Season 4 Episode 7

Girls Best Friend or Foe – synthetic diamonds.

Worth is relative to how much you can sell something for. A house for example can generally be purchased and then resold fairly soon, for approximately the same selling price, all conditions same. However, try selling a knock off of a brand or clone of any item and how much can you sell it for.

So what does this have to do with synthetics diamonds.

• Synthetics

• Pricing in 30 years what is your diamond worth
  • History
    • Shows that with time production efficiency increases and costs to produce decreases along with competitors entering into the market
    • Synthetic Emeralds
      • Have lost 80%
        • Average Retail Price for a Standard Gem Chatham 1ct RD is 370.00
    • Cubic Zirconium
      • 1970’s 40pct equivalent to  147.06 adjusted for inflation 2015 today Wholesale
      • Better Quality CZ at wholesale about 3.00 pct
        • 98% deduction
          • Though there are some branded CZ’s that sell for 100pct today.
    • Synthetic Diamonds
      • Started out about advertise  they were 30% less than Natural
        • IGI reports
          • Problem comparison
          • Pedigree Problems
            • discounts vs top tier labs
              • 21% Discount
            • only 14% compared to IGI naturals
            • Not as big of a difference
          • Not using Top Tier Reports
            • All over the internet lab opinions
          • Ask for GIA
      • What will they be worth 10, 20 or 40 years from now.
        • Well I don’t know but my guess is that you will be able to buy a synthetic diamond for 100-150 dollars in the next several decades.

If you have any questions you may call me at 803-792-1326.

Do you have a different opinion? Do you have any advice? Do you disagree? Let me know! I would love to hear from you!

J.  Christopher Guritz

Selling a diamond with a report that doesn’t match the most known standard. What must you do that you have NEVER done? Find out on latest Diamond Answer Man show with guest Cecilia Gardner CEO of the Jewelers Vigilance Committee.

Wow what a great show we have ahead!

Its not to often that I have guests on the show – I’m very very excited to welcome you to the Diamond Answer Man Show Season 4 Episode 5.

If you are in the market for a diamond – sit back and listen. We have Peter Yantzer the Executive Director of the American Gem Society Laboratories on the show today. This show is about 1 hour long.

Wow made what a putz I am! Dialed the number wrong the first time!!

Here are the notes from our questions – However listening to the show you will find far more in depth details of the WHY you need an AGS report.

Enjoy the show!

J. Christopher

1. What is the AGSL grading process.

Stones go to weights and measures where they are also checked using the DiamondSure device which tests for natural diamond or refers for further testing.  Depending on the results of the DiamondSure it may also be checked with the D-Screen device.  Depending on the results of the combination of DiamondSure and D-Screen results it almost always ends up in research for further testing for Synthetic origin, HPHT treatment or simulants.

Once that is accomplished it goes through the grading process for Cut, Color and Clarity.

What are the checks and balances?

Every stone is graded by at least two graders.  Disagreements are looked at by a third person (supervisory level).  Clients can request a recheck of the grading and it is rechecked by supervisory personnel.

Why?

We are a top tier laboratory.  In order to earn that reputation we have had to prove that we grade consistently and accurately for the past 20 years.  That’s why we have a robust set of Quality Assurance procedures.

2. How has the AGSL performance cut grade system positively changed the industry?

Previous to the AGS 3D Cut Grading Process diamonds were cut graded by looking at the table diameter%, the average of the crown main facets and the average of the pavilion main facets.  This method worked OK for its time.

The AGS Light Performance System took the grading of diamond cut to a 3 dimensional level.  We have at least a dozen patents for our metrics and methodologies.  Our system fully measures the effect that all of the facets on a diamond have on its light performance.  This method is still leading edge technology 10 years after its introduction in 2005.

Why?

Being able to assess diamonds in 3 dimensional space rather than two dimensional averages allows us to create light performance metrics and grading systems for almost any shape and facet arrangement.  Not all shapes perform the same.  Nor do different facet arrangements perform the same.  We can analyze the light performance and if there is enough business potential we can develop a grading system for it.  That is an interesting story in and of itself.

