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Advice for Purchasing (and Negotiating the Purchase of) Diamonds

Purpose of this Document:

• Provide advice to anyone who is in the market for purchasing a diamond
• To enable a potential buyer of diamonds to:
  • Understand the many factors (beyond the “Four C’s”) that drive diamond value so that they don’t get misled into buying a diamond that is of lower quality than what they are told
  • Effectively negotiate to get the absolute best price for the diamond they want to purchase

Some advice before you begin your diamond search:

• Make a realistic assessment of your finances and how much money you can actually spend on a diamond without going broke
  • After doing this assessment, stick to it!!
  • It is very easy to ‘fall in love’ with the perfect diamond and end up paying much more than you originally determined you could afford
  • If this occurs, then you did not do a realistic assessment of your finances the first time
• Make a decision as to what is more important to you – quality or price?
  • Obviously, you want to buy a great diamond at a cheap price, but you must be realistic in the sense that you cannot buy a Ferrari for the price of a Ford
• Set a “reservation” price – the price that you absolutely will not spend more than – no matter what!
• Set a low ‘goal’ price – the price that you would really like to get and will actively seek to get

Educate yourself first:

• This is the most important thing you can do – not just to save you money but to ensure that you do not get taken advantage of and end up purchasing a diamond that is worth much less than you bought it for
• Do not purchase a diamond online! (you can get better prices negotiating in-person)
• Always check the certificate of the diamond and make sure it is not more than 1 year old (if it is, there is a strong chance that it was worn by someone already and could be chipped, damaged, etc.) – Ask the jeweler if it has ever been worn
• Do not purchase a diamond at any retail store!
  • Retail stores have much more overhead (i.e., fancy displays, security guards that they have to pay, etc.) and therefore will have less room to negotiate a lower price
• Instead, try to go to a diamond district (such as in New York City or in Chicago)
  • The cost savings you will get by negotiating in person at one of these locations will likely be well above the cost of a plane ticket to go there!
  • The value of a diamond CANNOT be determined solely by looking at its certificate (e.g., there is a difference between a ‘bad’ SI1 stone which has imperfections in the middle of the table vs. a ‘good’ SI1 stone which has imperfections off to the side of the stone which could allow you to cover it with a prong from the ring setting)
• Spend a few days/weeks researching diamond-related websites to educate yourself (REMEMBER – the more educated you are about diamonds, the less likely you will be taken advantage of by an unscrupulous dealer – and believe me, there are plenty of them!)

Some websites that may be helpful for educating yourself and/or getting a sense for how different diamonds compare in price:

• www.diamond.info
• www.pricescope.com
• www.diamondhelpers.com
• www.drostes.com
• www.bluenile.com

Remember, you can get a much better price if you negotiate in person than what you see on these websites.

• For most people, the most important criteria in a diamond (in order of importance) include:

  • Institution that graded the diamond (GIA, AGS, EGL, etc.)
  • Shape (Round brilliant, emerald, princess, marquis, etc.) (Note: Shape is purely a personal decision – values cannot be compared across shapes)
  • Cut (Depth %, Table %, etc.)
  • Color Grade (D, E, F, G, H, I, etc.)
  • Weight/Size (how many carats?)
  • Clarity Grade (SI1, VS2, VS1, etc.)

• Plot of internal and external inclusions is different for each diamond

  • Polish (Excellent, Very Good, etc.)

  • Symmetry (Excellent, Very Good, etc.)

  • Fluorescence (None, faint, etc.)

  • Culet Size (None, very small, etc.)

  • Girdle Thickness (Very thin, very thin to thin, Thin, Thin to Medium, etc.)

  • NOTE: For round brilliant diamonds, other qualities that can be measured include: Crown angles, crown height, pavilion depth %, and pavilion angles, however, G.I.A. does not measure these qualities.

