How a Diamond Jewelry Store Determines Prices

As a consumer looking for the right diamond jewelry for your loved ones, know this: whether you are dealing with a diamond jewelry store, a diamond dealer or a private seller, knowing how diamond prices are determined gives you a distinct advantage. How so? By knowing pricing process for diamonds, you can determine if a jeweler or seller is giving you a good price or is putting you in a position of over paying for your diamonds.

So How Does The Diamond Jewelry Store Pricing Process Work?
When it comes to pricing most products, it is usually a simple process. You determine how much it will cost to manufacture the product, how much it will cost to market the product and how much it will cost to store and insure the product You add those figures together and them add your mark up. Your mark up is your profit. Usually this figure is anywhere from 15% to 30% or more, depending on what the market will bear.

However, pricing diamonds is not quite as simple as pricing other products. There are numerous factors that must be considered when a Diamond Jewelry Store is pricing diamonds.

The first thing that impacts the retail price of the diamond is the cost of the rough diamond. Then you move from there to the cost of cutting the diamond and all the other costs to turn a rough and unrefined diamond into a marketable diamond. After transforming an unsightly stone it into a marketable diamond, a Diamond Jewelry Store may need to hire an independent diamond appraisal company to certify the grade of the diamond based on its: cut, clarity, color and carat weight.

Every time a diamond changes hands, it’s price increases. When it finally reaches the retailers the price is again increased a little bit more. As you can see from here, before a diamond reaches the retailer, it must travel from the mine, to the cutter and polisher, then to the individual grading company, and lastly to the primary market. From the primary market, diamond jewelry store owners and retailers will then purchase the diamond and sell it to the consumers. Therefore, the earlier you can purchase a diamond in the process, the lower the cost of it will be.

If you have recently just bought a diamond and do not know how much does it worth, you can send your diamonds for appraisal, but take note that the appraisal may not be accurate. A more accurate way to determine the price of your diamond is to obtain its certificate and use the cutter's guide to determine a more accurate worth for your diamond.

You can also surf the Internet and locate many diamond worth calculators. Before you can calculate the worth of your diamond using those calculators, you need to know the cuts, clarity, color and carat weight. With this information, the calculator will be able to determine an accurate value of your diamond.

Again, the best way to determine the price of a diamond is to get a Diamond Grading Report and use the information in it to look up the price in one of the guides that the diamond cutting industry uses. With the right worth in mind, you will be better informed about the value that you have paid for the diamond in your possession, as well as of the diamond jewelry that you are considering purchasing.