Diamond Scams

When it comes to diamonds, there are

numerous scams to avoid. Most scams are

minor, but there are some major ones that

come up from time to time concerning the

buying and selling of diamonds. Scams

occur simply because most people who buy

diamonds – for whatever reasons – don’t

know that much about diamonds. Therefore,

they are easily fooled.



A common scam that most jewelry stores

participate in is the Carat Total Weight scam.

The tag on the piece of jewelry, usually a ring,

only states the total carat weight of all

diamonds in the piece, instead of listing the

total weights separately for each diamond.

This leads consumers to believe that the main

diamond in the piece is actually bigger than it

is. Ask what the total carat weight of the center

stone is. Also beware of fractions. Jewelry

stores are allowed to round off diamond

weights. This means that if the jeweler tells

you that it is a ¾ carat diamond, it is

probably between ½ and ¾ carat – but

closer to ¾.



Jewelry stores often run ‘fluorescence’

scams to varying degrees. Referring to a

diamond as a blue-white diamond is such a

scam. A blue-white diamond sounds very

unique and special, but in fact, this type of

diamond is of lesser quality – even though

the jeweler will try to make you think you are

getting something special. Jewelry stores

also like to show their diamonds in bright

lights. Lights make diamonds shine. Ask

to see the diamond in a different, darker

type of lighting as well.



Some truly unscrupulous jewelers target

those who want appraisals on diamonds

that were given to them as gifts or that were

purchased elsewhere. They will try to tell you

that the diamond is worthless, or worth less

than it actually is worth – and offer to take it

off your hands or trade it for a much better

diamond, along with the cash to make up

the difference. This is called low balling.

Get a second, third, and even a forth opinion

before taking any action.



Another common dirty trick is to switch the

diamond you have chosen and paid for with

one of lesser quality and value when you

leave it to be set in a piece of jewelry, or

leave a diamond ring to be sized. The only

way to avoid this is to do business with one

trustworthy jeweler. Avoid jewelers that you

have not done business with in the past.



There are many more scams that jewelry

stores commonly pull on unsuspecting

consumers. Just use your best judgment,

and purchase your diamonds with the

utmost care and consideration.

Diamond Grading Reports

You’ve been told that having a certificate or

a diamond grading report is important, and

as a responsible consumer, you get one –

unfortunately, you probably won’t understand

a word of what is on that diamond grading

report, unless you are a jeweler.



On the color grading scale, D, E, and F

mean that the diamond has no color. G, H,

and I means that it has very little color. J, K,

and L means that the diamond has a slight

yellow color. P, Q, R, S, T, U, V, W, and X

means that the diamond is a darker shade

of yellow. Z means that the diamond has a

fancy color – other than white or yellow.

On the color grading scale, D is the most

valuable, and X is the least valuable –

however diamonds that get a Z rating are

the rarest and most expensive diamonds

in the world.



There are many aspects to a grading report.

Figuring it all out can be very confusing. You

should talk to a jeweler you trust, and have

them explain everything on the diamond

grading report to you.

Diamond Certificates

A diamond certificate is also known as a

Diamond Grading Report. This report comes

from the Gemological Institute of America

(GIA), and you should require this report

when you are purchasing a diamond.



With a diamond certificate, you can verify

the color, cut, carat, weight, and clarity of the

diamond. You don’t have to worry about a

diamond dealer telling you anything less than

the truth, because the certificate comes

from the GIA – not the dealer. You may be

required to pay for the certificate, but the

cost is usually low, and in many cases, it

will help you negotiate a better price on the

diamond – or keep you from purchasing a

lower quality diamond altogether.



If you buy a high quality diamond, and then

later decide to sell the diamond, you will

need to have the certificate, or you will have

a hard time selling it to someone else.

Furthermore, you can use the Diamond

Grading Report to look up the wholesale

value of the diamond in question. Use the

guide that is used by the diamond cutting

industry.



With the Certificate, or Diamond Grading

Report, there won’t be any doubts when you

are trying to purchase a diamond. You can

easily find out what the diamond is worth.

