How to Become a Diamond Trader
You are thinking of trading diamond? Do you know how to get into the diamond industry? How much do diamond dealers make?
Anyone with an entrepreneurial mindset can become a diamond broker. It is perfect if you have someone close – either family member, friend or any referral in this business who can introduce you to the diamond industry.
On the ground level, you can begin with working into some diamond industry so that you can get all the essential knowledge related to diamond-like its quality, shape, size, color etc. In short, you must have the complete understanding about diamond and the business of diamond.
Here are the key points you need to follow step by step to become a diamond broker:
STEPS TO BECOMING A DIAMOND DEALER
- Enhance Your Knowledge
Before everything else, make yourself keen to learn everything about diamonds. Get an expertise in the subjects of cut, color, clarity, and carat so that you can buy only the highest quality diamonds.
The diamond carat means how much the diamond weighs and more transparent diamond will be, more quality it poses. You can check the diamond certificates, carat and color videos so that you can visibly find the difference and will be able to prevent yourself from any kind of deceiving.
There are many diamond courses also available such as from American Gem Society, online course from Gemological Institute of America, etc. You can be Certified Gemologist Appraiser.
Pursuing any certification is not mandatory but gaining knowledge is compulsion if you want to be a diamond broker.
- Get a Job in the Diamond Industry
If you are not going for any diamond course, then you can apply for a sales job in any diamond industry so that you can be familiar with all the varieties.
- Sales Job in Jewelry Outlet
This is the option open for all category of people. If you do not have anyone who works in the diamond industry or cannot go for any course, then working on any jewelry showroom will help you to get good knowledge about the diamond. Because without getting expertise in diamond, you will not be able to become a good diamond broker.
Being in the diamond industry and working for a short term is not enough as people take years to train themselves for this industry. Before you land in, make sure you have got sufficient experience with you.
- Build your Network
The network is one of the important prospect of any business. We can say that businesses run only on networking and contacts. While gaining experience, you should start working on building relationships simultaneously.
- Understanding of Import Export
Before you jump in, you need to get all understanding of how you can import and export the diamond. Also, you must be updated with the import-export laws of all the countries you are going to deal with.
Wholesale diamond trader usually works in low margins and high volume trade. Retailers have the luxury of pricing the diamonds according to their services and clientele. Now you can decide which way you would like to proceed.
- Get License
Once you are ready with knowledge and a good network, you need to acquire a business license to start your own business legally. There are different laws in different countries. If you are in the United States, then $2,000 or more worth of diamond requires only formal entry, not the license.
For these items to be imported for commercial purposes you will need a Custom bond CBP Form 301 for all formal entries.
- Start Small
In the beginning, you will have to start with small clients. As you know, the diamond budget goes too high to bear loses. Like everything new, you should first take small steps.
- Secure your Funding
Once you have a budget in mind, immediately start to find funding sources. You can obtain a line of credit from your bank, using personal funds or securing revenue assistance from a financial institution or you can also find an angel investor.
Nowadays, it has become quite easy to find a list of angel investors, you can try Go4Funding. Either way, you need to make sure that you have the available capital before you move forward.
- Target your Supplier
Always go to the wholesaler instead of a retailer as wholesaler will provide you the best pricing. Now, compare all the diamond wholesaler and go for the best quality and pricing as he is going to offer you a large variety of diamonds.
There are few things keeping in mind while deciding your supplier:
- Insist on certificates for the diamonds.
- Buy from the wholesaler who directly imports diamonds.
These should be on your checklist before deciding on the supplier for your diamond business.
- Target your Clients
If you are confused about whom to sell your stuff to, then your target market should be the retailers and jewelers.
You can decide to trade your diamond online by creating an ecommerce store for diamond only.
Here are few methods which can help online trading of your diamonds:
- Running ads in publications that focus on jewelry
- Advertise your services
- Social Ads
- Networking with retailers
Your clients can be from any location all over the world.
Before you move further into the diamond industry, let me tell you some facts about the diamond industry:
- Without big connections, chances are less to get success in this business.
- This industry has become so competitive nowadays.
Please, have it in mind that diamonds imported from countries like Angola, Liberia, Sierra Leone and some other countries are sanction.