The Holy Grail

[just looking]

Greetings Everyone,

Well like most you, I have been looking at diamond prices for awhile ( 2 yrs) I would imagine some of you have been looking at them you're whole life

Like many of you looking at retail prices, I have been wondering what exactly is a stores cost of the diamond. Yes I am looking to buy in the very near future and of course I would like to get the most out of money. Stores need to make money but I just dont want to get raped in the process. I do own a business so I understand the cost of labor, taxes, insurance etc etc.

I taked with a gentlement that use to buy wholesale, he actually did his own cutting. He was doing this roughly 7 yrs ago. I ahve no way of prooving whether he is correct but he stated that after he was finished with cutting, polishing etc etc the avg would be roughly around $600 per ct. This didnt suprize me because I'm sure we have all heard the stories and some of you may have experience.
So what am I am asking " does anyone have any experience with this and if they do could you please pass along any information along? In fact, if you have any jewelers that you know "makes a deal or you know of inependant "cutters" that sell diamonds I would greatly appreciate the information. Thank you in advance for all your help.

Regards,
Matt

 

[Maisie]

Date: 2/21/2008 6:58:10 PM
Author:just looking
Greetings Everyone,

Well like most you, I have been looking at diamond prices for awhile ( 2 yrs) I would imagine some of you have been looking at them you''re whole life

Like many of you looking at retail prices, I have been wondering what exactly is a stores cost of the diamond. Yes I am looking to buy in the very near future and of course I would like to get the most out of money. Stores need to make money but I just dont want to get raped in the process. I do own a business so I understand the cost of labor, taxes, insurance etc etc.

I taked with a gentlement that use to buy wholesale, he actually did his own cutting. He was doing this roughly 7 yrs ago. I ahve no way of prooving whether he is correct but he stated that after he was finished with cutting, polishing etc etc the avg would be roughly around $600 per ct. This didnt suprize me because I''m sure we have all heard the stories and some of you may have experience.
So what am I am asking '' does anyone have any experience with this and if they do could you please pass along any information along? In fact, if you have any jewelers that you know ''makes a deal or you know of inependant ''cutters'' that sell diamonds I would greatly appreciate the information. Thank you in advance for all your help.

Regards,
Matt

Gosh, couldn''t you have phrased this any other way?

 

[Cleo]

I can''t advise on prices from cutters etc, but you probably already know that most PSers buy their diamonds online, from the USA.

This is due to the fact it allows for a wealth of information to be provided for each stone and gives PSers the best selection at their fingertips. It is also because it''s the most affordable source of diamonds available to us.

As I understand it, the profit margins on diamonds from these online vendors is minimal. (Maybe something like $1000 on a $10,000 diamond?) Please correct me if I''m wrong, PS-ers.

Of course, to most of us the most important thing is that we buy the most well-cut diamond possible, rather than the cheapest.

x x x

 

[DiamondGirlHH]

Best way to go is with a well-known and reputable online store with a unconditional money-back guarantee. Online stores do keep their profit margins very minimal because of the huge competition.

I am sure you can read other PSers'' experiences here and get an idea which stores are better than others and do your own comparison.

Well made diamond will keep it''s value just like anything else in this world.

So I suggest do your research, find your comfortable budget and get the best stone (not the largest) for the money.

Good luck!

 

[oldminer]

Diamonds, when found in nature, are free. All the human effort, skill, smart marketing and overhead make them cost a lot of money. The more you know, the more effectively you can shop the price while selecting the right combination of parameters which make you most happy. Knowing the cost is zero, plus expenses and profit margin really is not the cure for a good purchase.

Virtually all, if not all material things we have are made from "free" components. Those things we in which we find or create which have utility or provide pleasure cause us to be willing to pay for them.

A store's cost for the diamonds on display or available to a B&M retailer can range from around 20% below what the retail is on Pricescope to even a few percentage points more than Pricescope retail numbers. The asking price at any seller depends on the specific diamond, how good the credit rating of the seller is, the "brand" of a particular diamond, the overhead and style level of the retailer. Vendors with tight cost controls are usually the ones which can be most price competitive. Vendors which lavish you with a "buying experience" and a fine ambiance in their store likely have less flexibility to discount in a meaningful way. If you are affluent, you may well prefer to spend your money while having some in store experience which you count as part of the value in the purchase. Then again, you may be able to afford to pay a great deal yet still enjoy the value of a rock bottom price.

