Whether you’re looking to purchase wholesale diamonds for investment purposes, for business purposes, or just because you love the idea of owning diamonds on your own, there are some things to look for when it comes to a diamond wholesaler. Before you run out and start plunking down your investment dollars or jewelry business start-up finances for any loose diamonds, keep in mind that you don’t want to send money to just any diamond wholesaler. Like any other investment option or business vendor, you need to be choosy and use some discretion.
First, keep in mind that a diamond wholesaler will be offering a large inventory with different cuts, carats, and so on. It’s up to you to educate yourself about what makes a diamond valuable and why there will no doubt be a wide variety of prices between diamonds of the same carat, and so on. Your diamond wholesaler may offer some tips and education in this regard but it will be up to you to learn as much as possible about diamonds themselves.
The Gemological Institute of America (GIA), the American Gem Society (AGS), and the International Gemological Institute (IGI) are the three most widely known and respected diamond grading laboratories in the world. Each of the grading laboratories have developed a very similar nomenclature for identifying the 4 C’s of diamonds. The 4 C’s stand for Carat, Color, Clarity, and Cut.
You could insist on a certificate from GIA or AGS for each and every diamond you purchase for a wholesaler but bear in mind that this certification process will increase the final price of the diamonds. A certificate describes the quality of a diamond, but it does not place a monetary value on the gem. An appraisal places a monetary value on your diamond, but does not certify the quality of the diamond. After you have been purchasing diamonds for a while you should be able to learn how to certify and appraise the diamond on your own and not rely on any outside sources.
A diamond wholesaler should be a direct importer of diamonds rather than a reseller. They may cut their own as well; this usually means that you get a better selection when it comes to quality and value, something that will be very good for a startup jewelry business. When you start to deal with a reseller, the costs go up, so it’s best to look for a wholesaler of diamonds that imports their merchandise directly.
You need to be sure where the wholesaler gets his diamonds from. There are many gems that have a poor history for how they have been cultivated; many civil wars in Africa and other areas are started and waged over diamond mines. Diamonds known as conflict diamonds originate from the war zones of Africa.
In May of 2000 The Kimberly Process Certification Scheme (KPCS) was adopted. It is a plan that could halt the trade of conflict diamonds by establishing a way that diamond origin could be certified.
On December 1, 2000 the United Nations General Assembly unanimously adopted a resolution defining the role of conflict diamonds with the intent of cutting off the sources of funding for rebel forces and to help shorten the wars and prevent their recurrence.
Among the countries most affected by the terror inflicted by traders in conflict diamonds are Liberia, Sierra Leone and also Angola. Unscrupulous groups still manage to elude the legal barriers and still find ways of infiltrating the diamond centers of the world. Insist on a certification before purchasing any diamonds. It will tell you the stone’s carat weight, its color and clarity, flaws, and its origins.
If you do some research about any potential diamond wholesaler and check their paperwork carefully, you’re sure to make the right decision for your investment or business.