Why diamond price does not fluctate: You must also have often heard that the prices of gold and silver decrease daily. Like the stock market, the price of these precious metals changes every moment. Many people also prefer gold for investment, as it is considered a safe property. But have you ever noticed that the prices of gold and silver show a stir daily, while diamond prices usually remain stable? Why does this happen After all, what is the reason that the diamond market is untouched by everyday ups and silver? Come, today we tell you the interesting reason behind it.
Gold price is dependent on these factors:
Gold and silver prices depend on many factors. Their value is directly affected by global factors such as their demand and supply balance in the international market, economic policies of various countries, political instability and inflation. This is the reason why changes in the prices of these metals are seen every day. Investors keep a close watch on these changes and change their investment strategies according to the market stance.
Why the price of diamonds does not change every day:
Now the question arises that why does it not happen to diamonds? Why do the prices of diamonds not change daily like gold and silver? The main reason behind this is the structure of the diamond market and its control.
Indeed, the value of diamonds is controlled internationally by select large companies. Diamond prices worldwide are mainly fixed by a network called ‘Rapaport’. It is an iconic organization from time to time update benchmark prices on its website based on different sizes, color and clarity of diamonds. These prices are considered as a standard in the industry and they are followed by diamond traders and jewelers from all over the world.
Rapaport does not change prices everyday. This price changes only do the market’s overall demand and supply status, global economic landscape and other important factors. Usually, the change in diamond prices is seen only at intervals of a few weeks or months, not daily. This is why diamond prices do not appear unstable every day like gold and silver.
However, it would be wrong to say that diamond prices are completely stable. According to the basic economic rules of demand and supply, diamond prices also fluctuate. If the demand for special types of diamonds in the market suddenly increases or their supply decreases, then their prices may be seen. Similarly, prices can also fall when demand decreases or increase supply. But this change does not happen daily like gold and silver, so it does not easily see common consumers.
Also Read: Why gold is different in every city of India, know and understand
On which standards the price of diamonds is fixed:
Additionally, its quality (cut, carat, clarity and color – 4Cs) also affects diamond prices. A high quality diamond is always sold at a higher price, while the price of low quality diamonds is relatively low. But this quality based pricing remains stable and does not change daily.
In short, the main reason for not showing daily changes in diamond prices is to determine prices from time to time by organizations such as centralized control and rapoport of the diamond market. While the prices of gold and silver are constantly affected by the powers of the global market, which gives them fluctuations on a daily basis. This is the reason why gold and silver are considered more dynamic and liquid property from the point of view of investment, while diamond is seen as a long-term value property. Now you must have understood why the glow of diamonds remains, and why does it not change everyday like gold and silver!
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