The Price is Right
Diamond pricing can be mystifying. It seems to be all over the place. The only consistency is that virtually every diamond seller promises you extraordinary value. Take a quick look at some advertisements, and you'll find:
- Retailers offering '50% - 70% off retail', 'wholesale', 'below wholesale', 'New York wholesale' prices
- Wholesalers offering 'direct from the manufacturer', 'below wholesale' 'spot cash' prices
You would think that the entire industry is trying to sell you a diamond for less than cost. And, of course, you know that's not true.
How Diamond Pricing Really Works?
Diamonds are big business…a multi-billion dollar industry. Of course, there is a logical pricing structure. To figure it out, just have a look at the path that diamonds travel on their way to market:
Whether you buy from a retailer or wholesaler, you can be sure that your diamond seller is making a profit on the transaction. How much they charge depends on the amount they paid for the diamond and their other costs of doing business. Understanding the way diamonds move from the mine to the market will help you pay a fair price.
So What Should You Pay?
Here's our answer:
- Decide how much you want to spend.
- Decide what diamond characteristics are most important to you, i.e., carat weight, color, clarity, cut and shape.
- Buy the most diamond you can for the money.
And research the market. If you are well-informed, you can buy at very attractive prices. Most importantly, you will know that the price you pay is fair.