For decades, jewelers have had enjoyed the position of being the keepers of the knowledge about diamonds and gemstones. They stood behind jewelry counters and shared little tidbits of information about jewels to shoppers. The jeweler seemed to be talking down to the shopper, making them feel as if they should be grateful to even be in the store or touch the precious gems in the display case.

This monopoly of knowledge went hand in hand with the monopoly of supply. The only way you could purchase a diamond or precious gemstone was to buy in a jewelry store. The prices were artificially high with markups of 100% to 300% of wholesale costs. The factors that differentiated stores included the ornate decorations, the fancy display cases, and elaborate storefronts. Life was simple and very profitable for the jeweler. The shopper came in, the jeweler said this is what you should buy, and the shopper paid the price because they had no other options. Can you recall any poor jewelers before the millennium change in the year 2000?

It was about this time that the most feared word in the jewelers vocabulary began to change the industry forever. That word was Internet. Suddenly there were competitors springing up who could supply diamonds and jewelry delivered to your door, often at prices lower than could support the high overhead of the jewelry store. However, the greatest fear was that the hidden knowledge of diamonds and precious gemstones was available to any shopper who wanted to spend a little time researching online.

The jeweler of the past said here is what I have and which one do you want to buy? Then came the knowledgeable shopper armed with printouts of online diamond advice. Instead of simply asking for a one-carat diamond, the shopper now has a detailed list of requirements that all but guarantees that nothing in the store will meet their requirements, regardless of the price.
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