This will prevent you from overpaying, and it

can prevent a seller from under-charging as

well.



A copy of the Diamond Grading Report

should be given to your insurance company

as well, when you insure the diamond. This

provides absolute, unquestionable proof of

the value of the diamond should it be stolen

in the future. Insurance companies cannot

argue with the report.



Avoid diamond dealers who seem reluctant

to provide a certificate! Also avoid sellers

who tell you that a certificate diamond will

cost you more – the only additional cost

should be the cost of the certificate, which

is low. If the dealer doesn’t want to provide

a certificate, then you don’t want to do

business with that dealer.



Don’t accept certificates from Gemological

Laboratories other than GIA. There are many

fly-by-night Gemological labs these days, but

in the end, GIA has been established as the

most respectable and trustworthy – not to

mention oldest – of the lot. So avoid dealers

who don’t want to use GIA for certification

purposes as well.



Don’t buy an expensive diamond without

paying the extra cost of the certificate. If a

dealer tries to convince you to make the

purchase without the certificate, or if they

want to use a company other than GIA, you

can be sure that the dealer has probably

greatly inflated the price of the diamond –

they have something that they are hiding

Diamond Brands and What They Mean

Diamonds are one of the few products that

simply cannot be ‘branded.’ Even though

there are different cuts, different grades, and

different values placed on each and every

diamond in existence, no diamond is any

specific brand – just as gold is not a specific

brand.



Branding is actually based on who owns the

diamond. For instance, if DeBeers owns the

diamond, it is a DeBeers Diamond – but it is

still just a diamond. If the diamond was cut by

a specific well known cutter, then it might be

branded in that way as well – but it usually

isn’t. It is still branded based on who owns it

at the time. So basically, when it comes down

to it – diamond brands mean absolutely

nothing at all.



Do not allow a jeweler to try to talk you into

paying an exorbitant price on a diamond

because it is a specific brand. This is a bit

of trickery used by unscrupulous jewelers

when they know that they are dealing with

people who don’t know much about

diamonds. Remember that diamonds are

not actually branded – unless mother nature

Colored Diamonds

Fancy colored diamonds are all the rage

these days. Gemologists have developed

new ways to create versions that are

affordable for the average person - by

treating less desirable diamonds. These

less desirable diamonds are treated with

irradiation followed by intense heat. This

turns brown and yellowish diamonds into

beautifully colored diamonds that you can

afford. This produces stunning greens,

blues, yellows, reds, purples and other

colors. These colors are considered

permanent, but there is a possibility

they could change during repairs if a high

heat is used.



Treatments like irradiation make it possible

for more people to own these vividly colored

diamonds. Most natural colored diamonds

are rare and also extremely expensive. When

shopping for colored diamonds you need to

assume that any affordable fancy color

diamond has been treated. Ask about the

stones origin and request to view a lab

certificate to verify authenticity.



Synthetic colored diamonds are another

option if owning a colored diamond is

something you desire but cannot quite afford.

They are real diamonds, but they are created

in a lab.



Natural fancy color diamonds get their

coloring from different trace elements present

in the stones, such as nitrogen, which

produces a yellow diamond. Diamonds can

be colored by exposure to radiation during its

creation. An example of a diamond affected

by radiation is a Green diamond.



Another way that a natural colored diamond

gets color is by its inclusions. Regarded as

flaws and undesirable in a colorless diamond,

inclusions give unique tones and brilliant

flashes of color in a fancy color diamond.

Remember that Natural fancy colored

diamonds are very expensive, any colored

diamond labeled to be sold as natural should

be accompanied by a certificate from a

respected grading lab.



A "fancy" diamond is a natural diamond that

has color. These colors vary from red, green,

purple, violet, orange, blue and pink – and

most shades between. Fancy color shades

vary from faint to intense.



