Buyers of Diamonds once again your intrepid saviour is here to warn you about adverts such as this: “Lowest Prices in Years “
It ’s BS! This is another misrepresentation typical of those website dealers who carry no stock but live in La La Land pretending to be big time diamond wholesalers which they are definitely not.
In actual fact if they bought diamonds for stock instead of renting flashy offices and employing mediocre lack lustre sales staff with very little product knowledge they still would not come close to being diamond merchants.
Lets do some basic maths here.
A GIA excellent/ excellent/ excellent or a DCLA excellent /excellent 1.00 carat D IF was for a long time stable at USD$18,100.
At lets say today’s exchange rate USD$1 = AUD$0.85 would make this diamond worth depending on the vendor approximately AUD$21,294 plus 10% GST base price before any brokerage fees and shipping.
But the current international market value of a perfect round brilliant 1.00ct D IF has increased to USD$18,900 last Friday 30th November, (although, because of the rarity of perfect 1.00ct D IF and a worldwide shortage, prices can be even higher.)
Therefore the price based on 0.85 is AUD$22,235 plus 10%.
So in actual fact the diamond is AUD$940 more plus 10% GST
For the price of this diamond to be supposedly the lowest in years the dollar would have to be worth AUD$0.91 or the diamond cost at AUD$21,000 plus GST …MINIMUM !!!! or better which will never happen unless the vendor is blind or down to his last single brain cell.
Don’t get sucked in.
It goes without saying these catch phrases appeal to many people.
These cheap diamond pimps do not realise that the public consumer is more educated, intelligent and aware. Any thinking person would question these claims especially since other imported products are not at all time lowest prices in years.
Look at gold and oil, are they at the lowest prices in years because the Australian dollar has been trading at a high rate?
Nothing short of snake oil, smoke and mirrors, these companies continue to misrepresent diamonds by appearing to look ethical and by backing up the diamonds’ specifications with ‘in-house’ certificates or diamond certificates from laboratories which are not independent or internationally recognised.
I make no secret of my thoughts for these “dealers” who have very little ethics or appreciation of the diamonds they are supposedly selling.
Apart from all the other scams they have put in place to entice clients via charitable institutions they purport to support, Mickey Mouse in-house diamond certificates and diamonds that are supported by equally over valued appraisals their level of expertise is always questionable.
The foreign exchange rate has nothing to do with it. Diamond prices have been steadily increasing over the last three years far outweighing any devaluations of the US dollar.
Once again check the credentials of the diamond vendor. Who are they really? They may have changed their names by deed poll to further hide any misdemeanours in their past life. How would you know?
MOST REPUTABLE DIAMOND MERCHANTS HAVE A HISTORY AND PEDIGREE THAT CAN BE CONFIRMED USUALLY WORLDWIDE.
Just because some diamond website boasts about being a member of a particular trade organisation or having an affiliation to give them credibility, it does not mean you the consumer is protected. There are ‘diamond dealers’ who come from very different career backgrounds who have no formal qualifications or expertise in the diamond and jewellery industry. You have IT people, ex Telstra employees, former Dentists, car dealers and even people who were previously from freight and limousine companies all now attempting to sell diamonds online and posing as diamond experts.
Some of these websites are so intent on convincing you of their integrity that they are members of every possible organisation and trade association and have the official looking logos plastered all over their websites.
How about showing the diamonds instead?
The buyer is more interested in the diamond not in the DNA or genetics of some feeble minded self promoting ‘diamond dealer’ telling you their life story, as if anyone cares, trying to justify their place in the market by using their membership in toothless tiger jewellery and diamond club associations that do nothing to protect the public consumer or police the unethical dealings of their own members.
Recently I was responsible for expelling a member of the Diamond Dealers Club of Australia who had lied about his criminal past when applying for membership application.
The same convicted perjurer is a current member of the JAA ( Jewellers Association of Australia) and is selling diamonds on the Internet in association with his family members. To date nothing has been done in regard to this matter therefore I rest my case.
Exercise caution if the diamond vendor / retailer / wholesaler or non compliant “diamond grading laboratory ” is a member of the JAA (Jewellers Association of Australia)
It is the diamond buyer’s responsibility to protect themselves. The associations, clubs, guilds call them what you want, are feel good self admiration societies full of grovelling sycophants with hidden agendas.
Anyone using the erratic fluctuations in the US dollar as a reason to convince you to buy diamonds now because they might be buying better on the day is only chasing your hard earned dollars like predators rather than providing you with good advice.
This is another example of how these website dealers appeal to human nature by creating a misconception about the real price of diamonds by using scare tactics to make you feel you might miss out on the bargain of a lifetime.
If these ‘dealers’ actually bought diamonds for stock rather than drop ship from an overseas supplier’s diamond stock spread sheet, they would be better qualified to assess the actual market price before attempting to entice customers with their unimaginative captions like “lowest prices in years” because it just is not the truth.
Why do the principals of these companies hide behind their employees?
In any case when I purchase anything of significance I always make it a policy to deal with the principal of the busines who has a history not an employee with none. This avoids any possible misconceptions when striking the final deal.
And besides my over inflated ego would not allow me to deal with some 9 to 5 employee who really is not interested in the diamond I wish to purchase. Me wanna speak to de boss mun coz itz ma money and I enjoy squeezing their balls on the price.
You can’t do that with an employee particularly if they have no balls.
So in conclusion and since I have once again begun to rave…..
Does this mean if the Australian dollar drops to 0.70 = USD$1, these same website “dealers” will reword their adverts to “Highest Prices in Years” ?
We all know the answer.
Hooooroooo from de Guru
Daniel F Katz
