As with any high ticket item, one of the first things that comes to mind when starting the diamond buying process is whether or not the stone can be purchased from a diamond wholesaler. People love the idea of buying diamonds this way but often ask if it is difficult to find a reputable dealer? Can an average consumer really buy wholesale diamonds?
What Are Wholesale Diamonds?
Wholesale diamonds come from an individual or company who buy a large amount of diamonds, warehouse them and then sells them to retail stores, which are often referred to as “the middle man”. Since wholesalers purchase diamonds in large quantities, they do not pay the same price as those buying one diamond at a time. They sell their diamonds to retail stores and they are then sold to the consumers.
Are Wholesale Diamonds Available to the Public?
The idea of wholesale diamonds being available to the public appeals to many people. Although there are many stores which advertise as selling wholesale to the public, experts agree that this is usually a marketing ploy. To be able to purchase a diamond wholesale, one needs to be a certified jeweler with a legitimate state business license. In addition to these qualifications, at least three references from additional wholesalers are necessary, along with being a member of the Jewelry Board of Trade. A good rule of thumb is to remember that if a store advertises that it is selling diamonds at wholesale prices, it is generally simply a way for them to obtain your business. If they are willing to sell to the general public, they are not diamond wholesalers.
Wholesale Diamonds and the Internet
The internet has changed the face of diamond buying. In the past, diamonds changed many hands before making it to the consumer. With the internet, however, the supply chain has decreased dramatically. Online stores are able to bypass the high overhead of traditional bricks and mortar stores. These local stores are unable to compete with online jewelry stores because of their high overhead. The internet is causing the local stores to re-evaluate the way they do business. Some larger stores are able to compete, others are not. The best option for finding discount diamonds? Find stores with the lowest overhead and operating costs, since they will be in the best position to pass the savings along to the customer.
Finding the Best Price for Diamonds
Since most people do not have friends in the diamond industry who have access to wholesale diamonds, there are some other ways to find great deals on diamond jewelry. According to Forbes and Consumer Reports, these are some of the recommended online jewelry stores to get you started for buying an engagement ring:
Photos courtesy of Whiteflash and Blue Nile.
