South African Wholesalers

[MarciaB]

Has anyone ever bought from a South African Wholesaler? We have friends of friends who have " diamond'' parties with a SA Wholesaler selling his wares. They have gotten some pretty unbelievable prices.. Of course having them apprasied immediatly afterwards. I am still skeptical.. when it seems to good to be true.. it usually is.. but so far all diamonds purchased have come out at the very LEAST what they were selling as.. some higher! And my one friend took his diamond to not 1 but 3 reputable independant appraisers! Just wondering if anyone else has purchased a sizeable diamond this way?????

 

[Dancing Fire]

Date: 10/31/2004 9:13:31 PM
Author:MarciaB
Has anyone ever bought from a South African Wholesaler? We have friends of friends who have '' diamond'' parties with a SA Wholesaler selling his wares. They have gotten some pretty unbelievable prices.. Of course having them apprasied immediatly afterwards. I am still skeptical.. when it seems to good to be true.. it usually is.. but so far all diamonds purchased have come out at the very LEAST what they were selling as.. some higher! And my one friend took his diamond to not 1 but 3 reputable independant appraisers! Just wondering if anyone else has purchased a sizeable diamond this way?????

MarciaB
you said it ...when it''s too good to be true

,there''s no santa claus in the diamond business.

 

[Brian Knox]

It really boils down to your comfort level in any given business relationship and your aversion to potentially losing some or all of your money.


This is not intended to scare you, it is just common sense.

This is true of all products, not just diamonds , Most people would prefer to pay a little more , and know that they are getting what they are paying for, kind of like comparing a diamond with no report versus a diamond with a GIA or AGS report.


This is especially true with a ''mysterious'' product like diamonds , People want some type of assurance of quality , not to mention little spiffs like moneyback guarantees and tradein policies.


It is your money, and only you know you comfort level with these issues and the other issues involved.


As Georger C. Scott said in the movie ''The Fim Flam Man'' "Its hard to cheat an honest man" what he meant in the context of the movie was: Scams persist because of the very human nature like motivation of trying to get something of value for less than the market value.


It could be the deal of a lifetime or it could be just another scam to seperate you from your money.

 

[denverappraiser]

Marciab,

This question comes up quite a bit on this forum in different versions. The key questions are whether a South African (or Belgian or Hong Kong or Caribbean or U.S.) address is evidence that a dealer is any better and whether the term ‘wholesaler’ has any meaning at all.

Fact:Shipping costs from one country to another are nominal and there are dealers everywhere who are anxious to buy high quality goods for cheap prices.This means that the only reason to sell to a retail customer in Africa instead of selling to a wholesale customer elsewhere is because they can get a higher price or because they can move merchandise that otherwise might be difficult to sell.

Fact: Retailers offer additional value to the deal.This value can include a variety of things like return privileges, upgrade offers, warranties and guarantees, financing and payment terms, the opportunity to buy in small quantities, convenient displays, prestigious packaging, familiar laws and taxes (meaning import and export regulations) and a variety of other valuable features.These things are not of equal value to every customer and not every dealer has the same assortment.These differing bundles of benefits are why customers choose one dealer over another and deciding which dealer is ‘best’ will depend on what you consider important.Usually this kind of thing will not be individually itemized on your bill but since they are not free to the dealer and they will not be free to you. This is true of South African retailers (excuse me, wholesalers) for the same reasons that it’s true for dealers everywhere else on the planet. This sort of benefit is what you get in exchange for the dealer markup.

Fact: The legal and business environments are not the same in every country.Most people become accustomed to how business is conducted in their home country and become relatively comfortable with it.Laws about fair trade practices will vary substantially throughout the world and it’s a mistake to assume that your understanding of the rules at home will translate into an understanding of the rules elsewhere.Americans and citizens of other developed nations are especially vulnerable to this because the laws here are relatively easy to understand and are enforced fairly.This may not be the case elsewhere.

Fact: Import and Export laws can be complicated and in some cases expensive.Some countries (not including the US) have substantial import taxes on diamonds and jewelry and some (including the US) have restrictions on certain items. It’s important to understand these rules prior to your purchase or you may find yourself in a bind when you go home with your new treasure.

Buying a diamond or piece of jewelry while overseas in a wonderful place can be a great souvenir of your travels and can be a romantic experience in it’s own right.These are excellent reasons to make such a purchase.It’s extremely unusual for them to be an especially good deal. Buy things you love because you love them, not because the dealer told you it would be a bargain.

Neil Beaty, GG ISA
Independent Appraisals in Denver