Everyone knows diamonds are a woman’s best friend. But, for most consumers, their knowledge ends there. Given the importance of diamond purchases–both emotionally and monetarily–it is important that consumers know what they are getting into before making that big purchase. One of the factors in determining the price of a diamond is its quality, which is graded according to the 4Cs: color, clarity, cut, and carat weight. But diamond grading does not stop there, because there is no recognized international standard for diamond grading. Instead, there are many different diamond grading laboratories which compete with one another in the highly-competitive diamond market. Some of the biggest grading laboratories are the Gemological Institute of America (GIA), the International Gemological Institute (IGI), the European Gemological Laboratory (EGL), the American Gem Society (AGS) and the European Gemological Laboratory International (EGLI).
What is the difference between these labs?
The Gemological Institute of America or GIA is the oldest laboratory in the world and is credited with developing the 4C grading terminologythat most grading laboratories and jewelers use all over the world. GIA is also generally considered to be the strictest of all the grading laboratories. Each one of the other labs have their own grading standards that are different than the GIA standards. When it comes down to grading color and clarity, which are the only two factors subjective to the human eye, IGI, EGL, HRD, or the AGS, usually are not as strict as the GIA. In fact, most of the time a diamond graded by those companies receives a higher grade than it would receive if graded by the GIA. Non-GIA diamond grading labs are generally considered to be more lenient than GIA and may see as much as 3-4 color grades and 1-2 clarity grades difference when comparing the same diamond, and a diamond graded by such labs also is generally available at a lower price than diamonds given the same grades by GIA. But that does not make these labs “inferior” labs
Given the differences in the grading laboratories and the fact that the same individual diamond can receive very different grades from different labs compared to the GIA standard, there has been something of a controversy brewing over which certification jewelers should offer their customers. Also, the question that most jewelers cannot answer: is it better for consumers to have only one gradingcompany that hasa monopoly on this market or is it better for consumers to have options?
The Genesis Diamond story
Genesis Diamonds, a nationally recognized diamond store headquartered in Nashville, Tennessee, recently found itself thrust in to the middle of this controversy that has been brewing ever since other new diamond grading labs burst onto the scene 30 years ago. Like many other retailers throughout the region, Genesis Diamonds offers diamonds certified from multiple laboratories, including GIA, IGI, EGLI, EGL-USA, AGS, and HRD. According to Genesis Diamonds founder and CEO Boaz Ramon, the key is educating the consumer. “The reason that we offer more than one lab is so that we can give the customer more choice and a larger selection of diamonds. We are also forced to carry some diamond grading labs so we can compete in our markets and sometimes even outside of them. We do not believe in forcing anything on our customers. We educate them and let them make the most informed decision by themselves; an explanation of the difference between the labs can be found on our website, brochure and obviously, our diamond education sessions with our customers,” Ramon said.
The recent spats with local competitors started with a local jewelry store owner who targeted and bought two specific EGLI diamonds from Genesis and took them to be re-graded by the GIA and other stricter labs that unsurprisingly graded them lower than did EGLI. A local TV station in Nashville took over the story and chased it for a lengthy period of time. More jewelry stores got involved and some joined the TV station to try to impugn Genesis Diamonds.
"The TV station and competitorstook an industry issue and tried to makeit look like solely a Genesis Diamonds issue. They singled Genesis Diamonds out as if we were the only ones selling diamonds with these certifications,when in fact otherwell-established jewelers in Nashville and all across the country are actually selling them every day. We’ve never sold kinds of products that others haven’t sold, and we have explained to customersthe differences between the diamond grading labs and their different standards.
It’s unlikely that this controversy will be solved any time soon. Different grading labs and standards have been around a few decades, so before making an expensive purchase, any consumers who care about diamond grading should educate themselves on the different grading laboratories and their standards. It is even more important that when consumers who care about diamond grading go into a jewelry store, they make sure that the sales associates explains and shows the differences between the various diamond grading labs and their standards.
