| Wholesale Diamonds- Is it possible for you to buy | | | | There have been a lot of changes in the way |
| at wholesale prices?, maybe. Today, there are | | | | loose diamonds and diamond jewelry is bought |
| many different ways to find good deals on | | | | and sold since that time and along with those |
| diamonds and some of these modern ways to | | | | changes in the distribution system a reduction of |
| buy a diamond did not exist last century when I | | | | the retail diamond jewelry store's markups has |
| started off in the jewelry business. Understanding | | | | resulted. There are still some larger markups on |
| the diamond distribution system will help you | | | | some items in the retail jewelry stores but it is |
| understand where and how you will buy your | | | | generally for items in the lower price ranges. |
| next diamond. | | | | So where can I get the best prices on diamonds? |
| OK... let's get started! First, an overview of the | | | | The universally accepted GIA diamond grading |
| diamond distribution system is needed so that we | | | | system has had the effect of "commoditizing" |
| can have a common point of reference when | | | | diamonds. When something has become a |
| these terms are used. The diamonds come out of | | | | commodity, it will have the same quality |
| the diamond mine (the source) and then make | | | | regardless of it's source, so price will become the |
| their way to the diamond cutters, this is the | | | | determining factor. If I am looking to buy a Sony |
| manufacturer level. From the manufacturer, the | | | | HD-TV model ABC-123, all of these models that |
| diamonds usually move on to the dealers, these | | | | come off of Sony's production line will be identical, |
| people are the wholesaler level. The last stop has | | | | so it is easy to search around town and go online |
| the diamonds showing up in the showcases of | | | | to check pricing of this TV. Based on the pricing |
| your local diamond jewelry store, and this is the | | | | and availability of this TV I can then make my |
| retail level. That was a fast and simple trip down | | | | decision. Diamonds are a bit different because you |
| the diamond distribution pipeline but it is generally | | | | cannot get the diamonds to be consistently |
| how a few million carbon atoms that got together | | | | identical. If you go online and you do a search for |
| over a billion years ago to form a diamond ended | | | | a 0.50ct. SI1 G Round Brilliant Cut diamond you will |
| up in a beautiful piece of diamond jewelry. Most | | | | find a group of diamonds that will sell for between |
| people are used to seeing and buying diamonds at | | | | $900 to about $1300. These diamonds are all |
| a local retail diamond jewelry store, actually 95% | | | | very similar but they vary in price, which means |
| of all diamond jewelry is sold at retail diamond | | | | that there is a slight variation in their qualities. |
| jewelry stores. | | | | These are good prices on these types of |
| Wholesale to the public? This is actually a strange | | | | diamonds but it will be a blindfolded choice as to |
| term and I have to laugh a bit every time I see it. | | | | which one you should buy. If you went to a local |
| If a company is selling something to the public it is | | | | retail diamond jewelry store you might be able to |
| not wholesale, it is actually retail, and when | | | | see a selection of diamonds and your eyes will |
| "wholesale to the public" is proudly displayed | | | | help you make the decision as to which diamond |
| outside of a jewelry store it is really a deception. | | | | is best. If you do choose your diamond online and |
| A retail customer needs many different levels of | | | | it gets sent to you and everything looks good, |
| "service" that retail stores are set up to offer and | | | | now what? Are you going to staple it to your |
| the costs of these services are included in their | | | | ear? Duct tape it to her finger? You will need to |
| pricing structure. Many of the diamond wholesalers | | | | go to a local jeweler in order to get your diamond |
| that I have been in are basically a simple office | | | | set into a mounting. Do you have a local jeweler |
| setting with desks, maybe a computer, some | | | | lined up that will be willing to set your diamond? |
| diamond scales, large tables, and some safes. | | | | Maybe yes, maybe no. |
| Diamond wholesalers do not have offices in | | | | So where does that leave me? It is difficult, if not |
| popular retail areas because the office spaces | | | | impossible, for most people to buy diamonds at |
| would end up being too expensive. Diamond | | | | wholesale prices and you should be cautious, |
| wholesalers generally have a small staff and have | | | | actually be afraid, of anyone who advertises that |
| limited hours (no weekends or evening hours). If a | | | | they can sell diamonds to everyone at wholesale |
| diamond wholesaler regularly opened their doors | | | | diamond prices and be afraid of anyone who |
| to the retail public, then they would soon find that | | | | claims that by following their secret advice (this |
| the retail diamond jewelry stores that they have | | | | means buying their book) you will be able to save |
| been doing business with for years would not be | | | | thousands of dollars on your next diamond |
| happy and these retail diamond jewelry stores will | | | | purchase. There has always been these type of |
| no longer want to do business with that diamond | | | | sellers that make up some highly inflated price, |
| wholesaler because now that diamond wholesaler | | | | they then place a big red "X" through that price, |
| is in competition with them. Now, don't get me | | | | and because you are such a great person they |
| wrong, it is possible to "get a deal" at a diamond | | | | will sell it to you for 40, 50, or even 60% off the |
| wholesaler but you will have to really be in the | | | | original (inflated) price, lucky you! Price is not the |
| market for some "major bling". A diamond | | | | only consideration when searching for a diamond |
| wholesaler probably will not open their doors to | | | | and if that is your only focus, it can then leave |
| you if you want to come in and spend $900 on a | | | | you open to being deceived! The diamond |
| diamond but if somebody who is "connected" | | | | distribution system has become more efficient |
| (they know the right people) and they are ready | | | | and streamlined over the years and I think that |
| to spend some serious money (many thousands | | | | now is a very good time to buy a diamond. |
| of dollars) on a large, high quality diamond, well | | | | The local retail diamond jewelry stores do provide |
| then the doors will most likely open for them. | | | | valuable services for most people. If you feel that |
| The retail diamond jewelry store isn't what it used | | | | you could save some money by buying a |
| to be! The idea that retail diamond jewelry stores | | | | diamond from another source, then it will require |
| mark up their diamonds and diamond jewelry by | | | | you to do more work in order to save that |
| 2 or 3 times is a hard image to change. Back in | | | | money. You will have to learn as much as you |
| the old days there used to be such types of | | | | need to know about diamonds along with |
| markups on loose diamonds and diamond jewelry, | | | | researching diamond pricing so that you can get a |
| but those days are long since gone! Over the | | | | realistic idea about diamond qualities and pricing so |
| years I've seen many changes in how diamond | | | | you will know a good deal when you find it. |
| jewelry is distributed. When I started working at a | | | | Remember, generally, you do get what you pay |
| wholesale jewelry supplier many years ago, gold | | | | for and unfortunately over the years I have seen |
| was $35 per ounce, there were not many | | | | people make poor choices because they have |
| Gemologists around, diamonds were not regularly | | | | focused solely on price. It would be nice if we |
| sold with diamond grading reports, Al Gore had | | | | could walk into a wholesale distributor buy items |
| not invented the Internet yet so there wasn't any | | | | at the wholesale price anytime we wanted to |
| Blue Nile, and there wasn't any home shopping | | | | make a purchase but life isn't that easy. |
| channels because there wasn't any cable TV. | | | | |