Home > Accounting Articles > What Your Jewelry Store Doesn’t Want You to Know

What Your Jewelry Store Doesn’t Want You to Know

Todays Date: October 17, 2018

 

1. Diamonds are not rare. We still can get huge markups, well beyond what we paid for them.

All gems are valued based on their raritytiffany co (as are most things in life). But diamonds are abundant. Extraordinarily abundant. The De Beers cartel has enormous safehouses where they keep most of the world’s supply of diamonds. If these ever got released into the market, the monopoly would be over, and diamonds would be worth next to nothing. Diamonds are artificially high and can be purchased in most African countries for as low as $15 per carat (rough cut).They are literally a pretty stone.

Retail jewelers mark up diamond wedding rings tiffany jewelleryby an average of 300% up to a unbelievable 1000%. The estimates on markups are broad, but most of the reliable sources we’ve seen indicate that 300% is the usual markup. Your acquaintance who says he bought a $10,000 ring for $1,000 might be on the level. While a 1000% markup is not typical, it’s not unheard-of.

Diamonds also have no resale value. The reason a “diamond is forever” is because you’re basically stuck with it. Louis Vuitton neverfullYou’ll never be able to resell it except to a pawn shop. Even a jeweler (the few who would be willing to buy it) would offer a fraction of what you paid.

2. Synthetic diamond or gemstone in a top of the line gold setting? That’ll be under a thousand dollars.

3. Your ‘perfect’ diamond has had a face-lift.

Thanks to science and technology, the brilliant-looking diamonds in your jeweler’s case aren’t all necessarily what Louis Vuitton pursesthey seem to be. In some cases, they could be “fracture-filled” for instance, referring to a treatment in which visible cracks are filled with a glasslike material, making a stone appear more expensive than it is.

We don’t know what to think of this. If the value of a diamond exists only because of its scarcity, then why would jewelers give a watered down version? Would that not drive down demand (and price) due to increasing the supply of desirable diamonds? Beyond the macro economics view, we are baffled at how diamonds rocks are so falsely pricey and glamorized.

Categories: Accounting Articles Tags:
http://financearticledirectory.com/wordpress/wp-content/plugins/sociofluid/images/digg_32.png http://financearticledirectory.com/wordpress/wp-content/plugins/sociofluid/images/reddit_32.png http://financearticledirectory.com/wordpress/wp-content/plugins/sociofluid/images/dzone_32.png http://financearticledirectory.com/wordpress/wp-content/plugins/sociofluid/images/stumbleupon_32.png http://financearticledirectory.com/wordpress/wp-content/plugins/sociofluid/images/delicious_32.png http://financearticledirectory.com/wordpress/wp-content/plugins/sociofluid/images/technorati_32.png http://financearticledirectory.com/wordpress/wp-content/plugins/sociofluid/images/google_32.png http://financearticledirectory.com/wordpress/wp-content/plugins/sociofluid/images/yahoobuzz_32.png http://financearticledirectory.com/wordpress/wp-content/plugins/sociofluid/images/mixx_32.png http://financearticledirectory.com/wordpress/wp-content/plugins/sociofluid/images/twitter_32.png http://financearticledirectory.com/wordpress/wp-content/plugins/sociofluid/images/jamespot_32.png
Comments are closed.