Because all the facets matter with respect to light performance our analysis has led the industry to cut much more consistently and accurately than in the past.

We also help the industry optimize existing cuts as well as new cuts.  This helps the industry bring new cuts to market and breeds creativity.  All pluses for our industry, wouldn’t you say?

3. How do you approach the 4 C’s in preference of priority.

The American Gem Society has always ranked the 4 C’s in this order:  Cut, Color, Clarity and Carat Weight.  I think you can argue the order of color and clarity but I don’t think you can argue that Cut is by far the most important.  Carat weight is really the least important but because of human nature being what it is Carat Weight is usually ranked the highest by consumers.  For example, the psychology of a 0.98 carat diamond versus a 1.00 carat diamond still holds sway over many consumers.

4. What “C” would you see added to the report of the future?

Certificate.  I have been lobbying for a “True” Certificate for years.  A “True” Certificate would guarantee the quality of a diamond.  Most grading laboratories don’t guarantee anything.  Currently a top tier laboratory issues an expert, unbiased third party opinion as to the quality of the diamond.  It also provides increased confidence by testing to make sure the diamond is a natural diamond and hasn’t been treated in any way.

5. How should the trade respond to fraudulent reports to boost consumer confidence.

Don’t trade in diamonds with reports from fraudulent or loosey goosey or less respectable diamond grading laboratories – you pick which adjective you prefer.

6. Over your career what stands out as most memorable.

From a professional view there are two:

Being hired by the American Gem Society to build and direct their diamond grading laboratory.  That was a lot of hard work but immensely satisfying.  And it’s most important to note that one person didn’t do it.  I worked with a great team of people over the years that all did their part and more.

Being chosen to lead the Research Team that developed the AGS Light Performance cut grading system.  That also was a lot of hard work but immensely satisfying.  And it’s most important to note that one person didn’t do it.  I worked with a great team of people over the years that all did their part and more.

7. What is the weirdest ? that has come through the AGSL

We specialize in grading colorless to light yellow or brown diamonds only.  So we don’t get to see colored stones or fancy color diamonds.  With that in mind I think the various treated diamonds that have come through the lab in the last 20 years are the weirdest.  The detection of treatments is always reactive in nature.  Someone develops a treatment.  If ethical they tell people how to detect it.  If unethical, they try to put something over on people to make more money.  It’s impossible to be proactive because we don’t know who, what, when or where the next treated stone will appear.

The recent revelation that there is an unknown type of coating being applied to diamonds to improve their color comes to mind.

8. If you could choose five people to have dinner with that have influenced the diamond world – who would they be and why?

Richard T. Liddicoat Jr, GIA West Coast.  He was a father figure to me when I was a fledgling gemologist.  He also was unflappable and had an extraordinary memory.  He could remember a person’s name that he may have met once five years previously.  What a great people person he was.

Robert Crowningshield, GIA NY. A nice man and a great gemologist.  His spectroscopy work is legendary.

Bert Krashes, GIA NY.  Not only a great gemologist but he was a great communicator and teacher.

Chuck Fryer, GIA West Coast.  An exceptional gemologist who taught me a lot of really good gemology.  He had an acerbic wit.  And, unlike me, had a no nonsense work ethic.

Gabi Tolkowsky.  Still the world’s most famous diamond cutter in my opinion.  He cut some of the world’s biggest diamonds and created many new designs.  His likability and his passion for diamonds have no equal.

9. Final Question
   What advice would you give to today’s engagement ring buyer.

Buy a diamond with a report ( and hopefully someday a certificate ) from a top tier grading laboratory like the American Gem Society Laboratory. That relieves the buyer of having to worry about the authenticity and quality.  Then the buyer can concentrate on the value.  Do your homework to establish value in your mind and then buy with confidence.

Buy the best performing diamond you can afford.  It will always sparkle the most and never cease to cause people to comment on how beautiful your beloved’s or your diamond looks.  To do that you may need to sacrifice in one or more of the other three C’s but it is well worth it.