  • NOTE: Many people make clarity the least important of the “4 C’s” when purchasing their diamonds. The reason for this is simple -- why spend a lot of money on a VVS1 diamond when an SI2 will look exactly the same to the naked eye? If you're purchasing an emerald cut (or any other step cut), consider purchasing a diamond with clarity greater than SI1. This is because clarity flaws are much more readily visible in step cuts than in brilliant cuts

• Use the spreadsheet listed at the end of this document to start researching and recording diamonds listed online with the goal of understanding how each different quality of a diamond impacts the value

  • e.g., how much more you should expect to pay for a diamond that is equal to another in every other dimension except that:

• It is graded by G.I.A rather than E.G.L

• It has an Excellent polish rather than just Very Good polish

• It’s clarity is graded SI1 rather than VS2

• It’s color is graded “F” rather than “G”

• Etc.

Preparation for Negotiations

• Understand that dealers who work in the diamond wholesale business do not make much profit off selling diamonds since it is a commodity, therefore, don’t feel bad by trying to bargain them down to a few hundred dollars over wholesale prices (which is an elusive number to actually determine)

• Understand that the Rapport (‘Rap’) sheets that many diamond dealers will pull out, which supposedly show the price of diamonds that wholesalers pay to one another is NOT the price that THEY paid for it.

  • So there is a good chance you can purchase a diamond significantly below this price
  • Think “invoice price” at a car dealership – you can buy a car for a significant amount below this price which everyone assumes is what the dealer actually paid for it)

• Understand that to receive a great price for a diamond you must be willing to invest the time necessary to educate yourself and negotiate

  • Each diamond dealer that you meet with will try and keep you at their booth for as long as possible, continuously pulling out new diamonds for you to look at. Frequently, you may find yourself viewing diamonds at one single dealer for an hour or so.
  • Therefore, since you want to visit as many dealers as possible to understand the market, plan your time accordingly.
  • It is not unrealistic to spend 2-3 weeks of 4-5 hour days visiting dealers and viewing diamonds (and negotiating!)

• Understand that most dealers will probably not have the specific diamond that you are looking for in stock. Frequently, they know other dealers and will have to call them to locate a stone with the specifications that you describe. This means you may have to come back and visit them after they receive the diamonds for you to view.

  • In the meantime though, they will still be eager to show you other diamonds that they have on hand. If they are showing you diamonds that don’t come close to what you are looking for, don’t be afraid to stop them right there and tell them you will come back when they get the other diamonds in. Otherwise, you can waste a lot of time ‘being polite’ looking at diamonds you know you are not interested in.

• Prepare your ‘script’ before going into the negotiations: Examples…

  • Mention that you are a student (rather than the truth that you are an investment banker) to set the tone that perhaps you don’t have that much money. This is NOT the time to brag about how wealthy you are!
  • Mention that you have several friends that are also looking for engagement rings and you are all spreading out to see where you can find the best deals – then either imply or say that there is a good chance he could win more business with them if he can give you a good deal.
  • Mention that if you get a good deal, you can almost guarantee that he will see you again for future jewelry purchases – “you know, when I have to buy my wife those anniversary earrings, the birthday necklaces and the Christmas bracelets”
  • Mention to the dealer whose diamond you are currently looking at (Dealer A) that the diamond is not as nice as the one you just saw and were about to purchase at Dealer B, but since you like Dealer A much better and would rather start a long-term relationship with him, if he can match Dealer B’s price (which is your ‘target price), you will purchase it right here on the spot
  • Make the dealer offer you a better deal if you also purchase the engagement setting from him by starting off telling him that you plan on getting the setting made by someone else for a ridiculously low price and are only really looking for a diamond right now. Then, after you have negotiated the price of the diamond with him and got him as low as you can, tell the dealer that if he can cut you a deal and take off some additional money, you will let him make the setting as well – as long as he matches the ridiculous price that you mentioned earlier that you could get elsewhere.

The Actual Negotiations

Rules to follow:

• NEVER TELL THE DEALER WHAT PRICE YOU CAN AFFORD OR ARE LOOKING TO SPEND!!

  • They will always point you in the direction of lower quality stones but charge you the price you were looking to spend.
  • Always tell them you haven’t yet decided and it really depends on the what type of stone you are looking it

• Control your emotions

  • Never appear excited at a price mentioned by the dealer
  • Never appear excited at the quality of the diamond you are looking it
  • ALWAYS give the impression that the diamond you are looking at is not that great or not EXACTLY what you are looking for. Even if you are looking at a FLAWLESS diamond (which is very rare and you probably don’t have the money for it!), there are negative qualities that you can highlight (i.e., the size/clarity/color are not exactly what you are looking for – even if it is!)
  • This serves to lower the ‘value’ of the diamond and will set the tone for the negotiation when you offer an aggressive low price
  • Negative facial expressions or negative sounds are sometimes better than actually saying words – they are much easier to fake (practice this!)

