Have you bought a diamond certified by the EGL? You got screwed! Go ahead look on in the drawer, take out the certificate for the diamond you have received along with an appraisal and the receipt. Does it look anything like this?
Below are certificates from EGL Israel and EGL Honk Kong.
Well if this paper looks familiar, unfortunately, you got screwed! Big time… Read on and find out more.
Buying a diamond engagement ring represents a magical time in one’s life. There are so many amazing and exciting emotions that go into the decision to purchase a gemstone. I regularly tell my clients that I am in the “happy business”. I really do believe that. I absolutely love the process of helping my clients in finding the best diamond and a stunning engagement ring. I never sell EGL certified diamonds without warning my customers the EGL certificate does not mean anything! The EGL certified diamond to me is as good as a gem that does not have any certification at all. The EGL certification scam is one aspect of the diamond industry that disturbs me. It is time someone spoke frankly and openly about the disgrace that has been going on for way too long. Every professional diamond dealer and jeweller is in the know, about EGL and its practices but yet no one is going on the record.
EGL diamond certificate is a scam. Plain and straightforward. It exploits the simple human desire to believe information conveyed on a piece of paper, black on white. EGL certificate only looks like an official document. It certainly has all the right attributes, which are the hologram sticker, the QR code or the embossing. The fact remains all of the gemological information describing the 4Cs of the diamond is at the very best overstated at the worst completely misrepresented. The information about the diamond on the EGL certificate can NOT be trusted. If you are looking to purchase a diamond with an EGL certificate, please remember to get a second opinion. Do yourself a favour, find a gemologist, a gem lab, request an appraisal appointment with your local jewellery and gem appraiser, but do seek a second opinion. EGL will in most cases blatantly LIE about the quality of the diamond you have purchased. It’s better to know the truth. Below is the example of one sad story…
One interesting thing I have heard happening in the diamond trade recently. A diamond wholesaler had sold a stone to his retail store customer; the retail store intern turned around and found a client in the general public.
The ‘lucky’ final consumer had gotten an #amazing #deal This is, in fact, #sofalse !!!
Diamond we’re talking about, 2.00 carat G SI1 round brilliant cut diamond very good to excellent cut EGL certified.
The customer was ecstatic to learn that the diamond he is about to purchase is only $12,000 Canadian Dollars.
If you do cross-comparative analysis on the Blue Nile and James Allen, you will quickly find that 2.00 carat G SI1, start! At around $24,000!
Check out James Allen, and the prices there.
To the client hearing that the 2.00 carat G SI1 was only $12,000 must have sounded like an unbelievable deal.
Well as the classic once said; “If it sounds too good to be true, it probably is.”
The most remarkable thing is that when selling diamonds the most important thing is to establish trust with the customer.
Once the seller has the trust, there is no limit he/she can say, and unfortunately, the world is not filled with jewellers unmotivated by profit.
Unlike other commodities you can purchase and get a fair amount of the second opinion, with diamonds it’s different. You as a consumer, almost always have to rely upon, trust and believe that the person selling the diamond to you has your best interests in mind.
To get absolute best quality without getting ripped off, you can get the diamond engagement ring in the branded store such as Tiffany, for example. Birks, Brickhaus and Monte Cristo are local in Vancouver and they never sold EGL certified diamonds. The price of your diamond jewellery will be obnoxiously high, but the quality will be there. You always get what you #overpay for.
Now not all of us are prepared to shell out fortunes. It’s only reasonable to expect a fair deal and receive, a QUALITY product.
Now, this finally brings me to the EGL certified diamonds. The final consumer received an EGL certified G SI1, 2.00 carat diamond at the wholesale level for $12,000. Now just to understand how much of a bad deal that was, let us look at an agreement in a perspective.
The image below is a snapshot from the wholesale diamond network called RapNet which is the place to get the cheapest diamonds in the world at the wholesale level. Just the access to the web page marketplace alone runs professional diamond dealers anywhere from $1,500 USD to $5,000 USD per year, depending on how many diamonds they sell or buy.
Look at the total $ price of the diamond.
