Debunking the Myth on Wholesale Diamond Prices
Many Gemmologists may argue that there is no such thing as wholesale diamond prices being available to the general public, and that a dealer selling diamonds at “wholesale prices” is nothing more than a farce. In order to understand this claim we first need to understand the diamond supply chain. Here is a short breakdown:
Firstly the diamonds are excavated from the diamond mines, the most popular of which are situated in Angola, Botswana and South Africa. These diamonds are cut, polished and graded – this is known as the manufacturer stage. The diamonds are then purchased in bulk by diamond dealers, the wholesaler, and finally sold to the retailers, like jewellers and high-end jewellery stores. This is the retail stage where the diamonds are finally available for public purchase. It is estimated that approximately 95% of diamonds are sold at this level, but, of course, by this time the diamonds have reached the end of the supply chain with the price of the precious stone having reached its maximum.
So, if you were able to intercept the stones at an earlier stage in the supply chain the price of the diamonds would be cheaper – hence, wholesale diamond prices. If the public gain access to wholesalers then the retailers no longer have a monopoly on the stones and cannot drive up the price.
How We Provide Wholesale Prices?
We offer diamonds at wholesale prices in South Africa. In theory the idea of wholesalers selling off the stones for a cheaper price is flawed, why? In order for a wholesaler to cut out the retailer they would have to incur added costs such as rent on a store, overheads and staffing costs in order to make the diamonds available to the general public. In a sense this would mean that the wholesalers would essentially become retailers anyway, shortening the supply chain and increasing the price, and what does that mean at the end of the day? No wholesale prices. So, the Gemmologists are right then? Well, yes, for a long time they were as the aforementioned aspects of the different components in the supply chain maintained the balance…until a game changer entered the fray: the internet. Finally this meant wholesale diamonds for sale on a truly lucrative platform.
What You Need To Know About Wholesale Diamonds
The internet and online wholesale diamond sites increased the diamond supply chain in a massive way. These sites could now afford to offer discounts of up to 40% while still not disrupting or upsetting the retailers who were offering finished products such as rings and necklaces, instead of loose stones in the diamond wholesaler’s inventory which still needed to be set. The result: Diamonds we’re now available to everyone, even your blue collar worker would be able to find a stone which he could afford while the wealthy still had exclusive rights to the retailers high end jewellery products. It sounds perfect, doesn’t it?
Unfortunately, as diamonds became available at wholesale prices there was a marked drop in the quality of the stones. This was not the case across the board, but as always there were dealers who were pushing out poor quality stones at inflated prices.
This, unfortunately, is the way of the world and our advice would be to make sure that you have done your homework, buy from a reputable dealer and ensure that you are aware of what you are buying or selling before you make the transaction in order to get the best possible deal and value for your money.