Selling Diamonds – the real markup and why

ok let’s talk about the cost of diamonds…did you know they have to move and sift through a ton of dirt for every 1 carat of diamonds discovered? Then they sell the diamonds to a banker that is called a sightholder, who then has the diamonds cut into gems that can fit in your jewelry. We call them the bankers because they bear all the cost of getting the diamonds from the mine, all the way to the jewelry showroom. Nearly everything is done on memo, meaning the importers, wholesalers and retailers sign their name, promising to pay for the diamonds when sold to the consumer. There are several people on the way; the importer, wholesaler, manufacturer of jewelry with diamonds in it, and finally, the retailer, who has the most expensive operation, called a jewelry store/showroom. None of these people pay cash usually except for the sightholder/banker. When you, as a consumer, decide to sell your diamond, it is the banker that pays the cash, less all of those markups made along the way, meaning that a diamond that you paid 6000.00 for might bring as little as 600.00 cash.
One way to get more can be to memo, or consign your diamond to a jeweler, and wait to get paid when the diamond sells, making YOU the wholesaler/banker of the stone. This typically can eventually get you 2-3 times the cash price of the stone, but you have to be patient; it can take awhile for someone else to buy it.