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How Much Do Diamond Wholesalers Make?

When some people buy diamonds, the majority of them prefer to buy wholesale diamonds instead of retail because of the set prices. There are a ton of authentic wholesale diamond dealers in Dallas that you could go to if you are interested in buying wholesale diamonds. Which leaves you wondering, how much do diamond wholesalers make? How much do diamond dealers pay for diamonds?

How much do wholesalers pay for diamonds?

Traditionally, wholesale is often tax free when it comes to purchasing large quantities of goods. Most of the time though, unless you have a personal connection with one of the many manufacturers or the cutters of diamonds who would allow you to purchase direct and tax free, then you are not buying wholesale.

Can you make money selling diamonds?

Diamonds actually are an investment. You could buy diamonds and sell them in different ways, here are some of the common ones.

Buy in Bulk from Diamond Wholesalers

Buying loose diamonds at a wholesale price is much more worth it. If you are buying it as an individual, there is a chance that you could get the diamonds at a discounted price. You should have an amount in mind already before you meet the wholesaler that you are going to be buying off of, and make sure that they have GIA certifications.

You could negotiate the final price with the help of quotes from the Rapaport Diamond Report that happens weekly and use that as a point reference for diamond prices with different qualities and characteristics. It does not mean just because the diamonds are loose, you get to compromise on the quality and the price.

Sell to the Diamond Industry

Selling your loose diamonds would automatically have potential clients in the diamond industry, including diamond dealers. The diamond dealer would typically offer you a price that is 10 percent of the listed Report value depending on the type of diamond that you are selling them. Even if you give an appraiser a much higher price for your loose diamonds, you should not be shocked that the dealer ignores it and goes with Rapaport’s figures.

This all depends on you, you are allowed not to accept the offer, but you may gain insights when you are going through this process about the true conditions on your diamonds like the unexpected flaws and damages.

Sell Loose Diamonds As Is to the Public

If you want to make money by selling your loose diamonds, you should sell them to the public online. It is a much more affordable way to sell it. You could use platforms like eBay, Amazon or classifieds posted on the internet. This would allow you to reach a much broader audience with having to pay for additional costs of opening a physical store.

You are going to need to be aware of the prevailing market conditions when you are choosing to sell your diamonds this way though, and what the majority of retailers and smaller competitors are pricing their diamonds. You could price it a bit higher than the small competitors, and just adjust lower as demand occasions.

Factoring the time of the year and the season when you are debuting your products, taking into consideration that people shop for jewelry and engagement rings during certain peak times like the holidays.

Customize Loose Diamonds for Profit

You could traindo em loose diamonds into finished jewelry like rings, necklaces, earring and the like when you are a licensed jeweler. You could expand your shop when you do this, giving your customers a much bigger product to choose from.

If you aren’t, you could sell components of jewelry like ring settings, which your customer could choose to buy alongside their loose diamonds so that they could just go to their local jeweler to have the components be put together or be designed according to their taste.

Why is diamond resale value so low?

The diamond resale value is love compared to all of the retail prices because wholesale jewelers buy the diamonds by the bulk, which makes the price relatively lower. You pay much higher when you buy diamonds from retail sellers because it could also include overhead expenses like rent and personnel salaries.

Wholesale dealers could make much less than retail sellers, but their pace is steady since they aren’t as overpriced than retail sellers, which is better in the long run.