The most famous diamonds in the world are

Color diamonds. The Tiffany Diamond,

which is yellow and the Hope Diamond which

is blue are colored diamonds. Color

diamonds have an amazing financial track

record. The value has never decreased on

wholesale level in more than 30 years. Blue

and pink diamonds have doubled every 5

years of a strong economy. In the 1970’s

you could have bought a very high quality

blue diamond for about 50K and today the

very same stone would be worth between

Choosing The Cut of A Diamond

There are many different cuts of diamonds

to choose from. The cut essentially refers to

the shape that the diamond is cut into –

unless you are in the diamond or jewelry

business, but this shape has a great impact

on the much the diamond sparkles.



The most popular cuts are heart, marquise,

oval, pear, princess, round, trillion, and

emerald cuts. The shape has an impact on

how much the diamond sparkles, but the

actual cutting itself – when the diamond

cutter actually cuts the diamond into a

particular shape – also matters a great

deal. If the diamond is poorly cut, it will lose

its sparkle.



However, in the diamond industry, the cut of

a diamond doesn’t refer to its shape at all.

Instead, this is a reference to the stone’s

depth, width, brilliance, durability, clarity, and

other aspects of the diamond. Common

cutting problems include a missing or off

center culet, misalignment, a diamond that

is too thick or too thin, cracks, or broken

culets.



When shopping for a diamond, you should

of course choose the shape that you like the

best, but then look at several different

diamonds of that shape to find the one with

the best cut – the one that sparkles the most,

in all types of lighting.

Buying Diamonds Online

With all of the potential for scams concerning

diamonds, buying diamonds online almost

seems unthinkable! However, you actually

can purchase diamonds online, without any

problems – as long as you are careful.



First, think about your reasons for wanting to

purchase the diamond online, as opposed to

making a purchase from a local jewelry store.

The most common reason is price. Due to

low overhead costs, online jewelers and

wholesalers are able to offer lower prices.

However, you must be careful – sometimes

a price that is too low is a sure indication of

a scam.



One of the best things about purchasing

online is the unlimited selection. When

shopping offline, you are limited to the

selection in the stores in your general area.

Online, there are no limits. But again, you

must use a great deal of care and

consideration before handing your money

over to someone that you cannot see and

have never met!



Before shopping, learn as much as you can

about diamonds – especially cut, color,

clarity and carat weights. When you are

knowledgeable about diamonds, it will be

harder for a con artist to rip you off. Once

you know more about diamonds, you will be

ready to start shopping.



Take your time. Don’t purchase the first

diamond that you see that interests you.

Instead, look for similar diamonds for sale.

Do some comparison shopping to find the

lowest prices. Once you have found the

lowest price, start doing your investigation.

You know about diamonds, you’ve found a

diamond that you love, and you’ve found the

lowest price – but you are still quite a ways

away from actually purchasing that diamond!



Ask about the seller’s credentials, such as

professional jewelry associations that they

belong to. View and print the seller’s return,

refund, and upgrade policies. Also inquire

about additional services, such as settings

and mountings, sizing, and free shipping. Do

a search for customer reviews on this

particular company around the Internet. Also

check with the BBB Online to see if there have

been any complaints.



Ask for a diamond grading report from an

independent laboratory such as GIA, HRD,

EGL or AGS. You should see this before

making a purchase. Finally, use a reputable

escrow service for high dollar diamonds –

preferably one that will have the diamond

appraised while it is in their possession. The

seller sends the diamond to the escrow

service, and you send the money to pay for

the diamond to the escrow service. The

escrow service has the diamond appraised,

sends the diamond to you, and sends the

money to the seller. This is the surest way to

protect yourself…again, make sure that you

use a reputable escrow service!

Bonded Diamonds

Before you start shopping for diamonds,

consider dealing with a bonded jeweler.

Bonded jewelers sell bonded diamonds,

and there are very few bonded jewelers in

the world. In fact, out of all of the jeweler’s

in the world, only about 5% of them are

bonded. Buying a bonded diamond will

cost more than buying a non-bonded

diamond, but when you look at what you

get with the bonded option, you will see

that it is well worth the extra expense.



First, bonded diamonds have a buy back

policy for the life of the diamond. No matter

how long you have had the diamond, you can

take it back to the bonded jeweler and sell it

back to him or her, for a 100% refund. If a

jeweler does not offer a 100% buy back

guarantee, for the life of the diamond, then

you should take a closer look at the diamond

to see what is wrong with it.



