
How much does it cost for Jewellers to produce a diamond ring?
I am wondering, when jewellers sell 1 carrat diamond rings for over £4000, what are the profit margins for them? i.e. how much does it cost to produce the ring altogether to justify charging such prices?
Thanks!
Everything depends on the diamond quality and the setting mold.
If the setting is custom, a mold must be made, tested for strength, etc. Some clauses are that the mold will be/has been destroyed, guaranteeing a unique ring…with the full setup costs to go with it. Even if not unique, there are a lot of costs to be defrayed for the artist, mold maker, manufacturer, etc.
Then comes the carat quality/cut of the diamond. There are a lot of fees to various countries and brokers which must be paid for legitimate natural diamonds to maintain the integrity of the market / value of the stones. This is a finite natural resource.
A good quality man made diamond can only be detected by a jeweller for a lot less money.
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