SECRETS of the Diamond Industry-Dateline

[SquareCut]

Dateline NBC is on right now and they are doing a piece on the secrets of the diamond industry, in case you want to watch.

 

[JohnQuixote]

NOBODY WATCH!

Just kidding.

 

[Ann]

Hmmm?

Carraba''s or Dateline?

Houston folks will know what I mean - been thinking about it all day and now this!

 

[Kaleigh]

On the east coast they are talking about weight loss?????

 

[belle]

Date: 7/22/2005 8:21:46 PM
Author: kaleigh
On the east coast they are talking about weight loss?????

looks like the diamond industry is still a secret!

 

[drkewl]

They are showing the piece later on in the show... when, eh I guess we just have to watch and wait

 

[YoungPapa]

There is going to be a section about diamonds somewhere during the two hour presentation. I think it's mostly about inflated insurance appraisals but I'm not sure. How do I know that much?

Well...

We got a phone call in February from a Dateline producer. Turns out they bought a diamond from us last summer. It was an EGL-USA "I-SI1". Yes, I said EGL.

Gulp.

They had questions about EGL vs GIA and the subjectivity in grading. We explained that as part of our sales process we educate our clients as to the difference in grading standards from lab to lab. We explain that EGL diamonds are cheaper because EGL isn't as strict. Not sure if that is going to make it into the story, though.

They were also wondering about appraisals, which I actually think is their focus. The EGL diamond (which we sold for around $3200) had a UGL appraisal for something like 12K. They asked if we thought the diamond was worth that much. We told them 'no', and also explained that the appraisal came from the lab, not us. We told them that we never mentioned nor provided the appraisal as part of the sales process - it was only something that came with the stone.

So, in short, I THINK it's about jewelers using inflated appraisals or weak certs to sell diamonds. My PR guy told me to prepare to be made out a like a scumbag, so we're hoping for the best and expecting the worst.

Let's see what happens together!

 

[Kaleigh]

Gosh Jim, I will be watching with interest. You have a solid reputation here and elsewhere. I will hope for the best.

Lisa

 

[MissAva]

That is what television does....I know with interveiws they always say repeat the question in your answer so they have a harder time cutting and editinng your response into soemthing else...

Good Luck, we still love ya either way!

 

[strmrdr]

on right now!

 

[book_of_love]

Just found it, very interesting so far.

 

[Kaleigh]

That was interesting.

 

[strmrdr]

sent diamonds to 4 labs that they bought all over.
lots of disagreement on grades.
1 diamond didnt get the same grade from there guy or any of the labs.

"appraisal prices came from the marketing imagination of the sellers and labs"
favorite quote lol
Sound familar?
Now talking about inflated insurance costs based on inflated appraisals.
Sound familar?

igi had the highest average prices on there "appraisals".
Advice from igi rep read the report dont listen to the sales person.

Overall I found it interesting but its something that someone would pick up quickly reading PS.
second favorite quote:
"the stone is worth what the merchant sold it for if it was worth more he wouldnt sell it."

DCD wasnt mentioned.

 

[lilyinct]

Yowza...Certainly was not favorable towards the diamond industry...they cited cases of inflated appraisals, mall-store jewelers "swapping" diamonds, and lousy salespeople....not to mention inconsistencies in diamond grading opinions.

 

[strmrdr]

They raised my favorite point that certs and appraisals are opinions not facts.
igi rep used that to his advantage.

 

[book_of_love]

Makes me even more nervous to buy a diamond somewhere down the road.

 

[kenny]

Here is a blurb about it from one of NBC's Dateline sites:

http://www.nbc4.tv/technology/2862444/detail.html

Was it at the beginning, middle or end?
I'm not going to sit through 2 hours.

BTW.
I bought a hybrid car over a year ago.
I get asonishing mileage, 60 MPG lifetime average, and that is for full tanks not just one lucky trip.
My best tank so far is 66.6 MPG. Amazing.
Of course I creep at 53 MPH on the freeway and accelerate like a snail to get this MPG.
I post my MPGs on a website along with many others throughout America, a little friendly competition.

A few months ago the site announed KNBC in Los Angeles TV News Department is looking to interview hybrid owners.
I called them.
A producer called me back.
I told him even though EPA is 47/48 on my car, the Honda Hybrid Civid, I am getting 60.
He said he was looking for people who are pissed off becuase they get UNDER EPA.
Then he said Good Bye.
The media is a bunch of slimeballs.

 

[denverappraiser]

It''s interesting how they based their entire thought process around the opinions of a single appraiser, Cap Beasley (who was an excellent choice by the way). It seems that they think appraisals are useful if they are carefully prepared by a trained and properly equipped professional who understands the issues. It''s a shame that this seems to qualify as a ''secret''.

