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Topics: Jewelry & Watches |
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| How to Buy a Diamond and Get the Best Price |
Submitted by:
Tip Hero 06/19/2008 5:00 PM
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 A diamond is a sizable purchase so it’s worth taking the time to do your homework and compare prices to make sure you’re getting the best value. If you’re buying a diamond for an engagement ring your fiancé will appreciate all the thought you’ve put into the purchase.
Learn as Much as you can
The first step is to learn as much as you can about diamonds. There are the famous Four C’s: Cut, Color, Clarity, and Carats to study but there is more to learn beyond these basics. One of the best ways I’ve found to learn about diamonds is to visit diamond message boards like Pricescope, and DiamondRing.com. These are community message boards with tons of information and helpful people.
Where to buy a Diamond
In terms of price and the mark-up you can think of the different sales channels for diamonds as a pyramid. At the top of the pyramid are the stores with the highest mark-up; high-end, tier 1 stores like Tiffany’s. The next level below are the jewelry chain shops you typically find at malls. Some major cities like New York and Boston have diamond districts. You can find good deals in the diamond districts but you have to come armed with knowledge. A new entrant into the diamond business is Costco. I remember seeing a piece on Good Morning America that showed diamonds from Costco where significantly cheaper than similarly graded diamonds at Tiffany’s. At the bottom of the pyramid are the online stores. Online jewelry stores like BlueNile typically have the best prices and the lowest mark-up.
A word about pricing
 Diamond prices are primarily controlled by the DeBeers diamond cartel. DeBeers has approved select wholesalers who they sell to and those diamonds make their way to the major diamond markets like New York, London, Tel Aviv, and Hong Kong.
The Rapaport Diamond Report is a publication that lists wholesale diamond prices and is heavily consulted by diamond wholesalers and retailers. The “Rap Sheet” as it is know in the industry typically sets the high-end of wholesale prices and retailers and wholesalers negotiate on a percentage discount to the rap sheet based on size of purchase and other factors.
Be wary of anyone claiming that they are a wholesaler or sell diamonds at wholesale. This is a common tactic in the industry. If the person you are dealing with sells the majority of their diamonds to individual buyers they most certainly are not wholesalers.
Diamond Buying Tips
 Buy just below a carat. In selecting diamonds most people put more focus on carat weight. Many buyers put an emphasis of going above a whole carat. Sometimes you can save by going just under a full carat.
Smart diamond buyers put more focus on cut, clarity, and color. Most people get caught up in size.
If you buy online you pay no sales tax
check your retailers Better Business Bureau report
Pay with a major credit card as you may be able to dispute the charge if problems arise.
Look for a diamond that comes with certification from the Gemological Institute of America (GIA) or the American Gem Society (AGS)
Check the return policy of the jeweler or store selling the diamond. Make sure you can return the gem for a full cash refund within a reasonable amount of time.
Shine a light on the diamond to see how it reflects light and sparkles. Some folks bring pen lights with them.
After purchasing your diamond, take it to a qualified appraiser to have it appraised. The appraiser will provide you with an independent and expert opinion. Appraisers have a variety of special tools to accurately gauge and grade diamonds. There’s nothing like the piece of mind on a sizable purchase.
If you have a problem with a jeweler and through talking it out, can’t come to an acceptable solution you might consider filing a complaint with the Jewelers Vigilance Committee. This is a committee that many jewelers take serious and a way to escalate your grievance. Filing cost is $100, so you might mention you’re going to file a complaint before you actually do to see if that gets them to budge.
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Photo Credits: brokenchopstick, stephand9 |
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