Pros/Cons: Diamond broker vs Retail Store

[abcunnin]

Hi There,

I'm trying to decide between getting my diamond--and the eventual engagement and wedding rings to go with it--from a private diamond broker and retail store (both well reputed). From more experienced consumers, what would be the pros/cons of each? I originally heavily leaned to the diamond broker. He convinced me that I would be very happy with the finished product and have a much lower price (that's the big pull there). But, after visiting retailers, I feel like being able to truly pick my own diamond and the lifetime insurance coverage policy sways me the other way (lifetime replacement value for trade-up, replacement if lost, stolen, or damaged, free cleaning and checking the prongs, etc.) I'm imagining I would have to pay extra to have this type of policy on my diamond and rings through a private insurance company, which might then cancel out the money I save on the original purchase.

Other pros/cons or opinions are much appreciated!

Thanks in advance!

 

[swingirl]

You have found a retail store that will replace your ring if it's lost or stolen? For your lifetime? Wow! I have never heard of that level of customer service.

You can compare the prices you are quoted with the PS list under Resources and Diamond Search.

 

[Sniven]

You have found a retail store that will replace your ring if it's lost or stolen? For your lifetime? Wow! I have never heard of that level of customer service.

You can compare the prices you are quoted with the PS list under Resources and Diamond Search.

Zales offers that "life-time warranty" and trade up policy here in Canada under their company name Peoples Jewellers. I am not sure if they offer it in the USA. You purchase the life-time warranty for a nominal fee and the trade up must be at least double the price.

The life-time warranty is for the "life" of the ring and is transferable.

 

[D&T]

are you sure that the retail store offers insurance on "lost, stolen?" that is unheard of... unless they make you buy a separate insurance policy, and at that point, I would just rather buy my own separate policy from jewelry insurance co that covers such for probably less than the premiums the retail store charges and you are free to go to your own jeweler.

Please read the fine prints, and not just take a salesperson's word on warranty or coverage of such loss before you determine to do business with the retailer.

 

[LGK]

are you sure that the retail store offers insurance on "lost, stolen?" that is unheard of... unless they make you buy a separate insurance policy, and at that point, I would just rather buy my own separate policy from jewelry insurance co that covers such for probably less than the premiums the retail store charges and you are free to go to your own jeweler.

Please read the fine prints, and not just take a salesperson's word on warranty or coverage of such loss before you determine to do business with the retailer.

Yes! I've heard Zales has a warranty for damage but I've never heard they cover loss or theft. Definitely don't take the word of the sales person on this one...

 

[MichelleCarmen]

are you sure that the retail store offers insurance on "lost, stolen?" that is unheard of... unless they make you buy a separate insurance policy, and at that point, I would just rather buy my own separate policy from jewelry insurance co that covers such for probably less than the premiums the retail store charges and you are free to go to your own jeweler.

Please read the fine prints, and not just take a salesperson's word on warranty or coverage of such loss before you determine to do business with the retailer.

Yes! I've heard Zales has a warranty for damage but I've never heard they cover loss or theft. Definitely don't take the word of the sales person on this one...

What kind of damage? Isn't some considered "wear-and-tear," and therefore not considered actual "damage?"

 

[abcunnin]

Thank you, everyone. You are all right, I don't have a lot of information about the fine print or details of the store policies. I have a feeling that when I ask for more details, it will not end up being worth spending a bit more to buy from a store versus privately.

Thanks again. this is really helpful.

 

[Sniven]

are you sure that the retail store offers insurance on "lost, stolen?" that is unheard of... unless they make you buy a separate insurance policy, and at that point, I would just rather buy my own separate policy from jewelry insurance co that covers such for probably less than the premiums the retail store charges and you are free to go to your own jeweler.

Please read the fine prints, and not just take a salesperson's word on warranty or coverage of such loss before you determine to do business with the retailer.

Yes! I've heard Zales has a warranty for damage but I've never heard they cover loss or theft. Definitely don't take the word of the sales person on this one...

What kind of damage? Isn't some considered "wear-and-tear," and therefore not considered actual "damage?"

You have to bring the ring in every 6 months for inspection. If the prongs are wearing or the diamond is loose they will repair it. If the diamond chips, scratches, breaks or falls out of the setting and is lost they replace it.

http://www.zales.com/helpdesk/index.jsp?display=ship&subdisplay=guarantee

I have used it before without hassle or question from the company. It cost me about 8% of the purchae price for the warranty.

