Online Diamond Deals and Inconsistent Grading Practices

23/11/2015 16:22

Mel Moss, president of Regal Imports Ltd., discusses his "terrible" buying trip to India, bemoaning the lack of well graded polished diamonds (particularly Canadian) and the "abundance of poorly graded GIA stones selling at discounts." As of early November, quality goods in India were on demand but simply unavailable. Consequently, "any fresh and properly graded diamonds in SI qualities will be priced very high. Indian dealers will take advantage of the December selling period and try to push desirable polished with the hope that their clients will be desperate enough to pay a premium!" The other problem, according to Moss, is the profusion of undesirable diamonds that cannot be sold at market price or through traditional channels because experienced buyers know they are graded subjectively, inconsistently and often poorly - in other words, that the grade on the certificate does not match the eye test of a professional buyer, something that an online purchaser cannot possibly know.

Indian manufacturers nonetheless purchased their rough stones at high prices and will try to recuperate their expenses by selling them however possible, particularly through Internet sites where they can be sold on the basis of their certifiicates alone - in some cases sight unseen. The result, Moss writes, is that "retailers should expect an influx of discounted crappy GIA graded diamonds infiltrating Internet diamond sites. Diamond suppliers are dying to offload their unsaleable diamonds on an unsuspecting and gullible public." Moss' message is clear: better to buy a diamond from a professional who knows his grading than to buy a certificate on the Internet.