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How you can drastically reduce the cost of your diamond purchase if on a budget?


How you can drastically reduce the cost of your diamond purchase if on a budget?

 

To the professional diamond merchant the underlying paramount principle is to offer clients the very best deal possible.

This emanates from vast experience in the field of diamonds subsequently viewing and grading diamonds almost on a daily basis equips the diamondteer with enough knowledge and confidence to propose just the right diamond.

Clients typically purchase and wear these dazzling rocks and feel happy about their acquisition and possibly pass it to their next of kin or as tradition has it they are ultimately passed down to younger generations. Whereas the role of a professional diamond grader or merchant is one of essence. The essence to contribute something of value at an unbeatable price.

The advice to clients should be unbiased and clear – based on facts.

A few of these facts are the topic of this discussion but it will not be possible to go into great detail in terms of technicalities to keep it short and simple.

Size: Firstly a diamond appears on average 30% larger to the naked eye once mounted on the “right ring” which helps in expanding the face of the diamond so to speak i.e the top part of the diamond to the observer. An experienced technical team can advise which is the most suitable ring design. Thus if a client is seeking to purchase a 2 carat diamond it is sometimes advisable depending on the budget of the client to purchase a 1.60 -1.70 carat diamond as that will appear to the observer as a 2 carat diamond – keeping in mind again if it is mounted on a suitable ring design.

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Colour: Secondly – once a diamond is mounted on a ring the metal of the ring will undoubtedly reflect within the diamond due to the reflective nature of the facets of any particular diamond. This can be taken advantage of by the client. Example: a 2 carat diamond G color or an I color diamond will appear almost the same once it is mounted on a ring. Realistically the price difference between a G color and an I color is quite a bit. Hard earned money saved saved again by the purchaser.

 

Clarity: Thirdly the point about Clarity. Not many people are aware about this particular fact and this is the “real money saver”. Mostly clients interested in purchasing request for a VVS or a VS clarity diamond. Those who can afford are welcome to buy. Unless one use’s a jeweller’s loupe which comes with a 10x magnification it is difficult to pinpoint where the inclusions are located. Definitely not with the naked eye – guaranteed.

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The twist comes when diamond professionals use their experience, expertise and a willingness to go the extra length to source (not with ease as possibly 50+ diamonds or more need to be inspected on some occasions) a diamond with a SI2 clarity that is eye clean and looks similar to a VS diamond. This really has an impact on price in terms of lowering it and the diamond is eye clean.

 

 

If one were to follow the above 3 steps with the help of a trusted professional diamond merchant with years of experience – one can seriously reduce the cost of the diamond of choice and yet have money left over for other expenditures…..

For further clarification of the 3rd point (Clarity) I have listed below for the benefit of our readers – the prices of different carat weights (1 carat & 2 carat) in G color with different clarities so that one can practically see and understand fully the impact of the price differences – which were discussed above.

The prices below have not been taken from our website BUT an online retailers website based in the US to give an unbiased perspective.

These are current prices as of today:

  • RD 1.01 Ct Very Good G VVS1: $7,620
  • RD 1.00 Ct Very Good G VS1: $6,535
  • RD 1.01 Ct Very Good G SI2: $4,540 (savings of over $3,000)
  • RD 2.00 Ct Very Good G VVS1: $25,477
  • RD 2.00 Ct Very Good G VS1: $23,110
  • RD 2.00 Ct Very Good G SI2 : $15,895 (savings of almost $10,000)

The proof is in the pudding so to speak and readers should really start to evaluate what they have been told by jewellers in the past and weigh “in their heads” – what they have just learnt.

Other articles written by the author which have been published in The National – a leading daily publication in the UAE which comprises of staff from widely respected publications including the Wall Street Journal, New York Times and the Daily Telegraph.

http://www.thenational.ae/lifestyle/personal-finance/diamonds-are-a-risk-free-investment

http://www.thenational.ae/thenationalconversation/industry-insights/the-life/de-beers-diamond-crown-at-risk

http://www.thenational.ae/lifestyle/personal-finance/money-me-nurture-relationships-to-build-up-your-business

If you are interested in searching for diamonds and or jewellery or know more about our establishment please click on the following link and you will have access to a new world of dazzling rocks – complete with 1,400,000+ certified diamonds at wholesale prices: www.dubaiwholesalediamonds.com

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Online Jewellers vs Retail Jewellers

Online Jewellers vs Retail Jewellers

 

The BIG question mark ?

So how do I start on a topic that makes simple & yet complete logic to people in the industry.

Sitting in my office observing our diamond grading team hard at work inspecting & professionally grading diamonds for a client who has placed an order for 3 dozen diamond bangles that we will manufacture & ship in 3 weeks. These same clients will then retail the very same diamond bangles in their local country at exorbitant prices from their fancy & glittering retail outlets – 5 branches currently.

