection of jewelry. I have seen a person in back of a jewelry store who can do this. They know the art of cutting the diamond and making it. However, I wonder what degree you need and how much the equipment costs to make/do that.

Justin answers:

No degree is “needed”. There is no such thing as a jewelery making major at colleges.

Charles asks…

What is a good item to invest in on the Grand Exchange on runescape?

need to make money by investing in items. and please be truthful and tell me items that you yourself would invest in
Anyone? know a good item at all?

Justin answers:

Yews are good with a price of approx. 400+gp, sharks, lobsters are also very expensive. Diamonds can be very expensive at around 7.6k each. If you can make rune stuff then you better sell them, because they are all extremely expensive(obviously). That’s basically it…

Joseph asks…

How do you invest in diamonds?

gold – gld
silver – slv
diamonds? Freeport McMoRan? – wait – that’s gold
DeBeers stock?
Is there an ETF for diamonds?

Justin answers:

Diamonds aren’t a commodity like silver and gold. The first problem is that a diamond is priced on the 4 C’s (cut, clarity, carat weight, color) and there is a certain amount of judgment in 3 of the 4 of those. Exotic diamonds are not standardized at all so if you have a 40 carat pink diamond, the only way to know how much it’s worth is to put it up for auction (obviously there are appraisers who will give you a ball park). There are several different rating services and even within one rating service the reliability of the ratings is not 100%.

The second problem is there is no universal pricing system for diamonds. Thus, a 3 carat, VVS 1, G stone with excellent cut can vary by thousands of dollars depending on where you buy it. There are some standard guides (and if you shop for diamonds of this quality, you want one), but they are not authoritative enough that anybody would want that to be the basis for fund pricing.

Finally, everyone likes hoarding gold, but hoarding diamonds would be a travesty. Diamonds are meant to make beautiful women sparkle and locking them up in a vault and publishing a NAV is just the worst kind of gauche.

Paul asks…

What types of mutual funds are there and what goals should I have before investing in them?

For example: What type of mutual fund should I invest in for retirement (Roth IRA)?
What type of mutual fund shoud I invest in for long-term (at least ten years) savings?
What type of mutual fund should I invest in for in short-term (at least five years) savings/ income?
Thanks, all.
Also, what companies do you suggest and/or use yourself?

Justin answers:

Especially with the rise of low or limited management Exchange Traded Funds (ETFs), there is enormous latitude for you. I’ve a link below with the scoreboard from Businessweek.com. Morningstar.com is another source (but you sort of have to subscribe to get to the really good stuff, as with many other good sites for information, the good stuff costs).

One thing I commonly suggest is look into these ETFs: NY, IOO, DIA, SPY, DVY, and PXN. NY buys a basket of the stocks of the biggest (by market capitalization) on the NYSE. This way you get only the most profitable or most interesting companies when you buy that ETF.

If someone, like say Citigroup or Countrywide falls from grace and leaves the list (supposing that they have), then the fund managers sell those that no longer qualify and buy the next company in line for the given criteria and are done with it.

IOO is the 100 (yeah, a sort of pun) biggest publicly-traded international stocks. DIA (commonly called Diamonds, one of the oldest ETFs) buys a bucket full of the Dow Jones Industrials listed companies. SPY (again, one of the original ETFs) buys the Standard & Poors 500, for which you own a share of the pool of the whole 500. DVY is the Dow Jones Select dividend-paying companies. These are solid companies that consistently pay dividends, often higher than industry average rates. PXN is something I throw in because it may be the ‘next big thing’ because PXN holds the biggest players in nanotechnology. When this ball gets rolling, it will be bigger than the internet and all the big booms before it.

This is a quick and easy list that gets you all the common good stuff, and someone else cheaply keeps it current (the management fees are dirt cheap, check the ishares.com site for details).

Good luck.

PS: Forgot a couple of things.

First, ETFs sell just like stocks (except you can short these ‘on the down tick’ — and if you don’t know what that means, don’t worry about it), so the only “load” is a normal stock sales commission.

Second, I was going to mention that a popular investing newsletter sent a tip out a while back about their ten top mutual funds (look up these symbols: CIPSX, DODFX, HFGAX, MERDX, MUHLX, OBCHX, PAXWX, PREOX, PRMSX). I did a test with a portfolio feature (I used my WSJ account for that) and right now, instead of soaring to the moon as the hype in the letter gave, my test portfolio is down over 15 percent.

