I wrote this guide about 2 yrs ago when I was looking for a diamond for my fiance (now wife) I got such a great deal that some of my friends ask me how I did it. I'm posting this now so hopefully someone can find it useful. For those who want to start their own business selling diamonds online, this will also be very helpful. Sorry this is so long, I just copy and pasted what I wrote in the email I sent out 2 yrs ago.

Go shop around the local jewelers and you will see not only are their prices high compared to the Internet, the selection is very limited and most of them have low quality diamonds.

First of all, educate yourself. Some useful websites are http://www.diamondcuttersintl.com/ and pricescope.com. Understand the Cut, for me, that was more important than the color or clarity. You should also visit some jewelry stores that carry the better quality diamonds to get a feel of the prices in the brick and mortar stores.

Try doing a search at pricescope.com, if you pay very careful attention to the searches that come up, you will realize that all these diamond retail sites on the web are selling the same diamonds. This is because none of those retailers actually have their own physical inventory. They all buy from the same wholesalers/manufacturers. This includes some of the more popular/famous diamond websites like diamonds.com, whiteflash.com, abazias.com and many more.

For example, If you use this criteria, Round shape, 1–1.05 cts, F color, IF–VVS1 clarity, 58–63% depth, 53–62% table, GIA certified on pricescope.com one of the search results will show you this one: 1.01/F/VVS1 depth 62.2%, table 61% GIA certificate # 287070302 you will find that there are 5 different jewelers are selling this exact stone, which means they do not carry their own inventory.

Here is the secret no one will ever tell you but I will share with you. The jewelers mentioned above uses a website call VirtCert.com that offers a service for both retailers and wholesalers. They allow the wholesalers to put their inventory online in VirtCert’s database and allow retailers to sign up and search the database. All the companies that came in the search above use this service to pull the inventory from VirtCert's website as their own inventory that generates in the search.

I emailed and called the manufacturer and told him the inventory number of the diamond I wanted to buy and asked the seller to email me the GIA and Sarin reports to confirm the quality of the diamond I am about to buy. (I am not sure if all the manufacturers do this but the one I bought from did.)

Once I made sure that it was the one, I wire transferred the funds directly to the manufacturer. As soon as the funds are confirmed in their bank, they sent it out by FedEx next day air and I got the diamond in my hand the very next day.

As soon as I got the diamond, I called up a local appraiser and took the diamond along with the GIA certificate to get it appraised as well as to make sure I didn't get ripped off. The appraiser confirmed that the diamond I got was the one that matches the GIA certificate based on the specs.

Then I called GIA in Carlsbad, CA and made an appointment to go there to get the diamond inscribed with the GIA number. (Even though the diamond had a GIA certificate, it still may not be inscribed. Manufacturers send the diamonds to GIA to get it graded and to get a certificate but they often do not inscribe it because it cost additional money.)

I was able to get a next day appointment soI drove to GIA in Carlsbad, CA (North of San Diego) the next day and paid the fee to get the diamond graded again and inscribed with the new GIA cert number. (GIA will need to do another grading to make sure the diamond you brought matches what is said on the certificate, they will also update their database with you name as the owner of this diamond and inscribe the diamond.) I forgot how much I paid but I think it was about $20.00. I left the diamond with them and was told to come back the following day. [update: its $18.00]

I went to GIA and picked up the diamond and the new certificate the following day.

I wanted a simple Tiffany style setting. Because it is a very standard setting that I can pretty much find anywhere, I went to Robbins Brothers. Another reason why I chose Robbins Brothers is because they have a bigger selection of rings as well as a glass window that I can watch while the diamond was being set. Since they're local, it would be convenient for my wife to go there if she needed to resize the ring or get it cleaned periodically (service included if you buy something from them.)

I told them I already have a diamond and needed to find a setting. The sales person showed me some and I picked the one I wanted. Their prices were only a little more than other places I have checked but I didn't mind paying for it since I can watch while my diamond is being set. I also bargained with the guy and told him other places were cheaper and the sales person gave me a discount, so you can try to ask them to knock some off.

After I got the diamond set, I took the diamond back to the original appraiser to have him update the appraisal now that is in a setting. The new appraisal report will be drawn up to include the increased value. They will also check the diamond again to update the new GIA certificate number and to make sure that it is the same diamond before and after it was set.

