Online Diamond wholesalers question

My son is currently shopping around for an engagement ring. Through one of my husband’s business partners, he has been given the name of one our our cities wholesaler (all on the DL). Diamonds don’t have that great of a markup, he may be able to save 25%. But where he will save money is the setting, up to 75%. Plus, no sales tax. He met with the man and the prices were decent, but DS has also looked at James Allen online wholesalers and can get it for about 75% of this man’s prices. BUT, no discount on settings and I imagine would have to pay sales tax online.

Does anyone have any experience with this company? They have great reviews and seem to be on the up and up. He’s not sure which way to go.

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Son got the engagement ring from a diamond wholesaler in New York( who his wife knew from college). They got their wedding rings from James Allen. Pleased with both . Congratulations!

Thank you, that’s good to know!

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It’s really hard to compare apples to apples with diamonds. What is the cert on each one? Have they been appraised by someone outside their company?

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I would think the setting value is in general much less than the average diamond value?

The quality of the diamond was important to son and his wife and the jeweler was able to guide my son on picking the diamond . They also could set it and his girlfriend (at the time) had given him an idea of what she wanted. So, son worked with him on carat size, quality, setting, etc. The final result was a surprise and she was very pleased and glad they went that direction. However, if your son can get a substantial price difference by going with James Allen (for a similar ring), that could be the way to go for him.

Son got a certificate with the ring and also insured it after he picked it up. Good luck! Exciting times!

I know this isn’t what you’re asking but, if he hasn’t bought it yet, he might consider that diamonds have almost no inherent value, so the price he is paying is based on an artificial market structure, not the value of the stone. We had a lengthy discussion of diamond value in this thread. I don’t have any issue with people spending their money however they want as long as they know what they are/n’t buying.

Yes, it is the market value re:diamonds. I’m not really into jewelry myself, haven’t worn my small diamond and platinum engagement ring for decades. But, some women still want engagement rings. And there are many options out there, including diamonds . And other stones seem to be growing in popularity.

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I don’t think too many people who shop for or receive diamonds think about resale value or treat them as investment

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I have a few thoughts here.

One, it is very hard for the average consumer to buy a diamond and know if they are getting a great stone or a dud because many diamonds will sparkle like mad under jewelry store lighting.

If your son is comfortable buying online there are other companies he may want to explore. My experience is that online vendors have pricing equivalent to OR BETTER in many cases than B&M jewelers.

Whiteflash.com is a company I have personally dealt with (but I have no affiliation to). My original engagement ring diamond was from 1996 and bought at a local jeweler. I replaced that with A Cut Above diamond from Whiteflash and the difference is remarkable. A Cut Above diamond are branded diamonds from Whiteflash that meet strict cutting criteria to achieve maximum brilliance and scintillation. Buying one of these diamonds, also called a super-ideal diamond, is like the EASY button of diamond buying. You are guaranteed a phenomenal stone. You can find a stone to fit most budgets based upon how you prioritize carat, clarity and color. There are other online vendors from whom you can get a super ideal diamond, some of which have their own branded versions - briangavindiamonds.com and distinctivegem.com are some other options.

Two, wherever he ends up buying a diamond, he should pay attention to upgrade policies. While not every couple would want to upgrade their diamond in the future it’s at least smart to know what your options are. If a B&M jeweler offers an upgrade policy it’s typically that you have to spend double the amount of your original purchase. Whiteflash allows you to upgrade for just one dollar more than your original purchase on A Cut Above diamond (also on diamonds that didn’t quite make the grade to be called A Cut Above but are really close - these are labelled as Expert Selection diamonds on their site).

Other companies, I believe James Allen falls into this camp, allow you to upgrade as long as you go higher in at least 2 of the “Cs” meaning you get a higher color and clarity or a higher carat weight and color, etc.

Three, has he considered buying a lab diamond? Lab diamonds are growing in popularity. Chemically they are identical to an earth-mined diamond. These are not CZs or other simulants. They are legit diamonds. But they cost a ton less than a mined diamond. I recently purchased 2 lab diamonds for earrings from Jonathan at distinctivegem.com and they are absolutely beautiful and cost me a fraction of what mined diamonds with the same specs would cost. There are multiple online vendors offering a great selection of lab diamonds - distinctivegem.com, adiamor.com, etc.

Fourth, this can be a very big purchase for a younger person. There is a forum at pricescope.com from which someone can glean a ton of knowledge about diamonds and how to pick a good one. The forum participants (mostly consumers but representatives of some diamond and setting vendors do participate although they aren’t allowed to make recommendations for obvious reasons) are very helpful and will even go so far as to help a new poster find a diamond by recommending diamonds that meet their criteria for budget, carat, clarity and color.

Fifht, note that most online vendors offer a discount (3% ish) if paying with a wire transfer. Check return policies but the ones I have dealt with also offer easy and free returns. So you can buy the diamond and look at it in the comfort of your own home in various lighting environments to decide if it is a keeper. Whiteflash will also create a video for you comparing a few diamonds if you are trying to decide between a higher and lower color for example. Other vendors may do the same. Jonathan at distinctivegem created a video of the lab diamonds I purchased from him showing me them in multiple lighting environments.

Sixth, if buying a diamond from a B&M jeweler it should come with a grading report from a reputable lab - AGS and GIA are the two most well-known labs for grading diamonds. Other labs may be softer on grading color and clarity so you might be paying for an H VS1 diamond but in actuality getting something more like a J SI1 diamond.

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Thank you! What a wonderful detailed post. I found it extremely informative and helpful. He’s not going the lab created Diamond route, although he initially was thinking of doing that. I feel that is something the Bride need to be aware of and be okay with. He wants to surprise her so I don’t think that’s a good idea.

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My son seriously considered buying the ring he got his now wife at James Allen. They have at least 1 brick and mortar store. He wound up going with a local jeweler because his now wife really liked the setting from the local jeweler.
ETA - James Allen routinely has 25% off sales, at least on their settings.
Several young couples I know have gone with lab grown diamonds, and they are beautiful.

I have jewelry with lab grown diamonds and they are really nice. They weren’t less expensive though. Just expensive if not even more.

Yes, @conmama , If he knows she wants a diamond, best to stick with that and not get sidetracked. And stick to whatever budget he has and not make himself crazy by looking in too many places!

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I definitely understand and personally I still wanted a mined diamond when I replaced the original stone in my engagement ring. But I had no qualms about getting lab diamonds for my new earrings. Best of luck to your son!

Be careful with anyone who brags “no charge for sales tax”. That either means zero paperwork ( so no record if there’s a problem) or false paperwork (claiming the vendor sold it for resale so no tax needs to be collected). In either case, you give up a LOT of your states consumer protection with no verifiable transaction.

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This has not been my experience at all and does not seem to align to what I’m seeing currently on the market. If someone is paying the same price for a lab diamond and an equivalent quality (carat, color, clarity but most importantly cut) mined diamond then something is wrong.

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This is quite common. The merchants are simply saving the fees charged by a cc, but the buyer is giving up whatever protections their cc offers.

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There are states that don’t have sales tax. Maybe that’s where the business is located?

The sales tax is determined by the buyer’s location (where the item is being shipped to).

Yes I understand but I felt comfortable paying by wire with Whiteflash and the savings were meaningful.