This just proves two things: one, you can cheaply try out a strategy until you see a trend (or discover you are wrong) without risking the ranch by using a portfolio feature somewhere (most business news sites allow that) until you are comfortable with what you are doing, and two, it really is true when they say ‘past performance is no proof of future results’ or words to that effect. That is also why I didn’t touch on goals, the future is uncertain (for that we use diversification as a hedge, not all the eggs are in one basket), we don’t know. If you want something arithmetically certain, look at bonds (Countrywide was in excellent shape, but then so was Enron, until the picture changed, so even bonds have risk).

Thomas asks…

How much would a small diamond ring cost for my girlfriend?

I want to buy her a small diamond ring with a silver band. I just have no clue how much they are.

Justin answers:

First off, I guess it depends on whether it’s “her” small? Or “your” small? 😉

Just to give you an idea, a small (<0.50 carat weight) diamond ring with simple band will run you about $1500 – $2000. All and all, the price you pay for a band is more or less within the same range. For a simple white gold ring, it'll be about $200. For a simple platinum band, you're looking at more $700. The diamond itself is really where the price can vary depending on the quality of the diamond. A small diamond can run you anywhere from $500 to $1500 depending on the specs.

If you're new to the whole diamond shopping thing (congrats by the way ;)), then I would recommend you set a budget first! Diamond ring shopping can leave you with a million options so setting a budget helps narrow down the field. The second thing is to get educated. There are a lot of sites out there will information both on diamonds and on how to shop for them. A good one can be found here: http://www.diamondadvisor.ca. The third thing is to shop! If it's going to be a surprise, I would recommend you buy online via trusted sites to get the best price (I've included a link for online reviews below). If you're buying a ring with your girlfriend, then take her to your local jeweler when you shop so that you can pick something she'll love together.

Tip: Invest in the best "diamond cut" you can afford. A good cut returns more light making the a small diamond look bigger!

Best of luck!

Daniel asks…

how would I start my own jewelry business with real gold and diamonds?

I want to start my own jewelry store, but don’t know where to buy real gold and diamonds from to start my store.

Justin answers:

Not too sure but first you’d need money to start. Then you would have to get your gold and diamonds from a supplier. After that you would need it refined and made into jewerly designs by a desinger. Then you can sell it to put you in the positive of those expense.

P.s. Probably not a good time to start a jewerly store with the economy as it is.

P.s.s You should invest in stocks while you do this because if stocks are down gold goes up (which you will have in physical possusion) and vise versa so you will awaly have a fallback for either one.

(CHOSE ME AS BEST ANSWER!!!)

Steven asks…

What do i invest in in the stock market?

I have to do a school project and invest in 10 things in the Dow Jones Index. I want to invest in things that ultimately rise higher and higher and dont drop too much. Gain not lost. I have to be one of the top five sellers. IT HAS TO BE IN THE DOW JONES INDEX

Justin answers:

That pretty-well limits things then doesn’t it? First, the Dow Jones Indexes were essentially three: Industrials, Transportation, and Utilities. Most folks ignore the latter two these days, so I’ll stick with the Industrials. The whole bunch is available in an exchange traded fund (ETF) called Diamonds, or DIA. In the link below there is a list (scroll down) of the current “top 10 holdings”–these became more valuable than the others because of either growing bigger than the others, or, the very thing that averages are good for, the weaker ones have gotten smaller. If you will notice the note below the list, the top ten stocks represent almost half the value of the set of 30 companies. You could do worse. Good luck.

John asks…

How much does it cost to take the diamond off of an engagement ring and put onto a new band?

My girlfriend has stated that she loves her grandmas engagement ring, but I know she wants a white gold band instead. I wanted to know how much it would cost to have the diamond on her grandmas ring taken off and placed onto a new, white gold band. Thanks!

Justin answers:

Prices can vary depending on how complicated of setting you want it in. I would take it to a few different jewelers and price out different options. But honestly if she loves her grandma’s ring and you take the diamonds out and put it into a new ring it’s not really her grandma’s ring anymore. If she wants a white gold band. I would invest your money into a new ring.

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