 

[Dancing Fire]

You have to bring the ring in every 6 months for inspection. If the prongs are wearing or the diamond is loose they will repair it. If the diamond chips, scratches, breaks or falls out of the setting and is lost they replace it.

http://www.zales.com/helpdesk/index.jsp?display=ship&subdisplay=guarantee

I have used it before without hassle or question from the company. It cost me about 8% of the purchae price for the warranty.

8% is a lot of money to pay for the warranty,and if you missed one inspection the warranty is no good from that date on.

 

[diamondseeker2006]

There is a third option and that is to buy from a vendor who specializes in ideal cut diamonds that does business over the internet and can give you a better price than either of your two options, more than likely. We've heard too many sad stories here from diamond "wholesalers" and brokers. Some of the vendors give a lifetime upgrade policy where you get 100% of your stones original cost toward a new stone. I found that no local stores really had any selection of ideal and excellent cut GIA or AGS certified stones from which to choose. So I eventually bought from Good Old Gold and WhiteFlash. I wouldn't consider buying a diamond any other way.

 

[abcunnin]

There is a third option and that is to buy from a vendor who specializes in ideal cut diamonds that does business over the internet and can give you a better price than either of your two options, more than likely. We've heard too many sad stories here from diamond "wholesalers" and brokers. Some of the vendors give a lifetime upgrade policy where you get 100% of your stones original cost toward a new stone. I found that no local stores really had any selection of ideal and excellent cut GIA or AGS certified stones from which to choose. So I eventually bought from Good Old Gold and WhiteFlash. I wouldn't consider buying a diamond any other way.

Diamondseeker,

Thanks for your great info. Do you mind sharing some of the horror stories about diamond brokers/wholesalers? Our friend, who bought his engagement ring from this wholesaler, highly recommends him and had his diamond/ring appraised at over twice the value he bought it at--so I do feel confident in the honesty of this particular seller. But, I do want to be cautious and smart on such a big sale! My boyfriend and I already struggle over spending so much on one thing...whether it is worth it or not...etc. So, I want to make sure that when we do make the investment, it's through a smart source! I do have to say that he doesn't like the idea of the internet sellers, although I like them.

Alli

 

[denverappraiser]

Allow me to suggest a different view on the situation. The only difference between a B&M, a ‘wholesaler’, a broker and an Internet dealer is a matter of décor and advertising. Each company sets their own prices, they set their own terms and conditions and they decide what they want to include as their own ‘value added’ elements to the deal. There’s no merit to trying to generalize them into categories. It may be a fancy showroom, or a highly informative website, friendly salespeople, agreeable terms for returns, financing, huge selection access to specific designers or boutique service. It’s up to you to decide what you consider to be valuable and to choose a vendor who offers that. In particular, whether or not they call themselves a wholesaler is completely beside the point. At least around here, something like 80% of the jewelers use that word. Who cares? Back when I went to business school, selling the goods one at a time to the final consumer was called retailing. As far as I can tell that hasn’t changed so there’s actually a really simple test to see if they’re a retailer. Ask if they’ll sell to YOU. If they will, then they’re a retailer. It makes not a lick of difference if they will sell to someone else for resale, or even if they give good prices to someone else. The issue is about the deal they are offering YOU. Fortunately that’s usually easy to figure out. What is it? What do they have to back up the claims they’re making in terms of grading and what are they offering to sweeten the deal against their competition (who are also retailers by the way)? What does it cost? Is that what you want? Don’t get hung up on the words. A ‘broker’ just means that they sell stones that they don’t own. It doesn’t mean that they don't own the stone you’re considering any more than the fact that a stone is present in a B&M store means that that store owns it. I also doesn't mean that the price is good. They can charge whatever they want no matter what the sign out front says. Under the right circumstances, they’re all brokers, they’re all retailers, they’re all Internet dealers, and they’re all wholesalers. Again, pay attention to the deal at hand, not the name on the sign out front. Just because they call themselves wholesale doesn’t make it a deal and just because they have a showroom doesn’t make it a ripoff.

