What are Wholesale Diamonds?
Everyone likes a good deal. That’s why the phrase “wholesale diamonds” sounds practical and economical. However, many have found that it is another marketing method used by jewelers to encourage you to purchase their product. Anyone who sells diamonds, with or without a setting, has to be a registered business (with a state license) and have three references from other wholesalers in order to even begin operations. Any retailer, whether online or offline, receives their product (just like any product) from a supplier or distributor. If someone tells you they are selling a diamond at wholesale, you have to take that claim with a grain of salt. If this person is in a retail store, such as a mall or wholesale club, they have operating costs (rent, electricity, insurance, product displays, inventory, alarms, etc) that have to be added to this price. If, on the other hand, you found this wholesaler in the yellow pages or online, the operating expenses are going to be considerably lower.
Wholesale Diamonds and the 4 C’s
Be prepared by first understanding the carat, color, clarity, and cut of a diamond. Once you firmly understand how these characteristics affect the price, you can begin your search. Once you have narrowed your search down to several people, you can start asking more detailed questions such as:
- How long has the diamond wholesaler been in business and been a trusted source for good quality stones. Make sure to google the business and perhaps a BBB check.
- What is the wholesaler’s commitment to non-conflict diamonds, and can it be backed up with documentation?
- Is there a certified gemologist within the company that can help with verifying the characteristics of the diamond in detail?
- Does the diamond wholesaler guarantee his product and have a solid refund policy?
Certifying Wholesale Diamonds
Never consider purchasing wholesale diamonds unless the diamond has been tested by a certified gemologist, preferably by GIA or EGI. One way to determine if the diamond wholesaler is legitimate or not, is to ask for proof of current consumer diamond pricing list, called the Rapaport Diamond Report, which is an international standard for polished diamonds used to determine diamond prices everywhere. Most dealers purchase wholesale diamonds at 10% below what is listed on the Rapaport Report (you must be a subscriber of the report, it’s not publicly available).
Just like when purchasing a diamond ring (with a setting), you have to be aware of diamond tolerance, where an appraisal can shift the price around, depending on how it is graded, and which institution is certifying the properties of the diamond.
Once you have acquired the diamond, don’t forget the setting, which is more education as well. Diamond settings (or rings) most often come in 10K, 14K, 18K, or Platinum.