The title of this blog is a question that has been asked many times by my friends, family, and blog readers: where can I buy the cheapest diamonds in Bangkok or anywhere in the world?
Is it cheaper to buy diamonds in Bangkok compared to Singapore, Hong Kong, Mumbai, Dubai, Sydney, London, and New York? It does seem like a logical question to ask, especially to someone like me who has been in the diamond trade for over 15 years.
Cheapest Diamond in Bangkok: Location
There must be a location where I can buy the cheapest wholesale diamond every time.
The truth is that diamonds are a highly traded commodity and almost all countries have similar pricing.
This is especially true if the diamond is purchased from a respectable diamond wholesaler, trader, or retailer. The only price difference will be that country’s tax code. For example, diamonds are subject to 7% VAT in Thailand, or 20% VAT in the United Kingdom.
Certain countries prefer SI quality diamonds, like the US, while countries in East Asia (China, Hong Kong, Thailand, Singapore, Taiwan) prefer cleaner diamonds (VVS or VS clarity).
The reason one might feel a certain country’s diamonds are cheaper than others is because a particular market may:
- Have more players (buyers and sellers). When a country has more companies or consumers who sell or buy diamond jewelry, they will accept lower margins, and therefore diamonds will be more competitively priced.
- Be more transparent for diamond pricing. Some countries have a larger online presence, which means diamond pricing is more transparent. This allows consumers to compare prices easily, which makes diamond pricing more competitive and cheaper.
Cheapest Diamond in Bangkok: Diamond Wholesale Business
Diamond wholesalers always get a weekly price list called the Rapaport Diamond price list, which provides an estimate of how much a diamond should cost based on its 4Cs (carat weight, color, clarity, cut grade).
This list can be seen indirectly in our regularly updated blog post, which I have linked here: how much a 0.50 carat, 1 carat, or 2 carat diamond should cost in wholesale.
These diamond prices are standard for all diamond traders around the globe. Due to this price transparency, the chance of overcharging has become more difficult. If a seller does try to sell at a much higher price, other wholesalers, traders, or companies will enter that market and reduce the diamond prices to global prices, as it is an easy arbitrage trade.
So the question being asked, regarding where you can get the cheapest diamond, is actually incorrect. It is not where the diamond is located that determines the price, but whom you know inside the diamond trade who can get you the correct wholesale price.
The Diamond Trading Process
Now let us think about this logically, in terms of how diamonds or diamond jewelry are usually traded. There is a simple process that a diamond must go through before reaching your fiancée’s, girlfriend’s, or wife’s hands.
The Traditional Five Steps
Step one. Diamonds have to be dug from the ground, either from open pit mines, alluvial sources, or from sheer rubble (almost impossible in the modern day). These mines are controlled by very large corporations, or by countries that have exclusive rights, so they can control the rough diamond prices. Corporations like De Beers, or countries like Russia, Canada, and Australia, now distribute all the rough diamonds.
Step two. The rough is sold directly to large companies by invitation only. For example, De Beers rough is sold to companies they have screened and selected. These companies are called siteholders. They have the option to buy rough diamonds ten times during the year, over six day periods called sight periods. These companies will bid for the highest price to get the diamond rough.
Step three. From there, diamonds are cut to the facets we all recognize and certified either in house or by reliable third party certificate providers such as GIA, HRD, or IGI.
Step four. These manufacturers will then sell the cut diamonds to one of the following:
- Other diamond traders
- Wholesalers
- Directly to some wholesale jewelry manufacturers
Step five. The wholesale jewelry manufacturers finally sell their finished diamond jewelry to retailers. This is where you will see your finished ring in that beautiful display at a department store or boutique jewelry shop.
As you can see above, the usual process of acquiring a diamond ring means your diamond goes through three to four hands before reaching you. This process is the same anywhere in the world: Bangkok, Singapore, Hong Kong, Sydney, London.
You can imagine that at each level the individual or company will need to make a margin to sustain their business. Therefore, the more hands the diamond has gone through in the distribution chain, the more you, the consumer, will have to pay.
Why the Traditional Way of Buying a Diamond Engagement Ring Is No Longer Relevant
Consumers still like to buy their diamond engagement ring or jewelry from famous brands, as they believe those brands are more:
- Reliable
- Trustworthy
- Backed by good return policies
However, you have to remember that the reason these brands are famous is that they have spent a great deal promoting their brand and products through ad campaigns and brand ambassadors.
