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Common Misconceptions about Diamond-Buying

Misconception #1: "The bigger the markdown or discount, the better the deal."

TIP: If a deal is too good to be true, it probably is.
We alluded to this in our introductory letter, but it's so important we've repeated it here, just in case you missed it! A good deal isn't a function of how much it's marked down, but how little it was marked up in the first place. A good deal is when you compare prices on the same quality diamonds from more than one source, then choose for yourself the best quality for the least money, to suit your personality and lifestyle.

Misconception #2: "It doesn't matter what I pay, as long as I get good quality, because diamonds are a good investment."

TIP: When "investing" in diamonds, the less you pay for it, the less you will lose should you ever want to trade or sell it.
There are too many factors affecting cost, such as markup, overhead, etc., for most diamonds to be considered a good invesment in a non-inflationary economy. If you purchase a diamond ring for $1,000 on the new market and need to sell it for cash the next day, the maximum percent received, on a national average, is 25%, or $250.

Misconception #3: "Highest quality is always the best buy."

Actually, in America, the middle grades are the best sellers and most in demand. Remember, if every size, color and clarity has a different value that is controlled by DeBeers, as long as you pay the proper price for that size and quality, one diamond isn't better than the other - just different.

Misconception #4: "Regular jewelry stores sell new diamonds; estate jewelers and pawn shops sell used diamonds."

Most jewelry stores take back the diamonds they sell, as trade-ins, as long as the customer purchases a more expensive one (usually double the cost of the returned item). They then remount those stones in new mountings and put them back in the store for resale. Not that we're suggesting there is anything wrong with a pre-owned diamond. In fact, it's hard to tell a round brilliant diamond cut in 1930 from one cut today. Just don't assume that every new mounting holds a brand new diamond. And if you're going to buy a pre-owned diamond, you'll save money by buying it from an estate jeweler.

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