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The Diamond Industry Changes The Game Of The Wholesale Diamonds Trade

Here in North America, the wholesale diamond trade has been primarily based in New York and Los Angeles, in their respective jewelry districts. There used to be a long procession of traders that would exchange any provided diamond prior to it would eventually meet the client at a neighborhood jewelry keep. However, times are now different, and the industry is very unique these days. What's different you may ask? Well once the net was introduced into this trade, diamond trading would never be the same again.

Prior to the proliferation of the internet, diamond wholesalers would import diamonds, both rough and polished, from several overseas sources. Places like South Africa, Belgium and India. Those diamonds would flow directly into the offices of key diamond wholesalers in New York and LA who would then market to other smaller regional sellers and diamond traders in major cities all over the US. Those smaller regional diamond wholesalers would then enable merchants to suppliers borrow these diamonds on "memo" to place in their display cases hoping that the retailer would close the sale. It was a win-win relationship for both the smaller regional wholesaler that built a relationship with these suppliers and could charge a premium for their service, and also the retailer who in turn could stock diamonds to sell with little to no up front investment.

It all starts when a diamond is discovered within the earth, till it reaches the end client. Most diamonds usually exchanged hands nine times or more. between numerous middle men. These players included the cutters as well as the polishers, not to mention the diamond graders. Then from there several levels of wholesalers would buy these goods and eventually it would reach a retail store and within the hands of an excited consumer.

It wasn't even uncommon for diamonds to be graded by a number of labs, being passed from 1 to one more in hopes of obtaining the finest grade. Diamonds would be bought by one diamond wholesaler that had a lot more influence with a particular lab and would get a higher color or clarity grade, thus would instantly get 10-20% more profit on their investment. Everyone within the market knew EGL certified diamonds have been not up to par with GIA graded diamonds with the same apparent color and clarity. That didn't stop diamond dealers, however, from exploiting the public with massive profits involved. It was a shady game that more than the years the consumer had little option but to participate in.

Nonetheless, when the web came along the game changed forever. All a customer will need to do is search online and see thousands of diamonds, sort by price tag and shop for the cheapest diamond. Furthermore, it was really obvious GIA graded diamonds commanded a higher price tag? Why was that? Upon furthering their on the internet education, buyers quickly learned GIA graded diamonds had been a lot much more accurate and began demanding these diamonds instead.

What then proceeded to happen, was the unthinkable for diamond dealers. Diamonds began becoming sold online as commodities, easily comparable with a a lot much better disclosure, and this needless to say ate into their profits considerably. Many jewelers have been forced to shut down, simply because their company relied on selling less then accurately graded diamonds to folks walking in their doors. Then of course there had been all the middle males inside the diamond trade who were squeezed out at the same time. Suppliers were forced to compete on high quality and price, and required to search for the best sources with out relying on favorable terms from local wholesalers. Diamond wholesalers in Los Angeles and NY started getting directly from the cutters themselves. Exactly where will the diamond market be in ten or twenty years from now? We do not know. But we do know that doing company hoping your customers are going to be ignorant isn't a sound company model. Luxe Wholesale Diamonds, on the other hand, strives to broker the really best quality diamonds to our clients at extremely competitive costs. We believe the brokerage model and being honest with our customers is in which the diamond trade will ultimately wind up in, and we are really excited to become a part of this rapidly evolving market.

Luxe is a wholesale diamonds seller based in downtown LA that ships diamonds all over the world. Be sure to also check out our Los Angeles diamonds blog as well.
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