To serve their clients and keep their image, they also need to hire professional sales staff, build excellent jewelry displays, and take premium retail locations so they can provide excellent service.
All of this costs money:
- Marketing expense
- Rental expense
- Staff salaries
- Inventory expense
So if you are still a traditionalist and prefer buying from big brands, whether out of brand loyalty or convenience, you will have to pay more. Nothing is free.
Traditional vs New Age Way of Buying Diamond Jewelry
The traditional storefront method made sense 20 years ago, when we did not have the power of the internet and information was not as available.
But we are now well into the 21st century, and the web has transformed how we can buy diamonds and custom jewelry.
If enough research is done, you can now get the diamond and engagement ring one or two steps above the traditional retail level. This means it is now possible to buy a diamond or custom jewelry closer to wholesale.
The diagram below summarizes what I mean by skipping one or two steps.
Example of the United States
An example of how diamond ring purchases have already changed is the United States. Consumers there have moved toward buying their diamond engagement rings online instead of in traditional retail stores.
Large online diamond sellers such as Blue Nile and James Allen have taken market share from traditionalists like Tiffany and Cartier, because they can offer better deals by selling exclusively online with smaller overheads.
That is why most consumers and traders agree that one of the most competitive markets to buy a diamond ring is the US.
However, this does not mean the United States is the cheapest place. Any respectable diamond wholesaler, including our company, can beat these prices.
Buyer tip: when buying a diamond, check both Blue Nile and James Allen to see how much you are paying for your center diamond.
If your contact is selling the diamond for more than these sites, you are most probably overpaying. You can read more about how to check whether you are getting a good deal in this post: How to Buy an Engagement Ring in Bangkok Without Getting Scammed.
Other countries, including the ones sourcing the diamonds, cutting the diamonds, or making the finished rings, are still dependent on the old traditional retail model. That is why it can feel more expensive to purchase diamond rings in those countries.
Cheapest Diamond in Bangkok: Check Who You Are Buying From
As explained, the cheapest way to buy your diamond is to get as close to the diamond manufacturers as possible. In most countries you can get there either by looking exclusively at online sellers, or by knowing someone who is an insider in the diamond trade.
Most people in the diamond wholesale business source their diamonds from manufacturers, or are manufacturers themselves. So it just depends on how much margin they want to extract from you, knowing that you are not in the trade.
It is not where you buy the diamond, but whom you buy it from, that determines whether you get the fairest diamond price.
Our Diamond Search and Custom Engagement Ring Service
If you are in the market for the best diamond and a custom handmade engagement ring, contact us. Let us know your budget and what you are looking for.
From that initial information, we will find and email you four to five center diamond options. Unlike other traditional or online dealers, I am not looking to sell you anything. I will give you an honest, frank, and objective opinion on what I think is best within the budget you offer.
This service is free, and there is absolutely no commitment to buy any of our suggestions. The only thing you have to do is not reply, and you will not hear from us again. You have nothing to lose.
How We Compile the Diamond List
- We first contact our local diamond supply network to check whether there are stones that fit your requirement in Bangkok. We have over 50 contacts in Bangkok and will check all of them to make sure we can provide you the best deal.
- If nothing suits, we then search our extensive global network of over 900,000 diamonds to find the best match. The only setback with a stone from the global list is that it can take one to two weeks to arrive in Bangkok.
What Type of Engagement Rings Do We Make?
We usually set our engagement rings in 18k yellow or white gold, or 950 platinum. Our rings are all handcrafted by highly skilled Thai craftsmen.
Examples of Our Work
Contact Us
Contact us today for your wholesale gemstone, diamond, and jewelry needs. We can source, search, and supply whatever you require.
What you get when you contact us:
- Wholesale and highly competitive prices on gemstones and diamonds, through our extensive network of contacts around the world
- Every stone we sell is verified in house by a GIA Graduate Gemologist, or independently certified
- Personalized service, not a one size fits all approach
You can learn more on our Why Choose Us page.
Pl advise your em address and Thai location i want a to visit you to see the diamonds you have pl advise kind regards Maurice Fawcett OAM JP
Hi Maurice,
Our address & contact details is provided in contact us page: https://www.buygemstone.info/contact-us/.
Regards,
Tarun
Excellent information
Looking for a 1.0 I sI2 ideal cut with cert preferred GIA
Email us at sales@thainativegems.com. I will forward you some options.