Why is This So Cheap? Understanding SBF
- Thread starter D_
- Start date
- Joined
- Jul 27, 2009
- Messages
- 3,761
It will be disruptive. That is why you shouldn't expect it to happen any time soon. A lot of people would want their diamonds re-graded. If they turned out to be overgraded, consumers would be going back to the merchants. Lawsuits might even be filed against GIA.D_|1440616873|3919507 said:Thank you for sharing your vast knowledge, Bryan.
I hope so too
ETA: Granted that GIA is a behemoth. How much disruption it will cause if they were to revise their method? Does it outweigh the price boost retailers can possibly have in selling their fluorescent diamonds? The Rap shows small percentage of price difference for diamonds w/ fl, but after observing prices for quite a while, the gap can be way more significant than reflected on Rap.
There is no way they would do it unless there is enough pressure from the market to make the change. AGSL is kind of caught in the middle. They must follow GIA practices on color and clarity or they could lose some of the relatively small market share they currently have.
That does not mean that GIA shouldn't do the right thing. After all, their mission is consumer information and protection. If there is systemic over-grading taking place and they know it, they owe it to the consumer to correct it. Only by the market understanding the problem and pushing for change will it ever be corrected.
- Joined
- Jan 7, 2009
- Messages
- 9,725
D_ back attcha!
There's really no "problem" as I see it.
I've been assessing GIA graded diamonds since the 1970's.
There's been many changes over that time.
The paper on overgrading was written more than 5 years ago. Things have shifted a bit during that time.
So, GIA grading standards have indeed changed a bit over time.
What has not changed is how the market reacts to the changes.
If an H looks like a G, the stone will bring a higher price than a GIA graded H that look more like an I.
ANYONE who submits a lot of diamonds to GIA will find disagreement with the some of the grades.
I certainly do.
My position is to accept the grade ( unless it's an outright error, which is rare, but it happens) and take my lumps.
I think the diamond should have gotten an H, but it got an I, that's what it is. It will trade at a price closer to an H, but it's still an I.
I don't see the potential for market disruption. As is is, a report older than 3-4 years will cause many buyers to question it anyway. This makes it necessary to re-submit diamonds that have older reports anyway.
My belief is that the human observation element of GIA grading is essential. It means that there's going to be some "gray areas"- but that's the nature of the beast.
Even if machines were employed, there'd still be a lot of borderline cases where human judgement will rule.
There's really no "problem" as I see it.
I've been assessing GIA graded diamonds since the 1970's.
There's been many changes over that time.
The paper on overgrading was written more than 5 years ago. Things have shifted a bit during that time.
So, GIA grading standards have indeed changed a bit over time.
What has not changed is how the market reacts to the changes.
If an H looks like a G, the stone will bring a higher price than a GIA graded H that look more like an I.
ANYONE who submits a lot of diamonds to GIA will find disagreement with the some of the grades.
I certainly do.
My position is to accept the grade ( unless it's an outright error, which is rare, but it happens) and take my lumps.
I think the diamond should have gotten an H, but it got an I, that's what it is. It will trade at a price closer to an H, but it's still an I.
I don't see the potential for market disruption. As is is, a report older than 3-4 years will cause many buyers to question it anyway. This makes it necessary to re-submit diamonds that have older reports anyway.
My belief is that the human observation element of GIA grading is essential. It means that there's going to be some "gray areas"- but that's the nature of the beast.
Even if machines were employed, there'd still be a lot of borderline cases where human judgement will rule.
300x240.png)