When you are buying a diamond, where you buy it can significantly impact the price you pay. Often, people just look at the carat size to determine how much a diamond should cost, but there’s more to consider.

Diamonds usually start with wholesalers, who buy them in large quantities. These wholesalers then sell the diamonds to retailers, who add their own markup to the price. This markup covers various business costs, including rent, staff, and other expenses, and provides a profit for the retailer.

The markup can vary widely, ranging from 30% to 100% of the wholesale price. For example, if a diamond costs $5,000 from a wholesaler, the retail price could be between $7,500 and $10,000.

Understanding this difference helps you know why diamonds might be priced higher in stores. Retail prices reflect not just the diamond itself but also the additional costs associated with running a store and providing customer service. So, knowing about these pricing structures can help you make a more informed choice when buying a diamond.

How to Get Closer to Wholesale Prices

If you are looking to get as close to wholesale diamond prices as possible without actually buying wholesale, here are some tips to help you save money:

1. Choose a Slightly Lower Carat Weight: Diamonds priced per carat can jump at whole and half-carat sizes. For example, selecting a diamond that is 0.9 carats instead of a full 1 carat can be much more affordable while looking nearly the same size to the eye.
2. Pick Near-Colorless Diamonds: Diamonds in the G-J color range are nearly colorless and cost less than those in the D-F range. Pairing these with settings made from white gold or platinum can make them appear just as brilliant.
3. Focus on the Cut: A diamond’s cut affects how much it sparkles. Even if a diamond has slightly lower clarity, an excellent or very good cut can make it shine brightly. So, prioritize getting a diamond with a great cut over perfect clarity.
4. Consider Different Shapes: Round diamonds are often more expensive due to their popularity. Exploring other shapes, such as oval, pear, or marquise, can provide a unique look at a lower price per carat.
5. Avoid Extra Features: Extras like fancy settings or unnecessary embellishments can inflate the price. Buying loose diamonds, which are not set in jewelry yet, can help keep costs lower.
6. Shop Online: Online retailers generally have lower operating costs compared to physical stores, so they can offer better prices. Make sure to buy from well-known and certified online sellers, like those endorsed by AGS or GIA.
7. Look at Lab-Grown Diamonds: Lab-grown diamonds are typically 30-40% cheaper than natural diamonds but have the same qualities. They are a smart option for those wanting to save money while still getting a beautiful gem.