Follow the Smart Money

Emerald Cut Diamond Ring

Written by: Andrew Fabrikant

My father, Wiliam Fabrikant, taught me quite a bit about all sorts of things, but his best investment advise was a simple slogan: “follow the smart money”.  It was his favorite expression and one that I truly appreciate.

He meant that if the people you respect, those who are knowledgeable about a particular field are doing something, you should consider it for yourself.

Recently we have seen an influx of large valuable diamonds, each over 5 carats.  All from well to do families looking to divest from their investments in diamonds, as they seem to feel that the diamond market is at, or near a peak.  Each has expressed an idea for better use for their money than insurance, vault visits, and worrying about their jewelry when out to dinners and events.

Diamonds of size are at tremendous prices. Simply put, the smart money who no longer have a social use for the diamonds are selling diamonds and jewelry.