First in the News

1. Reuters reports
   • Manufacturers who cut and polish diamonds have found themselves caught between giant mining companies charging high prices for rough stones, and big retail chains that demand gems at low margins to keep sales moving.
   • “Have you ever heard of a 20-year-old standing outside a store all night to buy jewellery?” Ernest Blom, president of the World Federation of Diamond Bourses, asked delegates at an industry conference at a Tel Aviv luxury hotel.
   • No major deposits have been discovered in about two decades. The miners say they are investing heavily to keep supplies coming.

What this means for you!

• Prices dropping is some areas (reported by rappaport)
  • Rounds 1-1.49ct
    • G SI1
    • However in  SI2 all G and under in colors have dropped.
    • Want a K – M VVS to SI2 dropped here too (I know not many of you)
    • D IF to VVS2
    • EF IF
  • Rounds 1.5 – 1.99
    • Main Areas
      • I-M IF to SI2
      • FG SI2
      • D IF-VVS1
      • E IF
  • Rounds 2-2.99
    • SI2 all G and under in colors have dropped.
    • D IF-VVS1
    • E IF
  • Rounds 3-3.99
    • KLM VS to SI2

This means go get your deals! With the reduction of rough coming in – You will see an eventual turn around and I believe what could be a sharp increase in price.

Though DeBeers only handles 33% of the worlds mining production they have dropped their rough prices to polishers in India. This is only a small bandaid on the polishing industry.

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You may contact me through the speak pipe app to the right or call me at 803-792-1326 if you have questions or suggestions! How is the show doing? What do you think??

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Yikes! I got JACKED my appraiser says so?

Ok Ive been in California for a couple of months and being a Native who’s worked in the jewelry trade (in just about every capacity) gives me the awareness of many jewelers on the West Coast. So this has led to me visiting and staying in some of these stores for a day or longer! Wow! Lucky guy that I am!

Having been an appraiser in my past life has helped with a certain awareness of valuation that you don’t receive with gemological diplomas and training. Appraising is an art unto itself and though you strive for being unbiased, bias always creeps in. This is why many organizations suggest using an independent appraiser. The industry is fractured and most are grandfathered into the practice which is where a problem may arise between consumer and jeweler and appraiser. An appraiser should not act on the best interest of anyone and statements on an appraisal should arise as factual and indifferent to the individual and the seller. Of course we are human beings and I like you don’t like engaging with automatons so bias creeps in. Our feelings get involved and this is great but only when it affects value in a positive way (not higher or lower, were talking about defendable statements of value).

So here is the situation – I was spending time with a jeweler recently and she is a member of the American Gem Society. The American Gem Society (AGS) is the parent of the American Gem Society Laboratory(AGSL). I’ve spoken about the AGSL and there creation and use of the ASET for performance grading in other shows. This jeweler has been in the business for over 30 years and shes been a wholesale manufacturer, a trade repair shop and a full blown guild store during this time. Her knowledge is unmatched by any recent graduate or plain old jewelry / diamond salesperson out there! She is skillful at customer engagement and I overheard this in action!

A client called called about an item that she was going to pick up from being left for appraisal. She inquired about the value on the appraisal and the appraiser verbally disclosed the value assigned on the document. At this point the appraiser begins explaining the reason for the valuation, apparently a number much lower than the client had expected.

The problem occurs when the seller described the final sales price as “wholesale” and that most people pay about double that price. The appraiser then goes on to defend the method and mode of valuation (like kind, common market) which is very close to the final selling price (which was taxed at retail).

Rules

1. Never believe a store that says you are buying at “Wholesale”
2. If your appraisal for insurance matches or is very close to your purchase price – it probably is accurate.
3. Always ask questions with your appraiser.
4. Always ask questions with your jeweler.
5. Never expect someone to give you a dollar for 50 cents.
   1. If you do then expect to be disappointed.

If you have any questions you may call me at 803-792-1326.