I gaze towards the large span of Dubai with the main artery (Sheikh Zayed Road) helping people cross Dubai from one end to the other from Jebel Ali all the way to the outskirts of Sharjah past Dubai International Airport. A state of the art airport which today I believe caters to 50 million+ travellers as Emirates has become one of the foremost ranked airlines in the world. I think & try to visualize the number of tourists that arrive daily in the expectations of experiencing Dubai known for its sun & sand, the biggest and the best shopping malls amongst various other sightseeing places and mostly always returning back home with happy & good memories and lets not forget – yes a piece of jewellery be it a diamond solitaire, diamond earrings or whatever they fancy. Makes sense right ?

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And why not Dubai prices are the best in the world. Due to zero duty on diamond imports & no taxes Dubai is fast reaching the epitomic position of becoming the best place to purchase diamonds and jewellery globally.The world is changing and changing fast. Maybe its due to the fact that the internet has become such an integral part of our lives that if it is switched off we will probably find ourselves quite lost. Dependancy is growing and growing fast – be it via mobile/smart phones, iPads, Tablets, laptops, etc – the list goes on and on. The funny thing is so are market trends.

I read this article by chance last night where it states branded jewellers are looking at internet sales much more seriously than in the past as online sales for diamonds & jewelry has catapulted to new heights in recent years. And it hit me in the face. This is what we are exactly doing and this is our vision – with the exception of retail premises as we are diamond merchants & jewelry manufacturers basically in “Wholesale”.

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If you have read my other blogs or my LinkedIn profile I was fortunate enough to experience both – the retail and wholesale aspects of the diamond & jewelry business for quite a few years in the Gold Souk in Dubai. Being well travelled and exposed to different markets & cultures on almost a monthly basis (if not weekly) I understood quite clearly that customer trends for purchasing diamonds & jewellery is definitely and unquestionably changing. When branded jewellers are focusing today on an online presence there must be something to it. Logical – right ?

Safe to say I agree a 100% – with the article.

Here’s why: Logically a retailer will spend excessive amounts of capital on securing the right location which quite often leads to a large outlay of cash upfront (referred to as Key-Money), refurbishing the store to very high standards (trying to outdo the neighboring stores or competition) complete with the latest security camera systems, correct diamond lighting to enable the jewelry to sparkle when clients walk in through their doors, visually pleasing jewellery laid out in the best glass cabinets secure enough to avoid any mishaps. But it doesn’t stop there.

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Stocking the retail premises with the correct diamond solitaires stock and dazzling jewellery pieces is the most expensive investment. This figure can go from USD $1,000,000 to on average of $3,000,000+ and these figures are on the conservative side. Realistically stock costs more. And still you have to hire at least 2 shifts of staff as retailers are open from 10 am to almost midnight in Dubai. An average of 8-10 employee staff at the very least if not more. Due to cost management most of the staff is under qualified and not certified to sell and they have only 1 objective – to make the sale !

 

Add on top of that rents, insurance, bank financing, marketing budget, employee salaries, etc. God forbid if a particular jeweler has more than 1 location as then expenses for each location accrue and daily management issues multiply. The list goes on and on but I think you get the picture.

 

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And then the alternative – diamond merchants and online jewellers like us who create excellent rapport with 250+ established diamond manufacturers who buy directly from the diamond mines, cut and polish these very same diamonds in their very own diamond factories and then give us access to their stock so we can sell to our clients directly by adding a nominal margin as WE CAN – due to the absence of hefty expenses as described in the above paragraph. This is where our online platform springs into action: www.dubaiwholesalediamonds.com

 

Plus we have a very strict rule that favors our clients to their benefit – we don’t take any credit and thus pay our manufacturers “cash on confirmation” as this leads to much better & very competitive pricing as opposed to buying on credit – as is the common practise in the “retail arena.

 

We focus more on hiring professional & knowledgeable where possible GIA certified gemologists who are dedicated & experienced in the field and who can add value & actually assist clients by imparting relevant information not sales gibberish to make a sale.

 

Focus is on working almost 24/7 so that any & every client who approach us get prompt answers to their queries as we are dealing with different time zones – globally. Much to our satisfaction clients are increasing as they know what they want and if they don’t we are there to help them – every step of the way.

 

That actually puts a smile on my face as I have been told on numerous occasions by the wise old man sometimes saying it “loud” makes one understand it better. And believe me “our clients” have understood too and stand by us based on a common underlying theme: Why Pay Retail when you can buy Wholesale ?

Till next time !

 

Other articles written by the author which have been published in The National – a leading daily publication in the UAE which comprises of staff from widely respected publications including the Wall Street Journal, New York Times and the Daily Telegraph.

http://www.thenational.ae/lifestyle/personal-finance/diamonds-are-a-risk-free-investment

http://www.thenational.ae/thenationalconversation/industry-insights/the-life/de-beers-diamond-crown-at-risk

http://www.thenational.ae/lifestyle/personal-finance/money-me-nurture-relationships-to-build-up-your-business

 

If you are interested in searching for diamonds and or jewellery or know more about our establishment please click on the following link and you will have access to a new world of dazzling rocks – complete with 1,400,000+ certified diamonds at wholesale prices: www.dubaiwholesalediamonds.com

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