EGl certificates - question

[malish985]

So I know that EGL's grading is all over the place, but I saw a RB that has a decent certificate,0.9 HCA. The stone is 2.6 ct, H, VS2, XXX. Now I know that most likely its a J, SI1 (as long as its eye clean I'm ok), but it looks pretty and is around $14k. Here are the details - should I stay away or does it have potential.


2.60 ct, H VS2 (i realize its lower color)
Depth : 61.3
Table: 56 (is that too small)
Crown % 15%
Pavillion % 43%

thank you

 

[denverappraiser]

Assuming it’s priced for what it is, and I’ll address that assumption in a moment, that means you can expect J/K SI2 for clarity and color. You’ve got next to nothing to go on for cut, polish and symmetry other than the word of a lab that you’ve already said you don’t trust so a good assumption to work from is VG/VG/VG. Are you good with that?

Why assume it’s priced for what it is? That’s the zinger for most people. Surely there are bargains hidden the database since there are SO many stones there. For the most part, no there aren’t. For starters, the stone didn’t come out of the ground or even off the cutting wheel with EGL branding. Someone chose them. They paid EGL to get it done. Why? We’re almost certainly talking about a full time professional diamond dealer who had the stone in hand and who has an account at every lab in the country and who is working on a single digit profit margin. They picked EGL for this one. Call me a cynic but I think it was about money. They thought that a pedigree from EGL net of the ‘discount’ that they knew they would have to give for the EGL branding would net them MORE money than something else. They may be wrong, it does happen, but this is who you’re betting against. If it’s a J/SI1/xxx/GIA as you’re speculating, they could have raises the price by $8000 by spending $154 at GIA. They still could. I assure you, they know this and again, they had the stone in hand when they made this decision and again when it came back. They not only chose to send it to EGL, they chose to keep it EGL branded after they saw the results. They may be wrong, and you may win here, but the only one playing this game blind is you.

 

[malish985]

Assuming it’s priced for what it is, and I’ll address that assumption in a moment, that means you can expect J/K SI2 for clarity and color. You’ve got next to nothing to go on for cut, polish and symmetry other than the word of a lab that you’ve already said you don’t trust so a good assumption to work from is VG/VG/VG. Are you good with that?

Why assume it’s priced for what it is? That’s the zinger for most people. Surely there are bargains hidden the database since there are SO many stones there. For the most part, no there aren’t. For starters, the stone didn’t come out of the ground or even off the cutting wheel with EGL branding. Someone chose them. They paid EGL to get it done. Why? We’re almost certainly talking about a full time professional diamond dealer who had the stone in hand and who has an account at every lab in the country and who is working on a single digit profit margin. They picked EGL for this one. Call me a cynic but I think it was about money. They thought that a pedigree from EGL net of the ‘discount’ that they knew they would have to give for the EGL branding would net them MORE money than something else. They may be wrong, it does happen, but this is who you’re betting against. If it’s a J/SI1/xxx/GIA as you’re speculating, they could have raises the price by $8000 by spending $154 at GIA. They still could. I assure you, they know this and again, they had the stone in hand when they made this decision and again when it came back. They not only chose to send it to EGL, they chose to keep it EGL branded after they saw the results. They may be wrong, and you may win here, but the only one playing this game blind is you.

Thank you for so much - I pretty much figured this was the case. I also thought that the problem with EGL was the inconsistency with color and clarity, didn't realize that their grading on cut/polish/symmetry is also questionable. Will not even look at EGL stones again.

 

[denverappraiser]

Good plan. The very first thing you had to say is that you don't trust the lab's grading. OK, so don't rely on them. Pick another lab. It might be a killer stone but you have nothing to base the decision on.

 

[Modified Brilliant]

I agree with Neil...very sensible guy, indeed.