Diamond buying and selling studio

Private buyers wanting certified stones, sellers wanting to cash in inherited or unwanted diamonds, and jewellers needing stock.

You buy at a trade-based price and sell at a margin. Some dealers also earn from valuations, resetting referrals and trade sales to jewellers.

• Diamond grading and valuation
• Negotiating fairly with sellers and buyers
• Spotting fakes, treatments and lab-grown stones
• Security awareness and record keeping

• Anti-money laundering and cash reporting rules: check with AUSTRAC what applies to dealers in precious stones
• Second-hand dealer or pawnbroker licensing and record-keeping rules vary by state and territory, so check your state authority
• Stock insurance, theft and robbery risk, and public liability insurance
• Council rules if the studio is at home, and security risks of clients visiting your address
• Verify seller identity and ownership to avoid buying stolen goods
• Tying up cash in stock, as diamond prices can move and resale can be slow

Startup costs are typically around $20,000 to $100,000, depending on the space, grading equipment and how much stock you hold. Cash tied up in stock is a key risk, as resale can be slow.

Monthly revenue is typically around $4,000 to $20,000, depending on how many stones you buy and sell and their value. These are revenue estimates, not profit, and diamond prices can move.

Check with AUSTRAC what anti-money laundering and cash reporting rules apply, and check your state authority on second-hand dealer or pawnbroker licensing. Also verify seller identity and ownership, arrange stock and public liability insurance, and check council rules if the studio is at home.