Scams–The 4 C’s Are Not Enough

The 4 C’s are not enough to judge the quality of a diamond — in the same way that simply counting tires on a car is not enough to distinquish between a Mercedes and a Kia.

With the current state of technology at the big independent gemological laboratories like GIA and AGSL and EGL, you need to compare about 13 critial factors to make a decent call on diamond quality. These start with:

– color
– carat weight
– cut
– clarity
– measurements
– girdle
– table percentage
– depth percentage
– polish
– symmetry
– culet (CUE-let, not cutlet as most people pronounce it)
– laboratory that graded the diamond
– date of the certificate

And… you also need to carefully test the jeweler that is selling it to you.

More on the developments that will make this a much simpler process. AGSL (American Gemological Society Laboratory) will issue papers soon that includes an overall performance grade. This means you will not need to be much of an expert. Technology will tell you how much scintillation and fire a diamond returns to you in good light. It will be a great day for consumers.

Recommended Sites

Here are some excellent diamond info sites I like:

http://www.diamond.info — an excellent list of loose diamonds to help you compare prices and quality, and a free forum that helps you find the answers to you diamond related questions.
http://www.diamondreview.com — a great place where you can post reviews about your diamond buying experiences, and find real life testimonials/reviews by other diamond shoppers.
http://www.findmyjeweler.com — the site to find the jewelers that I’ve tested for prices, quality, service, knowledge, helpfulness, reputation, selection, guarantees, and way more.

I’ll make a more complete list for readers soon, since so many people ask me for sites they can trust.

Robert Hensley
President, http://www.diamondhelpers.com

‘Online adults’ research online, buy locally

‘Online adults’ spend, shop more at local stores, says study:
“Consumers who use the Internet, called ‘online adults,’ spend more time shopping in local retail stores using information they get online, than they do purchasing online, says a new study for ShopLocal.com. Results also show consumers’ use of the Internet to research purchases before going to local stores–known as Web-to-store (W2S) shopping–is growing ’stronger than online e-commerce.’”

This is exactly what I discovered from my experience testing local jewelers for FindMyJeweler.com. People prefer to buy locally if they can find a reputable jeweler with competitive prices nearby. And you can find one, if you look long and hard enough.

But before you start shopping, learn about diamonds first, to avoid the scams. Here is an article I wrote a couple years ago about how to avoid scams. Most of these scams are still in use at major chain stores and the malls:
http://diamondhelpers.com/ask/0040-scams.shtml.

Diamonds Out of Dog Doo?

Hmmm, not too certain about this one…

Jewelers Circular Keystone: “Turning doggie doo into diamonds; Can this possibly be true?
You heard the expression, ‘If life throws you a lemon–make lemonade.’ Well, thanks to the Weekly World News–the same publication that gave us headlines such as ‘MEAT-EATING LIONS DEVOUR VEGETARIAN MISSIONARIES,’ and ‘WOMAN FINDS DEAD LEPRECHAUN IN A JAR!’–we may have a new, if somewhat raunchier, twist on the familiar saying.
– 1/21/2005″

Diamond Sales Up in 2004

Jewelers Circular Keystone: “Diamond demand increased in 2004
Global demand for diamonds is likely to have grown by 5% or 6% or more in 2004 after increasing by 2% in 2002 and expanding by 4% in 2003, Managing Director of De Beers’ Diamond Trading Company (DTC) Gareth Penny reportedly said in a recent speech.
– 1/21/2005″

Looks like diamond demand is up again this year. This is a clear sign that prices may be going up from DeBeers since they have a great influence on rough diamond prices to wholesalers and stores. Since they control a large amount (though not all) production at major diamond mines, they make sure that prices increase with demand.

And remember not to blame your local jeweler for high diamond prices. Hardly anyone is enjoying the large markups jewelers were once able to get. Diamonds at the best-priced stores are now one of the lowest margin items for sale anywhere. Blame the internet for your good fortune on that one. On the other hand, you do have to be very careful where you buy! Dis honest jewelers will try anything to get that margin raised in their favor.

Buying Online Is Safe–Sometimes

One of the most common questions I receive is: “Is it safe to buy a diamond online?”

