Buying Diamonds and the News Expose in Australia
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10 May 2006
My name is Mark and I am the gemmologist who works for Lachlan Birch. This is our Store Yes I saw that TV show. Its so subjective articles like that. Yes sure we are far cheaper than the big stores but they also have huge overheads that we don't have, so they must charge more.
As to valuations, this too is a huge issue. Its nearly impossible to find an independant valuer as most of them sell diamonds too!! I have had rings that we have sold valued by supposed independants for the same ring varying from worthless to twelve thousand dollars!!! So what was it worth?
Had a high street Jewellery Store telling you that the stone you bought on Ebay wasn't worth setting? He was probably lying. They always do as the internet is killing their business.
The problem exposed last night was how HIGH STREET jewellers can get away with such lies because they don't have the rigourous feedback system that we live under.
The question of value is such a difficult thing. For me something is worth what we get for it on the day on Ebay nothing more nothing less HOWEVER we have sold one carat PK3 rings for $3700 and also for $560 so what is one worth?
Insurance replacement valuation however is a very different matter and we quote twice wholesale price ie Rappaport for insurance valuation and we also state that it is for replacement in all market conditions
as the price of diamonds does go up.
In the show a valuer said that $5000 worth of diamonds was worth $1000. Lets look at that. We are wholesalers so a shop must sell at 250% of cost because of their overheads. So and item from us that cost $1500 they must sell for $5000. Now if you bought that ring to me (that the jewellery shop paid $1500 for) then I would only want to pay $1000 for it from you as I as a wholesaler can buy them for $1250 anyway!! But to be fair the jewellery shops need that huge mark up to pay for their expensive stores.
As to our credibility? Look at our feedback! 2000 sales and not 1 unhappy customer. What jewellery shop can say that huh? All the High Street Jewellers unhappy clients don't get a chance to leave a comment and don't have the security of Ebay.
Hope this has not confused you and has put your mind at rest and encouraged you to buy from Ebay. Paranoia is a wonderful way of remaining safe in my mind. As someone that walks around the world with diamonds in his pocket all the time trust me Paranoia is a close friend who is always by my side.
Jewellery Wholesale Store
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