Buying from James Allen with an unfavorable exchange rate

[RedSpikeyThing]

Hi all and thank you for taking the time to read my post!

I am a Canadian looking at buying from James Allen however I am concernwd about the current exchange rate. It's like paying 20% on top of the USD list price

I was wondering if anyone had an guidance or auggestions on how to make this better. Is worth buying in CAD elsewhere? Should I just stick with local brick and mortar stores? Or is the price of diamonds up everywhere outside of the US so ot doesn't matter?

Thanks!

 

[RedSpikeyThing]

Re: Buying from James Allen with an unfavorable exchange ra

I guess aa long as the markup of B&M stores is greater than 20% +HST then it's still a better deal. I don't plan on selling it so looking at it as a financial investment is probably wrong. If this were a stock I could hedge against currency changes but alas it is not.

 

[EvangelineG]

Re: Buying from James Allen with an unfavorable exchange ra

The only way to answer this question definitively is to go out locally to look at diamonds and get pricing from local jewelers (a good exercise anyway to determine your preferences, colour tolerance etc). Just make sure you are looking at GIA or AGS graded stones, so that you can then compare apples to apples online. Although I would be surprised if you find many AGS graded ones locally, GIA grading should be available.

Also I am seeing an exchange rate of 1.2872 with my bank today (bank sell rate).

Other charges on top of list price will be GST/PST (whether bought in Canada or from the States), and shipping charges (usually under $100 in my experience so far). If you pay by CC there will also be their currency exchange charge, and so wire transfer is often best as long as you are dealing with a reputable vendor.

Good luck!

 

[Karl_K]

Re: Buying from James Allen with an unfavorable exchange ra

The only way to know for sure is to look around locally and get some pricing.
Just make sure you compare like kind. Same weight color clarity cut grade and lab report.
If your looking at si1 or si2 it is a bit harder if the pricing is close because if the inclusion is eye visible can have a large impact on price sometimes a few thousand not reflected in the report.

That said diamonds are sold on the global market in USD so the exchange rate is going to have some effect no matter where you buy.

 

[Karl_K]

Re: Buying from James Allen with an unfavorable exchange ra

The other thing you need to consider is that you need to pay the HST (or GST+your provincial tax) as soon as the diamond is delivered. So it is best to ship the diamond to a shipping centre by the border and pick it up yourself. If you just happen to forget to claim it on the way back into Canada, so be it Just be careful!

To find a shipping centre, just search google for the US border that is closest to you and add the word "shipping". For example, "Niagara Falls Border Shipping".

Good luck!

Diamond smuggling is a very serious crime that officials take a very dim view of.
Canada in recent years has really stepped up efforts because drug dealers are using them for payment.
http://www.mining.com/mounties-turn-to-diamond-cop-to-deal-with-smuggling-of-gemstones-and-drug-dealers-treasures-troves-14672/