Do you have a different opinion? Do you have any advice? Do you disagree? Let me know! I would love to hear from you!

J.  Christopher Guritz

Diamond Reports – Its wrong – Who Cares?

Alright, you’ve heard me rant about this before! If you are buying a diamond don’t become price blind! That is where you become so focused on price that you are willing forget everything about true grading and end up BUYING the PAPER!!

O.K. So this is my second show after JCK Las Vegas and I’ve had some time to think and I’m Cranky!

Any JEWELER who advertises that they sell WHOLESALE is LYING to you! That is unless of course you are truly buying from a wholesaler (which 99.9% of the time you aren’t) – BTW if you want to find out if they are a wholesaler just contact me and I’ll check for you!

Now reasonably, they might just be saying “Hey, I’ve got lower prices than the other guy.”  So instead of legally stating “Low prices or Deep discounts”  they use this word “Wholesale” Not so legal – Now, what they can legally say is “Wholesale Prices.” That is if they truly had an occasion when their price at retail was at current wholesale levels.  Their margin or markup may be minimal but, when you pay sales tax you are buying from a seller who is reporting your retail purchase on taxes. Otherwise they can be hit with penalties from their state department of revenue. You are an end consumer – you’re a retail customer.

Rule number 1. Never Buy from a business that lies to you!

Ok, so you met your “UNCLE/FRIEND” in the business and he’s got this diamonds that matches your request for color, clarity, price and cut grade.  He’s even going to read the “certificate” for you if you want. He will even write it out in email or text it to you. You’ve learned about grading and even have an app that tells you what the different grades on a diamond mean. So you go with the deal! Your “Uncle/Friend” sells you the diamond and puts money in his pocket – everyone is happy.

REALLY? You just got taken and you are happy!?

The problem:

• BOGUS Reports
• BAD Jewelers

Paper mills /Bogus reports – Terrible Labs who care more about running money through the till than accurate ethical grading. Bad jewelers – I was at JCK and I overheard a jeweler at a table actually saying that “all my customers want is some certificate with the diamond, so I give them a certificate”. I couldn’t believe this! Now I’m back in California and I’m visiting stores up and down the Northern California Peninsula  and I hear this again. Some jewelers out there don’t care because you don’t care about the diamond as long as it has paper/report and it fits your price range. This has been going on for a long time. This is not the first or last time that I have mentioned it – When will we get a clue and stop being price blind. A jeweler is a person and a jewelry store is the representative body of those who work there (jewelers). Any business that acts as a vending machine and can’t explain or earn your business doesn’t deserve it. If you are looking for a diamond today – please understand this, Jewelers deserve to make a profit and stay in business – discounters who reduce  your out of pocket expense are doing the same thing – making a profit. Most of the time though, the “Value Capture” is bent  highly in their favor when they use these unethical reports. Price blindness is a term I use for conscious and subconscious acts of Loss Aversion.  Contrast happens when one person says 7k and another person says 4k. Absent blindness – You can’t compare the actual stones next to each other so you do the next best thing and compare the “paper”, Right? WRONG! Just because you want to believe it to be true does not make it true – so Loss Aversion kicks in and heck 3k back in your pocket seems to be a safe bet. In the end the discounter most likely turns a higher profit than your jeweler around the corner – and in the end you get what you pay for – Not what you wanted!

If you are buying a diamond today HELP elevate the jewelry industry and drive standards and ethics to a higher level use the Diamond Buying Agreement. Or make sure your jeweler/diamond broker / whomever writes all this information on the receipt with some sort of guarantee or warranty. There are a LOT of good jewelers out there – find one and buy from them!

By the way if you have questions about your ideal diamond call me! 803-792-1326 I’ll see what I can do to help you.

J. Christopher Guritz

Wedding Ring Rash

(Disclaimer – I’m not a medical professional)

Your Finger is ITCHY!

The skin under your ring is either RED ,maybe burning, or Whitish and puffy (swimmers hands)

You may have a Contact Dermatitis.

The question is which kind?

