Buying online or local shops in United Arab Emirates

[TUTU]

Hello Pricescopers,

I am first time diamond seeker in the UAE (Abu Dhabi). I knew nothing about diamond except for that it's expensive until I did my internet research and found PS. This website is an extensive source for diamond directly from insiders of the business, which help me a lot. Please help justify my remaining concerns over diamond shopping:

I am looking for 2 diamonds, 1 Round and 1 princess cut (because I want a bigger carat weight with affordable price). DEF color, VVS2 clarity or better, ideal cut or triple X. My budget for 2 pcs are less than USD25,000.

1. Do you guys know any B&M stores in Dubai or Abu Dhabi that is various in inventory of these diamonds? I checked with few shops and they seemed not to have them available and very low in response. I also request ASET or Ideal scope for me to view the diamond but most of them said they have only 10x loupes, and have no ideal about the scopes I request.

I prefer going to shop and choose the stone I want and avoid all the nightmare of internet scams.

2. Shop online:

I could see that PS often refer several online vendors such as: JA, GOG, Whiteflash...and some active reply I guess from affiliate members of those vendors. Don't get me wrong because I really much appreciate all the education and their recommendation to first time buyers like me, but my concern is: there are great many other vendors (which I see more from rarecarat.com) aren't mentioned here. Is it due to they are not qualified enough to be suggested in PS or the common mentioned here pay a fee or being a member of PS?

Secondly, most mentioned online sellers are US based. I live in the UAE, so I am very worried of shipping issues and return policy just in case the diamond isn't up to what is shown in website. Shtould I go to wire transfer for better price? Is it safe? Can I trust in the statement of full refund if diamond is returned in case of bank transfer?

Thirdly, is the price quoted in vendors' webs inclusive of VAT? I guess I don't have to pay this tax as I am not US resident.

3. Besides GOG, is there any vendor having a B&M stores? How can I reserve diamond with them? I will travel to NY soon and I think that it might be better to go to there shop and deal directly. Is there price difference if I shop this way?

4. I wrote to AGS to buy an ASET scope for my own use. They required me give all credit card detail for the amount of USD25/ scope. Should I do it? I really like to have 1 ASET but there is no other online website selling it?

I really much long for your advice and comment. Thank you all!

 

[SimoneDi]

James Allen has a showroom in NYC, IDJ and Brilliantly Engaged are in NYC. GOG are on Long Island.
You have a long list of Qs, but below are some main points that I can address:
1. Most of PS will not know of a B&M in Abu Dhabi
2. The US market is probably the most competitive, so you will find the most variety/best pricing with US retailers
3. PS likes A LOT the following vendors: BGD, WF, GOG, IDJ, JA, VC
4. PS likes also the following vendors, but you need to be more selective: BN, Enchanted Diamonds, B2C
5. Rounds and Princess cuts are very different. Princess cuts face up much smaller (think 1ct round =1.6ct princess face-up size) I think that you need to look at them in person and see which one speaks more to you. There are many other fancy shapes. A cushion, for example, will give you the square-ish look with rounded corners. If you like square shape, but want the brilliance of a round cut, there are also H&A cushions...and many, many other options.
6. Your best bet is to visit GOG in person. Call and book and appointment and plan to spend at least 2 hrs there. In the meantime, look at their website and inventory.
7. Most of PS will tell you that D-E and everything above VS1 is an overkill - you don't need to get a D to have a "white" diamond and same is valid for clarity. The most important thing is CUT. That is something that you should not sacrifice on. Usually, something always has to give - high color and clarity would mean lower carat and vise versa.
8. I can't comment on taxes, but if you buy something while in the US and bring it home with you, I don't think that you need to claim it when you return home. But I don't know your laws, so you can ignore this comment.
9. Find a vendor who offers all diamond images needed to make an educated buying decision (ASET, Idealscope, videos) and you don't need to buy your own ASET scope, unless you really want to play with it.

 

[TUTU]

Thank you very much for your comment SimoneDi!

I read about your diamond journey and It seems endless fun and excitement with recut, redesign and upgrade!

As widely said that G,H and VS2 would be great, I intend to have a dream diamond to pass down my daughter or even my grand-daughter and it makes them loved and proud...that's why I am much into top color and clarity...Any thoughts here? I also wonder resell of a diamond almost incurring big loss (maybe less than 50%)..is it true for top choice diamonds?

I am hoping for have more reply to any of my questions. And sorry for keeping you to read too long post.

Thanks in advance

 

[bmfang]

Based on what I've noticed over the last few years of looking at diamonds, the vast majority of the time, you will find that ideal and super-ideal cut diamonds will usually retain about 60% to 65% of their initial purchase price at resale time. UNLESS you upgrade the stone with the vendor you bought it from in which case you will usually get back the entire cost of your initial purchase to apply against the new stone you upgrade to.

 

[MollyMalone]

HI, TUTU Welcome to PriceScope
Regarding the 3rd part of your question #2: Thirdly, is the price quoted in vendors' webs inclusive of VAT? I guess I don't have to pay this tax as I am not US resident.

There is no Value Added Tax per se in the US. Nearly all states (and many localities) in the US, however, do charge sales and use taxes. If you make an in-person purchase of a diamond or complete ring while in New York & walk out with the diamond or complete ring, you will be charged taxes because neither loose gems nor jewelry is a tax-exempt item. In New York City, the combined state + city sales-use tax is 8.875%; you would be charged 8.625% as sales-use tax were you to make the same kind of in-person purchase at Good Old Gold, which is in Nassau County (Long Island), not NYC.