The numbers do not lie; you as can see most diamonds in the screenshot are around $8,000 USD
The person selling this diamond was assuring the final consumer and being ‘honest’. ‘Look buddy’ he probably said ‘Yes this diamond is EGL certified and their standards of grading the 4Cs are an LOT different and are looser’. (does EGL have any standards or does that lab exist strictly to confuse the unsuspecting diamond buying public?) ‘I as a seller can not say that this stone is a G SI1. I will not have you believe that you’re buying a 2.00 carat G SI1 diamond for $12.000. #BUT!!! (here comes a GIANT lie) This particular stone is only ONE GRADE lower. It’s is, in reality, PROBABLY, an H SI2 but look at the deal you’re getting’!
You are saving half of the Blue Niles $24,000 sticker price.
See I’m your ‘friend’ and you’re buying ‘wholesale’. So you’re lucky and your girlfriend is super lucky she will be getting such a beautiful stone and the ring.
I mean if I am shopping for an item I know nothing about such is a used car for example. I have my trust invested in the seller if it seems as though I am getting a great deal, why wouldn’t I consider myself lucky? After all, I as a consumer appear to be getting a great diamond at a fraction of the cost of the Blue Nile or James Allen. I mean worse case scenario, my seller, who I trust, says it’s an H SI2. How bad can it be?
Well, it is very BAD the EGL diamonds can be anything. ANYTHING. I repeat ANYTHING and almost always, in nearly 100% of cases!!! The grades portrayed on the certificate are a lot lower, meaning the diamond is a lot worse quality then the certificate presents.
Instead of a 2.00 carat G SI1 you are getting at best a K SI2!!!
The difference from what the EGL certificate states is staggering.
Four colour jump from what the diamond colour is.
K J I H all the way to G!!!
Two clarities jump from what the diamond clarity is.
I1 or SI2, all the way to an SI1!!!
Here is what a TRUE I1 graded clarity diamond looks like.
The fact that the real cut grade is just GOOD and not VERY GOOD like EGL is suggesting is a big problem too. The ‘GOOD’ cut diamond is, therefore, absent sparkle.
As you can see from a screenshot above the average price for a K SI2 on RapNet wholesale network is $8,000 USD. Which is $11,916 CDN after taxes.
Can we assume the diamond seller is an altruist and he is not after making a profit? So it’s either the jeweller gave the diamond away at cost ($12,000 CDN) or the he sold a diamond which is cheaper (read worse quality then a K SI2)
Getting engaged is suppose to be a unique time in your life. The memory of the proposal will live with you forever. Your girlfriend and soon to be wife will show off the ring to all her friends and relatives.
Spending $12,000 just on the diamond without the engagement ring is a lot of money!
In diamonds, it’s all relative. This amount buys you an awful quality 2.00 carat diamond even at the actual wholesale level. A professional jeweller/diamond dealer should disclose this fact.
So how awful was that diamond and what should you do?
Here is a picture of an SI2 clarity K colour 2.00 carat diamond.
Best thing to do when buying diamonds is getting a second opinion of a qualified independent gemologist. If you hinge the sale of a diamond on the independent appraisal and certification, the jeweller, you will be forced to oblige. Just remember a simple fact the jewellery purveyor might not always have your best interests in mind and is simply after profit. You, on the other hand, a diamond consumer, is after getting an excellent quality diamond ring. The seller wants to make a sale and he is not there to get you the best diamond, especially if you are on any budget.
Unfortunately, most diamond dealers just hide behind the certificates. If it says it’s an EGL certified diamond G SI1, it’s probably at worst one colour and one clarity grade lower.
You as a buyer can not assume that it’s true. Always get a second opinion!
Find a gemologist or a GemLab (gemological laboratory) that will assess the diamond independently for you. Require your seller to obtain a certificate for the diamond. Google an appraiser or the jeweller you trust. The fees the appraisers and gemologists charges are quite nominal. It’s relatively cheap and protects you from seeing flat, sparkless, brownish – yellowish or greenish piece of dull glass looking diamond. Don’t be the guy or a gal who ends up wearing a bad quality diamond certified by the EGL.
Get the diamonds with that have GIA or AGS certificate. Period.
Want to read more about how EGL certificate is a scam? Here is the heart felt review from a customer that was screwed in Edmonton buying EGL graded diamond.