The Prestige of Diamond Jewelry

Why call it “prestige”?

Because a diamond brings many qualities together.

Rarity

A high-quality natural diamond must pass through an entire journey:

1. 1Millions of years forming deep in the earthUnder extreme pressure and temperature over a very long time, diamond-bearing magma forms and erupts. Under the right conditions, diamonds gradually crystallize deep underground.
2. 2MiningUsing advanced technology to locate and extract them, on average more than 10 million tonnes of rock deep in a mining area must be processed to recover enough rough crystal to cut one carat of beautiful diamond.
3. 3Selection and cuttingOnly trained experts with dedicated, precise machinery can cut rough diamonds into the stones of highest value.
4. 4GradingA diamond's value is built along this long supply chain, then offered to the merchants of jewelry and gemstone companies. And finally, a fortunate consumer comes to own it.

Along that journey, high-quality diamonds are very rare. Stones graded D color, IF clarity, or Triple Excellent cut, for example, make up only a tiny fraction.

Timelessness

A beautiful diamond — 20 years on, 30 years on — is still a beautiful diamond. It does not go out of fashion like a designer handbag, a phone, or a car.

Symbolism

Diamonds are associated with:

• achievement;
• endurance;
• love;
• commitment;
• success.

That is symbolic value far more than investment value.

Diamond buyers usually buy use value

Why do people buy a fine watch, a luxury car, an expensive handbag, a diamond ring? All of them express status, and all of them deliver:

• emotion;
• beauty;
• confidence;
• social standing;
• commemorative meaning;
• and sometimes even luck and sacredness.

These values can never be fully converted into money. That is why such purchases are called luxury consumption, or high-end consumption — owned only by the truly affluent.

A diamond is an asset — but not an ideal investment asset

Unlike Bitcoin, the S&P 500, or gold bars, a diamond resold on the market rarely fetches the price paid for it. The reason is that the retail price always includes:

• cutting costs;
• shipping;
• insurance;
• marketing;
• the retailer's margin;
• taxes and operating costs.

These costs largely “vanish” on resale. For example: a diamond bought for 300 million dong may correspond to only about 180–220 million in rough value and international trading price. The moment the purchase is complete, a second buyer will not pay for those commercial costs. This is why diamonds are unlike gold bars, where the buy–sell spread is usually much smaller.

Jewelry loses further value on the crafted part

When you buy a diamond ring, the price adds up:

• the diamond;
• the gold;
• the design;
• the craftsmanship;
• the brand.

On resale, buyers usually price only the diamond and the gold, paying almost nothing for design, craftsmanship, or brand. The financial value therefore drops considerably.

Diamonds are not highly liquid

Gold bars can be sold at almost any shop. A diamond must first be checked:

• is it the right stone;
• does the certificate match;
• has it been substituted;
• is it chipped;
• is the color as stated;
• is the clarity as stated.

Every stone is a “one-of-a-kind” asset. That makes transactions far slower.

When does a diamond count as a store of value?

Only in special cases. For example:

• diamonds over 5 carats;
• D–F color;
• IF or VVS clarity;
• clear provenance;
• an international certificate;
• very high cut quality;
• belonging to the rarest tier.

Or natural fancy-color diamonds — pink, blue, red. These can appreciate over time because supply is extremely limited. But that is a highly professional market.

The reality in Vietnam

In Vietnam, a great many people buy diamonds thinking “I can always sell it later.” That is only partly true. In practice:

• sellers usually have to accept a price below what they paid;
• if the certificate and the stone are no longer consistent (for example the stone was swapped, substituted, or damaged), the value can fall very sharply;
• verifying the diamond's identity before a transaction becomes critically important.

This is precisely why the Diamond Identity Verification (DIV) service of the SJC Chợ Lớn Assay Center was created — giving consumers of diamond-set jewelry confirmation of the stone's identity against its original certificate. The practical significance: it helps ensure the diamond being sold or bought back is truly the stone matching its certificate, reducing risk and strengthening market trust.

An economic view worth noting

Conclusion

From a modern economic standpoint, diamond jewelry should not be promoted as a profit-making investment vehicle, but as a premium consumer asset capable of retaining part of its value over time. Its core value lies in beauty, scarcity, symbolism, and the experience of ownership.

Drawing on nearly 30 years of appraisal experience, the SJC Chợ Lớn Assay Center will soon publish a dedicated monograph clearly distinguishing “consumer diamonds” from “investment diamonds” — two entirely different segments that are routinely confused in media and sales.