Neil Beaty
GG(GIA) ISA NAJA
Independent Appraisals in Denver

 

[Jennifer5973]

I saw it and it just validates what we all know on Pricescope:

1. Get an independent appraisal
2. Do not buy from vendors who do not know what they are talking about and/or push these goofy "certificates"
3. Do not fall for "appraised value" scams
4. Real diamonds reports (AGS, GIA, EGL) do not give appraised values
5. Before making a purchase worth thousands of dollars, go to Pricescope

6. Find a vendor who is honest, educated, and trustworthy

I was excited to see that they described Cut as "depth/proportions" and said, "the better the cut, the more sparkly the diamond and the higher value."

 

[sevens one]

Date: 7/22/2005 10:18:11 PM
Author: kenny



The media is a bunch of slimeballs.

Amen to that!

 

[Kaleigh]

Yes Jenn, I too was happy to see that they highlighted the cut and depth proportions also. It''s about time!!!!

 

[Jennifer5973]

Date: 7/22/2005 9:22:43 PM
Author: lilyinct
Yowza...Certainly was not favorable towards the diamond industry...they cited cases of inflated appraisals, mall-store jewelers ''swapping'' diamonds, and lousy salespeople....not to mention inconsistencies in diamond grading opinions.

I have a strong feeling that the majority of this is seen in the chain stores that use those laminated cards from IGI or wherever and unscrupulous local vendors. It is tru that the local person is easy prey for these types but the good local guys and the Pscope online vendors do not fall into this category and I haven''t given any of my jewelry a second thought.

I can''t be sure--it was very vague--but when they said that only one stone checked out as to what it was sold as, they flashed a blurry visual of blue nile on the screen...not surprisng... Blue Nile, Diamond District and Chain stores...hmmmmm...guess where you''re best off

 

[Garry H (Cut Nut)]

Sounds interesting.

Remeber of the 16 stones we sent to 3 labs, and one twice to GIA by mistake, not one of them recieved the same grades for (color and clarity) from all 3 labs. (Including the same stone to GIA twice)

 

[kenny]

Well that was a waste of 1 hour and 20 munutes of my life.

 

[Jelly]

I just watched the Dateline special on diamonds. I thought it was fascinating and especially good timing since I''m looking for an engagement ring right now.

We need a consumer report on jewelers. I''m not sure who to trust anymore!

Stephanie

 

[kenny]

Jelly said: "I'm not sure who to trust anymore!


Actually after reading here for several months I see pricescope as the closest thing the a consumer reports for diamons that there is.
Read as much as you can here.
Information is power.
At the top of this page click on knowledge.
Then advanced tutorial.
It will take a long time but read all of it.

When you buy, be sure to buy a stone with a GIA or AGS report.
They are most reputable of the labs.
Compare the specs and prices to stones here under the prices section.

If you do this, you will end up in the upper 2 percentile of knowledgable diamond purchasers.

 

[widget]

Time for the West Coasters to check in!

Lordy...I wish I''d known that Dateline was a two hour show! I saw more about brides and dieting than I wanted to..

I thought it was pointless and utterly inadequate. Unless I missed something, I didn''t hear mention of "independent appraiser" or "GIA" once.

Stephanie: Welcome!

Stick around keep reading and ask questions...you''ll learn a great deal more here...

widget

 

[Jennifer5973]

Date: 7/23/2005 12:40:07 AM
Author: widget
Time for the West Coasters to check in!

Lordy...I wish I''d known that Dateline was a two hour show! I saw more about brides and dieting than I wanted to..

I thought it was pointless and utterly inadequate. Unless I missed something, I didn''t hear mention of ''independent appraiser'' or ''GIA'' once.

Stephanie: Welcome!

Stick around keep reading and ask questions...you''ll learn a great deal more here...

widget

I know, Widget...like I said, anyone who bothers to do some research (and wouldn''t you before buying something so significant/expensive???) would know these things.

I''m sorry but to walk into a chain store and be "sold" on a ring with one of those little laminated "appraisals"....come on!

I found myself thinking, "Anyone who is THAT stupid deserves what they get..." But then I felt badly (like a big bizatch) about being so snotty...I am lucky to have a great, honest and informed local jeweler and Pricescope...many people are just clueless, I suppose.

Also, did they ever mention you should not buy a mounted stone? I don''t recall...but that is another thing--I believe when you buy a stone for an ering or studs or such, you should buy unmounted, with the possible exception of WF''s pre-fab ES studs--I''d trust them.

 

[valeria101]

Date: 7/22/2005 11:01:09 PM
Author: Garry H (Cut Nut)

Remeber of the 16 stones we sent to 3 labs, and one twice to GIA by mistake, not one of them recieved the same grades for (color and clarity) from all 3 labs. (Including the same stone to GIA twice)

Aside Pricescope''s little experiement, there are precious few (one or two, as much as I know) such cross-checks of lab grading done. Is it possible to get the rough data from the Dateline sample ?

I am citing Garry not because my question is just for him, but beacause is related to the post. Anyone can help ?

 

[strmrdr]

Having had some time to think about one thing that bugs me is they presented a lot of problems but no solutions.
Each of the points raised has been brought up here and work arounds and solutions presented.

The one thing that also stands out is how the igi rep came accross as a total slimeball.