You may be researching where to buy the best and authentic wholesale diamonds so you can save money. But how will you know if the wholesale diamond dealer you are dealing with is honestly offering a wholesale price?
Since the cost of a diamond is the most pressing point when it comes to purchasing them, you should consider all options and know how to determine a beautiful high-quality diamond at a reasonable price. Can you really buy a diamond at brick-and-mortar stores or online at a wholesale rate?
What is a Wholesale Diamond?
In the diamond trading industry, a wholesale diamond does not refer to buying in bulk but buying a diamond at a relatively lesser price than one would otherwise. Wholesale diamond dealers have access to the Rapaport Diamond Report, the report that states the average prices of diamonds.
Good wholesale diamond dealers can thus give diamonds at a price listed on the report and can even sell diamonds at lower prices than the price mentioned in the report. So you can negotiate with the wholesaler to give you a discount.
How do Wholesale Diamond Dealers Do It?
Wholesale diamond dealers profit at around 10 to 30 percent when they sell polished loose diamonds to retail shops. When you buy from a retail store, the price of the diamond has been marked up to 1.6 to three times its original cost.
In the United States, retailers of loose diamonds usually give a 50-100% markup from the cost of the diamond that they bought from a wholesale diamond dealer. The current average Retail Markup over Wholesale Cost for Diamonds is 55%.
Wholesale diamond prices are often bought tax-free because they are in large quantities and are bought specifically to be resold. With a cheaper price, wholesale dealers can also market directly to customers online, which is the most popular means of selling wholesale diamonds nowadays.
The offers of wholesale diamond prices are attractive for most customers because you can get the best value for your money with offers and deals every now and then. So if you want to buy a diamond online from a wholesale diamond dealer, it can be the perfect choice that can be most beneficial for you.
Why Online Wholesale Diamonds Are Cheaper
The price of wholesale diamonds that are purchased online is relatively cheaper because most wholesale diamond dealers make their own loose diamonds and sell them directly to customers. You are therefore just paying for the manufacturing price of the diamond because there are no additional expenses incurred. The overhead costs are low and they don’t have to pay for an in-house inventory.
It can be difficult for customers to determine if the information from an online wholesale diamond dealer is true or not and to figure out if the price is fair and good for a piece of diamond. But, there are many reputable online wholesale diamond dealers that have years of experience in the industry.
Do your research and you will get the best deal and find the best selection of diamonds at the best prices. Always compare online wholesale prices from several wholesale diamond dealers when purchasing diamonds.
You can also check the AGS (American Gem Society) list of diamond vendors, a community of vetted jewelry vendors that are dedicated to the AGS mission of consumer protection and business ethics.
AGS is a group of leading jewelers that helps protect customers (who want to buy jewelry) from fraud and false advertising. With a wholesale diamond dealer that you find in their community, you are assured that the diamond you are buying is authentic and certified.
Best Online Wholesale Diamond Dealers
To make sure that you get an authentic diamond from a wholesale diamond dealer online, it is crucial that you choose a certified diamond with a grading report from the Gemological Institute of America (GIA) and/or the American Gem Society (AGS). These are the globally respected institutions that are committed to protecting consumers of the jewelry industry.
GIA claims they do not publish prices or determine the value of diamonds, but they recommend several organizations like the American Gem Society, the American Gem Trade Association, and Jewelers of America, who can provide referrals of good online wholesale diamond dealers.