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February 12, 2013 10:01 PM

Diamond Prices Sparkle

Sioux Falls, SD

Diamonds may be forever, but if you lose yours, you may have trouble getting the replacement value from your insurance company.

That's because the price of diamonds has risen considerably right alongside gold in the last few years.

Jeweler Alon Spektor spends a lot of time overseas buying diamonds for his store in Sioux Falls. 

"The supply is low. The diamonds on the market are being restricted. It's a lot harder to find it.  You have to work real, real hard to find what you're looking for," Spektor said.

Spektor says that's quite a turn around from a decade ago when there was an over abundance of diamonds on the market.  And with diamond prices rebounding after a dip during the recession, many are wondering when they should buy.

"Is now a good time to buy?  Should I wait?  I tell them I get shipments in every week to ten days. If I knew it's going way up or way down, I'd be waiting myself," Spektor said.

But Spektor says one thing you shouldn't wait on is getting the diamond you already own reappraised. 

"The values of them are higher today than they were 10, 15, or even seven years ago," Spektor said.

Seth Walter is shopping for a Valentine's present for his wife, but knows all about keeping the appraisal of the diamond she already owns up-to-date. 

"I'm in the insurance business and people won't get a ring reappraised for 15 years.  They lose it and well gold and diamonds and everything has gone so high where they're getting almost a quarter of a value to half the value of where it first started," Walter said.

Spektor says if you paid $5,000 for a diamond ten years ago, its value is up hundreds of dollars.

"Today, it would probably be $5,500 to $6,500," Spektor said.

It's not just the price of diamonds driving up jewelry appraisals.  Gold has gone up in value by 300 percent since 2008.  Appraisals can run $50 to $100, but many times the jewelry store where you purchased the item from will do a reappraisal for free.

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