Diamonds are currently commonly referenced in U.S. Dollars, so why should I change my perspective to another frame of reference?
When the U.S. Dollar changes in its exchange rate to other foreign currencies, other Pricing Guides based on the U.S. Dollar do not do not convey any changes in diamond’s real value. Take for example like during the past 7 years where in US Dollars diamond prices appear to be stable and certain classifications going up; but in other medium of exchange have actually gone down …in Euros or in ounces of gold. Not may realize the U.S. Dollar in the last ten years hit its highest real value on July 1, 2001 (pre 9/11) where 1 Euro equaled 0.84 U.S. Dollars. By April 8, 2008, the Euro reached a high of 1.59 U.S. Dollars. To the European everything they purchase in dollars then is a 48% off sale, because during that time there was a difference of 89%! on exchange rates alone between the world’s two largest currencies. If the price list you use for diamonds does not factor this in you may have under valued or overvalued your diamonds by as much as 48% depending upon if your perspective is Dol
