Ever hear of bonded diamonds?

[verticalhorizon]

I read this in an article on theknot.com. Any comments?

1. PEGASUS DIAMONDS
The SCAM: The latest dud to hit the market is the Pegasus Diamond (also known as the Monarch), basically an inexpensive brown or yellow diamond that has been heated at such a high temperature and pressure that the nitrogen or boron (which gives it color) is baked out and the diamond appears white. This color enhancement has two fatal flaws: The process is undetectable to labs and independent appraisers and it renders the stone extremely brittle! Moreover, treated diamonds have little or no secondary market value.

The SOLUTION: If you are springing for a high-quality rock (over $5,000), ask the jeweler about a bonding document. Bonded diamonds are guaranteed to be 100% natural and have a lifetime breakage policy, a lifetime buy back policy, an unconditional lifetime exchange policy, a lifetime trade-in policy, a fixed appreciation rate (to keep pace with inflation), and a market crash protection policy. The catch? Bonded diamonds cost 10-15% above non-bonded diamonds, only 5% of jewelers are bonded and, of those, most offer only partially bonded stones.

 

[diane5006]

So "BONDED" diamonds is one of Fred Cueller little 'ideas'...Fred is the diamond advisor (and I use theat term loosely to 'the knot'. I suspect you will find that he is one of the few who acutally sell bonded diamonds

I think if you so the math...it doesn't make much sense...

If you find a good vendor with good upgrade/trade-in policy a goog appraiser (to make sure you are not being sold treated stones

and have good insurance you should be all set.

 

[verticalhorizon]

I didn't see Fred's 'good' name until the end of the article. I hadn't heard of bonded diamonds up until then. You think if it were a safe bet, someone, somewhere either on the Internet or at a B&M would have said something by now.

Thanks.

 

[Mara]

The process is undetectable to labs and independent appraisers and it renders the stone extremely brittle! Moreover, treated diamonds have little or no secondary market value.
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That seems like bull, because if it is undetectable to labs and independent appraisers then how does the stone have little or no secondary market value. If labs AND appraisers can't tell that it's treated, then how is the customer going to know when they re-sell the diamond? Assuming they get it appraised again, the appraiser wouldn't know either, so the diamond would be re-sold normally. That statement completely contradicts itself.

 

[mike04456]

It is bull. The HPHT process is detectable, though in most cases it requires advanced instrumentation.




Just more of Fred's scare tactics.

 

[oldminer]

HTHP, High temperature/High pressure treated diamonds are NOT brittle and they are detectable by major labs. They can be screened with very minor equipment and limited knowledge by small labs. Since only about 1% of all diamonds potentially might be successfully HTHP treated and much fewer have actually been treated, it means that only a very tiny part of all stones have any risk of having actually been treated. Legitimate stones that have had this treatment are laser inscribed on the girdle for easy identification although one must be aware that a given stone might not be inscribed for some reason, fraud or otherwise.

It is not a common treatment yet, but will continue to be developed and widen its scope over time.

The Bellataire product of Lazare Diamonds is HTHP colorless treated. All of their stones are inscribed either GE-POL or Bellataire. I have appraised some huge stones that had the GE process and they were super diamonds. They most definitely have a great deal of market value HTHP or not.

On the BONDED DIAMONDS issue, I recently received a copy of Fred Cuellar's book. I read it, cover to cover, and found very little in it that seemed problematic to me. Maybe the price charts are wrong, but I was not too concerned with them seeing as how Pricescope is always current and competitive anyway. I wanted to know what a "warped" diamond was. Now I know. I never have seen a bodned diamond, but it sounds like a good money making idea. Collect 10 to 15% extra on a diamond to "insure" it one time against breakage or for a full return privilege. If a seller collects that much extra, how could they go wrong. It is a money maker for whoever sells such a stone....You will never get back 1 in 5 you sold, not even 1 in 10. I don't think you can lose although once in a while you would pay out a few big bucks for breakage or a return. The diamond is worth something anyway, so the loss is not total, in most cases. Sounds like a fine money making idea that never caught on. Personally, it is not worth 10% to 15% extra for the privilege. Buy right, and take your chances. You'll come out ahead unless you are the unlucky one who takes the occasional big hit.

 

[Griffin]

I really liked the part about the "fixed appreciation rate".

Gotta love anything new coming from Warp Boy. It's bound to be good.

 

[dimonbob]

According to Fred, all of his diamonds are "Bonded" and all other diamonds are "Warped". Both are his invention.