Buying from the US still a good idea for Brits?

[xjenkins]

I've been reading through the forums over the past week and it seems that the general consenus is that people from the UK should purchase from the US. However, most of those posts were written last year at the exchange rate of $2 to £1, it's now $1.5 to £1 - does this advice still make sense. I was thinking of ordering a diamond from whiteflash and then getting it set in Hatton Garden, London.

If not, is there any advice on which UK online stores are good - i've been looking at cooldiamonds.com but they don't have as much info on the cut as whiteflash do.

Any advice?

R

 

[Lorelei]

Date: 1/7/2009 3:40:08 PM
Author:xjenkins
I've been reading through the forums over the past week and it seems that the general consenus is that people from the UK should purchase from the US. However, most of those posts were written last year at the exchange rate of 2US to 1UKP, it's not 1.5US to 1 UKP - does this advice still make sense. I was thinking of ordering a diamond from whiteflash and then getting it set in Hatton Garden, London.

If not, is there any advice on which UK online stores are good - i've been looking at cooldiamonds.com but they don't have as much info on the cut as whiteflash do.

Any advice?

R

Welcome!

I know the exchange rate is nowhere near as favourable now, it is around 1.5 USD/ GBP now instead of 2- 1, however with the prices here and what you can get I think it is still a good approach to buy from the US. VAT is less now at 15% then I believe you have import duty of 2.5% so it isn't quite as much as it used to be to import. Blue Nile have a UK website but you still have to add 15% VAT and import duty I believe if buying from there as I think the diamonds come from the USA. So it really depends on what you are looking for and comparing prices here and in the US to determine which is the best way to proceed.

If you would like a London contact, try Dr Indira Marchant at www.bestdiamonds.co.uk , Indira posts here and is passionate about cut quality, so you could see what she can come up with for you.

 

[oldmancoyote]

My experience has been that the PPP rate of exchange is $1 = £1 (i.e. what costs you £1000 in the UK is available for $1000 in the US). That was true in 1991/92 with a 2 exchange rate; it was true in 2000 with a 1.4 exchange rate and is true now over a wide range of goods.

Add 17.5% on top (duty + VAT), and at 1.45:1 you are still on top by nearly 30%. Worth the hassle? Only you can judge.

 

[Steel]

I think you have to consider ''value'' as a broader concept.

While the cost of items from the US may have increased because of the exchange rate that is only one factor of value. Another factor would be value for money. If I spent £5k in the UK and the equiv $''s in the US I would feel better able to get more value for money in the US.

Every time I tried to get jewellery in IRL & UK I met with a brick wall, crap service, crap choice of stones, crap selection of settings and disinterested sales people. One guy in the jewellery quarter locked the door after DH and I entered his shop and when he showed me his rings I did not buy any as they were uncerted and overpriced. He demanded to know why I would not buy from him. We thanked him for his time and said it was not what we were interested in buying. We got to the door and DH tried to open it but the jeweller had not unlocked it, we asked him to buzz the door and he said he would when we gave him a reason why we would not buy from him. We said thanks but it was just too expensive, he looked angry and said that was not true and we would never get a better deal. After a long uncomfortable silence, he buzzed the door and we ran!

Crazzzzeeeee. As a matter of interest, we did get a better deal. From WF, for 4k less and if was 1 clarify grade up, 4 colour grades up and certified. And we got ''no crazy'' for free!

 

[Lorelei]

" We got to the door and DH tried to open it but the jeweller had not unlocked it, we asked him to buzz the door and he said he would when we gave him a reason why we would not buy from him. We said thanks but it was just too expensive, he looked angry and said that was not true and we would never get a better deal. After a long uncomfortable silence, he buzzed the door and we ran!"

Bloody hell

 

[Steel]

Honestly, it still freaks me out. We were younger then. Now I am sure I would demand that he open the door or I would have called the police.
I was shocked and still very much in my ''people pleasing'' phase. But it really was scary.

 

[xjenkins]

whoa, that kind of story totally puts me off going anywhere near hatton garden!

Thanks for the advice, i have emailed Indira to see whether she can help me and if not I have my eye on a diamond from whiteflash.

