Thursday, October 28, 2010

Buying and selling diamonds - Quick guide

Here's a quick guide about buying and selling diamonds.

Buying diamonds online

Despite living in the age where computers and Internet are vital parts of our lives there are still many people that hesitate to buy diamonds online, and instead have more trust in local jewelers than selecting one of many diamond selling websites.

Since diamonds are the most expensive jewelry saving some money is always wise thing to do, and when it comes to money savings than buying diamonds online is usually the better option compared to your local jewelry stores.

Many diamond selling websites will offer you better prices compared to the ones you'll find in your local jewelry stores. Not only that these websites offer better prices but also give you much better selection.

Internet is really a gigantic world of shopping, and diamonds are one part of this online world. Regardless which jewelry you plan to buy you can always find it on the web, plus you can also compare diamond prices prior to buying to ensure maximum money savings.

By buying diamonds online you can often find big discounts because discounts ensure consistent sales so these online jewelers are ready to sell at lower price because at the long run this strategy gives them bigger profits. And of course you get to save a lot of money.

But you should always be cautious because diamonds are expensive merchandise, and the last thing you want is to buy some piece of diamond jewelry that is either overpriced, or it doesn't have the declared properties.

Therefore you should always look for different forums that discuss about reputable diamond websites to know which online jewelers you can trust, and which of them are not to be trusted. The online jewelers that have reputation will unlikely do anything to lose it because reputation is one of the key elements to succeed in diamond business. Therefore always look for reputable online jewelers, especially if you lack the basic knowledge about diamond jewelry.

Free useful information about buying diamond online is widely available on the web so don't be lazy and search for relevant info, after all it's all about your money, and how to spend it as wisely as possible.

The good thing to start with is to get a basic grip, about 4C's (carat, cut, clarity, color), and then do a background check via forums to get the necessary info about online diamond jewelers that interests you. After this you can start your online diamond buying adventure.

Advantages of buying diamonds online

First of all when buying diamonds online you really have all the time in the world to select preferred piece of jewelry between really huge selection of available diamond jewelry. You have all the time, and all the peace not being constantly suggested by jeweler what is the best choice for you. You know when going to store how exhausted you can't get? When buying diamonds online this is really unlikely to happen, there's no traffic, no finding parking, and the best part of them all is speed of transactions as everything can be done in matter of minutes.

The one things that strikes fear in many people when buying diamonds online is safety, namely how can I be safe that I'll actually get the diamond I'm paying for? There are some things that can definitely put your mind to rest and here are the things you should do to ensure safety of your purchase:

1. Learn at least basic info about 4 C's. The more you know about diamonds the less chances are for you to do mistake when purchasing them.
2. Compare prices and terms of as many as possible online jewelry stores to make sure to get the best possible deal.
3. Ask for credentials for certain store, and search for comments of previous customers on different forums to know of any potential problem.
4. Most online jewelry stores will have customer service so don't hesitate to call them, and ask them everything that interests you. After all they are her for you, or at least should be.
5. Look for certifications, appraisals, or diamond grading reports of their diamonds before buying them to be on the safe side.

How to safely buy diamonds

Diamonds have very high price, and therefore it is always wise to buy diamonds from a reliable source. The last thing you want is to buy some fake diamond jewelry, and therefore many people decide to buy diamonds with diamond certificate, especially if they are after some really quality piece of diamond jewelry. Reputable jewelry stores usually acquire diamond certificates from professional grading organizations such as GIA. Diamond certificate is really a guarantee that the piece of diamond jewelry you bough is actually a real diamond, and not moissanite or cubic zirconia that cost significantly less than diamond but look almost the same. Therefore it is always wise to ask seller for diamond certificate which tells you about the quality and origin of diamond(s) you plan to buy.

Many reliable jewelry stores also provide a money-back guarantee with all of their diamond jewelry. If you are buying exquisite pieces of diamond jewelry that are extremely costly then this type of guarantee is just what you need to keep it on the safe side. The price of all diamonds is determined by the holy bible of diamond business, namely the 4 C's , and any reputable jewelry store is certain to give you information about 4 C's so make sure to learn at least basic info about 4 C's.

In any case, when buying diamonds it is always recommended to keep it as safe as possible. After all we are talking about very high prices and the last thing you need when buying diamond is to discover that you haven't actually bough diamond but some diamond simulants like moissanite or cubic zirconia.

Should you go for diamond certificate?

People that like to play on safe card should really consider going for diamond certificate when purchasing diamond engagement ring. Diamond certificate is not only an excellent safety measure that guarantees quality of your diamond but it also helps you verify your diamond value if for instance you need to resolve some issues with your insurance company in case you lose your diamond. The purpose of diamond certificate is really to ensure customer that there's no doubt whatsoever about value and quality of purchased diamond.