If you have a metal allergy it will usually be red and ITCHY if left the area can become a darker skin color(can even blister).

Maybe you’ve got soap stuck up under your ring (or food – YUCK)? Looks and acts like a metal allergy – Maybe all you need to do is take your ring to a jeweler and have an ultrasonic cleaning done, keep the ring off for a week or two and put cortisone or lotion on the area.

Or your like me and you have a wide ring. Sometimes you ladies have your rings soldered together and all of a sudden you get this. If you take off your ring for a little while it turns to a whitish area – your skin was waterlogged for too long. The sebum (your skins natural waterproofing oil) is long gone and the skin kept absorbing the moisture trapped under your ring.  This also can take a few weeks to clear up and you want to keep the area and the ring dry! If you wash your hands either remove your rings (maybe clean them too) and dry around your fingers before you put back on your clean DRY rings.

Causes

• Metal Allergy
  • Nickle
  • Nickled Alloys
    • Some Gold
    • Lots of White gold
    • Stainless steel
      • Even some surgical stainless
  • Cobalt
    • This is alloyed into many metals
  • Palladium (though rare)
  • Platinum (extremely rare)
    • Though most likely some other allergen caused (words not out yet)

• Soap / Moisture
  • Any person who washes their hands
  •  Or hands are regularly wet
  • Mom’s you can develop an allergy from from changing your baby’s diaper frequently
    • After washing dry your hands – lotion too.
    • Keep rings clean

News First

• Jewelry and Diamond Sales grew over last year! US buyers still buy more diamonds than any other country.
• 2/3’s of all online sales are made by Brick and Mortar stores.
• No new diamond mines – Out of 7000 pipes only 60 are producing and only 10 are big producers.
• Diamond production is going down -nudging De Beers to alter its mining methods to extend the life of the mine and maintain profitability.

#1 The diamond industry is struggling for your business!

Rough buyers who polish diamonds for sale to wholesalers and retailers are complaining that the going rate for polished diamonds is too low! Making it impossible to stay in business. The banks are charging higher rates for loans – Indian polishers are folding because they use the loans to purchase rough and then polish to sell through to the wholesale market – *Problem, the current margins on polished diamonds are not profitable for them and they are just closing up shop.

What does this mean for you??

Well, if you are in the market right now – there are some deals to be had! It also means that prices will go up in the near future. I have been saying for about 4 years now that prices on the wholesale market are low and in some cases have been dropping. This will turn around and you will see movement in the other direction.

Philippe Mellier CEO of De Beers gave a talk at JCK 2015, which I had the pleasure of hearing and this is what I took from it! De Beers only controls about 1/3rd of the market and they are not  going to go out of the way to help businesses that show no effort to improve processes in mfg and or aren’t using GAAP standards with their financials. They are not going to support the other diamond groups that produce the other 2/3rd’s of the market by Marketing and Advertising generic diamond products to boosts sales overall.  Makes sense to me!

Why does this matter? Well for those who will not opt for improving processes, accounting , creating their own marketing and advertising its near the end of the line. For those De Beers Suppliers of Choice (sight-holders) who make the needed changes and add value to the diamonds they produce – De Beers has a division that may help with financing rough purchases. Overall what does this mean for YOU the groom to be. Prices are going to go up! By adding value they mean increasing value perception in a way that increases margins. Forevermark is a prime example that its possible… This De Beers brand is only available to select dealers.  The diamonds they select must adhere to a minimal set of parameters to receive the Forevermark designation. There are many generic diamonds in the world that are far higher performers in the beauty arena – However, US buyers are eating this brand up and paying the premium for it.  This tells us that US buyers are BRAND conscious and are willing to pay a premium for it. Which in turn tells De Beers that polishers are not paying attention. Brands sell in this case even if there isnt a big difference. Is the Forevermark worth it?? Well from an appraisers perspective of insurance valuation – Yes, You can only get Forevermark from a Forevermark dealer, much the same way you can only get a Hearts on Fire from an HOF dealer, or a Tiffany diamond from Tiffany.  Overall brands carry a premium because of what they stand for or mean to you.

