Independent loose diamond broker

Independent jewellers who don't want to hold stock, designers and custom ring makers, and private buyers looking for an engagement ring stone.

You earn the difference between your wholesale cost and your selling price on each stone. Margins are usually smaller on high-value stones and larger on smaller ones. Some brokers also charge a sourcing fee for custom searches.

• Knowing diamond grading (cut, colour, clarity, carat)
• Negotiating with suppliers and buyers
• Building trust and long-term relationships
• Careful record keeping

• Dealers in precious metals and stones may have reporting duties under Canada's anti-money-laundering rules (FINTRAC), so check whether and how they apply to you
• Insurance for stock in transit and on memo, plus commercial general liability, as losses can be large and you are usually responsible for borrowed stones
• Only buy stones with credible grading reports and a clear source, and check the Canadian Diamond Code of Conduct and your supplier's ethical sourcing policies
• Check whether your municipality requires a home-based business licence, and register for GST/HST once you pass the small supplier threshold
• Cash flow can be uneven, as sales are large but infrequent

Startup costs are typically around $4,000 to $20,000, depending on your insurance, the stock you handle and how you set up. This is an estimate, so get insurance quotes and supplier terms before you commit.

Monthly revenue is typically around $1,500 to $7,500, depending on how many stones you sell and your margin. These are estimates, and cash flow can be uneven because sales are large but infrequent.

Check whether and how FINTRAC anti-money-laundering reporting duties apply to you. Also check insurance for stock in transit and on memo, the Canadian Diamond Code of Conduct, any home-based business licence, and GST/HST registration.