[Least Expensive] Buying Diamonds

Hi my name is Frank and im looking for the least expensive way
to purchase diamonds and watches . I am willing to travel
wherever and whenever to get the best deals. If anyone knows of a
good place in the world or country, please let me know. Also, if
anyone has been to Asia since the depression, let me know what
prices are looking like.

Thank You,


I am a manufacturer of diamonds,I am a member of the Israel
Diamond exchange,I buy rough and have my own contractors who
polished it for me. What are you interested in ? Gary Braun

This may sound cold and heartless but the best place to buy
diamonds is any pawn shop near a large military base preferably
one that includes basic training lots of failed engagements and
marraiges to pick the rings from! (and thence the diamonds ) or
if you live near the canadian border go to the flea markets you
can find deals there sometimes Hope that helps Ron

Sounds to me like you aren’t in the business and I will warn you
that if price is your only concern you will always get exactly
what you pay for. If it’s cheap that’s what it is.

the best place to buy diamonds is any pawn shop…

I respectfully disagree.

The best place to buy a diamond is where one gets the best price
for the four “C’s” (including proportioning) and service.

The price a pawnshop obtains the diamond for has no bearing on
the selling price of that stone…just as a retail jeweler who
obtains a diamond in trade against a retail sale and has little
or nothing in the stone he accepted in trade.


If your going to quote me do it in context. I said the best
place to find CHEAP diamonds was at a pawn shop NEAR a large
military base preferably one that has basic training going on
there. For the very simple reason that many relationships are
destroyed by the military and the engagement and wedding rings
are then pawned ! Ron

Hi Ron,

I’m sorry if I didn’t make myself clear. Let’s address your
specific statement (below). Let’s say G.I. Joe walks into “xyz
pawnshop” with a .25ct round brilliant H color SI1 with average
proportions set in in a 14kt 4 prong head weighing 2 grams total
weight including the stone. Real wholesale on that stone is $175

  • $200. Then you have a mounting worth about $35.00 (new
    wholesale). So…G.I. Joe walks in and wants to borrow on it.
    How much do you loan? The (fair) answer is $100.00 (maximum).
    BUT…if the G.I. doesn’t come back, you’re still obligated to
    hold the ring as per the terms of the contract. In Nevada that’s
    five months. So, the five months go by and you want to sell it
    and make a “fair” profit. You have a choice Wholesale it or
    retail it. If you wholesale it you will get about $175. - $185
    for the stone and a percentage of spot melt for the mtg… So
    you’re talking a MAXIMUM of $185.00!!! What you’re not taking
    into account is the cost of the loan at 10% per month, plus
    paperwork and other overhead. So 10% a month comes to $10/month
    times five months, plus paperwork charge ($5.00) and clean-up
    ($3.00). When you add the $100 investment to the other costs you
    now have $158.00 in a used ring. How long will the ring sit before
    it sells? The average is about eight months to a year.

Now here’s my point. The same G.I. Joe walks in to the jewelry
store (next door to the pawnshop) and trades the SAME ring in on
a beautiful new set that is very fairly priced (at keystone) at
$2,000.00. The jeweler gives Joe $500 in trade. Joe Gives the
jeweler $1,500.00 and walks out happy because he got a fair deal.
The point is that the jeweler has NOTHING in the diamond ring,
doesn’t have to hold it for five months, and except for the
clean-up charge makes 100% more profit.

The JEWELER (not the pawnbroker) would be the one most likely to
get a better deal from on a fast turn…

I have been a jeweler and a pawnbroker (sometimes both at the
same time ) since 1970’s and " destroyed relationships…"
have nothing to do with fair prices and the re-sale value of

(Truth is truth…any way you slice it)

Gotta agree with Wintermte. Pawn shops are for sure the way to
go for buying diamonds - both cheap and not so cheap. To begin
with, you MUST to know what you are going after and what you are
looking at when/if you find it. Pawn shops don’t pay much for
their stuff, and I have found that there is a lot of “room” in
their pricing. BUT, you MUST know what you are looking at. Pawn
shops are always my first stop when looking for a diamond.
Since I use primarily small to medium stones, I can usually find
what I want. If not, then call the dealers.

I have had years of dealing with the local shops and have built
a rapport with these guys. Just be prepared to pass or play when
the deal is struck. Cash works best when dealing. Pawn shops are
pretty cash flow sensitive, so they really don’t like to hold on
to too much for too long.

Not only can you get diamonds, but they are a good source for
metal (in a pinch). Usually the people that work the counters of
the shops don’t know beans about jewelry, so the occasional
colored stone also pops up - at really low, low prices. I have
found nice rubies, sapphires and other stones that I have been
able to get for next to nothing. Some of these stones were so
cheap (almost felt guilty - almost) that I couldn’t pass up the
deal. I bought them as an investment and shoved them in the
safe. For instance, an 8 carat NICE aqua for $10.00, a 2.78
carat nice ruby for $15.00. I was buying gold, and the stones
were included. They weren’t interested in the stones, and I
wasn’t interested in educating them. Walk in, see what they have
to offer and listen to the deal. Keep your mouth shut and don’t
try to show off your knowledge or you may blow any future finds.
Don’t try to educate them - most of the counter help isn’t
interested, anyway. Keep a poker face when you find that
"sleeper" and you may walk out with a treasure.

I have a friend who has made a living for the past 10 years
buying from pawn shops and selling to anyone who’s interested.
He’s not getting rich, but he calls his own shots - works when
he wants and plays when he wants. So, go ahead and cruise the
pawn shops occasionally. Get to know them, play fair with them,
and who knows what you may find. Just be sure you know what you
are looking at. Returning money isn’t on their list of things
they like to do. You’ll pay for it in the future one way or

Hi Aufin, I agree with all the advise you have posted for pawn
shops that don’t know what they’ve got.

It has been my experience that pawnshops like that are few and
far in between. I’d like to know the names and locations of some
for sure! … Would you like to share?


Ok I give, Charles, : - ) first, I did not credit mly sources,
as I used the (assume) word to think it would not raise the kind
of response it did. The original suggestion came to me through
Gary North Ph.D in economic history. Second, I don’t do it either
if I need diamonds I use the wholesale market ,I don’t use many
diamonds ( at least not yet ) but I want the insurance of gia or
other quality certs and a dealer I know will be there . Third, I
don,t know about NE. prices but in MI the costs are ( and
payouts) are lower Fourth, The average GI joe as you name him is
not thinking very logicaly for obvious reasons… as your letter
shows you do,but the man asked a question and I tried to provide
an answer to the best of the I have had access to.
Thanks for your response, I like " talking" to well informed
intelligent people Ron