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Home::Advice

How to Safely Buy a Diamond Online - Part 1 of 3

Author : Mike Bradley

It is now possible to save 40% to 60% by purchasing a diamond
engagement ring from an online diamond retailer, rather than
from a bricks-n-mortar High Street jeweller. Online diamond
retailers don't have retail shops, sales staff, large diamond
inventories and other associated operating expenses and are
therefore able to pass on the cost savings to consumers.

Of course, a diamond might be one of the largest one-off
purchases made in one's lifetime and so it is understandable
that many people may be uncomfortable paying for a diamond
before it has been seen and examined.

However, as long as the correct research and precautions are
taken there should be no reason to be fearful about buying
diamonds from Internet diamond merchants.

The three most important aspects of the pre-purchase checks that
must be carried out are:

1. Assurance that the diamond business is legitimate,

2. Assurance that the payment method is secure,

3. The risk of merchant fraud or failed delivery is mitigated.

In part one of this three-part series we examine the first
aspect which is assuring that the diamond merchant is running a
legitimate business.

Assurance of legitimacy of diamond businesses

Physical Address

The physical address of the online diamond retailer should be
prominently displayed somewhere within the website. It should
give the full street address and postcode. A PO Box is not
acceptable. Conduct a search on the full address using Google
and make sure that other results are returned that include the
name of the business along with that address to check that the
physical address is not a bogus one.

Landline Phone Number Active & Manned

A contact landline phone number should be prominently displayed.
Ring the landline number given and make sure that either a
salesperson or the proprietor of the business answers and is
helpful and knowledgeable with questions about the company and
diamonds.

Testimonials Available For Inspection

All businesses should have records of customer testimonials. Ask
if a few of these can be emailed or faxed through for inspection.

Company Number

Is the diamond merchant's business registered with UK Company
House and does it display its Company Registration number? This
registration number can be entered through the UK Company House
website to check the registered business details of the diamond
merchant.

If the diamond business is registered then this gives you
additional reassurance that it is a legitimate business. If the
diamond business is not registered this may indicate the
business is being run as a sole proprietorship, or it may
indicate that the business is not legitimate.

VAT Number

Is the business registered for VAT and is the number displayed
on the website? If it is then this is another positive indicator
that the business is a legitimate and profitable one. The
threshold for taxable supplies for VAT registration is £60,000
so most diamond merchants would have the need to be VAT
registered.

Trade Association Membership

There are several jewellery industry associations in the UK. If
the diamond merchant that you are considering purchasing from is
a member of an association then this gives further assurance of
the reputability of that merchant. Some of the most prominent
associations are the British Jewellery Association, the Assay
Office and the National Association of Goldsmiths. These can all
be contacted to confirm any claims of membership.

Key Staff Named With Photos

Another reassurance of the legitimacy of the business is when
key staff members are named and have their photographs displayed
within the site.

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