Most Diamond Certificates are a Scam!!!
by    |  March 10th, 2014

EGL, IGI and HRD diamond certificates are not worth the paper they are written on. The color and clarity grades which their reports provide are incorrect. This has been common knowledge within the diamond industry for decades.

If you recently purchased a diamond certified by EGL, IGI, or HRD, your diamond is almost certainly not the same color or clarity as its certificate would lead you to believe.

You may have thought you were getting a “deal”. In reality, you were purchasing an incorrectly graded diamond at an inflated price which reflected the certificate rather than the diamond’s actual quality.

There is a reason why almost all EGL, IGI and HRD certified diamonds are in the SI1-SI2 clarity grades or H-J color grades. It is because their clarity grade is truly I1 or worse and/or the color grade is actually K or worse.

There are 2 motives behind this practice. Both are detailed below.

When certifying a diamond, most dealers and retailers main concern is maximizing their profit.
For example, let’s say that a diamond wholesaler purchase an un-certified 1.56 carat round brilliant diamond. After inspecting the stone, he determines that it is L color and VS2 clarity. According to the Rappaport Diamond Price list this stone is worth $5,300 per carat. This is where labs such as EGL, IGI and HRD come into play.
If he were to send this diamond into EGL, IGI or HRD, it will probably receive an “I” or “J” color grade and “VVS2” or “VS1” clarity grade. Let’s assume that he sent it to one of these labs and it came back as a J color VS1. According to the price list, his diamond is now worth $7,700 per carat. In total that is over $4,000 dollars in additional value.
While EGL, IGI and HRD certified diamonds do sell at a 10-20% discount to diamonds with a comparable GIA Certificate, it usually still leaves you, “the customer”, paying well above market value. Even at a 20% discount, you would still be paying over $1,000 more for the stone mentioned above then you would have for the same diamond, had it been GIA Certified.
When certifying a diamond, most dealers and retailers main concern is maximizing their profit.
No one walks into a jewelry store intending to purchase a K or worse color, or an I1 or worse clarity diamond.
This makes selling a GIA Certified diamond in these color and/or clarity ranges nearly impossible. Rather then exposing people to the fact that they can’t afford the diamond they want, dealers and retailers have turned to selling them diamonds with certificates that inflate their grading’s.
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