• Know when to play a role

  • When you first start looking for diamonds, play the ‘stupid’ role when first meeting new dealers. Act like you don’t know too much about diamonds and see which dealers take the time to educate you properly (you should know the difference if you did your homework!)

• This serves as a screening mechanism for going back to dealers you ‘trust’

• Don’t be afraid to question the dealers on their statements – trust the information from the Internet that you educated yourself on rather than what the dealer says because the dealer has a vested interest whereas the websites on the Internet do not

• Don’t let them convince you that a negative quality of a diamond is ‘not that important’ when you think otherwise – often it is a matter of preference and only you know what you consider to be important

  • After becoming more familiar with the market, now go in and play the ‘educated consumer’ role when first meeting new dealers.

• Start off telling each dealer the exact specifications of the type of diamond you are looking for (not just size and shape). This automatically puts you in the top 5-10% of customers that actually know a thing or two about diamonds. You will instantly get more respect from the dealer.

• This serves to warn the dealer not to try and put one over on you since you will know he is lying

• Arrive prepared:

  • Bring a notebook and pen to each dealer along with a folder that contains additional information (NOTE: This sends a very clear message to the dealer that you are well-armed with information and you will be much tougher to take advantage of)

• Spreadsheet of diamonds that you have already researched from online sources (bluenile.com, etc.)

• Pictures of the setting that you are looking for (you may also want to purchase a ‘model’ cubic zirconium ring from the Internet if your girlfriend has already told you the exact setting she wanted. Having a model ring makes it MUCH easier to create the setting if you are having it custom-made

• Any educational information that you think is important and want to have on hand (i.e., the ranges for qualities that make a diamond graded “Ideal”, “Excellent”, “Very Good” or “Good”)

  • Bring a fake pre-prepared spreadsheet that shows similar diamonds to what you are looking for, but with fake, ridiculously low prices and use this sheet to write down the information of the diamonds that you are currently looking at
  • TIP: Make sure these spreadsheets look professional (typed headings, borders to each cell, etc.)
  • TIP: ALL of the specifications (cut, clarity, depth %, table %, etc.) and prices for each diamond listed in your spreadsheet should be HANDWRITTEN to give the appearance that you had just filled them in when visiting previous dealers
  • TIP: The diamonds you have listed can actually be real diamonds that you were interested in and had viewed at other locations, however, the prices should be much lower than what was offered (within reason – 10%, 15%, 20%?)
  • TIP: Leave a few spaces open at the bottom of your spreadsheet to allow you to write in new information so that the dealer who is currently giving you the new information can easily compare the prices while looking at your sheet
  • TIP: Bring several of these sheets with you each day – use a new one for each dealer
  • TIP: Develop a code to include on the paper somewhere that will allow you to instantly tell whether the sheet you are looking at it is the ‘fake’ sheet or the real sheet so that when you go home later that night you don’t confuse yourself as to which were the real prices you received!

• This technique works great!

• As dealers would give me their price, I would start writing down all the specifics of the diamonds in the spreadsheet along with the price, and frequently the dealer would lean over to see what other prices I was getting. Then they would either express shock at the low prices or try to point out the flaws in the other diamonds that may justify their cheap price.

• Either way, the dealer inevitably started offering much lower prices knowing full well that I was going to get the diamond elsewhere for much cheaper otherwise

• At this point, the dealers were usually deciding for themselves whether or not they wanted to make a profit that day or start a long-term relationship with me that could possibly lead to future purchases

• Don’t buy the diamond on the spot. Put a fully-refundable deposit on it for a few days. Go home and compare the exact specifications with other diamonds on the Internet and with the prices you have seen with other dealers. Make a logical decision based, not a spur-of-the moment decision in the store.

