< BACK TO THE DIAMOND BLOG MAIN PAGE
28
December 2016

Like? Share!

Where Do Consumers Buy Diamonds Besides the Jewelry Store?

Since the historic DeBeers campaign that started the trend for diamond engagement rings, men and women have been searching for the perfect diamond. When consumers buy diamonds, they are digging deep into their wallets for the enjoyment of owning the ultimate luxury product. In recent years, the retail diamond and jewelry market has experienced disruption, with different types of stores and trends that open up new – and in many cases cheaper – options where to buy diamonds. Let’s explore some of the recent movements in the market.

Costco – Buy Diamonds Cheaper…

Most people think of Costco as a great place to get huge savings on toilet paper or dog food in bulk, but don’t often consider it as a place to buy diamonds. In fact, Costco does offer a selection of diamonds – but how does it stand up to scrutiny in terms of cost and quality? Good Morning America investigated by purchasing a diamond from Tiffany, for which they were charged $16,600. They then purchased what was listed as relatively the same quality and size diamond from Costco for $6,600. Both diamonds were then appraised by a qualified gemologist, who determined that the Tiffany diamond was in fact valued at $10,500, while the Costco diamond was priced at 17% under its true value, which was $8,000. The conclusion? When you buy retail, particularly at an iconic store such as Tiffany, you are also paying significantly for the privilege of the brand experience.

Online – Convenience Rules

Stores don’t have to be brick and mortar anymore. While many consumers don’t want to forgo the human touch of an in-store experience, there are undeniable advantages to shopping online. The operational costs of an online store are much lower than a brick and mortar store, so they can offer better prices to the customer. They can also offer a larger and more varied supply of virtual stock, which doesn’t require warehousing and other burdensome logistics. With the help of advanced digital sales tools, online customers can have a compelling, interactive experience with the diamond, and they no longer have to visit a physical store to do so.

Yard Sales/Estate Sales – Hunting for Treasure

Social media is a great way to find good savings on jewelry and to buy diamonds in your area. Indoor Yard Sale groups are listed on Facebook, and commonly feature engagement rings in their “for sale” stock. These yard sales can offer diamonds at prices that are 20-40% less than what you would pay in a retail store. Estate sales offer similar value. Many times, sellers are trying to get rid of their goods as fast as possible, and will offer discounts in order to offload them quickly.

Pawn Shops – Unique Bargains

Despite a certain ambivalence of some consumers to pawn shops, there are reputable pawn shops where consumers can get a good deal for their money. Sometimes, they can even find antique and unique pieces that are not available in retail stores, perfect for the millennial generation’s penchant for individualism. The most important consumer challenge when shopping at a pawn shop is getting accurate product knowledge. Generally speaking, pawn shops won’t be looking to educate their customers about the diamonds they have for sale, in the way you would expect from a traditional jewelry store.

Lab Diamonds – Nurture or Nature?

Lab grown diamonds are a hot-button issue in the current diamond and jewelry market. The fact is that labs can offer better quality diamonds at a lower price than naturally formed diamonds. In fact, white diamonds are typically 15-20% lower than comparable natural diamonds bought in retail settings, while colored diamonds created in a lab can be 80-90% cheaper. But is the trade-off between price and the diamond’s natural origins really worth it? Only time on the market will tell.

Second-Hand Diamonds – Second Best is Good Enough

 There are quite a number of sites dedicated to the sale of second-hand diamonds. These are diamonds that have been previously worn, and are being re-sold for a variety of reasons, such as trade-ins, divorce or the passing of a previous owner. Sites such as Worthy, I Do Now I Don’t, Have You Seen the Ring and more, offer deep discounts on diamond rings that can be kept as is, or can be re-set to create a new and unique piece, still at a cheaper price.

 

In an economically strapped market, affordability is inevitably a driving factor in diamond sales, along with the everlasting notions of romance and commitment. Consumers want better quality, yet often at a cheaper price. The range of alternative options to the traditional retail jewelry store give consumers more choice in their diamond purchase, and present a challenge to jewelry retailers in a competitive market.

 

Subscribe to the Diamond Blog

Get the latest technology, grading and retail news straight from the source, straight to your inbox.


MORE FROM THE DIAMOND BLOG

The State of the Diamond Industry in 2019: Challenges & Opportunities

Today, the diamond industry is more complex and dynamic than ever, and technology has only deepened the challenges faced by industry players at every stage of the diamond pipeline. At Sarine, our technologies scanned more than 70 million diamonds in 2018, enabling us to take a broad consideration of the changes happening now in the […]

3 Retail Technologies & Trends that are Changing the Consumer Experience

Recent years have seen a spike in the number of retail stores that are closing down. In 2017, there was a record-setting estimate of approximately 102 million square feet of retail space that went out of business. Retailers worldwide are facing significant challenges, and the main culprit is the internet. We live in a world that […]

The Sarine Diamond Journey™ Provenance Report Goes to Africa

Recently, it was announced that a leading diamond manufacturer in Africa, Schachter & Namdar, has adopted the Sarine Diamond Journey™ provenance reports for its two exclusive diamond brands – Brilliant Rose and Proudly South African. This announcement comes at a time when diamond traceability and provenance are the fastest-growing issues in the diamond industry. Today, […]

5 Diamond & Jewelry Trends for 2019

We’re already well into the year, but 2019 is shaping up to be a bold one in diamonds and jewelry. Designers are pushing the envelope with new, creative styles, and reaching back to revive retro trends. Whether it’s a new fancy diamond shape, an engagement ring worn on the pinky, or a chunky chain of […]

SPECTRUM – Diamond Industry News #28

Love is in the air in this edition of SPECTRUM, Sarine’s monthly roundup of diamond industry news and trends. This week, we are celebrating Valentine’s Day with a great piece about how to choose the perfect engagement ring from Good Morning America, and a showcase of 15 gorgeous Valentine’s jewelry gifts, compiled by Business Insider. […]

The History and Future of Lab Grown Diamonds

In 2015, photographer Dillon Marsh undertook a fascinating project to demonstrate visually just how much natural diamond has been extracted from a diamond mine during its entire lifetime. In one dramatic example, a photo of the Kimberley mine in South Africa – also known as the “Big Hole” – is juxtaposed with a CGI rendered […]

The Importance of Diamond Provenance in a Data-Driven Age

In breaking the frontiers of the diamond industry, from manufacturing to retail, technology must strive to reach beyond what it can do today, to the potential of what it can achieve tomorrow. At the same time, technological development that brings true change must be in lock-step with the state of the industry at the current […]

3 Ways Artificial Intelligence Affects Your Life (That You May Not Be Aware Of)

What is “artificial intelligence”? Since the very beginnings of computerization, the concept of artificial intelligence has captured the imaginations of science fiction writers and movie makers. Today, fantasy is already reality, and artificial intelligence, or AI, is implemented in a wide range of everyday applications and devices. As the technology becomes more sophisticated, and as […]

How Technology Has Advanced the Diamond Industry: Sarine Celebrates 30 Years

This year, Sarine is launching celebrations for 30 years in the diamond technology business. When Sarine was established, in the late 1980s, technology in the diamond industry was in its very earliest stages. The kinds of technologies used today by diamond manufacturers and gem labs all over the world, such as inclusion mapping, automated rough […]

How Diamonds Are Produced

After the long natural formation process deep in the earth, the diamond is extracted from the mine in its rough, raw state, and begins on its next journey – to become a polished diamond.   From mine, to jewelry store, to the engagement ring finger of its eventual owner – every diamond undergoes a long […]