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The Fraction Scam
Some jewelers will list the weight of a diamond strictly in fractions. For example, you might ask them the weight of a diamond and they will say it’s % of a carat. Your next question should be: “Well, is it exactly 75 points or not?” Many jewelers will call anything from 65 points to 75 points a % carat diamond. Those are the same jewelers who will call any diamond that weighs 90 to 100 points one carat. Jewelers that round up the weight of a diamond are breaking the law. You’ll notice that these jewelers will never round a diamond down-for example, calling an 85 point diamond % carat. They’ll never do it. The way to make sure the diamond you may purchase is the weight the jeweler says it is is to ask the jeweler to please weigh the diamond in front of you on an electronic scale. If the diamond he’s showing you is already in a setting and he says he can’t weigh it, don’t buy that diamond. You should only purchase a loose diamond that can be weighed.
The 50% Off Sale
It’s a beautiful Sunday morning; you’re flipping through your three-pound newspaper reading about everything on sale from cookware to automobiles. Then you see it: Your local jeweler is running a 50 percent off sale!! Wow! You are excited! You hop in your car, drive out there, and make what you believe is an incredible buy. It isn’t till a couple of weeks later, while you’re strolling through the mall, that you see the same item you purchased in another store selling at regular price and their regular price is cheaper than what you paid! You’re furious; you thought you bought your piece of jewelry at 50 percent of a regular price. The reality is that you didn’t. Many jewelers run fake sales. They take the cost of a piece of jewelry, multiply it by four, and then take 50 percent off that price. For example, let’s say the jeweler has a diamond ring that cost him $1,000. If he takes the cost and multiplies it times four that makes $4,000. He then tells you that $4,000 is the regular price, takes 50 percent off of that, and says he will sell the diamond to you for $2,000. Now most people’s reaction is that they’re saving $2,000. The reality is the average jewelry store has a 100 percent markup. Diamonds said to be worth $4,000 would normally only sell for $2,000. So when you think that you are saving $2,000 you’re really paying full retail. The way to determine whether you’re really getting a sale price or not is to compare their sale price to the prices listed under “Step Two: Know Prices.” If their original price is more than double the price listed, then they’re playing games with you. For example, let’s say you go to Joe’s Jewelry Store and he’s got a one carat VS1 G on sale at $9,600 from $19,200. The price I list in “Step Two” shows that a one carat VS1 G should sell wholesale for $4,800, and we discussed that maximum retail is double that price. That means the most the diamond should sell for would be $9,600. So if we bought at Joe’s and thought we were saving $9,600, we still really just paid maximum retail.
Bait and Switch
Bait and switch is a term that actually has been around for a long time. It refers to anyone who runs an advertising special on a particular item and when you go to their store to buy it they’re suddenly sold out and will attempt to sell you something else. Don’t fall for this old trick. Many jewelers hope that since you already have made a trip out to their establishment and were ready to buy their advertised item then they probably can talk you into taking something else home. Don’t let impatience cloud your decision. Many people get so excited about taking something home that they end up buying something they really don’t want. Remember, grade each jeweler with the J.Q.S., and then if they rank high enough use a scratch sheet to check each diamond. Make sure it’s the quality you want, and then compare their selling price to the prices quoted in the book and see how good a deal you are getting. Remember, if you work hard enough there’s no reason you can’t find the right diamond at the right price.
