My wife thinks we can get a great deal on a diamond in Amsterdam or Antwerp. Is she right, or should we buy it at a U.S. discounter instead?
You can probably get a better deal in the U.S. Except for diamond dealers, most buyers in Amsterdam and Antwerp pay retail prices, with higher markups than in the U.S.
"The profit margin on diamonds in the U.S. these days, if you buy correctly, is 10% to 15%," says Fred Cuellar, president of Diamond Cutters International and author of How to Buy a Diamond.
Because what he calls the Internet revolution in diamond buying hasn't hit the gem market in Amsterdam and Antwerp, he says a diamond selling for $1,000 here might cost $1,500 there.
Another concern if you buy abroad: It's a bit inconvenient to go back if you have any problems.
"People fall for the mystique of the diamond districts in Amsterdam, Antwerp and New York and believe they're bound to get a decent deal," says Robert Hensley, a former diamond dealer who is now president of Diamond Helpers, which rates jewelers for their prices, knowledge and customer service at Find My Jeweler. "But it's not true. The people who sell diamonds there are quite skilled at distracting people from what's truly important about diamonds, which is quality and value."
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