I am wondering, when jewellers sell 1 carrat diamond rings for over 拢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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