Buying Wholesale Loose Diamonds – What’s The Big Deal, Anyway?
“Buy the best diamonds at wholesale prices, direct to the public!” – is an increasingly popular catchphrase in the diamond buying/selling industry; but what does it mean exactly?
You must have come across this term during your online search for the perfect loose diamond. In fact, loose diamond searches online land prospective buyers on traders selling diamonds at wholesale prices.
Can You Really Buy That Diamond At Wholesale Price?
Yes, however you should keep in mind that final price asked by the diamond trader will be different from what you imagined it to be.
Determining accurate wholesale price for a particular loose diamond is difficult. The following factors are usually considered when determining diamond price:
- Credit terms
- Buying method
- The 4Cs
- Certification
An Example: Wholesale price of a GIA certified diamond (with 3 months credit terms) will be higher as compared to the IGI certified diamond that is purchased with upfront cash. The difference will possibly be of 20% or more, which is a lot.
Additionally, setting wholesale price for diamonds is a bit difficult due to individuality factor.
How Regular Price of Loose Diamonds Determined By the Industry?
The prices diamond sellers quote are determined with the help of a list, published every week by Rapaport. This ‘list’ essentially consists of a group of tables with proper information on the diamond listed, along with prices of each particular grade.
With the help of the list, diamond traders and sellers state down prices; however the same formula doesn’t apply to wholesale prices.
Small Diamonds Attract Big Discounts and Vice Versa
If you are interested in buying a smaller carat diamond for instance, you’ll be awarded with bigger discounts off the list price. Larger diamonds (more than 2 carats) will attract the least amount of discounts and will more often sell for more than listed price.
Buying A Loose Diamond On Wholesale Prices – What Is The Deal Today?
A few years ago, wholesale diamonds were bought from diamond manufacturers or other wholesalers. Retailers, as a result, followed the regular diamond price markup when selling their pieces.
It is a different picture today. Retailers are able to buy wholesale diamonds directly from manufacturers, with the help of the internet. International trade barriers have also be removed, thanks to increased focus on trade between developing countries.
Yes, elimination of the middle-man has also removed the wholesale price from the equation. There are very few diamond traders that offer diamonds in wholesale price markups. Are you in search for a large carat diamond at wholesale prices? JBE Diamonds Inc. can help!
