Thinking of proposing to your significant other or even just treating yourself with a piece of jewelry that you have been waiting for years? Want to buy some loose diamonds but do not know how and where to buy them? Here is the difference between the wholesale and trial prices of loose diamonds in Dallas. There are a ton of places that sell retail and wholesale diamonds in Dallas.
Loose diamonds are solid carbon compounds that are excavated from kimberlite deposits. After they go through various refining stages, they are given to you as an end product. They are usually already marketable and can be sold by attaching them to any piece of jewelry, such as a ring, pendant, earrings, and the like, but they can also be sold even if they are not mounted on a piece of jewelry.
What is the difference between Wholesale and Retail Prices of Loose Diamonds?
Whole prices of Loose Diamonds:
Wholesale diamonds do not necessarily refer to buying in bulk, it means buying at a relatively lesser price compared to the ones that would buy retail because let’s face it, no one buys 100 diamonds at once. People who are selling loose diamonds as a wholesaler have access to an average pricing report called the Rapaport Diamond Report. This is the standard pricing of the industry that is set up as a guide in a matrix that includes different colors, shapes, carats (up to 6 carats), and clarity. The wholesale might even offer you a discount on the Rap report during negotiations.
Retail prices of Loose Diamonds:
Jewelry stores are usually what pops in the minds of customers who are interested in buying a loose diamond, which is conveniently located in nearby shopping malls. These locations require a lot of money and have employees to pay which is why these stores have huge overhead expenses. The margins that are required to support these retailers require a huge markup on loose diamonds even though they buy their loose diamonds in bulk, which is why they sell their loose diamonds at a higher price to their customers.
How much do wholesale diamonds cost?
The profits of a wholesale broker are between 10 to 30 percent when they sell their polished loose diamonds to retail ships. The loose diamonds are already marked up 2.6 to three times the original cost by the time a loose diamond reaches a physical brick and mortar jewelry store and is ready to be sold to a customer. If a retailer resells wholesalers bought loose diamonds, they would usually make a profit of 50 to 100 percent.
Wholesale prices are usually sold in large quantities for eventual resale so they are often tax-free, but retail prices are tax inclusive on every transaction.
How to Buy Wholesale Diamonds
Step 1: Diamond Buying Information
This part is where you learn about all of the different diamond shapes, what makes a diamond high-quality, what you are looking for when buying diamonds of particular shapes, and how to buy diamonds purely for investment. During this time, people would usually read through the extensive library of informative articles online or articles provided by their wholesaler.
Step 2: Wholesale Diamond Prices
After doing all of that research, you already have an idea of what kind of loose diamond you are interested in. In this step, it’s time to have a look at the prices of the loose diamonds that you are interested in purchasing. Diamond prices work a bit differently in the wholesale diamond industry compared to retail diamond stores since they are divided into different categories.
Step 3: Price Quotes and Diamond Certificates
You may ask some diamond experts for free quotes once you have seen what type of diamond would fit within your budget. They will give you the requirements of the loose diamonds that you are looking for through their diamonds quote form. They will search their inventories for the exact loose diamond that you are looking for at the best possible price then send you the diamond certificates of the loose diamonds so that you could pick which diamond you would like to see.
Step 4: Seeing the Loose Diamonds
There are usually three options that you could choose from when it comes to seeing loose diamonds. You could either come to visit their offices to see your selection of loose diamonds, meet their agents to see the diamonds by appointment, or they could fly their consultant to wherever you are.
Step 5: Creating Your Own Unique Jewelry (Optional)
This step is optional, but you could get in touch with their jewelers (you could also go to different jewelers if you prefer) to create any type of jewelry you want with the loose diamond that you have purchased based on your sketches, or photos of designs that you may want.
You could buy at retail price if the price of the loose diamond is not a concern for you, but you may also be able to buy a different set from a wholesale retailer. When you buy wholesale, you are eliminating the additional expenses of retail stores since the diamond is passed to you directly. You have to always keep an open eye on different offers and deals, after all, who doesn’t like to buy something of good quality at a relatively less price?