• Collect important information

  • Don’t forget to ask each dealer how much they would charge to create the setting that you are interested in
  • Ask them to break out the costs for you: platinum, white gold, side diamonds, etc.
  • Write this information down next to the diamond info you just collected from them
  • Make sure you ask them to give you a deal (reduction in price) in the diamond if you purchase the setting from them

• Closing the deal:

  • Make sure you request the ORIGINAL diamond certificate from GIA or AGS (no photocopies allowed!). Even original certificates are known to have been faked recently. If you want to verify that the diamond you have is the same listed on the certificate, you can contact either GIA or AGS. They may charge a fee to verify it.
  • There are several payment options that you should ask the dealer ONE AT A TIME to see if you could negotiate an even better price

• Ask the dealer how much he could reduce the price if you paid ¼ (or ½) of the price in cash. Then ask him how much if you paid fully in cash?

• NOTE: If the money you are spending on this ring represents a significant amount of your cash savings, you may want to think about putting it on a 0% or low-interest rate credit card. Cash on hand for future emergencies may be more valuable to you than spending some extra money up front to cover the credit card fees that the dealer pays and the low-interest you may pay over the next 12 months or so.

• NOTE: Paying by credit card is the BEST way to protect yourself from fraud. If you go and get your ring appraised after your purchase in cash, and the appraiser says you got ripped off, you may have little recourse. With a credit card, you can dispute the charge.

• Ask the dealer if there is a payment plan that he could put you on at 0% interest (layaway)

• Ask him if there is a way to make this a ‘non-taxable transaction’. Frequently, if the dealer can ship the diamond out-of-state, you don’t have to pay taxes. This may be an attractive option if you have a friend or relative nearby that lives out-of-state. Also, frequently the dealers will fake the shipment (i.e., send an empty box) to an out-of-state address that you provide, but actually give you the diamond ring.

• NOTE: If they actually ship the ring out-of-state, you must verify and ensure the dealer’s liability and that the dealer’s insurance can cover the value of the ring if something happens. Also, if your relative or friend is going to ship it back to, factor in the price of insurance to ship it overnight (Fed Ex only insures jewelry up to $500, but I think the US postal service or UPS has higher insurance limits)

  • Although a bit unscrupulous, the following tactic works like a charm. Remember, the dealer is very eager to close the transaction with you and make a sale. Therefore, if you can bring him just to the point where you are about to sign the receipt (and he is salivating!), you can probably bring up a new issue that you claim is a ‘deal-breaker’ unless he agrees to your terms.
  • In my case, this event occurred unplanned. The dealer and I had previously discussed creating the setting in either white gold or platinum with my first visit. Then, on my return visit after I agreed to purchase the diamond and the setting from him, I was about to sign the receipt when I noticed the receipt said the setting was white gold (typically $250-400 cheaper than platinum). I said, “Whoa!...I thought the price you were giving me was for platinum.” He said, “Oh, no, I thought we were talking about white gold…if you want platinum, the price will have to go up another $350.” I said, “Well, if that’s the case, and we can’t come to some agreement, then I can’t buy it.” (In reality, I probably would have paid the extra money if he sat tight and was very resistant, but instead I let him sweat it out with my silence – letting him think that this deal was about to go sour because of only $350.) He called his casting company, huffed and puffed a bit about how he was going to lose money on the deal, and then said, “If you can pay another $150, then I can do it in platinum.” I returned with, “How about I give you $100 cash instead, and then I’ll sign right now?” He agreed and the deal was closed.
  • The valuable lesson though is that you can use this negotiating tactic to your advantage – make the dealer invest a lot of time with you, bring him super close to the deal (actually waiting for him to write up a receipt that lists all the specifications of your diamond on it), and THEN bring up another issue that you ‘thought’ was already agreed upon but is obviously not reflected in the receipt.
  • Ask the dealer for an appraisal. Although you should definitely get an independent appraisal since insurance companies may not be able to use the appraisal from the dealer you purchased the diamond from, it doesn’t hurt to have another appraisal. You may want to ask the dealer to appraise the diamond’s RETAIL value, while asking the independent appraiser to appraise the diamond’s WHOLESALE value. This will give you several options when deciding how to insure your diamond (most insurance companies won’t pay you the cash value of the diamond if it is lost or stolen, they will simply replace the diamond with one that is equivalent, so if you insure the diamond using the retail value, you are probably going to be charged higher premiums)
  • Ask the dealer to put down in writing that he will refund your money if the diamond appraises for less than what you paid for it
  • Get a firm date in writing, when your ring will be available to be picked up. If you are having a custom setting made, then set a date for you to come back to view and approve the wax cast of the ring before it is cast in metal.