 

[Paul-Antwerp]

Technically, there is no reason why diamonds should be more expensive in the UK. The exchange-rate has only a marginal effect.

Diamonds are sold within the trade in USD, so the buying-price for a retailer in the UK is basically the same as for a retailer in the US.

When buying in the UK, one will have to pay VAT. When importing into the UK, one will have to pay import duty plus VAT. No real difference there, unless one flies over to the US, and smuggles the stone in. Not advisable, and how does one factor in the cost of the travel?

One big difference between the two countries, though. Competition is tougher in the US, education-level with regard to quality is higher, and Internet-businesses are more established and better organised. As a result, you probably still have about 80% of the American jewelers being dinosaurs and trying to sell whatever at the highest possible price. In the UK, this percentage probably still is higher than 95%.

Therefore, the reality (according to me) is not that diamonds are more expensive in the UK. Like I already said, there is no reason why they should be more expensive. The problem is to find the 5% of retailers who are competitive with the most competitive 20% in the US.

Live long,

 

[strmrdr]

Date: 1/7/2009 4:31:44 PM
Author: Lorelei
'' We got to the door and DH tried to open it but the jeweller had not unlocked it, we asked him to buzz the door and he said he would when we gave him a reason why we would not buy from him. We said thanks but it was just too expensive, he looked angry and said that was not true and we would never get a better deal. After a long uncomfortable silence, he buzzed the door and we ran!''


Bloody hell

ditto that

He would go to jail for 15-25 years for felony kidnapping for trying that in my state.
Lethal force could legally be used to get out.
They can lock people out so they have to be buzzed in but they can not lock them in here.

 

[xjenkins]

Interesting point paul and that explanation makes sense to me, I guess it''s the same with a lot of other products as well - the competition is fiercer in the states and that brings retailers margins down.

Can anyone recommend any other candidates that fit the "5% of retailers" category in the UK?

 

[oldmancoyote]

Date: 1/7/2009 5:08:40 PM
Author: Paul-Antwerp
Technically, there is no reason why diamonds should be more expensive in the UK. The exchange-rate has only a marginal effect.
[snip]

There is one reason - which I suspect is the reason why most things are more expensive in the UK than the US: overheads. Space is more expensive, taxes are higher, labour costs are higher and there are far fewer economies of scale.

True in consumer durables, clothing, housing, personal care items, ... Add this to your competition argument, which is probably truer for jewellery than for other categories, and lo and behold... even the most competitive 5% cannot keep up.

 

[Steel]

Date: 1/7/2009 5:18:33 PM
Author: strmrdr
ditto that
He would go to jail for 15-25 years for felony kidnapping for trying that in my state.
Lethal force could legally be used to get out.
They can lock people out so they have to be buzzed in but they can not lock them in here.

We talked about that afterwards and felt ok that we were locked in because if a jeweller has to ''buzz you in'', then then the jewellers would be locked as a standard. So to have locked us in, felt ok at the time. But we felt stupid to have been locked in once he did not unlock it when we approached the door to leave or when we asked him to open the door. I would have dealt with it so differently now.

 

[Steel]

Date: 1/7/2009 5:29:10 PM
Author: oldmancoyote

Date: 1/7/2009 5:08:40 PM
Author: Paul-Antwerp
Technically, there is no reason why diamonds should be more expensive in the UK. The exchange-rate has only a marginal effect.
[snip]

There is one reason - which I suspect is the reason why most things are more expensive in the UK than the US: overheads. Space is more expensive, taxes are higher, labour costs are higher and there are far fewer economies of scale.

True in consumer durables, clothing, housing, personal care items, ... Add this to your competition argument, which is probably truer for jewellery than for other categories, and lo and behold... even the most competitive 5% cannot keep up.

Honestly, I trawled the shops here, in London, Birmingham and online in both countries and could not find anything. The price was too high, the quality was too low, nobody would do custom, nobody would allow me to choose my stones, nobody was interested (and my budget was not low), I was spending a good amount of cash and they seemed to not care, at all.

So while I agree that the good jewellers should and probably do exist. I could not find any.

 

[oldmancoyote]

We violently agree, then. Actually, the UK is very good for antique/estate jewellers, but new stuff...