This document was created by a retailer Jeweller in the USA.
The Issues of Buying a Diamond over the Internet
You are feeling good. After countless hours learning the basics on diamonds and searching for the best price on the Internet, you are ready to take the plunge, give your credit card info, and wait excitedly for the delivery of the symbol of love to your lady. But wait…let’s look at what you are getting into. Here are some questions to ask yourself about this loose diamond you are going to receive:
• Do you know anything about the company you are dealing with?
• How will you know it’s a genuine diamond instead of a Moissanite or HTHP synthetic>
• Does it match the lab certificate? Is the certificate genuine?
• Did you select the right size and quality of diamond?
• Who will set the diamond?
• What happens if the setter chips or breaks the diamond?
• Will the same diamond come back from the setter?
• How will you handle disputes with the Internet site?
• Will they still be in business 6 months from now?
• If you find it necessary to mail back the diamond to the Internet site and they claim the box received was empty how will you prove otherwise?
Insights into Diamond Inventories – The great majority of diamond sites that list inventories of diamonds for sale do not own a single diamond. They simply download lists from willing (and sometimes unknowing) dealers, change the price for a profit and present themselves as major players to the consumer. The operators of the site employ low cost help with little in depth knowledge of diamonds. In addition they have not seen the listed diamonds, can not attest to the accuracy of information given, and most cases the diamond is drop shipped to you from a different company! If you are thinking, “no big deal”, think again. When disputes arise, multiple companies will be passing the buck, blaming each other and you.
Poor Service, Misrepresentations and Scams - Lower profits bring out the worst in merchants. Why? Because when operating expenses are deducted from profit margins there should be a reasonable amount left to reward the owners for the risks inherent in business ventures. When profits become too small, service seriously declines due to underpaid, unskilled, and overworked employees who don’t care. The owners may look for numerous other ways to cut corners. Here are a few that exist in the diamond trade:
• Counterfeit Certificates – The most reputable laboratory certificates from the GIA or the AGS are meant to provide protection and assurance regarding the quality of the accompanying diamond. Unfortunately some unscrupulous people create counterfeit certificates and pass them along to unsuspecting consumers and merchants. This means you can unknowingly receive an inferior diamond worth far less than the price paid. Laser inscriptions can be added by anyone with the equipment to complete the scam.
• Mismatched Certificates – Not every dealer is happy with the results he receives when submitting a diamond to the gem labs. If the grades come out too low for his expectations he may choose to resubmit the same diamond to a less strict lab hoping to get a higher quality. He may then dishonestly use the original cert represent another lower quality diamond in his inventory. Another method is to ask the lab for a duplicate cert to replace a “lost” cert. The extra cert can now be mismatched to an inferior diamond from his inventory. If you receive a mismatched cert, how will you prove that you didn’t switch the diamond?
• Problem Diamonds – Few diamonds are problem-free, even those with certificates. Most E-tailers won’t warn you about negatives. Strong Blue fluorescents, indented naturals, clouds, extremely thin/brittle girdles, proportion gaffs, out of round, twinning lings and laser drill holes are just a few things that can drastically affect price, durability and beauty. Problem diamonds are a problem to whomever owns them so dealers are eager to get rid of them a “bargain prices” to the unsuspecting.
• Problem Certificates – Some gem labs are known in the trade to be less strict in their grading. Such grade inflation can give the illusion of higher value to the diamond in question. Any cert can be a problem also because they don’t explain the data and may not indicate durability problems of the diamond. Borderline or “squeaker” diamonds are those that received a questionable grade such as SI2 with eye visible flaws. Those diamonds with “generous” grades are less desirable and are sold within the trade with big discounts.
Setting or Mounting the Diamond – Most reputable jewellers will not want to take responsibility for setting an Internet diamond for many reasons:
• Any damage whether pre-existing or occurring during the setting process might be blamed on them. The risk/reward benefit is too low to be worthwhile.
• The consumer may have been scammed regarding the diamond quality and yet the jeweller might be accused of the switch.
• A strongly held policy in the jewellery trade is that it is the diamond seller’s responsibility to mount the diamonds he sells. Diamonds can chip or break, so why should he take the risk.
Appraising the Diamond – Qualified diamond appraisers are not financial advisors and resent inquires as to how much you should have paid for the diamond in question. They have strict guidelines as to how to calculate quality and price. They will not structure prices to your parameters and are not required to confirm the authenticity of a cert. Very few appraisers are qualified as there is no license necessary in most provinces/states; those that are professionally trained and accredited charge upwards of $100 per carat for their services. However, their valuations are only an opinion and may not carry weight in a dispute. They will not get involved in your disputes with an Internet merchant.
The Disadvantage of No Side-by-Side Comparisons – No two diamonds are exactly alike, even those with identical carat weight, color, and clarity. Every diamond reflects its brilliance and dispersion differently and needs to be compared with others both with the naked eye and under a microscope/loupe. Poorly proportioned or polished diamonds are not denoted on all certificates, so the prudent buyer must rely on visual observation of multiple diamonds compared side by side. Bargains are very often bargains for bad reasons.
Please pass this to your staff for a good read…Some of the above concerns are very prevalent in the market place..
https://www.fergusonjewellery.com