Could anyone really answer this??

[diamondshine]

What would you actually figure as the profit margin from when a diamond is sold from the mines as a mere stone until it''s sold in the jewelry store. It''s probably the most profitable market. [$$)] Could anyone actually put a fair number on that kind of margin? Diamonds straight out of the ground are dirt cheap but when they''re furbished and cut they make very expensive diamonds or are used for industrial purposes (not cheap either).

 

[tanuki]

I don''t know the profit margin at each step between the mine and the consumer but there has to be enough of a markup to make it worth someone''s while.

I saw something on TV about the Argyle mine in Australia and they have to use equipment to move tons of dirt with a lot of expensive equipment to even find a diamond. The show also went into the tremendous time and effort the founders had to make to even find where in all of Australia the diamond mine should be located. It was years and years of searching.




I

 

[Garry H (Cut Nut)]

it is probably less than coffee, or wool, but maybe more than beef.

$8B mined = $14b polishhed = about $50-60B in jewellery - but what value is the jewellery?
Of course there are input costs along the way
say 10-15% for sorting and selling rough, 20% for polishing, 25% for marketing the polished and some costs for buying buy jewellery manufacturers and retailers. and of course the jewel makers have some costs too.
So the answer you are looking for is that someone is making a huge fat profit somewhere. but sad to say - there are just a whole lot of people making a living.

 

[perry]

Steve has largly nailed it:

Refreshements and snacks, have some of the highest profit margines out there.

The only possible place that there is a large markup in diamonds is at the retail level. I didn''t say it always exist: and it certainly does not exist in the internet diamond business - just that it would be possible for the right retailer to make a really good profit.

This is similar to how the right retailer in many other goods and services can make a lot of money. It is more based on marketing stratagy and customer service than on what product you are selling for what price.

I will note however, that I could stock a lot of energy drinks, nutritional aids, soap and many other items for the cost of one decent diamond.

I think that I would need to have at least $50,000 in diamonds on hand to even talk to anyone about diamonds - and in many cases you would need a selection of $250,000 to $500,000 on hand (your cost).

There are so many other things I can do without tying up that kind of money.

Of couse, any business must be run right for it to make any money - regardless of the commodity of service offered.

 

[Dancing Fire]

Date: 4/17/2005 2:52:46 PM
Author: perry


I think that I would need to have at least $50,000 in diamonds on hand to even talk to anyone about diamonds - and in many cases you would need a selection of $250,000 to $500,000 on hand (your cost).

There are so many other things I can do without tying up that kind of money.

Of couse, any business must be run right for it to make any money - regardless of the commodity of service offered.

even worst for bullion dealers,they make next to nothing,on a 50k deal they're lucky to make $300.