catfish
Well-known member
- Joined
- Mar 20, 2007
- Messages
- 159
I have received several requests for information on buying, and selling diamonds and gemstones. I thought I would post the following information so any one that is interested in this type of activity will at least have some of the basic information.
First of all let me advise you that I have been buying and selling diamonds for the past couple of years or so. I am still a neophyte. I learned the basics from my son, who has been in the business for several years and has been quite successful in this business.
Buying and reselling diamonds is a very serious business and requires a very comprehensive knowledge of diamonds and also the market for reselling same. There is a 900% markup in the price of diamonds from the jeweler to the buyer of used diamonds.
I do not fool with any type of gemstones at all. There are too many variables involved in determining the type of gemstone, quality and most important of all the value. The diamond and gemstone business reminds me of the age old adage “beauty is only in the eye of the beholder”.
I will attempt to post a few very important things one must be aware of in the diamond business. The first rule of business is “Supply and Demand”. There are a lot of diamonds on the open market and there is a market for them. The key is being able to determine a fair purchase value and be able to sell the diamond at a profit. Just like the used car business.
How to determine the quality of a diamond:
1. Test the diamond with a good diamond tester.
2. Make sure the diamond is not a synthetic such as Cubic Zirconium or Moissanite. A state of the art diamond tester will perform these tests with good results.
3. Once you have determined that the stone is a real diamond, then measure the stone diameter or width and length, depending upon the cut. You will need a diamond measuring device or a good pair of calipers that measure in metric.
4. Once you have determined the type of diamond, style of the cut and then you need to analyze the clarity, cut, and color.
5. Remember that diamonds are evaluated by the four (4) C’s, Cut, Clarity, Color, and Carat. Each of these components has many different scales, such as color have approximately 26 different values and etc.
6. Like I said earlier, there are many many different components to evaluating a diamond. The most common categories are as follows:
The Basics of buying Diamonds
Size in Brilliant Brilliant European European Mine Cut
Points Flawless with Flaw Flawless with Flaw
(Carat) Minor Minor
6.25 $1.00 .50 .50 .25 N/A
12.5 $2.00 1.00 .75 .50 .25
18.75 $2.25 1.25 1.25 .75 .50
25 $2.50 1.50 1.50 1.00 .75
50 $5.00 2.75 2.75 2.00 1.25
100 $8.00 4.50 4.50 4.00 2.50
This list denotes the points in carat and price per point. 100 points equals 1.0 carat and it will weight 200 milligrams or .200 grams. And if the diamond is of good quality, I would offer about $450.00 for it. Most diamonds you will run into will be small, from 1/8th to 1/2nd carat. Do not buy chips. They are worthless.
Note; a good way to tell a synthetic from a diamond is weight it. CZ and Moissanite weighs about 75% more than a diamond.
If you are serious about this business, I strongly suggest that you purchase the following books and study the ins and outs about evaluating diamonds and gemstones.
“Diamonds Buying Guide”, by Antoinette Matlins, P.G.
“Colored Gemstones Buying Guide”, by Antoinette Matlins, P.G.
Now, for a couple of personal pointers. You will seldom run into a flawless diamond in the open market. I always purchase at the Brilliant with minor flaw or less. Depends on the evaluation of the diamond. I do not bargain or hassle over the buy price. I make an offer on the above scale and if they accept fine and if not fine, go to the next one. You don’t want to get all the diamond business, just the ones you can make money on.
A buyer of diamonds that I have used and had good luck with so far. I sell most of my diamonds (the ones that my wife doesn’t get first) to private buyers at a hundred percent markup..
The folks that will buy your diamonds and also the gold or silver they are set in.
http://www.bluestone-trading.com/diamondtrade.asp
By the way they will give you 97% spot for your gold, no hidden fees.
Another site you may want to copy all their precious gems specifications, are as follows:
http://www.burma-ruby-sapphire.com/index.htm
You may want to develop your own price list, but I will share this one for you to start with.
If you have any additional questions or concerns, PM me back and I will try to address them.
