Wholesale diamonds can be a confusing term, made so deliberately by dealers who use it incorrectly to give the impression they are selling diamonds at a reduced price to attract more clients.
In fact the term wholesaler and retailer have different and distinct meanings. Whereas a retailer will sell to an end user, a wholesaler actually sells to a party that intends to resell the product on. So if someone tells you they are a wholesaler of diamonds to the public that is incorrect and likely to be a marketing ploy.
With the internet and the fact that people can purchase diamonds online, this has shortened the supply line somewhat and wholesalers see a market for selling direct to the public. While they may be wholesalers they are also, in this sense, retailers as well. This has complicated the issue also.
In addition, with the lower overheads, inline suppliers have an advantage over the retail shop as their expenses are lower and they can afford to give a real reduction in the price of diamonds.
So how can you know when the diamonds you are buying are wholesale or just a cheaper diamond?
It is actually illegal to sell wholesale diamonds to the public although it is done commonly of course, but not illegal for a wholesaler to sell diamonds to the public.
The important points, as far as the person buying the diamond are concerned are:
Is the diamond genuine?
Is it what the dealer is claiming it to be in terms of quality and cut?
Is the price right for that quality and weight of diamond?
The main concern for the buyer is that he or she is getting what they paid for. Diamonds are priced on their cut quality and weight. So it is important to be able to establish that for each diamond. Getting a proper independent appraisal for a diamond from a gemological laboratory to establish the diamonds qualities is very important.
It does not matter very much if the seller is a retailer or a wholesaler provided the above points are taken care of. There is nothing like doing due diligence and finding out what the qualities of diamonds are and the current prices of wholesale diamonds
