So You Want a Cheap Wholesale Diamond for Your Engagement Rings?
Engagement rings make up about 70% of the total diamond sales worldwide. For jewellers, it is a complete market on its own, and one that brings considerable profit. Irrespective of the price range of the jewellery chosen, final consumers end up paying a higher price because of the market practices in vogue.
Purchase your diamond separately from diamond wholesalers. One wholesaler is Diamonds Of The Sun based in Sydney but sells Australia-wide (Melbourne, Perth, Brisbane, Hobart, Darwin, Adelaide etc). Wholesalers source their stones directly from the cutters that polish the diamonds and then send it to a grading agency like GIA or AGS for certification.
Why should you purchase the stone separately? Australian Jewellers enjoy high margins from the following practices;
Workmanship charges: When adding a margin to the stone, the jeweller gets an opportunity to raise the price of the finished product to any amount depending on the market demand and the intricacy of the ring. However, these might not always reflect the true value of the workmanship, and the jeweller would always end up making a profit on this.
Flaws in the diamond: When diamonds are purchased already set in jewellery, there can be an issue with the quality. Flaws are usually hidden under the prongs. Sometimes, the diamond can also be chipped during the setting process, and in effect, the purchaser would be purchasing a flawed diamond even if it was not a deliberate fraud on the part of the jeweller.
Overheads: Big chain jewellery stores keep a large variety of jewellery pieces to be displayed to the customer and are ready to be sold. But this also entails large overheads for them to calculate in the expenses for the large showrooms, fancy showpieces and luxurious atmosphere. This amount is generally included in the sales price of the jewellery, hiking up the price by a hefty margin.
Double profits: Jewellers tend to make profits on both the stone and the engagement ring, increasing the total cost.
Lengthy supply chain: Another aspect of the diamond trade that drives up prices in jewellery shops is the existence of the intermediary agents. Everyone in the supply chain from the mining company to the jeweller has to make a profit and the end consumer has to pay for all these profits.
So, we recommend you shop around between the different diamond wholesalers there are online.
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