Diamond Buying Scams to Avoid

In the world of diamonds, there are numerous scams. Those scams have existed since the very first diamond was discovered. They continue to exist, and new scams are born all the time. The best way to protect you against those scams is to know what they are going into it. This makes it easier to recognize a diamond scam. There are two types of scams: minor scams and major scams. Minor scams are, of course, more common.

Scam: Carat Total Weight. Often, the tag on diamond jewelry may only give the carat total weight. This is not the information you want. This is the total carat weight of all gems in the piece. What you want is the total carat weight of the biggest diamond in the piece.  Make sure that you get the total weight of the main stone in writing.

Scam: The Blue/White Diamond. This is a very old scam. The jeweler tells you the diamond is a Blue/White diamond, which makes it more valuable and rare than other diamonds. This isn’t true.  In fact, the ultraviolet wavelengths cause the blue fluorescence, and this lowers the value of the diamond. It makes the diamond appear milky. The FTC requires jewelers not to use this term, and if your jeweler uses it, leave the store, report them to the FTC, and never use that jeweler again.

Scam: The Old Bait and Switch. This is an advertising ploy used to get you in the store. It has been banned by the FTC. The concept is that the jeweler advertises a diamond at a great price. The kicker is that he doesn’t have such a diamond, or it isn’t that price. When you arrive at the store, you will be told that the advertised diamond has been sold, and urged to buy a much more expensive diamond, or a diamond of lesser quality.

Scam: Lighting for Color and Clarity. Have you ever paid attention to the lighting in a jewelry store? The lights are slightly dimmed in most cases. This is because bright light, such as sunlight, allows you to see the true color and clarity of a diamond. Other jewelry stores use special bright lights to make a diamond appear to be better than it is. For instance, they may have a blue component painted over their light bulbs. They may also use bulbs that have heavier ultraviolet wavelengths.

Scam: Fractioning. Often jewelers will give you the weight of a diamond that isn’t accurate. This is because it is perfectly legal for the jeweler to round off the weight of the diamond to the nearest one hundredth. A ¾ carat diamond can weigh anywhere from .69 to .91 carats. Obviously, the .69 would be cheaper than the .91 – but the jeweler only lists it as a ¾ carat, and prices it accordingly. Ask for the true weight of the diamond.

Scam: False Appraisals. Avoid in house appraisals at all times. These are almost always false. That’s like asking someone’s mother to recommend them for a job. They will always give a good recommendation. However, independent appraisal also has its risk. For instance, when you have a diamond appraised, the appraiser may tell you that the diamond isn’t good, and direct you to another store for your purchase – beware.

Scam: Treated Diamonds. Many states now require jewelers to disclose treated information to consumers. This doesn’t mean that they actually do disclose that information. Some treatments that are commonly used include laser drilling to get rid of black carbon spots, hiding flaws with settings and mounts, fracture filling to hide flaws, and using chemical color coatings to change the color of the diamond.

Scam: False or Altered Certificates. Disreputable jewelers may alter the grade of the diamond on the certificate, or change other aspects of the certificate as well. No matter whom you are dealing with, if there is a certificate, use the certificate record number and verify the information yourself. The lab will charge you for a copy of their certificate, but it will be money well spent. Some jewelers will even print out their own certificates. Again, the record number and the name of the grading company, such as GIA, is all tht you need to verify the information.

Scam: Stone Switching. After you’ve selected your diamond and your setting, the jeweler can easily replace the diamond that you’ve chosen, and paid for, with one of lesser quality. This happens often, and this is why you need the certificate from the grading agency. Once you pick your diamond up from the jeweler, take it and the certificate to an appraiser to be sure you have the right stone!

Scam: Sales. You’ve seen those sales, where diamonds and other jewels are marked down 50%. Typically, when a price is cut like this, it is an indication that the jeweler had priced the diamond too high to begin with. While you will still be getting the jewelry at the regular price, the principle of the thing is that the jeweler was dishonest to begin with.

Scam: Deposits. Often, jewelers will allow you to put a deposit down on the diamond in order to take it to an appraiser of your choice. Just as often, you will find that your deposit is non-refundable. The jeweler can also accuse you of switching the diamond with another. Use caution, and get everything in writing, including information about the cut, clarity, and carat of the diamond.

Scam: Grade. Because the FTC allows jewelers to state the grade of the color and clarity of a diamond one grade higher or lower than it actually is, many jewelers will state grades that are not accurate. This can be avoided by looking at the grade on the certificate, instead of taking the jewelers word for it.

Overall, make sure that you are dealing with a reputable jeweler or dealer. If you find one that is trying to fool you in anyway, walk out. You don’t want to do business with someone who has already tried to trick you. They can’t be trusted.