Catfish
PS> The message board on the forum doesnt like any type of formating. If you want the suggested buy price list just PM me with your email address and I will send it to you.
First of all let me advise you that I have been buying and selling diamonds for the past couple of years or so. I am still a neophyte. I learned the basics from my son, who has been in the business for several years and has been quite successful in this business.
Buying and reselling diamonds is a very serious business and requires a very comprehensive knowledge of diamonds and also the market for reselling same. There is a 900% markup in the price of diamonds from the jeweler to the buyer of used diamonds.
I do not fool with any type of gemstones at all. There are too many variables involved in determining the type of gemstone, quality and most important of all the value. The diamond and gemstone business reminds me of the age old adage “beauty is only in the eye of the beholder”.
I will attempt to post a few very important things one must be aware of in the diamond business. The first rule of business is “Supply and Demand”. There are a lot of diamonds on the open market and there is a market for them. The key is being able to determine a fair purchase value and be able to sell the diamond at a profit. Just like the used car business.
How to determine the quality of a diamond:
1. Test the diamond with a good diamond tester.
2. Make sure the diamond is not a synthetic such as Cubic Zirconium or Moissanite. A state of the art diamond tester will perform these tests with good results.
3. Once you have determined that the stone is a real diamond, then measure the stone diameter or width and length, depending upon the cut. You will need a diamond measuring device or a good pair of calipers that measure in metric.
4. Once you have determined the type of diamond, style of the cut and then you need to analyze the clarity, cut, and color.
5. Remember that diamonds are evaluated by the four (4) C’s, Cut, Clarity, Color, and Carat. Each of these components has many different scales, such as color have approximately 26 different values and etc.
6. Like I said earlier, there are many many different components to evaluating a diamond. The most common categories are as follows:
The Basics of buying Diamonds
Size in Brilliant Brilliant European European Mine Cut
Points Flawless with Flaw Flawless with Flaw
(Carat) Minor Minor
6.25 $1.00 .50 .50 .25 N/A
12.5 $2.00 1.00 .75 .50 .25
18.75 $2.25 1.25 1.25 .75 .50
25 $2.50 1.50 1.50 1.00 .75
50 $5.00 2.75 2.75 2.00 1.25
100 $8.00 4.50 4.50 4.00 2.50
This list denotes the points in carat and price per point. 100 points equals 1.0 carat and it will weight 200 milligrams or .200 grams. And if the diamond is of good quality, I would offer about $450.00 for it. Most diamonds you will run into will be small, from 1/8th to 1/2nd carat. Do not buy chips. They are worthless.
Note; a good way to tell a synthetic from a diamond is weight it. CZ and Moissanite weighs about 75% more than a diamond.
If you are serious about this business, I strongly suggest that you purchase the following books and study the ins and outs about evaluating diamonds and gemstones.
“Diamonds Buying Guide”, by Antoinette Matlins, P.G.
“Colored Gemstones Buying Guide”, by Antoinette Matlins, P.G.
Now, for a couple of personal pointers. You will seldom run into a flawless diamond in the open market. I always purchase at the Brilliant with minor flaw or less. Depends on the evaluation of the diamond. I do not bargain or hassle over the buy price. I make an offer on the above scale and if they accept fine and if not fine, go to the next one. You don’t want to get all the diamond business, just the ones you can make money on.
A buyer of diamonds that I have used and had good luck with so far. I sell most of my diamonds (the ones that my wife doesn’t get first) to private buyers at a hundred percent markup..
The folks that will buy your diamonds and also the gold or silver they are set in.
http://www.bluestone-trading.com/diamondtrade.asp
By the way they will give you 97% spot for your gold, no hidden fees.
Another site you may want to copy all their precious gems specifications, are as follows:
http://www.burma-ruby-sapphire.com/index.htm
You may want to develop your own price list, but I will share this one for you to start with.
If you have any additional questions or concerns, PM me back and I will try to address them.
Catfish
PS> The message board on the forum doesnt like any type of formating. If you want the suggested buy price list just PM me with your email address and I will send it to you.