• Get a 3rd-party independent appraisal

  • Do not ask your dealer for a recommendation. Sometimes both the dealer and appraiser are in cahoots. Find one on your own through the Internet.
  • Call the appraiser in advance to find out the following information:

• How much an appraisal costs.

• If they tell you it depends on how much the diamond is appraised at, hang up. That represents a conflict-of-interest.

• Expect to pay between $75-125, although sometimes they may charge you according to the size of the stone (this is because the appraiser’s liability is higher since the stone is probably worth more)

• How soon you can make an appointment (you want to have the appraisal the same day that you pick up the diamond from the dealer)

• If they are certified and by who?

• There really is no such thing as being certified, but at a minimum they should have graduated and received a diploma from GIA

• How long will the appraisal take?

• Will the appraisal take place right in front of you? (to avoid the possibility that the diamond is switched on you)

• Will digital pictures be provided to you?

• Ask if they could fax the appraisal to your insurance company while you are there (to protect you in case something happens to the diamond in the time it takes for you to get the written appraisal and go to the insurance company)

  • After you purchase the loose diamond, take it immediately to the appraiser with the original certificate. Do not show the certificate to the appraiser until after he appraises the diamond (this ensures that he is actually grading the diamond according to his own knowledge and is not influenced by the certificate’s grading). Then make sure the appraiser’s estimations equal the gradings listed on the certificate.
  • Do not let the diamond out of your site at ANY time!!! Switches can be made very quickly.
  • After the diamond (and side stones possibly) are viewed, take the diamond back to the dealer to have it set. After you pick it back up, bring it back to the appraiser for the complete appraisal.
  • Ask the appraiser to fax the appraisal to your insurance company while you are there

Criteria in Purchasing a Diamond

NOTE: This criteria is strictly personal and should not be considered ‘ideal’. Everyone has a different financial situation, different tastes, preferences and values. Since I am somewhat of a perfectionist, but cannot afford to spend too much on a perfect diamond, my goal was to find a diamond that was ideal as possible (with size, cut, and color being my primary concerns), but was also a ‘bargain’. To find this type of stone, I was willing to sacrifice the clarity (going down to an SI1-graded stone) since you can only see the imperfections in an SI1-graded stone using a 10x magnification and NOT with the naked eye. To find this stone, I spent a LOT of time looking at many SI1 stones that had imperfections right in the middle of the diamond’s table. I held out until I found one that had minimal imperfections that were closer to the edge of the diamond (not exactly where I could hide it with a prong, but as close as possible). To accomplish this search and discovery, one cannot simply rely on GIA certificates, a visual inspection of the diamonds is absolutely necessary.

Size:
I always told the dealers a range in the size I was interested in (i.e., 1.65 to 1.80 cts). Although I obviously wanted a big stone with great color, my realistic goal was to either get a larger stone that had poorer color or a smaller stone with great color.

Cut:
I really wanted to get an “Ideal”-cut diamond given that this quality is probably the most important when determining a diamond’s brilliance and fire, however, I realized there are good bargains to be had if you can sacrifice a bit on either depth % or table %. By this I mean the following: In order for a diamond to be classified as Ideal, it must have BOTH an ideal depth % and an ideal table %. If you can get a diamond that falls within the range of “Ideal” for depth %, but is just slightly out of the range of “Ideal” for table %, you can still get a great diamond for a great price. That being said, I still told dealers that I was only interested in Ideal-cut stones (they often brought back Excellent or Very Good cut stones, but I was firm with what I wanted).
NOTE: There are several opinions as to what constitutes an “Ideal” round diamond. Back in 1919, Marcel Tolkowsky empirically calculated the ideal proportions of a round diamond as part of his Ph.D. thesis in Mathematics. An "ideal cut," according to Tolkowsky, has the following characteristics:

• Round in shape, and brilliant-cut (58 facets)