I have to say this is a strange question for me, because the answer is the same as for any other product you want to buy. YES, for the most part, retailers are honest. But is honesty enough? How do you know if the prices you’re quoted are good, when every diamond you see is unique in quality and value? If you can’t even compare one diamond to the next, how do you compare one store to the next?

This is exactly why I started testing jewelers and their expertise, reputation, prices, quality, service, etc.

If you want to buy online, it will be safe if you buy from an honest jeweler that operates his business in a way that ensures good prices. If you don’t do your homework, and just shop until you find the lowest price, you are certain to shop around until you find the most skilled crook. This is such a common outcome that I cannot stress it enough. The lowest price is NOT always the best deal, just the opposite. It is the one you need to be the most suspicious about.

So please do your homework to find an honest jeweler first, then let that jeweler search the market for you. It’s the way to do things in the diamond business. I will share some horror stories upcoming posts. Talk to you then!

Jeweler Sells Junk to Thousands

This is actually an older article I found, but it shows how careful you need to be. A good jeweler will know the difference between fine jewelry and junk, so be careful who you trust. This stuff makes me sick, because it’s the consumer that gets cheated in the end.

“Man charged in sale of junk jewelry to retailer”
A Glencoe, Ill., man was accused of repackaging junk costume jewelry as designer-made bracelets, necklaces and earrings, then peddling them to a retailer who unwittingly sold thousands of them to the public, the Chicago Tribune reports….
JCK-Jewelers Circular Keystone — 10/05/2004″

Scams–Treated Diamonds

One of the more frustrating scams I see is when a jeweler does not tell a customer a diamond has been treated. Unfortunately, treatments are very common in some stores, but not in the stores I recommend.

In many of the big discount chain stores, or in small dishonest places at a diamond district, you will find stones that have been laser drilled to make black inclusions less visible, or fracture filled to make feathers less visible. This is NOT acceptable. Always ask if it’s been done, OK? And if they say it is not treated, ask them to put it in writing. Anyone that is selling treated stones will not take the risk of putting it in writing for you. Anyone selling honestly will be happy to put it in writing to prove their ethics.

The FTC guidelines go like this:

23.22 Disclosure of treatments to gemstones.

It is unfair or deceptive to fail to disclose that a gemstone has been treated if:

(a) the treatment is not permanent. The seller should disclose that the gemstone has been treated and that the treatment is or may not be permanent;

(b) the treatment creates special care requirements for the gemstone. The seller should disclose that the gemstone has been treated and has special care requirements. It is also recommended that the seller disclose the special care requirements to the purchaser;

(c) the treatment has a significant effect on the stone’s value. The seller should disclose that the gemstone has been treated.

Note to § 23.22: The disclosures outlined in this section are applicable to sellers at every level of trade, as defined in § 23.0(b) of these Guides, and they may be made at the point of sale prior to sale; except that where a jewelry product can be purchased without personally viewing the product, (e.g., direct mail catalogs, online services, televised shopping programs) disclosure should be made in the solicitation for or description of the product.

Avoid treated diamonds please! If you MUST have a stone that is 1/3 the price after you end up getting it repaired, etc, then go for treated ones. Personally, I would never recommend them.

Diamond Districts NOT Where to Buy

“Three More Diamond District Jewelers Busted for Money Laundering”
There has been another money laundering bust on 47th Street. This time, three local businessmen–Ebrahim Raphael, Hamid Delshad of Princess Gold Manufacturers, and Yitzcok Hirschfeld of Intense and Vivid–were arrested for allegedly laundering $1.5 million in drug proceeds. A federal indictment alleges the trio disguised money earmarked for South American drug lords by falsely claiming……
JCK-Jewelers Circular Keystone – 11/01/2004″

I tell one shopper almost every day that the Diamond Districts are NOT the safest place to buy diamonds. Stay away, please! The mere fact that a store is located next to other stores that sell diamonds is NOT a valid way to know if they are honest or offer good prices on good quality. In fact, those places actually attract the crooks, so you need to be extremely careful. My advice is to avoid the Districts and find other sources you can trust.