By Jeffrey Skaret
While well-intended to give consumers a better gauge by which to evaluate and select a diamond, the 4 Cs by themselves have become a propellant toward the commoditization and shrinking margins of these precious stones. Largely, this has happened through the relative availability of information on the Internet, the consumer perception that diamonds are plentiful and not rare, and the continued defensive practice too many jewellers employ of pinning their value proposition on a grading report that adds no real value to a diamond.
Consumers now believe a diamond is a diamond is a diamond, as long as they have the same 4 Cs. Yet, we professionals know two diamonds with the same 4 Cs can actually be very different.
Without changing the way we perceive, buy, and sell diamonds, many fine jewellers and suppliers will be driven out of the diamond business for good. Selling diamonds is getting tougher and making money on those sales is tougher still. Every square inch of real estate in the showcase and in the vault is valuable and must return a profit. The current model in diamonds for many retailers is unsustainable for long-term profitability or viability.