• Depth percentage: 59%

• Table percentage: 53%

• Crown height percentage: 16%

• Pavilion depth percentage: 43%

• Girdle thickness: Medium and even all the way around the diamond

• Symmetry: Perfect

• Perfectly aligned and formed facets

• Very small or absent culet
  It should be obvious that finding a Tolkowsky diamond is an expensive undertaking. To complicate matters even more, recent studies by the G.I.A. have demonstrated that a 59% table yields a more brilliant diamond (as opposed to Tolkowsky's 53% specification). Jewelers tend to confuse the issue even more, since their version of the "ideal cut" will likely vary from day to day, as their diamond inventory changes. Below is the range used by the Accredited Gem Appraisers (AGA) in determining the grade of an ideal-cut stone:

• Table %: 53-58% (GIA differs and says that 59% is ideal)

• Crown Angle: 34.0-34.7%

• Crown Height %: 14-16.3%

• Pavilion Depth %: 42.8-43.2%

• Total Depth %: 58-62.3% (this figure is determined by the factors above)

• Girdle Thickness: Thin to Medium (1-3%), or Medium to Slightly Thick (1.7-4.5%)

• Polish: Excellent

• Symmetry: Very Good

Color:
Although most people will not be able to tell the difference between one color grade to the next (e.g., having a “D” vs. “E” or “F” vs. “G”), I noticed in my search that “G” stones looked a bit more yellow. And after I saw a few “D” stones, I fell in love with how white they looked. Therefore, the range I told the dealers I was looking for included only stones that were “D”, “E”, or “F” (all are considered “colorless” by GIA, with “D” being the best and most expensive). If I had to make a tradeoff, I would have either bought a smaller “D” stone or a larger “F” stone.

Clarity:
I only looked for stones that were SI1 or VS2, however, my goal was to really get an SI1 diamond (which is of lower quality than the VS2). The simple reason is that this is where I could get the best deal. Since the inclusions found in SI1 diamonds are not visible to the naked eye (for most people), I felt this was not too much of a sacrifice. Other people may not like the idea of having a lower quality stone, and that is a personal decision. My only criteria for accepting a SI1 diamond was that the imperfections must be very minimal and off to the side of the diamond (or as close as possible). This is VERY RARE to find since everyone is looking for these types of diamonds that give you the most bang for your buck. Be persistent, give yourself enough time, and visit enough dealers, and sooner or later you will find something you like.

Girdle:
The ideal girdle is medium all the way around the diamond. A diamond with a Very Thin girdle has an increased chance of chipping and a Very Thick girdle wastes a lot of diamond weight without adding much value. In addition, consistency is very important, so you don’t want to have a diamond with a girdle that goes from Very Thin to Very Thick. I would have accepted any of the following: Thin, Thin to Medium, Medium, Medium to Slightly Thick.

Culet:
Only get a diamond without a culet. Otherwise, you will see a spot in the middle of your diamond.

Polish:
I told dealers I was only interested in looking at diamonds with a Polish of Very Good or Excellent.

Symmetry:
I told dealers I was only interested in looking at diamonds with a Symmetry of Very Good or Excellent.

Measurements:
The typical measurement you will see on a certificate look like this: 6.50-6.56 x 4.72. The first two numbers represents the range in the diameter of the diamond. The third measurement is the stone's total depth from table to culet. All round diamonds have two measurements for diameter, since they are never quite perfectly round. These two diameters will always vary a little, but should not by very much.

Example: A round diamond with measurements of 6.50 x 6.56 x 4.72. This means that the diameter varies by only 0.06 mm, which is quite acceptable for a 1-carat diamond as you will see in the following list. Below are some opinions of acceptable variances for rounds in the popular sizes. Numbers beyond these will affect prices, but only marginally, until the differences are about double these figures:
Carat Weight / Acceptable Variation
0.50 carat / 0.05 mm
0.60 carat / 0.06 mm
0.70 carat / 0.07 mm
0.80 carat / 0.08 mm
0.90 carat / 0.09 mm
1.00 carat / 0.10 mm
2.00 carat / 0.12 mm
3.00 carat / 0.14 mm
4.00 carat / 0.16 mm
5.00 carat / 0.17 mm

When I was comparing diamonds, I had two diamonds that were very similar, however, the diameters of one was much larger than the other. I chose the diamond with the larger diameter since the diamond will appear larger.

