To many consumers buying diamonds is a scary prospect– what is the main reason for this?

[pricescope]

To many consumers buying diamonds is a scary prospect – what is the main reason for this?

 

[Lord Summerisle]

I think because... there is so much information and misinformation that for the beginer theres so much to take in - that it becomes a wall... we''re talking about minute differences that can take training and experiance to differenciate, that to someone browsing they all look the same.

Like my Gerbils... both are black, with white paws.. and a white dash under their nose... i cant tell which is Tweedle Dee and which is Tweedle Dum.. untill i put my hand in the tank and one goes sniffing for grub.. the other has a nibble at a finger...

 

[valeria101]

One vote for "confusion" ... price and branding inconsistency that is.

This, leaving aside what those engagement rings are actually bought for - getting engaged is scary enough. David Atlas put this quite nicely in one of his posts link.

 

[sjz]

Date: 3/31/2005 11:29:22 AM
Author:Pricescope
To many consumers buying diamonds is a scary prospect – what is the main reason for this?

Some of the reasons might be that first time buyers for diamonds are young, and don''t have a lot of consumer-confidence. Add that to the fact that diamonds are a relatively expensive item, a luxury item, and most of the time and emotional item, and it can be stressfull.

A lot of people also feel that they have a fair amount of knowledge when it comes to buying things like cars, computers, real estate, and other big ticket purchases. Diamonds not so much. To top it off, a lot of people in the market who are selling diamonds also don''t seem very knowledgable, and that doesn''t foster a lot of confidence in the consumer, either.

 

[aljdewey]

The main reason: Most people don''t know much about diamonds so they feel vulnerable to getting ripped off, and it''s too big a purchase to absorb a terrible loss due to lack of knowledge.

How will I know that it''s really a diamond? How will I know that it''s worth what I paid for it...or that I didn''t overpay? They all look the same to me, so how will I know that I actually received the one I paid for and not something else?

 

[strmrdr]

Reputation of the jewelery industry and some stores that live down to that reputation.

 

[denverappraiser]

Diamonds are a remarkably blind item for most customers and even most dealers. . The difference between a $10k stone and a $15k stone can be very subtle. Heck, the difference between a $15k stone and a $10 CZ can be tough! Most people don’t buy very many and when they start to think about buying one they start to find news stories about new fakes, newly accused criminals and evil corporate empires. They don’t really want to go through the effort and expense of turning themselves into experts but the only alternative is to trust someone.

Of course they’re nervous. Customers rely on dealers and appraisers to supply them with good advice. Dealers rely on the labs, the manufacturers and each other. Lots of money is at stake, everyone wants the ‘best’ and there is very little agreement about what that means. The rules keep changing and not everyone wants the same thing. Any time there is a mismatch in the information flow, the collective stress level goes up.

Advertising and product claims are everywhere and the information clutter grows every year. The internet has put this into overdrive. Some of it, perhaps most of it is pure crap and customers are justifiably nervous about claims made by dealers. This isn’t just about jewelry, it’s about the credibility of claims made by dealers, manufacturers, appraisers, labs and pretty much everybody else. Diamonds just attract attention because they are expensive, infrequent and unnecessary.

What’s to be done? Pricescope. Customers, dealers, appraisers and manufacturers all come together and act as a gigantic BS filter for each other. It takes a bit of effort to sort through it all but it works pretty well. Bad advice doesn’t last long under the scrutiny and bad advisors are quickly found out and just as quickly disappear. It’s not a perfect system but it works pretty well. I, for one, am proud to be involved.

Neil Beaty
GG(GIA) ISA NAJA
Independent Appraisals in Denver

 

[Regular Guy]

Al said it succinctly and well. Neil helped, too. Though it's not clear what information is the lynch-pin bit of information that allows you to make the decision, having a good understanding of the different elements that effect a diamond's performance helps you feel as though, once you've settled on a carat weight, what you are willing to spend your money on is done in a measured way. From that point of view, despite my twisted and extended discussion, I'm sorry more didn't join this thread. Clearly there's lots of technical discussions on this here, but it may be helpful to come half way down, to help us get a lay of the land.

Can't recall who it was, but quite recently, a very astute buyer of 3 diamonds wrote about having 3 diamonds that might appear identical if looked at pretty closely, but who knows their pricing was anything but the same. I'm guessing they came to that conclusion about the similarity of appearances later, rather than sooner.

