Jewellery

WHAT ARE WHOLESALE DIAMONDS?

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For people who subscribe heavily to the religion of buying and selling, the concept of wholesale is not something new. It’s defined as selling goods in “large quantities” so that it can “be retailed by others.” Wholesale can often be related to common, everyday items like clothes, bags, shoes, and other supplies – basically things that are easy to make, buy, and resell at mark-up price.

Can the same logic be applied to something far more expensive and far less common? What are wholesale diamonds, and what’s the truth behind the concept?

WHOLESALE: DICTIONARY DEFINED

If following the definition given by Webster, wholesale is buying something in bulk (usually tax-free) for the sake of saving money and eventually selling them at retail price to earn more. Minimal mark-up is usually the reason whysurplus goods stores and outlets are targeted by the masses; you save moreon wholesale goods than you do on custom pieces.

Following this line of reasoning, it’s safe to assume that people searching for places to buy wholesale loose diamonds are looking to earn an exorbitant sum of cash through reselling and retail.

Business

On the internet alone, dozens of websites and companies are offering bulk diamonds at wholesale price. But is it possible to apply the concept of wholesale and retail to something as rare, expensive, and custom-made as diamonds?

The answer isn’t a simple yes or no. The truth behind wholesale diamonds is that there have been some major misconceptions regarding the term, and the dictionary definition for wholesale just doesn’t cut it.

WHY WHOLESALE?

People looking to buy wholesale loose diamonds are really actually just looking to buy a bunch of diamonds with minimal mark-up, no tax, and no government fees. Buying and selling wholesale diamonds comes out as a win-win situation for both the wholesaler and the retailer. The mark-up allowed per individual diamond isn’t very significant. It’s so small a price, in fact, that it’s considerably impossible for a retailer to make money or profit off one single sale. This is why they need to sell itin bulk.

WHOLESALE: THE DISTRIBUTION CHAIN

To understand how loose diamonds make their way onto the commercial market, here’s a quick break down of the distribution chain: once the diamonds are mined, they’re sent over to a diamond cutter to be cut. Once they’re cut, they’re given to a wholesaler. The wholesaler than sells the diamonds in bulk to a retailer, who then sells them at a much higher price – a price that now includes mark-up, tax, government fees, retail fees, and so on.

WHY THERE’S NO SUCH THING AS WHOLESALE DIAMONDS

First of all, there is no set price for wholesale loose diamonds. Every diamond is priced differently. Their worth and value is hugely dependent on a set of rigid gemological internationalstandards. Every diamond is different, and it’s really up to the dealer to set the price of the diamond after they buy them in bulk.Regardless of price, name, or type, anyone selling diamonds – no matter what they say – are retailers, not wholesalers.

But wait. What about the people you can buy diamonds from cheap? Are those wholesale diamonds?

Nope. As stated above, retailers and dealers dictate the price of the diamond. They could have bought them off the wholesaler at a really, really cheap price and can thus afford to sell the lot of them at a relatively lower price compared to other seemingly similar diamonds on the market.

Bottom line, you can’t buy diamonds at wholesale price online, no matter what the sites say. If you’re not a certified retailer or reseller, you’re getting those diamonds at what is officially considered retail price.

For wholesale Diamonds visit MID House Of Diamonds.

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