How Can You Save Money on Purchasing Wholesale Diamonds?

Wholesale diamonds save money. Many retailers buy wholesale diamonds because it is easier and cheaper. You also don’t need to be a retailer or shop owner to reap the benefits of saving money in buying wholesale diamonds. Anyone who wants to save money can buy wholesale diamonds, even in online stores.

Buying cheap wholesale diamonds will be a tip that you wished you knew sooner as it can save you a lot of money when compared to buying diamonds at retail prices.

What is the Difference Between Traditional Diamond Retailers and Wholesale Diamond Sellers

Wholesale Diamond Sellers

Wholesale diamonds are diamonds in which you buy directly from the wholesaler, which are different from diamonds bought at a retail store. Retail stores tend to have limited options in diamond cuts or shapes, wholesalers have a vast array of options for buyers. Retail stores tend to have higher mark-up prices while wholesalers have competitive prices.

Those that directly import diamonds will offer the attractive advantage of selling wholesale diamonds. They sell diamonds at wholesale prices because they often manufacture diamonds and other jewelry that contain diamonds.

Other diamond manufacturers might also sell their diamonds to retail stores like the usual brick and mortar stores such as those found inside malls while others like to directly sell it to those wanting to buy diamonds straight from manufacturing.

Those who buy straight from the manufacturer save money because they eliminate the added cost of having a middle man such as buying from retail stores. Manufacturers also sell the diamonds they import at the same wholesale prices.

When this happens, those buying cheap wholesale diamonds will pay less because of their wholesale prices.

Traditional Diamond Retailers

Traditionally, when people want to buy a diamond the usual way to do it and the most common way to buy is to go to a mall or a jewelry store. These jewelry stores are often located at popular malls and shopping centers where there is a lot of foot traffic so most people know where to find them.

Diamond retailers usually have a huge amount of inventory in store so diamond companies such as big-name companies incur huge overhead expenses for their large inventory. Brick and mortar jewelry stores have high expenses because of their employees that man their stores and if they don’t own the building or store location, they have added rent and maintenance expenses.

Large diamond companies often purchase diamonds by bulk orders to save money and sell diamonds with high margins. They do this because they need the markup to continue to support their store operations. Diamonds can also take their time in being sold as they are not products that are easily bought like bread and milk so, for their long time in storage or display in stores, such markup on the diamonds is needed.

Customers who buy wholesale diamonds will find themselves paying for diamonds that companies already calculated the cost, expenses plus markup to make a profit. That is why a carat diamond engagement ring can cost vastly different if you compare prices from retailers and wholesalers.

Custom Diamond Searches

One great way for you to save money other than buying wholesale diamonds is through custom diamond searches. Even though a retailer’s diamond store can transform old and used rings such as heirlooms into new rings, buying a particular kind of diamond at a traditional retailer can cost you major bucks.

However, direct manufacturers and diamond wholesalers have the ability to procure a large number of diamonds. This can be made possible through custom diamond searches.

Custom diamond searches mean that if a customer has a specific preference of what kind of diamond they like such as the 4C’s (cut, clarity, carat, and color). The diamond they want will directly be imported and sold at a wholesale price without incurring other additional costs.

3 Reasons Why Wholesale Diamonds Saves You Money

1. Tax Incentives

When you buy wholesale diamonds, chances are that those purchases are tax-free.

It is tax-free as you buy in large quantities or in bulk and they are bought in mind for resale later on. When you buy diamonds at retail price, the price is inclusive of tax per transaction.

2. Low Prices

The price is less expensive when you buy wholesale because buying wholesale diamonds cuts away through all the unnecessary costs and allows you to buy diamonds at 50-70% less than retail prices.

When you buy wholesale you don’t go through various middlemen and thus you can save more money.

When buying diamonds at retail prices you are paying for the diamond with a high margin. Many people who go retail for diamonds think that it is more convenient for them as most stores are found in outlet malls or strip malls and they can compare prices that way.

Retail stores actually put in high margins as they have the rent and employees’ pay to think about. Retail stores may buy diamonds in bulk from wholesalers but they put retail prices even on loose diamonds.

When retail stores buy from wholesalers they can have a profit of 10% or higher but when they sell diamonds their markup can be 30-50% or higher.

3. Wholesale Diamonds are also GIA Certified

Wholesale diamonds are no less different as they can also be certified and so when buying wholesale diamonds ask to see certification from the GIA or AGS.

When you buy a wholesale diamond that is GIA-certified, you are assured that the reports about your diamond are truthful and unbiased.

What report does the GIA give with a certification? The GIA analyzes the wholesale diamond and provides a complete report detailing this information:

4C’s or carat, cut, clarity, and color
Whether the diamond has been treated to improve its appearance
Grades on polish and symmetry

The wholesale diamonds are also given a laser inscription that has the GIA report number within the stone to prevent fraud. This number is included on the GIA certificate to ensure confirmation of the stone’s identity.

It is important to keep in mind that when a diamond dealer or jeweler is not willing to provide the actual GIA certification, it is best not to purchase that wholesale diamond.

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