So, being short of this sort of "rationale for marginally paying more" type information is what makes the process scary. As they say, different strokes for different folks. Many will do best in a retail environment for many reasons. For my money, the internet makes this information gathering piece easier.

 

[bluedawg]

Date: 3/31/2005 11:42

3 AM
Author: aljdewey
The main reason: Most people don''t know much about diamonds so they feel vulnerable to getting ripped off, and it''s too big a purchase to absorb a terrible loss due to lack of knowledge.

How will I know that it''s really a diamond? How will I know that it''s worth what I paid for it...or that I didn''t overpay? They all look the same to me, so how will I know that I actually received the one I paid for and not something else?

Yes, I totally agree with this. No one wants to feel duped about any purchase-- but especially one with such sentiment and emotions attached.

 

[moremoremore]

B/c we want to pay the least amount possible and
vendors want us to pay the most possible hehehehe

Come on, it''s a business!

 

[luvmysparklies]

I am in agreement with the sentiment that it is a fear of being ripped off. For many, the prospect of possibly being "tricked" out of, what for some is, a large amount of money is extremely disconcerting.
Luv

 

[fountainfairfax]

How about reasons:

1) I think it was Sweetpink who said it best - there are very few things in life that are so small & yet cost so much!
2) So many diamond purchases are linked to a life-changing, highly emotional moment ,aka engagement. talk about pressure!
3) marketing ploys (thanks, De Beers) increase the pressure and can add to feelings of insecurity and doubt.

once in the comic Bloom County Opus went to buy his fiance a diamond and the sign on the wall said "A Women Without A Diamond Might As Well Be A Turnip" or something along those lines......

4) the factors influencing diamond quality and performance are a mystery to so many..we pricescopers know this need-not-be

 

[AChiOAlumna]

For someone who "just" bought a diamond today, I can tell you that even with the knowledge I''ve absorbed and learned from posting and reading on PS, going into a store and comparing diamonds can still be an overwhelming experience. For me, I think it''s about trying to determine if the consumer is getting the value for their money...especially since we''re not talking about a CZ, but something that is a 1/2 a year''s worth house payments!!

Education helps the consumer with gaining an element of control...but at the same time, there is an element of subjectivity (especially with fancy shaped diamonds) that makes the anxiety crazy!!

 

[Maxine]

The main reason is that it is such a big price for such a "litttle" thing.....and how do you KNOW if the price is worth it?? It is SO confusing....until Pricescope................., and having a relationship with a good independent appraiser also helps! I don''t think consumers mind spending the big bucks.....as long as they get what they paid for!!! That''s where Pricescope and the appraisers come in...............................................

 

[Jennifer5973]

I think it''s the fact that it''s generally a lot of money for a little thing with no real "value"... add to this the slick sales people who are still so prevalent out there and all the misinformation, and you have a recipe for confusion at the very least. I think most people accept that they are probably "overpaying" for these little rocks but they don''t want to be ripped off...most people accept that diamonds are frivolous purchases, luxury items if you will, but they want to pay fair prices for the quality they are supposed to be getting.

 

[hoorray]

"To many consumers buying diamonds is a scary prospect – what is the main reason for this?"

Because it is a large purchase, often at a time where the buyer is not flush with money; because it has a lot of sentimentality and peer pressure associated with it, and you want to get it right, and most importantly, unless you invest a fair amount of energy, because you are at the mercy of the sales people to honestly move you through the choices of what typically looks like a small, sparkly rock to the uninitiated.

If you have never cared, or looked closely at a diamond, and then you are supposed to go buy "THE RING" that she will wear everyday for the rest of her life, AND it will cost you more than you have ever spent on anything other than a car..... that''s intimidating... add a salesman you can tell you anything, and you can''t know if it''s right or wrong.... and I''d be scared.

 

[lostdog]

Main reason:

Information (that and the pressure that surround the purchase as far as expecations, if it''s an engagement ring).

Figuring out which information you need, which is correct, how that applies to the stones you are looking at, what are the actual characteristics of the stone (not just the graded "c''s"), how it relates to other options about which I also may not have sufficient information.

And simply is the stone appropriately priced for what it is said to be, is it what it is said to be, have I missed some critical peice of information and am I being taken advantage of as a result?