Does anyone know the typical margins of gem traders?

[TristanC]

Hi, I'm not sure if this is the right place to post but I was just wondering if people knew the current markups that are being applied to jewellery purchases?

I'm discussing this because occasionally people appear on these boards asking about investment stones (diamonds, FCDs, sapphires, alex, paraibas, random rough etc).

Does anyone know with Some certainty what the product margin ranges are like?

Loose diamonds? Fancy coloured diamonds? Gemstones:
Online stores?
Brick and motar stores?

Obviously it is much harder to understand margins for set stones, as there are too many additional factors such as materials, workmanship, branding, location etc. These problems exist for loose stones as well, but at least a number of things are already taken into account.

I'm asking more about stones that were sourced as already cut by the jewellers. I always applied a blind assumption that the minimum margin was around 40-60% of the asking price as a ballpark for Diamonds and Fancy coloured diamonds. Not sure how close/far I am in my assumption.

 

[jewelerman]

not an easy one to answer because there are factors like where the gems came from(are they off the street or from a vender or bought as a group or individually)also each gem group may be priced according to quality,carat weight or supply and demand.Also is the public buying the gems from a large retailer,independent owner or a department store that marks their gems with very high retails to put them on a fake 70% off or coupon sale ?So you have to know the market you plan to buy in and research wholesale versus the retail costs.Also its good to know what gems are priced at for secondary sale like in a pawn shop or what wholesale costs may be.
An example is a one carat lower grade reddish/brown garnet. you can get them wholesale for as little as a dollar a carat(or less as the quality sinks ) depending on quality and the vendor ,and that same stone will retail from $5 to $30 depending on the seller.There are times that you notice patterns begin to form as certain amounts of gems hit the market like a few years ago when the inexpensive diamonds cut in India that are put into department store quality jewelry became popular with the public for Christmas gift giving. retailers loved to carry them because they could buy a set of 1/4 twt diamond stud earrings that were I2 clarity-m color set in 10 karat for $30 wholesale and retail them for $225 and put them on sale for $99 during the holidays.That margin is very typical for that type of jewelry.

 

[JewelFreak]

like a few years ago when the inexpensive diamonds cut in India that are put into department store quality jewelry became popular with the public for Christmas gift giving. retailers loved to carry them because they could buy a set of 1/4 twt diamond stud earrings that were I2 clarity-m color set in 10 karat for $30 wholesale and retail them for $225 and put them on sale for $99 during the holidays.That margin is very typical for that type of jewelry.

Wow, Jewelerman! Amazing info.