The price of a diamond is set by the diamond industry, but there is a catch.
The industry’s rules say that a diamond can only be given back to the person who paid for it.
“You can’t have it for more than six months, so if you buy it at a discount and then it goes on sale, you can’t get it back,” a spokesperson for the diamond supply chain told the ABC.
“If you buy that diamond at the highest price you can get it for, and you get it on sale for $1,000 and it goes up to $2,000, you’re only entitled to the difference.”
Gold and diamonds are being increasingly sold for more in Australian dollars, with the price of gold and diamonds reaching record highs, the ABC has learned.
Gold prices are now about $US2,500 an ounce, up more than 10 per cent in the past year.
The supply chain for gold jewellery has been hit by a string of recent high-profile scandals, including a major breach of the $US500 million jewellery contract between Australian Gem, Metals and Metals Australia and a breach of its $US1.2 billion contract to supply gold.
In the wake of the recent scandal, the industry has promised to do a thorough audit of its contracts.