After posting a video on YouTube discussing the difference between Lab Grown Diamond and Rio Diamond some viewers requested to get a better understanding of why there is a misunderstanding regarding the appreciation or depreciation of diamonds. In this video Mike Nekta explains why people might feel Diamonds depreciate in value. You also explains the right and wrong way to sell a diamond for maximum profits. Mike Nekta; a third-generation Jewelry expert. Specializing in Diamond Jewelry. Operating out of the New York City Diamond District since 1999. A graduate of the Gemological Institute of America, which is the Harvard equivalent in the diamond industry. Historical diamond prices Can be easily researched and prove that Diamonds appreciate in value as the decades go by. So why is it that some people are still misinformed and believe the diamonds depreciate in value? It may be because they are being misled by the people buying the diamonds from them. Maybe because they don’t understand the difference between the retail price and a wholesale price. Maybe they don’t understand the simple law of supply and demand. Do they understand the overheads involved when they make a purchase at a jewelry shop ? simple things like credit card fees for example. The credit card company such as American Express can take 3% minimum , Sales tax that can sometimes be close to 10% , Or fees that can range from 9%-25% paid out to platform such as Ebay or Shopify or Etsy Or commissions for the broker or salesperson. None of those fees are actually paid for the commodity itself why would you expect to get them back when you sell you commodity ? Diamond can be a nice long term investment but that is Usually not the main reason people buy them. We buy diamonds because we think they’re beautiful we buy them in because of the way they make us feel or a loved ones few diamonds are romantic. And they are great heirlooms that remind us of generations of the past. How much boring gold jewelry can you possibly buy? Do the people that think this way ever buy anything? Do they buy cars, or shoes ? Another question to ask ourselves why do people expect Jewelery to appreciate in value while they can except the in a pretty much everything else that they buy.