- Diamonds are not unusual. We can also get massive markups, well above what we paid for them.
Based on their rarity, all gems are priced (as are most things in life). Diamonds, however are plentiful. Extraordinarily plentiful. There are enormous safehouses in the De Beers cartel where they hold much of the world’s diamond supply. The monopoly would be over if they were ever released into the market, and diamonds would be worth almost nothing. Diamonds are artificially high and can be bought for as low as $15 per carat (rough cut) in most African countries. They’re basically a pleasant stone. For more details click Boyd Jewelers-Jeweler.
Diamond wedding rings are marked by retail jewellers by an average of 300 percent to an incredible 1000 percent . The figures on markups are large, but most of the credible sources we’ve seen say that the normal markup is 300 percent. Your friend who claims he purchased a $10,000 ring for $1,000 might be on the level. Although a markup of 1000 percent is not standard, it’s not unheard-of.
Diamonds have little value for resale as well. The reason a “diamond is forever” is that you’re stuck with it, essentially. And in a pawn shop, you’ll never be able to resell it. Even a jeweller would sell a fraction of what you paid (the few who would be able to purchase it).
- Synthetic diamond or gemstone in a gold setting on top of the line? That would be under a thousand bucks.
- There was a face-lift on your ‘perfect’ gem.
The brilliant-looking diamonds in your jeweler’s case are not really just what they seem to be, thanks to science and technology. In certain situations for example, they may be “fracture-filled” referring to a treatment in which noticeable cracks are filled with a glass-like material, making a stone look more costly than it is.
We’re not sure what to do about this. If the worth of a diamond only exists because of its rarity, then why would a watered down version be offered by jewellers? Wouldn’t that push down demand (and cost) because the availability of desirable diamonds is increasing? We are baffled at how diamond rocks are so unfairly costly and glamorised, beyond the view of macro economics.
- In general, we all buy our gold and platinum settings from the same provider.
Many jewellery stores (including Tiffany & Co.) buy their configurations from a handful of major manufacturers, or even from a single major national or global producer. These same vendors sell to e-commerce outlets, allowing customers to get the very same online experience and service as they would at a slightly cheaper price in a bricks and mortar store.