Monday, 17 December 2018

Diamonds And Gold - The Luxury Buying Market

Christmas is coming, and many families have to really watch the pennies, but in the lives of the rich and famous, money is no object. Many think nothing of splashing the cash on a Rolex watch worth £50,000 or a diamond-encrusted pen and a tree topper studded with diamonds is virtually acceptable of £600,000.

On my blog today I bring you an article, in collaboration with Angelic Diamonds, retailers of white gold wedding rings looking at the market of expensive goods and investigate how some items earned their price tags.

The attraction to pricey purchases



Of course, if you are super-rich you will have the disposable income to make expensive purchases but people spend money on pricey purchases for other reasons too.

One of these reasons is to demonstrate social status. In one argument by French philosopher, Pierre Bourdieu, it was suggested that the things that consumers buy are ways of communicating a ‘symbolic hierarchy’ to others — a way to distinguish their place in society.

The attitude of the buyer also determines if they are likely to make a luxury purchase and attitudes are affected by age. By 2025, Bain & Company predicts that Millennials and Generation Z will account for 45% of the global personal luxury goods market, yet that brings challenges as they shop and think differently - many preferring experiences than objects of desire and valuing an immersive and/or online shopping experience.

Shopping online has had a revolution in the last 10 years with 70% of luxury purchases influenced by online interactions. The availability of luxury e-commerce also meant that 14% of buyers aged 18 to 24 were found to have made their first luxury purchase over the internet. So there is definitely a market for selling luxury items online as online shopping becomes normalised.

What makes certain items so expensive?




A range of things can determine the price tag of an item. Craftmanship, the quality of the item, what the item is made of and the brand are factors that can determine the price of an item. Two materials that often bump up the cost of an item are diamonds and gold — but why?

The luxury of diamonds 



The attraction to diamonds dates back hundreds of years. At one point in time, they were reserved for royalty — making them a stone owned by the rich and wealthy and sought after by everyone else.

Now, diamonds are more accessible, but price and quality still vary depending on the ‘Four Cs’. These are clarity, carat, colour and cut — together these determine how much a diamond is worth. Clarity refers to the overall appearance of the diamond, which can be affected by ‘inclusions’ and ‘blemishes’. These are often not visible to the naked eye but are found through analysis by an expert. The weight of the diamond is expressed through the carat weight, a 1-carat diamond is definitely a status symbol. Moving over to colour, a pure diamond is truly colourless and more valuable than one which has a presence of colour. Lastly, the cut of a diamond determines how well it sparkles due to its interaction with light, with a round brilliant cut diamond being the most classic and sought-after look for an engagement ring.

Diamond encrusted items can sell for millions of pounds. Take a look at the following, for example:

Potentially the most expensive pair of shades in the world are Dolce and Gabbana's DG2027B sunglasses. They have been crafted with a solid gold frame and studded with diamonds. To buy this luxury product would set you back $383, 609 (£271,472).

One dog collar was valued at an astounding $3.2 million (£2.26 million). Forbes Magazine called it ‘the Bugatti of dog collars’ and it’s clear to see why. It was encrusted with 1,600 diamonds with a seven-carat, colourless centrepiece and black alligator leather for the collar.


A love for gold




Another material which gets a lot of attention from the rich and upper-class is gold. Gold has always been associated with wealth and power and this opinion has continued to today.

Compared to many of the other elements in the periodic table, gold is one of the least-reactive. This means that it is less likely to corrode when used. The metal also doesn’t rust and is aesthetically pleasing, plus it’s versatile! We’ve seen many items crafted out of gold or fitted with gold plates to add value. Take a look at the following:

Costing $999,999 (£707,799) is the GoVacuum GV62711. Features include a 14-inch cleaning nozzle, a weight of 16 pounds and gold plating. There were only 100 of these products made — true exclusives.

Another standard product made expensive by the addition of gold is the 24-carat gold shoelaces. These cost a pricey $19,000 (£13,448) or shoppers can opt for the silver shoelaces which would set them back $3,000 (£2,123) 




Diamonds and gold are examples of true luxury materials. They’ve been popular for centuries with the rich and famous and aren’t going anywhere anytime soon. It’s clear that the addition of them to even the most mundane of products can increase the value more than a hundred times over. While the wealthy have the funds to do so, it’s likely that they’ll continue to splash their cash on things that everyone else thinks is a bit extravagant.


*Collaborative post 
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3 comments

  1. I am sure the rich are going wild on the diamonds and gold especially around this time of year as they make for perfect presents

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  2. I found this an interesting read. I guess the appeal of gold and diamonds is eternal, but I was interested that younger generations are more interested in experiences and prefer immersive shopping experiences.

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  3. Gold is the ultimate classic but diamond is girl's best friend. So I will be happy to get any:)

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