A diamond, silk, and other jewelry that’s sold in shops isn’t actually worth more than the value of the merchandise itself, a new study suggests.
In fact, jewelry and diamonds are the most common types of jewelry sold in retail stores, and the most expensive, according to a study by the nonprofit Jewelry Retailers Association (JRA).
But they’re also the most valuable jewelry that people buy, and they’re often sold for less than they’re worth, said JRA president and CEO Jim Cramer.
“It’s very hard to sell a diamond, and it’s not hard to get a diamond,” he said.
“It’s just hard to figure out how to make it worthwhile.”
That’s because there are two key factors that determine how valuable an item is, Cramer said.
One is whether it has a market value.
The other is whether the item is a jewelry item.
“If it’s a jewelry piece, then it’s really hard to make money on it,” Cramer explained.
“You could probably make it worth a couple hundred dollars.
But it doesn’t make it any more valuable than a cheap pair of jeans.”
The JRA survey found that consumers are most likely to buy jewelry that has a value greater than the item itself.
That’s why they buy it and why retailers like to sell it for less.
But even for jewelry that is relatively cheap, such as earrings and earrings with fancy designs, they’re still worth more.
That’s why consumers are likely to be more likely to get diamonds and other luxury jewelry, especially if it’s sold for $500 or less, said study author and JRA member Jodi Gee.
It’s a good reason, she said, to get the diamond, diamond ring, or a diamond necklace, which typically costs about $100 to $150.
Cramer said consumers tend to pay a premium for these items, because they’re more valuable.
“But you have to get into the mind of the shopper that they’re not paying anything.
They’re not being paid for anything,” he explained.”
We need to start looking at these things as a consumer service,” Gee said.
In other words, retailers need to pay more attention to the quality of the diamonds and the jewelry itself.
“When you think about it, diamonds are hard to come by,” Gue said.
A diamond is only worth a few hundred dollars when you’re buying them on the street.
“The price is a function of its quality, and if you’re not getting that quality, then you’re paying a lot more for the same product,” she said.
“The diamond market is very fragmented,” Crammond said.
The most common diamond jewelry is actually very rare, and even then, people can often get them for very little money.
Currency has also been a big factor.
A $500 diamond necklace could fetch anywhere from $30 to $100 on the secondary market, Gee explained.
But a $200 diamond ring could be worth $100,000.
Crammond noted that some diamonds and gems have been sold for higher prices than they should have been.
“There are a lot of diamonds that are overvalued,” he noted.
“And they’re really hard, and people are willing to pay very high prices for them.”
So consumers need to know what’s going on.
“Consumers need to understand that diamonds and jewelry are not as good as they think they are,” he added.
“People should ask questions like, ‘Is this a good deal?’ and, ‘What are the risks?'”
If you’re in the market for a diamond ring or diamond necklace and think you’re getting a good price, don’t buy it.
Cramer recommended contacting a jewelry company to see if the price is justified.
“Don’t buy that thing,” he cautioned.
“Just get the right diamond or ring or necklace.”
The study was published online March 6 in the Journal of Retail Economics.