The Truth about Diamonds
A diamond purchase is a significant one. Whether you’re shopping for an engagement ring or for a gift to yourself or a loved one, it’s natural to want to save money when possible, or at least know you’re getting a good value. One frequently asked question is, can I get a better deal by buying directly from someone in the supply chain who’s closer to the source? The short answer is: NO, and here’s why…
The diamond supply chain has many stages in many different locations, starting from mining, to sorting, cutting and polishing, to jewellery manufacturing, and only then to the retail store. Diamonds are found in about 20-25 major mines located in Australia, Canada, Russia and Africa. Rough diamond sales mainly occur in Antwerp, Moscow Botswana, Dubai. Trading centres for sales of polished diamonds are focused in New York, Israel, India, Hong Kong/China and Antwerp. But before you pack your passport, you should know that wholesale diamond prices are exactly the same across the world. As explained by Russell Shor, GIA’s senior industry analyst, “It is a myth that diamonds and gems can be purchased significantly more inexpensively at their source.”
The 4 factors which determine a diamond’s Retail cost are:
1) Global diamond wholesale prices (set globally by Rapaport International)
2) Taxes & Import Duties, such as GST (in Australia), VAT (in America)
3) Retail mark-up
4) Consumer demand
Because wholesale pricing is standardized, when comparing diamonds at a wholesale level, prices are stagnant across the world. Diamonds offered at significantly lower prices will certainly be lower quality as well (especially diamonds traded purely online without being seen in the flesh before bought). To ensure you get what you pay for, be sure to purchase from a professionally trained jeweller with Gemmology certification credentials, he or she will have the technical expertise and practical skills to determine the quality of gemstones. Also always ask to see a diamond grading report from the worlds foremost diamond grading authority- GIA. As an additional measure, you can confirm the details of any GIA diamond grading report via GIA’s online report verification tool Report Check.
First and foremost learn about diamonds, jewellers and wholesale diamond experts KUSH Diamonds educate their consumers, not just sell to them. The GIA 4Cs are how quality is determined because diamond quality is always tied to price (there are many other factors in GIA Certificates apart from the 4Cs which will also affect price- namely measurements, fluorescence, polish and symmetry). Familiarizing yourself with the 4Cs and the different factors that go into determining a diamond’s value–is the best way to ensure that you’re making a smart purchase. As educated credited professionals Kush Diamonds are amongst the top diamond wholesalers and jewellers globally, matching global quality and wholesale prices directly to consumers. Always be weary of buying what appear to be “good deals” from online retailers as there is always a catch to very undercut pricing for diamonds you have not seen in person, and without understanding the GIA Certificate in detail.
Diamonds viewings (by appointment only)- email firstname.lastname@example.org or call (03) 96023337.
Want to learn more before you dive headfirst into the world of engagement rings? Let us share with you some exciting trends and quick guides to get you on the right path to finding the perfect diamond ring for your partner.