Diamonds are not rare. We still can get huge markups, well beyond what we paid for them .All gems are valued based on their rarity (as are most things in life). But diamonds are plentiful. Extraordinarily abundant. The De Beers cartel has enormous warehouses where they keep most of the world’s supply of diamonds. If these ever got released into the market, the monopoly would be over, and diamonds would be worth next to nothing. Diamonds are artificially high and can be purchased in most African countries for as low as $15 per carat (rough cut).They are literally a pretty rock . Retail jewelers mark up diamond anniversary rings by an average of 300% up to a staggering 1000%. The estimates on markups are broad, but most of the reliable sources we’ve seen indicate that 300% is the usual markup. Your acquaintance who says he bought a $10,000 ring for $1,000 might be on the level. While a 1000% markup is not typical, it’s not unheard-of. Diamonds also have no resale value. The reason a “diamond is forever” is because you’re basically stuck with it. You’ll never be able to resell it except to a pawn shop. Even a jeweler (the few who would be willing to buy it) would offer a fraction of what you paid.
Laser-cut, scientifically created diamonds, are flooding the market.
Man-made gemstones, or diamond simulants have been in the market for several years, with more being created every year. The diamond industry is so scared of this fact, that they are giving special machines to some merchants to help them identify their existence. This serves two purposes: to scare the public from using them and to prevent a simulant diamond purchaser from returning it as a diamond. Simulant diamonds have the same optical qualities that have all of the four C’s. There are no flaws here.
Thanks to science and technology, the brilliant-looking diamonds in your jeweler’s case aren’t all necessarily what they appear to be. Your ‘brilliant’ diamond has had a makeover. In a lot of cases, they could be “fracture-filled”, visible cracks are filled with a glasslike substance , making a stone look more expensive than naturally is.
We all generally purchase our gold and platinum settings from the same supplier. Many jewelry stores (including Tiffany & Co.), buy their settings from a handful of main suppliers-or even only one main national or worldwide manufacturer. These same suppliers sell to e-commerce stores, enabling people to get the exact same setting and quality online as they would in a bricks and mortar store, for a significantly lesser price.
There’s blood on this diamond. Since the public has been made aware of conflict diamonds (from the movie “blood Diamonds), the diamond industry has done their best to clean up their image. Conflict stones come from countries where they use child slave labor to extract the gemstones. The diamonds are sold and the profits from which are used to finance bloody civil wars and unethical dictatorships. The Kimberly Process was drafted as a public relations response. The process was written to explain that all diamonds were to be certified as coming from companies that extracted the stones using ethical standards – no child labor, no forced slavery, or brutal work camps. Unfortunately the process doesn’t work, as there are still tons of diamonds that enter the market every year.
We hope you don’t go online after looking at the rings in my store and finding the right size for your finger. The salespeople at the stores are specifically trained to put doubt and uncertainty into your mind about making a purchase online – even though the they have the exact same settings as online stores and all the other stores in town. They don’t want you to walk out the door with their exorbitant profit to pay for their massive overhead costs (inventory, salaries, insurance, utilities, display cases) – costs that are passed onto you. Online stores can offer a substantially lower price, since they don’t have the same overhead as a retail store.
You are my sales goal – walking in right now. The salesman behind the counter has been thoroughly trained and prepared to say the right things to direct you to the ring he wants you to buy. He’s going to steer you away from ‘unpopular’ rings – they’re the rings your grandma used to wear, so they can upsell you on a 3 carat monster ring. Salesman don’t have your interests at heart, they’ll do or say whatever it takes to get the sale – which includes stretching the truth about conflict diamonds – they have absolutely no war to authenticate it’s not coming form a conflict free zone. But they’ll give you a piece of paper that explains it to pacify you.
I swapped your diamond with a simulant. Stone swapping isn’t that common, but some experts say that antique pieces (high in demand) – like those in the 18th century or 19th century European cuts – have been specifically targeted. If you go to a florist and ask for a beautiful orchid, you’re not expecting to get one from Central America. You’re not going to care that it was grown in a green house an hour away. As long as it looks beautiful and like the real thing, that’s all that matters.
The warranty we’re giving you is a little shady. In order to keep the warranty up to date, you will have to have it visually checked every six months. They claim there are thousands of locations nationwide where you can get it ‘inspected’ – but they know that most people will not be that religious in keeping that up to date. So if you miss one inspection – out the window goes your warranty – and also their responsibility to honor their claims. They also offer a free replacement, if you happen to drop the ring into the garbage disposal and it gets crushed. They require you to recover a spec of the stone for ‘proof’ when in reality most of the rings are lost in places that a rarely recoverable (ever since the guy on the beach with a metal detector?)
The massive 60% off sale is not a ‘sale’ – but a way to get you to buy
If you see a sale price in the newspaper, don’t fall for it. You will probably pay much more than the regular price. We know of some major stores in the mall that prior to a sale, marked up diamond rings double or triple the normal selling price, then marked them half-price during a sale. That means the customer paid even more for their ring, thinking it was a great price! Liquidation and “going out of business” sales are usually no different. We heard of one store in Miami that has been going out of business for 15 years.
Author Julia McKinnen has been speaking on the diamond scam in the United States for the past ten years. Her fascinating insights into the diamond industry and diamond simulants are available on her blog and new web site.
categories: engagement ring,wedding ring,anniversary rings,eco friendly,conflict free,jewelry,man made diamond