Bonded diamonds also have a breakage

policy. If the stone breaks or chips, the

bonded jeweler will replace it with a new one

– one time. No jeweler would ever offer such

a policy on any stone that was not 100%

natural, so just the offer of such a policy

should give you piece of mind concerning

the quality of the diamond. Bonded

diamonds are natural and untreated.



Bonded diamonds increase in value, with a

fixed appreciation rate that is designed to

keep up with inflation. This means that a

diamond that is worth a certain amount of

money today will be worth more in the future,

as the price of diamonds continues to rise.

This generally does not apply to buy backs,

however. It typically applies to trade-ins.



Alternately, by purchasing a bonded

diamond, you are protected against the

possibility of a market crash. If a market

crash occurs, the value of diamonds will

drop. However, the bonded jeweler

guarantees to refund you the difference

between what the diamond is now worth

and what you paid for it before the market

crash.



It may be difficult to find a bonded jeweler in

your area, but if you can, this is who you

want to deal with, as opposed to dealing

with an un-bonded jeweler. Specifically tell

the jeweler that you are only interested in

bonded diamonds. You can find a bonded

jeweler in your area by using various online

resources, or by calling the local jewelry

Are Diamonds Really Rare?

When you walk into a jewelry store and see

all the diamonds in all of the various settings

that are for sale, it is difficult to realize that

diamonds are indeed rare. Most people

don’t even stop to consider how that

diamond came to be sitting in that jeweler’s

case! There is quite a bit of work that is done

before a diamond is ready to sell to the

general public!



For every one million diamonds that are

mined, only one will be found that is a quality

one caret diamond. In order to find a two

caret diamond, about five million diamonds

must be mined. More than two hundred tons

of ore must be mined to find one small

diamond, and even then, more than 80%

of the diamonds that are mined are only

good for industrial use, such as diamond

drill bits.



So, the next time you visit your local jewelry

store, ask to see the one carat diamonds.

You should look at this diamond with new

appreciation – knowing that it truly is one

All About the Clarity of Diamonds

Clarity is an important aspect of a diamond,

and it is important to know how to grade the

clarity of a diamond before you buy one. It is

actually quite easy to learn how to grade the

clarity of a diamond. There are basically two

things that you must understand: Diamonds

with visual inclusions and blemishes, and

those that are ‘eye clean’ meaning that there

are no inclusions or blemishes that can be

seen with the naked eye. From there, the

clarity of a diamond is further broken down

into subcategories.



Many people mistakenly think that diamond

clarity refers to how clear it is. This isn’t so.

Clarity actually refers to the internal and

external imperfections of the diamond. The

best diamonds, of course get a grade of FL

or IF – Flawless or Internally Flawless –

meaning that it is perfect. A grade of I-1, I-2

or I-3 means that the diamond is imperfect,

with a grade of I-3 being the worst.



Other grades are VVS1 and VVS2, which

means that the diamond is very, very slightly

imperfect; VS1 and VS2, meaning the

diamond is very slightly imperfect; SI-1 and

SI-2, which means that the diamond is

About Diamond Weights

Diamonds are measured in Carat Weight.

One carat weighs 200 milligrams. If a

diamond is referred to as four grains, this

also means that it is a one carat diamond.

The word Carat comes from the word carob.

A carob is a bean that grows on a tree in the

Mediterranean. In times past, if a diamond

weighed the same as a carob bean, it was

one carob, or one carat.



However, in the far east, where Carob trees

do not grow, rice was used to measure the

weight of a diamond. If a diamond weighed

as much as four grains of rice, it was four

grains – or one carat as we know it to be

now. The majority of diamond purchases

are for diamonds that are 1/3 of a carat.



Beware when shopping for diamonds that

are already set or mounted. If more than one

diamond is used in the piece, the tag on the

jewelry will give the CTW or Carat Total

Weight – it does not tell you the carat weight

of each stone in the piece. You need to ask

the jeweler for the total carat weight of the

largest diamond in the piece to truly

understand what you are buying.