Fluorescence:
Only get a diamond with fluorescence listed as “None” or “Faint”. Anything more than this will typically dull the brilliance of the diamond in regular light. The prices will dramatically be reduced for diamonds with Strong Blue Fluorescence, however, you get what you pay for.

Miscellaneous Things to Know and to Look Out For:

• After you make the purchase, BE SURE YOU KNOW YOUR DIAMOND!! If you have it appraised, or it ever leaves your sight for cleaning or setting, the only way to prevent switching is to know what it looks like. Bring a photocopy of the GIA or AGS certification with you and verify that you and jeweler agree that it’s the same diamond. Then when you pick it up, check it again against your certification. If you think it has been switched, call the police while you are in the store.
• If you have side diamonds in the setting, make sure the color and clarity match the center diamond. If the colors is different, it can be very easily noticed (not so much the clarity, but they should be at least close to the center stone’s clarity)
• If you see a BIG crack inside the diamond or on the table (top of diamond), do NOT buy it. The crack will migrate to the top of the diamond and break
• ALWAYS look at the loupe that the diamond dealer offers you when looking at a diamond and make sure it says 10X.
  • Many dealers will try and scam you by giving you a loupe that has a lower magnification which doesn’t allow you to see the imperfections.
  • Since 10X is the magnification that most gemologists use the grade diamonds, you should also use it. Otherwise, you may think you’re looking at a great stone, when it really is not.
• Only look at diamonds that have GIA or AGS certification.
  • Any other certifications (e.g., EGL) are not as respected by gemologists/diamond dealers and command a MUCH lower price. You may think you are getting a great deal, but you really are not.
• Always ask the dealer to allow you to compare the diamond color to a real sample of colors.
  • He should bring out several diamonds of different colors and show them to you on a WHITE piece of paper. Many unscrupulous dealers will show a diamond to you on a black background (i.e., felt) which makes most diamonds look much whiter than they really are
  • The diamond’s color is best viewed when the diamond is turned upside down (with the point up in the air) and compared right next to another diamond of different color. The more white a diamond is, the higher the color (with “D” being the whitest) and the more expensive it is
• Do not buy a diamond with too many visible carbon deposits (black spots) or chips in the stone. Although it may be similarly graded as another stone, dealers frequently value these stone much cheaper
• Do not buy a diamond if the dealer does not give you a written copy of their guarantee or return policy. ACCEPT NO VERBAL PROMISES!!
• Do not buy a diamond if the dealer does not give you IN WRITING ON THE RECEIPT, all of the diamond’s specifications AND the certificate number (don’t let them convince you that the certificate number is enough – what if the certificate was faked?)
• If you doubt the trustworthiness of the dealer, ask him to weigh the diamond in front of you on a digital scale to ensure that the carat weight matches what is said on the certificate
• Some diamonds are laser-inscribed with the number of the certificate. The price of these diamonds are usually a bit more than un-inscribed diamonds and will also usually allow you to get a 10% discount from your insurance premiums. That being said, it is not necessary because you can identify your diamond by the combination of its weight, measurements, color, clarity and plot of imperfections. In addition, if someone wanted to, they could always file off the inscription.

Vendor Template

1. Enter these headings into Microsoft Excel and print out
2. Use some sheets to record actual diamond specifications and prices that you receive from dealers.
3. Use other sheets to create listings of diamonds that you have already viewed with ‘fake’ prices (maybe 5-20% below what you were really quoted) to show the current dealer who is making an offer.

Headings to include:

• Vendor (Name of business, name of dealer, address, telephone #)
• Carat size (weight of diamond in carats)
• Depth % (58-62.3%)
• Table % (53-58%)
• Color (D, E, F, G, etc.)
• Clarity (SI1, VS2, VS1, etc)
• Girdle (Very Thin-Thin, Thin-Med., Med., etc.)
• Culet (None)
• Polish (EX or VG)
• Symmetry (EX or VG)
• Measurements (6.50-6.56 x 4.74)
• Fluorescence (None or Faint)
• Certification (GIA or AGS)
• Price

NOTE: Depending on how particular you are (and if you are looking at AGS diamonds), you may want to include Crown Angle, Crown Height %, and Pavilion Depth % (GIA diamonds do not include this type of information).