 

[Lorelei]

Date: 2/22/2008 10:45:49 AM
Author: DiamondGirlHH
Best way to go is with a well-known and reputable online store with a unconditional money-back guarantee. Online stores do keep their profit margins very minimal because of the huge competition.

I am sure you can read other PSers' experiences here and get an idea which stores are better than others and do your own comparison.

Well made diamond will keep it's value just like anything else in this world.

So I suggest do your research, find your comfortable budget and get the best stone (not the largest) for the money.

Good luck!

I just wanted to point out that if you mean a well made/ cut diamond will hold its value, in as much that you can expect to resell it if you wanted, and expect to get back close to what you paid for it, sadly this is rarely the case

. That is why vendors with a trade up policy are so desirable.

 

[strmrdr]

Date: 2/22/2008 11:34:12 AM
Author: Lorelei

Date: 2/22/2008 10:45:49 AM
Author: DiamondGirlHH
Best way to go is with a well-known and reputable online store with a unconditional money-back guarantee. Online stores do keep their profit margins very minimal because of the huge competition.

I am sure you can read other PSers'' experiences here and get an idea which stores are better than others and do your own comparison.

Well made diamond will keep it''s value just like anything else in this world.

So I suggest do your research, find your comfortable budget and get the best stone (not the largest) for the money.

Good luck!

I just wanted to point out that if you mean a well made/ cut diamond will hold its value, in as much that you can expect to resell it if you wanted, and expect to get back close to what you paid for it, sadly this is rarely the case

. That is why vendors with a trade up policy are so desirable.

Yep, holding value is true for dealers(unless there is a peak followed by a crash which happened during the investment craze) not for consumers.

 

[strmrdr]

Average markup on virtual stones in the PS list is in the ~8 to 10 percent range.
In stock premium cut stones with a ton of information the margins are a little better but because of the added labor and costs over drop shipping its doubtful they make anymore money on them overall and likely less.
So a $1k markup on a $10k stone would not be unusual.
I cringe when I see someone asking if an online dealer would knock $400 off a $10k stone.

 

[oldminer]

Gold and platinum have intrinsic value because they currently have have irreplaceable industrial uses. Gem quality diamond has value primarily due to marketing and demand. Labs today can grow synthetic gem quality diamond and with advances in technology the cost of growing diamond may eventually be less than mining it. Who knows? It is far less likely that an alchemist will be able to turn a prevalent or cheap natural element into gold or platinum or to create a low cost substitute.

Diamonds are not likely to fall in price so long as demand remains and marketing efforts hit their targets. There may be fluctuations in the price of any commodity and people not totally prepared for high downside risk should not "invest" in a commodity to hold or increase in value without a real gameplan. You buy a diamond to give to someone or to wear yourself for the pleasure seeing it on the hand or in what you see in the eye of the recipient. That alone is worth the cost. Any residual amount left over at some distant date is just a nice kicker, if it is there when you want to cash it in. This is a formula for staying pleased with your purchase.

In our imperfect world, diamonds should travel in price in somewhat lockstep with general inflation. They may do this and maybe not....

 

[just looking]

Thank you for ALL of your inputs and soerry for the one comment about my use of the term "raped"...no harm or sarcasm was intended.

I have been on the board for nearly two years and this is the place to go for information.I even took her into a chain store. The funny thing is, after I asked so many questions to the assistant manager and did a little on the spot correcting I was soon passed on to a sales rep.I think he was a little flustered or at least that was what my girl thought.

I''m not looking for a huge diamond and I am fortunate that she is not set on one type of stone. So after looking at the costs per different style, from my research doing a side by side comparison the princess cut seems to be a little more bang for the dollarcompared to a round, As far as the size of the window, comparing a 1 ct across the board( ex-ideal cut), which has the largest window?That will make the stone look smaller, correct?


Also, does anyone have any experience or reccomendations buying from the cutter/polisher? Anyone reputabe come to mind ?


Thanks again everyone

Matt

 

[just looking]

Thank you for your reply Miner...but , if I were that afluent I would most likely not be looking to get the most "bang" for my buck, price wouldnt matter

Thank again for all of your advice and suggestions...it is greatly appreciated.

regards,

Matt