PROFESSIONAL DIAMOND BUYERS – Role of Diamond Brokers and Diamond Dealers in Buying or Selling Diamonds.
Regardless of what you hear on the radio, retail jewelry store do not purchase diamonds directly from the diamond mines. The “life” of a diamond begins in large mining operations which collect millions of tons of earth and sort out the diamond crystals from the myriad other materials. Although there are small tribal diamond mines in Africa, most diamond mining is done by very large companies such as DeBeers and Rio Tinto. As the stones are collected they are sent to the Central Selling Organization (CSO) where a “site” is held. This means that an approved group of buyers (site holders) show up to receive their collection of diamond rough crystals. It is then up to these site holders to do what they choose with this material, either send it to be cut and polished, or to auction individual pieces to a buyer who then takes the gamble of cutting and polishing the stone into a finished diamond.
When you go to a retail jeweler to buy a diamond, they typically will not have many diamonds larger than a 1.00 carat. Due to the price of diamonds, it is simply too expensive for them to inventory all the various shapes, colors and clarity’s, so they use the services of a diamond broker or diamond dealer who deals in loose diamonds. Most jewelers have a relationship with only a handful of diamond brokers and use these brokers depending on the call they have for a diamond. There are many diamond brokers who specialize in only a few different cuts of loose diamonds. For instance, there are diamond brokers who only sell smaller diamonds known as “melee”. These stones typically measure less than 3.0 mm, but can include diamonds up to .25 carats.
There are other diamond brokers who specialize in novelty shapes such as triangles, trapezoids, kites, and half-moons, while there are also entire companies that only sell baguettes. Although the biggest demand in the diamond business is for round brilliant stones, there is significant demand for ovals, pear shapes, princess cuts, cushion cuts and emerald cuts. A retail jeweler will choose the diamond broker that is most apt to have the best selection and the best price for the loose diamond for which they have the call.
The difference between a broker and a dealer is that the dealer has the money available to immediately buy your diamond while a broker must obtain the financing from outside sources. We highly recommend that you only deal with a direct diamond buyer as this insures immediate payment and the best price for you.
When you have a need or desire to sell a diamond, you should contact a quality diamond buyer. Although there are other avenues such as pawn shops and those buy/sell jewelry stores with the bars on the windows, your absolute best choice is to directly contact a diamond buyer or dealer that will pay you immediately and with the best price. With the advent of Internet, you now have the opportunity to deal directly with genuine diamond buyers. At Hamilton York Estate Diamond Buyers, when we are buying a diamond in excess of $35,000.00, we will meet you in your bank and pay you immediately with a direct wire transfer. Only after your banker informs you that the money is securely in your account do we take possession of your diamond.
We do not recommend that you send a large diamond to a broker whom you do not know as there are too many ways for a loss to occur. Be wary of brokers or dealers that want to keep your stone for days or weeks as they typically do not have the money to buy your diamond, but are most likely contacting a diamond buyer like us for which to sell the diamond and then pay you a lesser amount. Your best choice is to fill out our Sell A Diamond form and let us contact you with our best offer. We are confident you will be pleased with choosing www.HamiltonYorkEstateBuyers.com as the avenue for which to sell a diamond a sell a diamond ring.
The next educational article in this series is titled “What is My Diamond Worth Cash and How Do I Get the Most Cash for Diamonds” and explains the true value of your diamond as compared to the appraised value.