But if you are willing to let the diamond or ring out of your sight & have the New York vendor ship your purchase to you in the UAE, no sales-use tax will be charged. Similarly, if you make an online purchase from a USA vendor & have the diamond or ring shipped to your UAE address, there will be no New York tax, of any kind, charged.

Don't forget to get in touch with the Customs/Duties authorities over there to nail down what duties/tariffs you will be expected to pay on your end. Although the UAE isn't going to start imposing a Value Added Tax until January 1, 2018, my quickie Internet search suggests that you'd pay -- regardless of whether it's an online or in-person purchase made from a US vendor:
* maybe 5% on a completed ring
* no duty/import tariff on a loose diamond purchased outside the UAE, but I can't tell if that applies to everyone or just to those who are in the business of exporting diamonds

 

[BlingObsession]

I live in Dubai and i would recommend you buy your diamonds online from the USA. You will get better cutting and you will get the ASET, etc which you will not get here in Dubai.

There is a good bench here who will set your stone and he does handforging for around USD2-3K. I dont have his details to hand as i am currently moving house.

You will pay tax and a Fedex handling fee upon entry to Dubai but i think it still is fractionally cheaper to buy in the US and you have the peace of mind of knowing what you are getting and the trade up options as well.

If you are going to buy here in Dubai - best you make sure you have all the information you can possibly gather and be patient and determined to find a stone that is the best possible cut you can get. You will often find here that you know much more than the sales staff.

Good luck.

 

[Diamond_Hawk]

Hi TUTU,

About reselling, I think almost all PSers will agree most people will buy diamonds for the joy of having them - they have just proven to be a poor investment vehicle. Usually there is better upgrade value through a particular vendor than resale value.

One of the reasons you find so many PSers who like the G,H color range and VS2 clarity is because these grades are a nice trade-off for price - allowing more selectivity in size and cut grade.

 

[SimoneDi]

Thank you very much for your comment SimoneDi!

I read about your diamond journey and It seems endless fun and excitement with recut, redesign and upgrade!

As widely said that G,H and VS2 would be great, I intend to have a dream diamond to pass down my daughter or even my grand-daughter and it makes them loved and proud...that's why I am much into top color and clarity...Any thoughts here? I also wonder resell of a diamond almost incurring big loss (maybe less than 50%)..is it true for top choice diamonds?

I am hoping for have more reply to any of my questions. And sorry for keeping you to read too long post.

Thanks in advance

In regards to my "diamond journey", that started when my engagement + wedding rings were stolen, so I wouldn't call that endless fun, but that's a story for another day.

Regarding color, I understand what you want to have a diamond which retains its value over time. Diamond prices fluctuate, but since you plan on keeping it in the family, then what would be important is to have a *beautiful* diamond and several things make up such beauty, but the most important one of them is the cut. Color is really is really subjective, if you want to have a particular color for cultireal reasons per se, or because you have seen all colors in person and know your tolerance level, then that is understandable, but if it is because you think that there is "value" there, I would question that. The most popular and easy to sell on the secondary market colors would be G/H in my opinion, these present the best value. Maybe I will throw in F in the mix. Same is true for clarity, most will pick mind and eye clean at VS1-VS2, no need to spend your money on something that you cannot see or appreciate visually.
I really think that in your case, it will be best to visit a retailer here in the US during your visit and see what speaks to you personally. GOG is a fantastic choice and they have many educational videos online!

 

[TUTU]

I live in Dubai and i would recommend you buy your diamonds online from the USA. You will get better cutting and you will get the ASET, etc which you will not get here in Dubai.

There is a good bench here who will set your stone and he does handforging for around USD2-3K. I dont have his details to hand as i am currently moving house.

You will pay tax and a Fedex handling fee upon entry to Dubai but i think it still is fractionally cheaper to buy in the US and you have the peace of mind of knowing what you are getting and the trade up options as well.

If you are going to buy here in Dubai - best you make sure you have all the information you can possibly gather and be patient and determined to find a stone that is the best possible cut you can get. You will often find here that you know much more than the sales staff.

Good luck.

Hello BlingObsession,

Happy to hear from you in this post and good luck with your new move!

I am in contact with Cara (which is often recommended in Internet) but honestly my hope to find a nice stone from them is really low. They don't have good inventory with ideal excellent cut regardless of fairly high price. I somehow doubt that comments I read about Cara in TripAdvisor are little inflated (many said they bought diamonds from Cara and brought to UK to buy insurance and the stones were valued much much higher than what they paid in Dubai).

Thank you for your recommendation about buying online and tax/fee in UAE. I am thinking to make a small purchase first to see how the process goes then I will continue with serious hunt for dream diamonds. Finger-crossed.

 

[BlingObsession]

Hi TUTU

Based on my own personal experience, I would mot recommend Cara. I know that is where hoards of tourists go - many of whom are UK nationals - diamonds and jewellery in the UK are very expensive so anything seems like a bargain. I tried Cara for both sourcing a diamond and separately setting some coloured gemstones. They chipped my tourmaline and tried to fob me off. They did sort it in the end but it was a disappointing experience. The diamonds - well the usual Mall experience really where they tried to tell me VG was as good as excellent on a stone with an HCA of 5

 

[OoohShiny]

3. PS likes A LOT the following vendors: BGD, WF, GOG, IDJ, JA, VC
4. PS likes also the following vendors, but you need to be more selective: BN, Enchanted Diamonds, B2C

Don't forget about Wink at High Performance Diamonds