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Buying and Selling Diamonds and Gemstones

I have received several requests for information on buying, and selling diamonds and gemstones. I thought I would post the following information so any one that is interested in this type of activity will at least have some of the basic information.

First of all let me advise you that I have been buying and selling diamonds for the past couple of years or so. I am still a neophyte. I learned the basics from my son, who has been in the business for several years and has been quite successful in this business.

Buying and reselling diamonds is a very serious business and requires a very comprehensive knowledge of diamonds and also the market for reselling same. There is a 900% markup in the price of diamonds from the jeweler to the buyer of used diamonds.

I do not fool with any type of gemstones at all. There are too many variables involved in determining the type of gemstone, quality and most important of all the value. The diamond and gemstone business reminds me of the age old adage “beauty is only in the eye of the beholder”.

I will attempt to post a few very important things one must be aware of in the diamond business. The first rule of business is “Supply and Demand”. There are a lot of diamonds on the open market and there is a market for them. The key is being able to determine a fair purchase value and be able to sell the diamond at a profit. Just like the used car business.