Why is it unethical for a jeweller or a diamond dealer to certify their own diamonds?
The most obvious reason is the ethical position. If the certificate or diamond grading report has not been independently certified it would represent a conflict of interest. If the seller is grading their own diamonds they will always be more lenient and biased towards the better colour and clarity grade because of the difference in value the diamond would achieve.
For example, if the diamond was a G colour with a VS2 Clarity and the diamond was up graded to F VS1 this could represent an added value of 20% for a 0.50 carat diamond or 22% for a 1.00 carat size diamond. This may not seem like a lot at first glance but if you are selling 5 diamonds a week and they are bringing in an extra 20% because of what is known as “grade bumping”, it can certainly amount to alot over a period of time.
In certain grades such as D-F or IF- VVS2 the differences in price are much greater.
A 1.00 carat diamond in a D IF is around $18900 USD per carat and a 1.00 carat diamond in an E VVS1 is around $12300 per carat at today’s prices. So you can see that a little grade bumping here and there, can be, and is very profitable.
This is the reason why the world jewellery and diamond governing bodies such as CIBJO and the WFDB do not permit jewellery or diamond dealer members to have cross ownership or interests in diamond grading and coloured gem laboratories.
There is also the undeniable fact that some diamonds are treated or enhanced in some way, and these diamonds are very difficult, and in some cases impossible to identify, without the correct laboratory equipment.
Synthetic diamonds are the latest threat to the uneducated consumer. If you are buying a diamond with out a recognised certificate (IE; a certificate recognised by either the WFDB, IDC, or CIBJO) it is possible that it may not be a Natural diamond at all.
These are a couple of reasons to insist that your jeweller supplies you with a diamond grading certificate from an officially recognised laboratory.
It is up to you the consumer to ensure that the diamond grading certificate is recognised.
Protect your self and only shop where independent recognised diamond certificates are supplied. The rule is, if you have to ask for one without the diamond vendor being forthcoming, shop else where.
Now how do you identify the rogue sellers? Well they will market non compliant diamond grading certificates along side official recognised and accredited diamond grading laboratory certificates in order to lend credibility.
Unethical diamond vendors misrepresent the diamond facts with non compliant diamond grading reports and/or diamond certificates.
Deceptive diamond grading laboratory certificates from “labs” that sound reputable should not be trusted. Neither should any merchant who presents one .
Genuine accredited and recognised diamond grading reports / certificates do not cost much at all and will not affect the cost of the stone. If you are told the they do, it is a sign that the diamond might not be what they are claiming.
How much is a certificate from a laboratory?
The prices range from $ 35.00 upward depending on the size of the diamond. Certificates are never based on the value of the diamond and remember a value will never appear on a official diamond certificate.
It should be noted here that most of the biggest internet sellers are guilty of misusing the term ‘certificate’ or ‘certified’ diamonds.
Neither the Gemological Institute of America nor the American Gem Society will certify any diamond. They simply grade diamonds in their labs and issue grading reports.
GIA calls theirs a Diamond Grading Report, while the AGS refers to their report as a Diamond Quality Document. GIA discourages the use of the term “certificate” to describe it’s grading reports. The dictionary describes the word certify as: “to guarantee the quality or value of” or “to guarantee as certain.”
GIA clearly states on the bottom of every document: “this report is not a guarantee. ”
One would think that any diamond laboratory that is not worried about it’s professional liability exposure would be able to stand by it’s documentation and therefore guarantee it.
The CIBJO & IDC diamond grading lab DCLA in Sydney Australia and GCal Gem Certification & Assurance Lab http://www.gemfacts.com/ in New York issue diamond grading CERTIFICATES that are guaranteed.
Therefore my question is why do so many of the diamond dealers place so much emphasis on GIA and AGS who do not guarantee their reports?
Could it be those labs who are essentially gemologists with very little gem cutting or gem trading experience, have marketed themselves successfully over a period of time via their educational arms giving the illusion they are more elite than other lesser known diamond grading laboratories with better hands on experiennce who may have different philosophical outlooks in the direction they wish to direct their own diamond labs for the benefit of the public consumer not the trading dealers who easily adapt to changing scenarios.
Why is there no value on a certificate?
The reason is that the certificate will not date, the quality of the diamond will remain the same unless the stone is damaged or altered in some way. However pricing fluctuates daily according to the currency fluctuations and exchange rates,rarity of the diamond and the international price lists.
Exercise caution if the diamond vendor / retailer / wholesaler or ” non compliant diamond grading laboratory ” is a member of the JAA (Jewellers Association of Australia).
