There are a number of myths about buying wholesale diamonds, which are likely influenced by the regulations governing “wholesale to the public” transactions. Federal regulations and trade commission rules prohibit retailers or any entity selling to end users from advertising their selling price as a “wholesale price.” In fact, a committee that prosecutes ethical violations within the jewellery industry advices against ever using the term in dealings, and that there are no exceptions to such.
Let’s check on five myths about buying wholesale diamonds and the truths that will help you decide when making these investments:
1. Wholesalers charge less than full service stores.
Don’t be fooled by the notion that having a low overhead means lower prices. Although overhead expenses are determining factors for the price of a product, it is not the most significant. A much bigger consideration is placed on buying power and the other qualities of the product, as in this case the valuable properties of diamonds.
Also, because wholesalers are just like retailers, some of them can charge less than some stores while others can charge the same or even higher prices. Still, it may appear that the wholesaler is offering a much cheaper option compared to the full service stores.
2. Wholesalers accurately grade their diamonds.
Largely connected to the first myth is the accuracy of diamond grades. Legitimate stores like AE Design Jewellery has experienced diamond wholesalers Sydney jewellers trust and they make sure that they use an accurate and complete grade as certified by reputable gemmologists such as the Gemological Institute of America (GIA).
However, some wholesalers assign their diamonds better grades than they actually merit and provide non-GIA certificates, rather off-brand certifications that may not be at par with industry standards.
This is one of the main reasons a number of wholesalers appear to be offering more affordable diamonds – because they assign better grades to their diamonds, they can charge consumers more than what the diamonds are really worth. In reality though, the buyer is purchasing poor diamonds for a high quote.
3. Buying high clarity grade loose diamonds make for a better investment in the long run.
If you are not purchasing the diamonds only for investment purposes, then you don’t really need to go for a very high clarity grade gem. If you intend to set it on jewellery or give it as a gift for a special celebration, clarity is not necessarily something you will appreciate when you are wearing the precious stone. Rather than investing purely on clarity, you can assess the value of your investment based on the other aspects of the Four Cs of diamonds, specifically carat weight, colour, and cut.
4. Bigger is always better!
A large diamond that has a low grade for cut, colour, carat weight, and clarity will be inferior to a smaller diamond with high grades on the Four Cs. So just because they’re big doesn’t mean they’re better and more valuable. They have to be assessed on how well they reflect light, whether they are clear or contain inclusions, or if they appear dull, among other parameters. Make sure that the loose diamonds are accurately graded and certified by industry renowned gemmologists such as the GIA before you make any purchases.
5. It doesn’t matter which diamond certificate you have.
Finally, we further stress the importance of loose diamonds certifications to ensure that you are actually paying the right price, so yes where they get certified matters significantly. You should only accept certifications coming from reliable diamond grading laboratories, specifically go for certificates issued by the GIA and the American Gem Society (AGS).
Now that these myths have been debunked, you will be more confident in investing in diamonds.