I think two things are going to happen – the polishers not making money will leave the industry and prices will go up. This will happen not because the weak polishers can’t compete but will happen because polishers will be forced to refine and innovate. I wouldn’t pay more for a generic diamond unless it performed better. But, I would pay more for something different!! Add meaning, purpose, and what it stands for – Now I have a brand!

Names don’t make a brand. Brands make a name!

If you are going to buy a diamond and would like some help in making the right decision – Give me a call! 803-792-1326 or contact me using the speak-pipe app to the right of the DiamondAnswerMan.com site. I would love to hear from you! and no, I am not going to sell you anything! I just enjoy helping – It allows me to give back to the industry that has given so much to me!

 #2 Diamond Labs who produce bad reports – just plain stink and should be put out of business.

During the JCK show I attended the Diamond Grading Conference.

What a joy to my ears this conference was! Finally, more and more people are talking about the issues of bad labs producing fraudulent reports. I was excited to hear as well as surprised that the FTC guidelines assume a diamond associated with  GIA terminology is supposed to be graded using GIA standards. However, its always better to get it in writing!! Why?? because diamond labs disclaim their liability. The only recourse you may have is with the Jeweler who misrepresented the diamond. Do not become price blind and buy a diamond with a bogus report. Make sure that they state the system and standards on the receipt.  And/ or use the Diamond Buying Agreement that is a free download on the DiamondAnswerMan.com site.

In this episode we revisit synthetic diamonds for the engagement ring purchase along with the reasons why I do this show.

If you have ever wondered if I get paid to do this show – this is your episode.

Do you have any ideas on how we can both produce an unfettered opinion on the trade and monetize the show? Drop me a line and let me know.

(btw this is the lost episode – between some major changes to my life, family and the Diamond Answer Man Show)

Coming soon – JCK show 2015, the state of the diamond industry, more on synthetic diamonds and reports – again what is the trade doing to help the problem.

In this episode I talk about my thoughts on synthetic diamonds as an option for engagement rings.

What are the basic differences in diamond beauty grading tools in 10 minutes.

How to protect yourself from a 10,000 loss in 5 minutes. Part 2 Season 3 Episode 1.

Channel Set diamonds review this week!

How to protect yourself from a 10,000 loss in 5 minutes.

Steinmetz Pink – renamed Pink Star in 2007, now sold for 83.2mil and renamed pink dream.

5 Ways To The Perfect Diamond Ring!

1. Plan Out Cost In Advance
2. Do Not Get Hung Up on the fine details (ie rarity characteristics, keep beauty in mind)
3. Be covert and find her ring size
4. Research Taste In Advance
5. Remember – Spending More than you can afford is not an indication of your depth of feelings.

 How the California Made In USA law may effect what California Jewelers may claim about their products.

I may soon may be illegal for Jewelers in California to claim their wares as Made In USA!

Why ? It may soon only be lawful in California to claim “Made In USA” if 100% of the product is made and sourced in the USA.

I am not a lawyer however here is a quote “all or virtually all” standard, meaning that a “Made in the USA” claim for a product (with no other qualifications) is appropriate only when all or virtually all of the materials and labor that went in to the manufacture of the product are of U.S. origin.” .

Hello everyone!

This week I answer some questions concerning where diamonds come from and whether or not Canadian diamonds are different and/or better (I added that) than elsewhere in the world!  Along with reviewing last show and talking about the Labs, Rapnet’s article and the differences in the labs. This last few weeks has been a personal whirlwind for me – buring the candle at both ends! I hope this show makes up for the missed weeks and some of the issues in last weeks show!

As always contact me through the speakpipe link to the right or call me at 803-792-1326 and leave me a message there!

J. Christopher Guritz!

Hi Everyone!

Thanks for you listening ear!