* It is normal practice for the appraiser to appraise and draw report before and after the ring being set. The price will include both visits. I paid $50 for the appraisal.


As a reference, the diamond I bought is: (Purchased in May 03)

Round Brilliant
0.91 carat
Color: E
Clarity: IF
Ideal Cut AGS 0
Fluorescence: None

For $5824.00 + $30.00 FedEx
Not included appraisal report, GIA certificate and the setting.

Actually a lot of the online sellers do sell them at a lower margin than your usual brick and mortar store, so buying it from them isn't a bad idea either.

Mod Edit: Some info removed to protect our members from possible fraudulent activity.

I'm extremely impressed that you took the time to write this all out. And thank you.

Most people would not be so inclined to take the time.

I appreciate it a lot.

-
Does the fact that the diamond is inscribed also increase the ability to track it if
it's lost or stolen?

The shows I've seen on TV about diamonds are interesting. And since i've been involved in mining it's really true from what i've seen that the cost of diamonds is really dependant
on the emotional makeup of the buyer. While some diamonds are undoubtably beautiful their
price depends on who will pay what. In the case of 'just wanting a nice diamond'
no one should pay more than a fair price. Especially on FATWaLLET.

I've paid more than I should for a diamond. Also my father sold a diamond necklace
to a shop and later saw the same necklace displayed for 10x what they gave him for it.

It had been cleaned and repaired. It belonged to my grandmother 100 years ago. But
it still shows that the price is really depending on the buyer to set it.

Thanks again
andre

Thanks for the great guide

I paid about $400 for the setting. robbins brothers are a bit high compared to other places when it comes to getting the setting but the convenience and service is worth it to me, plus I get to watch them while they work on it. I believe the appraisal value is 3x what I paid but I don't really pay too much attention to it. You can always find a appraiser who will inflate the value higher. I went to pricescope.com to take a look at what an equivalent diamond would cost and the lowest price is $6433.00 and that is not as nice of a cut as the one I got (the one I got is an ideal cut AGS0, theirs is not) so I would say I saved about $609 compared to the cheapest online dealer.

I was a bit picky when I was looking for a diamond and there are not a lot of IF(internally flawless) diamonds around but I was still able to find one I was happy with. For others who are not as anal as me, there's even more varieties and price points to choose from.

hey do u think this would make a big difference when buying 5-6 nicer but smaller diamonds (.25-.35 Carats) -- for a a wedding band?

I bought my wife a cubic zirconia... aka: man made diamonds... cost 20 bucks... Nice!

Peter740 said:I bought my wife a cubic zirconia... aka: man made diamonds... cost 20 bucks... Nice!

You not only saved a bundle but you avoided going through all the trouble that brainstormer did. Plus, if you don't tell, she'll never know!

No matter how much research and buying strategies you employ, the consumer still gets ripped off when buying diamonds. All diamond prices are dictated by Debeers Group of South Africa.

"For more than a century, the powerful DeBeers Consolidated Mines, a South African corporation controlled by the Rothschild Bank in London, has managed to organize the cartel, restricting the supply of diamonds on the market and raising the price far above what would have been market levels."

Also, don't ever leave a diamond with anyone when getting it set or appraised. Request the setting and appraisal be done in front of you and don't let the stone out of your sight. Professional diamond dealers certainly don't.

Link Here

outlawnyc said:hey do u think this would make a big difference when buying 5-6 nicer but smaller diamonds (.25-.35 Carats) -- for a a wedding band?

to be honest with you, i would assume so but I can't be sure how much you would save because i didn't do my search for a diamond of that size. I'm sure if your other alternative is to buy retail then have it set you probably can save some money.

one thing though, is that you have to make sure you get it set at a reputable place or somewhere you can actually see them do this because when you buy the diamond, it might not have a GIA certificate unless you plan to also go to GIA to get it inscribed.

brainstormer said:
Mod Edit: Some info removed to protect our members from possible fraudulent activity.

What's that about? Did I miss something interesting??

What can you do to get a diamond inscribed if you don't happen to live in So Cal? Can you fedex to them or do they have other places where you can get it inscribed? Do diamonds from places like BlueNile and moderna come inscribed?