Common Mistakes To Avoid While Buying A Diamond: How To Avoid Getting Ripped Off
You won’t believe how easy it is to overpay for a diamond. Differences that are invisible to the naked eye can push the prices of two identical diamonds in the opposite direction.
The result: When you try to resell it, you won’t get your investment back completely. The person who buys from you would do everything to know the ins and outs of your diamond.
Even if you keep it permanently for yourself, I personally feel that the diamond you buy should worth every penny you spend on it.
Worst case scenario, I don’t want you to get bamboozled…
Therefore, let’s see the common mistakes one might make while purchasing a diamond:
1. Buying without knowing how the diamond prices work
I know it would consume several hours to get into the details of diamond pricing, but it can save you a substantial amount of money by not paying too much.
If mined from the earth, every diamond is unique and a gift to mankind. For a very long time in our history, a precision system did not exist to standardize the diamond trade.
Thanks to the diamond grading institutions like International Gemological Institute and Gemological Institute Of America, for categorizing diamonds using universally accepted key parameters, known as the 4Cs – cut, color, clarity, and carat weight.
Based on these 4Cs, some specialized organizations periodically publish diamond pricing reports that tell us the closest price for diamonds by referring 4C parametres. One of such publications is the Rapaport Price List.
To put in simple words, you have to learn about the 4Cs first, before you learn to read the price table and find the approximate value of any diamond – something not very difficult to figure out yourself.
2. Overlooking the diamond certificate
Diamond certificate is a necessity before you pay. And verifying it should take 5 minutes online, if the grading report is prepared by any respectable institute like GIA. Many times, you would find the GIA report number inscribed on the diamond girdle itself. Nevertheless, a report contains exhaustive details and it wouldn’t be difficult for an expert to authenticate the diamond with the help of paperwork. Talking about an expert, let’s move on to the following point;
3. Not employing a professional
I don’t mind paying a thousand dollars to a certified gemologist or a trustworthy diamond appraiser to accompany me, if I am about to spend $100,000 on a precious gemstone that’s smaller than a grain of corn. It’s probably the best way!
4. Sticking with only one retailer
It’s all right to fall in love with the very first piece of jewelry you see. But you can always come back the next day and acquire the same ornament.
I want you to visit at least three places and compare the prices after thoroughly familiarizing yourself with diamond grading and price reports. No rush with that. Just go and explore!
5. Missing on warranty and insurance
The moment you walk out of a store with a highly-prized diamond, a lot of money gets in the open and exposed.
Not because of any theft but also due to daily wear and tear, you don’t want to see a ring with missing diamond one day. Thus, before finalizing the purchase and walking out of a shop, negotiate the warranty and insurance terms for your diamond as well as the precious metal used to make jewelry.
6. Walking into a sales trap
You are going to buy a diamond. Focus on that, especially its properties. Find out the facts.
Do not fall into the trap of lightings, stunning interior, and someone very good-looking with an excellent display of persuasive communication skills.
Even if you pay 1% excess than the ideal price, it’s a huge win for the retailer.
A fair dealer would himself show you the diamond certificate, educate you on how the prices are commonly calculated as per the market standards, and then disclose the markup on their product.
7. An all-in-one jewelry outlet
A retailer might sell you his only diamond for a much cheaper price, given the shop is a mix of various gemstones and metals. It is also possible that you could have bought a more beautiful diamond for the same price in a diamond exclusive store, that can put hundreds of options on the table.
My firm opinion – always visit a place that is renowned for diamonds. Don’t try your luck with anything else. It is very easy to lose large sums of money when buying diamonds.
8. Falling in love with the ring. Yes, it’s a mistake!
A brand new platinum ring with a beautiful setting style can be acquired for $500. If the diamond inside is worth $25,000 but you end up paying $40,000 because you loved that adorable ring, then what can I say!
That’s why I keep saying this – focus on the diamond’s origin, its properties, and market value.
If you have any questions, please leave your comments below and I’d be glad to revert and explain more!