In August the Jeweler’s Association of Australia issued an industry alert to its members that accused European Gemological Laboratory (EGL) International of over stating color and clarity grades on their diamond grading reports by two grades or more. They indicated the laboratory of the Israeli EGL International as the primary source of the over-graded reports and cautioned that all EGL certificates should be treated carefully since the facility responsible for the grading is not listed on the document. EGL responded by saying that it was being falsely accused and that the JAA was “unfair and irresponsible”.
JAA also stated that they had seen over-graded GIA diamonds that were sold on the internet. A professional second opinion on internet diamonds before making a commitment to purchase a diamond from the internet is critical to peace of mind. A complaint recorded on Ripoff Report shares the frustrations of a consumer who experiences this problem.
We applaud the JAA for its efforts to shed light on this issue. Knowledgeable insiders have long recognized that not all grading reports are equal. Although the laboratories and appraisers use the same grades, or nomenclature, there is no policing body within the industry that ensures that they all grade to the same standards. Of all the international laboratories we feel that the most accurate is AGS (American Gem Society). This is true for color, clarity and especially cut grading. GIA (Gemological Institute of America) is a relatively close second. All other diamond grading reports should be viewed with some skepticism. These include industry laboratories such as EGL, IGI (International Gemological Institute), HRD (Hoge Raad voor Diamant or Diamond High Council), PGS (Professional Gem Sciences) as well as appraisals or grades from diamond sellers. Further, be wary of any seller who tries to convince you that “diamond certificates don’t matter”, “all diamond certificates are the same” or that “certificate diamonds are more expensive”.
An Example
A diamond was submitted to an EGL facility for a diamond grading report. EGL called the stone a 1.01 ct. Princess Cut and graded it E color and VVS2 clarity. The same diamond was also submitted to AGS where it was called F color and VS1 clarity---one grade lower in color and one grade lower in clarity. On a respected industry price list the wholesale per carat price for a 1 ct. Princess Cut E VVS2 is $,7800 per carat. On the same list a 1 ct. Princess Cut F VS1 is $7,100 per carat. Remember we are talking about the same diamond.
EGL 1.01 ct E VVS2
AGS 1.01 ct F VS1
If we extend this example to a 1 ct. Round Brilliant cut Diamond with an E VVS2 EGL certificate and an F VS1 AGS certificate then the whole sale price would be $13,500 and $9,800 respectively. This is a substantial $3,700 difference that exist because of a difference in how strict the laboratories are. Keep this in mind if you consider buying a diamond with an EGL (IGI, HRD etc) report.
Accurate color and clarity grading is not enough
Not all of the grading reports grade the cut of the diamond. For valuation you need to know all of the 4 C’s (color, clarity, carat weight, and cut). The cut of a diamond can potentially change the value more than fifty percent even if all the other characteristics are the same. We feel that the AGS cut grading is a step or two above the other laboratories.
The Solution
Having an ideal cut diamond graded by AGS or GIA certainly helps in assuring you of getting a diamond that is closer to being strictly graded. The grading reports by no means guarantees that the diamond is the nicest and most brilliant and fiery but it does move you in the right direction. A jeweler should be able to help you assess the accuracy of the clarity and color grades. A jeweler with a Brilliantscope, an Idealscope or a Photoscope can help to show you how well cut and proportioned the diamond is. These instruments can help you to visually determine the light leakage and light return characteristics of a diamond.
We hope that the information provided here will help you find the diamond that is right for you. You should not pay for a diamond that is Over-Graded and not the grade you expect it to be. You also want to avoid overpaying for a diamond.