 

[denverappraiser]

Diamondseeker,

Thanks for your great info. Do you mind sharing some of the horror stories about diamond brokers/wholesalers? Our friend, who bought his engagement ring from this wholesaler, highly recommends him and had his diamond/ring appraised at over twice the value he bought it at--so I do feel confident in the honesty of this particular seller. But, I do want to be cautious and smart on such a big sale! My boyfriend and I already struggle over spending so much on one thing...whether it is worth it or not...etc. So, I want to make sure that when we do make the investment, it's through a smart source! I do have to say that he doesn't like the idea of the internet sellers, although I like them.
Alli

I’m not diamondseeker but I’ll take a stab at this anyway.
#1 see the prior post about ‘wholesalers’.
#2 Appraisals. In reading appraisals, pay attention to the definition of value (among other things). In most cases, jewelry appraisals are for insurance purposes and the question being answered is what should you expect to pay for the item at local retail to replace it. That’s useful enough for what it is but this is decidedly a different question than whether or not you got a ‘deal’. Maybe you did, but taking an insurance appraisal value conclusion in isolation, noting that it’s double the transaction price and declaring that this means a bargain is reading something into it that simply wasn’t there. You’re right to be shopping carefully for the source, and I usually recommend this as the first step to a successful diamond shopping venture. It’s a highly competitive business and it’s full of sharks. Shop also for your appraiser. There’s good information to be gleaned from the right appraisal but they are not all the same and they aren’t all useful for ALL questions you might be asking.

 

[diamondseeker2006]

Neil has already given you excellent information! I'll add just a couple of notes. Does this broker offer a 10-30 day unconditional return period which would allow you to have an independent appraisal by a certified appraiser that is not associated with a jewelry store? This is usually a huge red flag if they do not accept returns with full refund. I would close that door fast if that is the case, and most of the bad stories I've read involved finding out the stone was poor quality, treated, or a bad deal cost-wise but they weren't allowed to return the stone (please forgive me for not taking the time to search). BUT, if they do have a 10 to 30 day return policy with full refund for any reason, then you need to ask up front for diamonds that are graded either by GIA or AGS and are either graded Excellent cut (GIA) or Ideal/excellent (AGS). If they would provide you with a copy of the grading certificate and the price, you can come on here and post all the stats and people can tell you if there are any red flags or if the diamond is indeed a good deal. In fact, we can show you comparable stones that are excellent cut to compare price. If you proceed, be sure the receipt states the return policy and that you read it carefully. Then use an independent appraiser (such as Neil and others are listed elsewhere on this site) to verify that the stone is as represented.

There are many excellent vendors who have satisfied customers who are on this forum, but I do recommend Good Old Gold for those who really desire to deal with a brick and mortar jewelry store. You can see on their website homepage a video that shows the owner and the inside of the store. They specialize in top cut quality stones and have a large in-house selection and provide pictures, copies of the grading certificates, and multiple other tests. This is one of the vendors for which I do not need an independent appraisal because I totally trust them. There are also fine vendors who primarily have an internet presence as well if he would be open to the idea. It is wise to be careful with internet purchases, but a forum like this exposes all the good and bad experiences a vendor has as opposed to a local jeweler or diamond broker. In that respect, I feel that some of these vendors are far safer to deal with as their reputations depend on how they treat their customers. And trust me (and preferably spend some time reading here!), you will see honest and uncensored reports from consumers!

Good luck on your search!

 

[Dreamer_D]

Ditto everything DS and neil said.

I do not like the marketing ploy that retailers use by calling themselves "wholesalers" and then not offering their retail clients things like unconditional refund policies and other features of a sale that are beneficial to the consumer. The term "wholesaler" being used by someone who sells to the public -- allbeit from a small office in a highrise, often -- is misleading IMO and I don't like it. There are of course many companies who sell diamonds wholesale and also sell retail to the public, but to use a single term to represent both sides of their business is misleading and in my opinion, aimed at leading buyers to believe they are getting great deals in exchange for "no frills". Sometimes this is true, but often "no frills" = a vulnerable consumer. Some shady things that I have seen on these boards from "friend of a friend wholesalers": no refunds, no inspection or return policy, no policies in writing, cash transactions with no receipt, misleading information to the consumer about certs etc. And on and on.

No matter who you buy from, check that they are offering the approriate protections for you as a consumer: unconditional refund and inspection period, policies in writing, a clear receipt stating what you bought and for what price, valid information about the diamond.