Is some one trying to rip me off?

[darwin1534]

Their is a local retailer in town that sells to non-business people like me. But he claims that he also sells diamonds to local diamond stores. He says that if I find a diamond locally, or on line, that I like, he can do what he calls "dealer trading". He would then get that diamond from another jewelery business, and sell it to me for about $1000 cheaper? (I''m looking at diamonds in the $7000 range)He also claims that his company is a site holder, if that makes any difference?

What are the chances that he is trying to rip me off? Please explain the diamond business and what''s going on here?

 

[neatfreak]

I have NO IDEA what he is talking about, but to me, it sounds sketchy. Can you look him up on better business bureau, or try and get some happy customer references? Otherwise, I wouldn''t trust him as far as I can throw him.

 

[luckystar112]

Maybe he''s like a drop shipper? You know...sort of like how different vendors all have the same exact diamonds listed on their site for different prices...and they don''t actually have the diamonds, but when someone purchases one the vendor calls it in and has it sent to them to sell for their price.

Maybe that is what the guy is doing? If that is the case, I would find the best deal you can on the internet (which is already cheaper) make sure it has a GIA certificate...and then go to this guy. If he is able to save you 1000 on top of a deal that is already pretty good, then that is pretty cool. I would just take it to an independant appraiser afterwards and make sure you''re actually getting the diamond you bought.

The only thing that is shady about this is what does HE have to gain by saving you $1000? Absolutley nothing. That''s the weird part and the part I would be cautious about. Also, a lot of people claim to be diamond wholesalers, and I''m willing to be a lot of them are lying.

 

[yellowsparkles]

Date: 4/28/2007 12:47:12 AM
Author:darwin1534
Their is a local retailer in town that sells to non-business people like me. But he claims that he also sells diamonds to local diamond stores. He says that if I find a diamond locally, or on line, that I like, he can do what he calls ''dealer trading''. He would then get that diamond from another jewelery business, and sell it to me for about $1000 cheaper? (I''m looking at diamonds in the $7000 range)He also claims that his company is a site holder, if that makes any difference?

What are the chances that he is trying to rip me off? Please explain the diamond business and what''s going on here?

Personally, that sounds like a red flag to me.

 

[curiopotter]

Umm.. that doesn''t sound uncommon to me.

There''s a wholesale dealer here in town that I went to with my jeweler. He supplies diamonds to both jewelers, jewelry stores, and verrry occasionally, clients. I don''t know if he''s a site holder, but his prices weren''t that great so I was assuming he was either marking the price up because my jeweler was going to get a kick-back, or because he''s just a wholesaler.

A site-holder is someone who a wholesaler, dealer, cutter (occasionally cutters are site holders too), an independent jeweler, or a jewelry store buys their diamonds from. If you buy your diamond from him, you basically cut out the middle man, or men, for that matter. Site holders buy uncut rough diamonds from DeBeers about every 6 weeks at site sales. DeBeers basically sells "boxes" of diamonds at a pre-determined price. His company (or the company he works for), may be a primary site holder, or a secondary dealer. You can probably find out of his company is a legitimate site holder with enough research.

Things to consider:
This practice, to me, isn''t uncommon. The only thing I would worry about is the person. Do you know this person? Is he trustworthy? Is he putting you at risk by asking for money up front before you see the diamond? Will he allow an idependent appraisal before you buy the diamond? How long has he been in business?
There are ways of making sure you protect yourself before you buy, and you should explain your concern to him if he has a problem with it.

IF he''s telling you the truth, then he really cuts out a lot of middle-men and that does save you money. Just make sure to use your noggin'', and know who you''re dealing with. He''s still going to make money off of you even at his ''discounted'' price.

 

[darwin1534]

I don''t know the person, Everything checked out ok with the Better Business Bureau. The business has been in operation since 1999, and locally since 2005. If I leave the store I with the diamond I have to pay for it. But I get 30 days cash back return policy. I don''t have to put money up front. He has diamonds in stock and they are a lot cheaper then anyplace in town also.

So as I understand it, some places don''t necessarily own their diamonds? They are just on show from their suppliers. So if my guy contacts the supplier and says that he will buy this diamond the supplier pulls that stone from "Store A" and sends it to my guy?

Unfortunately I don''t trust anyone in the diamond business because I''ve been lied to so many times at B&M places. Thats why I love this place, where there is just SO much information. I feel like I can get the truth here.

So thanks everyone for teaching me sooo much about diamonds!

 

[curiopotter]

Date: 4/28/2007 7:55:08 AM
Author: darwin1534
I don''t know the person, Everything checked out ok with the Better Business Bureau. The business has been in operation since 1999, and locally since 2005. If I leave the store I with the diamond I have to pay for it. But I get 30 days cash back return policy. I don''t have to put money up front. He has diamonds in stock and they are a lot cheaper then anyplace in town also.

So as I understand it, some places don''t necessarily own their diamonds? They are just on show from their suppliers. So if my guy contacts the supplier and says that he will buy this diamond the supplier pulls that stone from ''Store A'' and sends it to my guy?

Unfortunately I don''t trust anyone in the diamond business because I''ve been lied to so many times at B&M places. Thats why I love this place, where there is just SO much information. I feel like I can get the truth here.

So thanks everyone for teaching me sooo much about diamonds!

What you said is true. For example, diamond vendors like James Allen and Bluenile have some diamonds in stock, but they all share dealers and can usually pick up any diamond from any dealer. Companies like Whiteflash are cutters, so they have instock diamonds that they''ve cut personally. They also have access to the same dealers as JA and BL. I''m not certain if WF trades their instock diamonds to other dealers, so that may hinder your choices, but I could be wrong. It''s important to note that there are companies that are willing to sell you the same diamond for a lower price if you go with them. USA Certed Diamonds is one of those that will guarantee a lower price if you shop with them, because they can pull the same inventory as the ''other guys''. I looked into it, and they could have saved me a couple hundred bucks on a James Allen diamond I was pondering over.

I don''t think he would have access to every single diamond, but I''m sure he has access to the majority of diamonds you see online.

The return policy is great, and the fact you don''t have to pay for the diamond before you see it is better. I would definitely give it a shot because you have the ability to SEE what you are buying. The setback of buying online, is that you don''t get to physically see and hold the diamond in different lighting situations and so forth.

Now the question remains, "What diamond do I choose?"

 

[RockDoc]

Possible way to check.


1. Get the Lab report number of the stones, he is potentially offering you.


2. Then search the Pricesopce database for listings of the same carat weight, color, and cut specs.
See if any of the report numbers for stones listed here match the lab report number of the stones he is offering.

3. Compare the prices

4. If you do pick one consider having someone check it for you ( independent appraiser/gemologist ).


Lots of "wholesalers" like to say they are selling for less than stores, and in many cases they can because of a lower overhead.
But it can''t hurt to do some due diligence on your part, or if your time is limited get an expert to do it for you.

Rockdoc