If you are shopping for a diamond and/or diamond engagement ring – getting lost in all the details – How about just saying “Show Me” when performance is your goal. I talk about why you don’t want to use theoretical grading scales as applicable to diamond performance. Its a lot easier that this – take the guess work out of buying and make sure the jeweler shows you. What if you cant tell the difference? Or better yet – Why? Cant I tell the difference.. What this may mean and how to quickly discern differences. As always please feel free to use my SpeakPipe link to the right to ask me any questions!

Also we talk about what happens when we buy from a jeweler that doesn’t have good return policy and we review a worst case scenario from an email I received.

Feel free to contact me at 803-792-1326 or direct through the SpeakPipe link to the right.

Diamond Answer Man – Episode 23.

Wow! I saved a lot – My Appraisal Says So!

The HUGE problem with certain jewelers and brokers is selling diamonds and jewelry based upon inflated appraisals. Did you know this can cost you money in the long run. How this trick influences our price-blind buyers into feeling they have received a good deal. Listen in – then talk to you jeweler and get the reasons why the numbers don’t match.

Appraised value – is not the same as Cash Value(liquidation value) unless stated.

You ring is unsaleable at the appraised value – why?

What is the appraised value good for?

Any questions call me!

803-792-1326

J. Christopher Guritz

Diamond Answer Man – Episode 22.

The number 1 Way you don’t get what you want is by loosing focus.

Remember what you want and what you spend are related – but not the same.

Many years ago I worked for a diamond polishing company. We had a full division dedicated to selling to wholesalers – who in turn sold to jewelers. We also had a division that worked directly with retail buyers by appointment only.  During my many years there I ran into some very unique situations dealing with grooms to be shopping for engagement rings. I experienced what I call “price blindness”. It is a case where they buyer “the groom to be” has lost all focus on the engagement rings meaning and turned all emotional energy into receiving the lowest price. This emotional break in the process creates some very interesting and weird outcomes.

1. Shock from the buyer – through buyers remorse

2. Shock from the recipient – it isn’t what she thought it was.

3. Or Conversely  and strangely rabid fans.

What usually occurs it the buyer shops and shops until he finds someone who will give him the price that he perceives is the lowest quote from anyone he has shopped.

He ends up with something he didn’t want – however he doesn’t know it yet. It will come sooner or late and denial or frustration sets in.. Don’t fall for this make sure you stay focused and buy from someone with Personality, Enthusiasm and Integrity or PEI “PAY” for short. – Yes I made that up! But its fun isn’t it?

Here is the scenario..

Bob goes to several stores but stops with Jeweler Joe and really likes what Jeweler Joe has to offer. However, Bob is very concerned he’s not getting a good enough deal – though Bob has been to several stores and he pretty sure Jeweler Mikes price is right and his service sounds good too. Bob decides not to buy today from Jeweler Mike because he knows he can find a better deal. He ends up visiting Jeweler Jane and buys a diamond that appears better than Jeweler Joe for the the same price.

Here is an example of two diamonds with reports from GIA and EGL USA.

The EGL report is a color grade higher.

This makes Jeweler Janes offer appear better than Jeweler John.

(THESE ARE ACTUAL STONES I SENT OFF)

In the end – the problem lies with our feelings.

Unfortunately what most people want is an appraiser to validate their savvy buying decision.

If an appraiser accurately values an item at what you paid for it – the illusion of the deal isn’t there.

Don’t become price obsessed – if you do – you will start to ignore very important signs of whether or not you should buy from someone.

These are small examples – there are PAPER MILLS out there – that produce laboratory reports that sadly place grades on reports that are falsely inflated – which in turns creates a bigger illusion.

Example Jeweler Jane has a GIA G/SI1 and Jeweler John has a E/VS2 from an unknown lab (or from a known lab name like EGL USA – except is says EGL but this lab is in Turkey, which is not affiliated with EGL USA)

You based upon the extreme value it seems to represent.

Jane’s diamond is 5100

John’s diamond is 5100 (however Jane also had a diamond with GIA report and E/VS2 grade that she offered at 7200)

This appears to you as roughly a 30% savings. And you justify it in your mind by saying – jewelers have high markups and John is wholesale to the public – his overhead is lower – he’s online – fill this with whatever you want.

