Every week, tm streamyx com get an email update from my favorite online retailer of computer and electronic goodies. The HTML message is loaded with pictures of all kinds of gadgets cheap 512k broadband offered at very good prices. Now these are items that are mass-produced in far away lands, using cutting edge technology, and made in ultra modern production facilities. About 2 weeks ago, I was surprised streamyx net see that now they are also offering jewelry... I shouldn't have been so surprised because 3 days earlier my gas company included an advertising flier for jewelry in with the monthly statement.
The online retailer was offering a 1Ct. diamond solitaire engagement ring for an amazing discount. According to them, the ring should normally be sold for $4,999 but now you can get it from them for $1,599. WOW, that is truly amazing! What a savings! How can they do that?
I understand that when many consumer items are first introduced, the price is high but it will drop over time.... in 1987, my first Mac cost 3 times more than the iMac that I just bought and my new iMac is thousands of times better than that original computer. Is that the same way jewelry works? Well yes and no. In the past 30 years I've seen many changes in how jewelry is being sold to the public. The most notable was home shopping when cable TV started to become more widespread in the late 70's to the early 80's... but the biggest change has been via the Internet.
For the past 30 years, as these new jewelry outlets became popular, it made prices come down because it "eliminated the middleman" from the chain of distribution. Because of these major realignments to the jewelry business, there are no more middlemen left. There really haven't been many drastic improvements in manufacturing. Jewelry is basically manufactured the same today as it was 100 years ago. Computer chip manufacturing is being improved everyday... the speed and performance keeps going up as the prices keeps going down... jewelry manufacturing doesn't work that way.
So how does this ring have an original value of $4,999? Simple, they made up that $4,999 value! If everyday, a jeweler makes a ring and sells it on a regular basis for $1,599, then the value of that ring is $1,599. If someone had actually bought this same ring for $4,999 then that person really got ripped off and they should never, ever trust their judgment ever again!
The price of the gold that is used in the ring is set on the open market on a daily basis and law regulates the gold content of the ring. The cost of manufacturing is pretty much the same for this type of ring regardless of who manufactures it. The one item, the major factor in the pricing of this item, the diamond, will be the one thing that could change the price from $1,599 up to $4,999. The information that was given shows it is a 1Ct diamond, I1 to I2 in clarity, and J to K in color. Well, according to them, a 1Ct. diamond can vary within a weight range from 0.94 to 1.04Ct. Knowing that, which end of that range do you think they use most of the time? That's right, the low end of the range will be used and I'm sure that the lower clarity, I2, and the lower color, K, will also most likely be used. However there is no mention of the 4th. "C", and the most important "C", the cut.
Seeing some of the information of this ring, I think that at $1,599, this ring is overpriced. This will not be a nice looking diamond! Being a 1Ct. diamond is about the only impressive thing you can say about it. This type of deep discount will end up of attracting people who are susceptible to this type of advertising. These are people who believe that there is a tremendous mark-up in jewelry and anytime you buy jewelry you are getting ripped off.
Tremendous mark-ups and rip offs are always evident whenever my wife buys perfume or dress shoes. Please don't ever waste any of your hard earned money on offers like this... remember, you generally do get what you pay for!
Bud Boland has been in the jewelry business for 40 years and has done everything from watchmaking, diamond setting, jewelry making, and has been a Gemologist for nearly 35 years. He is a Graduate Gemologist from GIA, which is also the place where he was an Instructor. He has taught about diamonds to hundreds of students from all around the world.
He is currently committed to producing the only diamond buying guide anyone would ever need... unbiased advice from inside of the jewelry business...
Diamond-Buying-Made-Easier.com
Four more important tips can be found at Cheap Diamond Engagement Rings on his website!
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