Engagement Ring Appraisal Value: Understanding Fluctuations & Market Trends

Question
Hello Jonathon:
I bought my wife an engagement ring in 1980. It was originally appraised for around $6500. I was told it was investment grade.
Description: Round brilliant cut, VVS1, H, .51 carats. We have had the ring appraised 5 or six times during the last 32 years. The appraisals range from $4200 to $6200 ( excluding the first appraisal of $6500 ). The last appraisal was for $4900. There is no consistency from appraisal to appraisal. It may go up or down each time.
I went on line and found a site that showed a 1K diamond was worth $10500 in 1980 and is now worth $29000 today. This shows an increase of around 276% over 32 years yet our diamond has show to fluctuate between $4200 and $6100 for the same period of time.
Can you please tell me what is going on as this question has been lurking in the back of my mind for years ??

Answer
Hi Jack,
Appraisal is a very subjective process. The people inspecting your ring will have different standards and the price that they will provide to you is an educated estimate. Also, some appraisers will underquote you and perhaps try to buy it from you at that price. As for the 1K diamond,the fluctuation of the diamond market affects pricing and there are so many factors contributing to its worth. You may want to check out rapnet.com and diamonds.net if you want the latest market prices for your diamond. Hope that helps.