The only negative side with diamond certificate is that this is really an additional cost to already expensive purchase, and if you're on a tight budget every buck counts a lot. So what to do? Go for diamond certificate or not? Well I would suggest that you definitely go for it in case you're purchasing some really expensive diamond engagement ring because in this case it's always good to know that you didn't spend all that money for some stone of suspicious quality. After all if you could give away a fortune for diamond ring then you can add a few dollars more for insurance.

If you're going for some rather cheap diamond engagement ring then diamond certificate is really not something I would recommend. After all you can't buy something of highest quality for small amount, so there's really no need to have diamond certificate. But for any diamond purchase above $5000 I would recommend diamond certificate because $100 to $200 that G.I.A. charges is really a small price to pay, and it will ensure safety of your purchase, so you'll know you've bought the "right stuff".

G.I.A. has also recently added a so called "Dossier certification", which is really a miniature version of the standard full G.I.A. diamond quality report. It has all the necessary info except the inclusion and blemishes. The Dossier certification report is primarily used on smaller diamonds because it is lower in cost.

What about diamond insurance?

It is always smart thing insuring something you spend fair amount of money to ease your concern and since diamonds are anything but cheap concern is always there. Basically there are three different types of diamond insurance: Actual Cash Value, Replacement Value, and Agreed Value.

The most common diamond insurance is Replacement value insurance where insurance company will only pay up to a fixed amount to replace the diamond that was lost or damaged beyond repair. In most cases with this diamond insurance company will pay less money than insured as this insurance means they will pay up to that amount and they will try to negotiate lowest possible cost to replace your diamond.

Not that common type is an Actual Cash Value insurance where the insurance company is obligated to replace the diamond at today’s market value, no matter how much you actually paid for the diamond to begin with.

The third and the rarest type of diamond insurance is Agreed value insurance. This is the most desirable insurance since if your diamond is lost or damaged beyond repair, the insurance company will pay you the amount that you and the company previously agreed upon. Try to always get this diamond insurance if possible. If you can't get Agreed Value then Actual Cash value diamond insurance should be your next choice.

What about your rates? Your rates will be determined mainly by the value of diamond combined with other factors, such as for instance area you live in. It is therefore very wise to get a certificate for your diamond because this way diamond insurance company won't give you much trouble about the actual value of your diamond. Also try to make sure that your diamond insurance company covers you during your travels and in other normal occasions to avoid any problems in case your diamond gets lost or damaged in any of these normal occasions.

How to sell diamonds?

Diamonds are more than shiny stones and exquisite pieces of jewelry, they are also extremely desirable investments, mostly because of their liquidity which makes diamonds sell fairly easy. Here are some tips that will come very handy when selling diamonds. As with many other things too, when selling something it is of most important value to know as much as you can. With diamonds the excellent starting point are of course the famous 4C's . This are really the basic things you should know before starting selling diamonds. Of course do more you know gives you in better negotiating position when selling diamonds.

In case you prefer an expert opinion about the real value of your diamond before selling it the wise thing to do would be to have it appraised at its Rapaport value. This Rapaport value is basically a diamond's wholesale value that has special weight because of its fame. This of course isn't the cheapest solution but it gives you valuable data about real value of your diamond so you can start the negotiations knowing the actual value of diamond. Of course you will want as much as you can get for your diamond so you should try finding someone that could pay you more than wholesale value.

How about investing in diamonds?

Diamonds are not only quality pieces of jewelry but also very fine investment. Diamonds have been luxurious goods since ancient times, and even today they present smart investment. Diamonds prices are constantly growing in the last 100 years, and above all diamonds are internationally recognized goods. You can buy diamond in Europe and sell it in USA, and there is also no problem in exchanging it for any currency, in any part of the world.

Diamonds are much better investments than for instance antiques or art, because they don't lose their value with time, in fact their value is constantly growing, and there is even possible to predict its value increase over certain time.

Diamonds are also traditional value as they represent that "winning combination" of beauty and high value. Diamonds are also extremely mobile goods (because of its size), so technically you can transport couple of $ millions worth value in your pocket, easy and quietly. This mobility comes especially handy if you have to make "quick getaway" (natural disasters, fire, floods), whereas art collections for instance don't have this luxury of easy mobility, and can therefore present lost investment. Diamonds are also almost indestructible, they can only be scratched by other diamonds, and have lifetime of couple of million years which means they will last (with basic care) for at least next 1000 generations after you. And with time their value will only grow. Diamonds are also hidden treasures , and something you can successfully hide from your environment if you want to keep low profile about your fortune.

And the recent major economic growth in some countries in Asia (China, India) has also affected their diamond consumption, and the demand for diamonds will grow significantly. It is really not the question whether the investment in diamond is a wise move, it is more the question of whether you have sufficient funds or not. If yes then diamonds should be among priority choices of any wise investor.


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