Secrets of Buying Diamonds

December 21, 1999

Secrets of buying diamonds by Leah Gliniewicz, Staff Reporter If diamonds are a girl's best friend, why can buying them be so difficult? Perhaps it is because most people know so little about buying diamonds. It's not a mystery. Take the guesswork out of it, and the process is much easier. Here's what you need to know. Find an honest jeweler. Like your doctor or lawyer, your jeweler should be someone you can trust, says Robert Billick, owner of Robert's Jewelers in Fredonia, N.Y. He recommends finding out how many years the store has been in business, its policies, and whether it's employees are continuing their education. A jeweler certified by the American Gem Society in Las Vegas adheres to a code of ethics and must be recertified every year. If you want to find a certified jeweler, contact the society or the Gemological Institute of America, in Carlsbad, Calif.

Compare apples to apples.
It's common for a diamond that is more than a half carat to be sold with a grading report issued by an independent laboratory that evaluates its color, clarity and cut, and lists weight, shape, size and any enhancements. Enhancements can include fracture filling, which conceals cracks, and lasering, which removes spots. Veteran jewelers say they will use only grading reports from the gem society and gemological institute. The institute will not issue a report on diamonds that are fracture filled.

Don Palmieri, founder and president of Gemological Appraisal Association Inc., based in New York City, says comparing a diamond accompanied by an institute report with one that has no report is not fair. Palmieri, who is also affiliated with retailer Mondera.com, says you should never buy a diamond from anyone who doesn't back the report with a 30-day guarantee.

Know the price.
Large stones are more rare, and Jeff Ostroff, chief executive officer and president of Consumer Net Inc., in Margate, Fla., says the cost per carat quickly climbs as the weight climbs.

The Rapaport Diamond Price Sheet is a trade publication of diamond price information, and it is a basis for establishing inter-dealer prices. Ostroff says there are two reasons to ask for the Rap sheet: It provides a snapshot of current wholesale pricing of diamonds and gives buyers a chance to test the jeweler's integrity. "They have every right to ask for it, but jewelers are under no obligation to show it to them," Ostroff says. "If the jeweler claims there is no such thing or claims they don't know what it is, then they are lying." Billick says the Rap sheet has become almost a retail guide in competitive areas, but it can be misinterpreted. If you don't have the right knowledge it can be used against you. Ostroff also warns of what he calls the New York City scam. It is a pricing scheme that uses a multi-letter code instead of a dollar amount on the price tag. The salesperson can manipulate the price without the knowledge of the customer.

Buy the stone separately.
Experts recommend buying the diamond separately from the mounting to get a lower price on the piece. Bob Speisman, director and senior vice president for Lazare Diamonds in New York City, recommends selecting an item on the merits of the stone rather than your love of a setting. Know how to look at a diamond.
Billick says many jewelers won't show two stones next to each other because the one of lower quality looks horrendous. He recommends first looking at a stone with the naked eye and then looking at it through a 10-powered loupe. A diamond will never look as good in the light of day as it does under the specialized lighting in a jewelry store. Speisman suggests taking a look at the stone in other light or carrying a piece of paper you can use to block out the store lights.

Should you get an ideal cut?
John King, lab projects officer at the gemological institute's grading lab in New York City says there is an industry debate regarding the best proportion for a diamond. There is a cut called the "ideal cut," but it is only one of many sets of proportions that will produce highly desirable levels of luster, brilliance, dispersion and scintillation.

Buying tips from the Federal Trade Commission: Retail diamond weights are not exact. A half-carat diamond may not weigh precisely half a carat. The retailer should disclose two things: that the weight is not exact and the range in which the weight falls. Fracture filling may not be permanent, and jewelers should tell you if the diamond has been fracture-filled. Ask for the store's refund and return policy before you buy. Make sure the jeweler writes on the sales receipt any information you relied on when making your purchase, such as the gem's weight or size. Some jewelers also may supply a grading report from a gemological laboratory.

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