How to Become a Diamond Trader

Diamonds can be purchased for half the price you pay a retailer. Therefore, there is a lot of money that can be made in the diamond-trading business. Before getting into the business you need to make sure you can handle actually parting with the diamonds you purchase. You won't ever make any money if you can't bring yourself to sell the precious objects.

Things You'll Need
  • Financing
  • Increase your knowledge. Learn everything there is to know about diamonds. Become an expert on the subjects of cut, color, clarity and carat. This will help you in your quest to buy only the highest-quality diamonds. The cut refers to the symmetry of the stone. When people speak of the the color of the diamond they're really evaluating the lack of color, or rather how clear it is. Clarity evaluates any imperfections and blemishes in the diamond. The carat is how much the diamond weighs. Read more about the four C's in the Diamond Buying Guide. See Resources for link.

  • Decide how much you will invest. Determine how much money you can spend on diamonds. You really don't have to worry about losing your money when it comes to this, because even if your business isn't a success, you won't have a problem finding someone to buy loose diamonds. You might not make a profit, but you will at least get back what you put in. Some people even invest in diamonds as part of their savings. They buy loose diamonds and hold onto them until they appreciate in value. This should help you rest easy if it makes you nervous to think about how much money you will need to start a diamond trade.

  • Secure your funding. Once you have a budget in mind, you will need to find funding sources. This can be done by obtaining a line of credit from your bank, using personal funds or securing revenue assistance from a financial institution or an "angel or private investor." For a list of angel investors, you can try Go4Funding. See References for link. Either way, you want to make sure that you have the available funding before you move forward.

  • Decide who to buy your diamonds from. You should buy from a wholesaler who directly imports their diamonds. A wholesaler can give you better prices than a reseller. When buying from a wholesaler, you will be given a large variety of diamonds to choose from. This is why it is so important to have a strong background with diamonds. Also insist on certificates for the diamonds. The most popular institutes that certify diamonds are the Gemological Institute of America, the International Gemological Institute, and the American Gem Society. To find out more about the going rate of diamonds, check out Diamondse.info, the diamond search engine. See Resources for link.

  • Decide who to sell to. You can sell to retailers and jewelry designers. You can also sell diamonds online but it's important to know how credible your buyer is because you don't want to get mixed up in a scam and lose your money. In most instances, you can find customers by advertising your services or simply networking with retailers and jewelry designers. You can also try placing ads in jewelry publications like National Jeweler or Professional Jewelers. See Resources and References for links.

What Others Are Reading