Diamonds and gems in general have very long lives. In this connection, many people like to invest in them because of their longevity and market value. However, investing in precious stones such as diamonds is all about demand and supply. You need to find a good demand for it and have the right amount of supply to meet that demand. But the market is always unpredictable. Will it really be worth your time and effort knowing that tomorrow, the stone's value might fall sharply? In addition, do you already have your own set of buyers?
The Challenges
1. It is very difficult to find a steady stream of buyers. More often than not, your buyers don't buy precious stones regularly. You have to find individuals who have the same or even greater taste than you when it comes to diamonds.
2. Do you have what it takes to be trusted? Are you a believable seller? This is often the first roadblock that new resellers face. Unlike established jewelers, new names in this business don't have the luxury of pricing stones at premium rates.
3. The diamond business is no bed of roses. You have to price your stones aggressively if you want to stay in the business. Other industries like the clothing business can have huge markdowns in their products during sales because they can still generate income by marking up their new products after every sale season. To add, they can turn their stock about 400% faster than jewelers do.
The Reasons for Doing Business
Despite the many challenges, jewelers old and new still continue with their passion of buying and reselling diamonds because of certain reasons.
1. It is a fact. Not all banks can be trusted and not everyone trusts them. With this, many individuals in certain parts of the world invest in diamonds and make them their own set of portable money. They consider this safer compared to saving at the bank.
2. Women have a certain fad for stones and gems. They consider these expensive items as runaway assets. In case their relationships with their hubbies fail, they tend to bring along the stones, which were given to
them.
3. Many buyers also think of the non-monetary aspect of precious stones. Some buy them to commemorate a special life event like wedding, child-birth or marriage. They usually give high importance to these stones. As such, there will always be diamond buyers if only you know where to look.
4. There are only a few intelligent diamond buyers out there. Compared to the number of people who have the know-how of buying cars, a big percentage of precious stone buyers don't have the expertise. This is one of the aspects you can take advantage of.
One of the best tips to selling diamonds is to imagine what buyers are thinking. It is more difficult to sell flawless and very rare diamonds as opposed to medium quality stones with invisible imperfections or covert discolorations. This is why there's a bigger market for the latter because stones that are imperfect in quality are the most commonly circulated.
The Challenges
1. It is very difficult to find a steady stream of buyers. More often than not, your buyers don't buy precious stones regularly. You have to find individuals who have the same or even greater taste than you when it comes to diamonds.
2. Do you have what it takes to be trusted? Are you a believable seller? This is often the first roadblock that new resellers face. Unlike established jewelers, new names in this business don't have the luxury of pricing stones at premium rates.
3. The diamond business is no bed of roses. You have to price your stones aggressively if you want to stay in the business. Other industries like the clothing business can have huge markdowns in their products during sales because they can still generate income by marking up their new products after every sale season. To add, they can turn their stock about 400% faster than jewelers do.
The Reasons for Doing Business
Despite the many challenges, jewelers old and new still continue with their passion of buying and reselling diamonds because of certain reasons.
1. It is a fact. Not all banks can be trusted and not everyone trusts them. With this, many individuals in certain parts of the world invest in diamonds and make them their own set of portable money. They consider this safer compared to saving at the bank.
2. Women have a certain fad for stones and gems. They consider these expensive items as runaway assets. In case their relationships with their hubbies fail, they tend to bring along the stones, which were given to
them.
3. Many buyers also think of the non-monetary aspect of precious stones. Some buy them to commemorate a special life event like wedding, child-birth or marriage. They usually give high importance to these stones. As such, there will always be diamond buyers if only you know where to look.
4. There are only a few intelligent diamond buyers out there. Compared to the number of people who have the know-how of buying cars, a big percentage of precious stone buyers don't have the expertise. This is one of the aspects you can take advantage of.
One of the best tips to selling diamonds is to imagine what buyers are thinking. It is more difficult to sell flawless and very rare diamonds as opposed to medium quality stones with invisible imperfections or covert discolorations. This is why there's a bigger market for the latter because stones that are imperfect in quality are the most commonly circulated.
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