In comes the appraisal.

Trent – the independent appraiser you hired for 100.00 to appraise your ring – comes up with grade variation (*which he noted on the appraisal) He states that the diamond is associated with a certificate from EGL Turkey (However, in his opinion the grade is G/H, SI1, noting the assessment was done while mounted. Trent gave a split grade because the diamond is not loose – diamond color grades are subject to color influence from the mounting and prongs.

So trent values your appraisal at 6500, the diamond at 5000.00 and the mounting at 1500.

In your mind you just lost 100.00 from your good buy – when in reality you lost nothing and yet gained or “gamed” nothing.

You are frustrated and angry and cant figure the system out – thinking everything is a sham.. When you became price blind you started ignoring all the key signs for who not to buy from. You were obsessed with finding the lowest price and when the appearance of the magical price appeared you pounced now you are angry at the system.

Or better yet you become a rabid fan!

Same scenario

Johns diamond, Jane’s diamond – you by John’s steal of a deal and John provides you with appraisals for your ring. He has values on the diamonds at 10k – (these appraisals may come from his store, an appraiser or a LAB that is also offering appraisals, EGL and IGI are labs that offer these appraisals though there are many smaller ones that do too.)

Ok so know you think you received an even greater steal – your valuation shows that the find is a 4900 dollar savings.

You now think that Jane is crazy – and that John must have a special connection with John – because John gives you his special pricing. – Do you see the insanity! Johns diamond is still only worth 5100.00 and he gave you no deal.

In fact he preyed upon you price blind obsession to earn your business.

Now comes the insurance.

You insurance the ring at the appraised value of 10k.

You pay a premium on the extra 4900.00 – of which you will never see a return if there is a loss. For most insurance the insurance company will only replace the diamond and replace it at the price they will buy it for. All the while pocketing your extra 4900.00 in premiums which est estimated to be about 50.00 per year. You are unlikely to experience a loss.. so as long as you insure your item you are doubling your insurance payment.

DUH – you wanted to pay less – now you are paying more! Don’t be price blind and dont look for false validation of your purchase.

If a jeweler sells you something – in most cases they should produce a valuation for what the sold it for. (Jewelers should not provide appraisals with their retail sale, this is another topic)

Find an independent unbiased appraiser for your insurance replacement.

Always protect yourself! Remember this purchase should always be something you are proud of – It memorializes or symbolizes a special moment.

Call me with any questions

803-792-1326

J. Christopher Guritz

What are color treated diamonds? Diamond Answer Man – Episode 21

How Perfect is Perfect? Diamond Answer Man – Episode 2o

When it comes to diamonds and diamond grading you will find terms such as “perfect”, “ideal”, “super ideal” and many more.

One thing you need to keep in mind is that the terms one company may use to describe their diamonds will differ upon application and even vary from laboratory to laboratory.

These terms are subjective descriptors.

What is perfect for one person is not necessarily perfect for another or even standards as defined by one lab over another.

Beauty, Purity and Size! Diamond Answer Man Episode 19

Just a quick note I am still working on the video showing the diamond performance tool comparison for those techno-geeks out there and  I know I said it last week but I really truly am just about finished.

So if you’re out there looking in to buy a  diamond going from jewelry store to jewelry store and maybe getting on the Internet searching and filling your brain with all that wonderful and I say wonderful .. However, your brain is mush if you spent more than a half an hour looking and reading about diamonds on the Internet for an engagement ring and it’s driving you crazy! Sure you don’t make a wrong decision because a  wrong decision can cost you lots of money and the other thing you could do is buy something that does not perform well. Listen to Diamond Answer Man Episode 19 and find out about Beauty, Purity and Size to simplify your purchase.

This is an extension to the show in 2012, where we talked about the entire goal for BPS is to simplify your diamond purchase! If you would like to listen to that earlier podcast it is linked here! You can also find it on iTunes, Blackberry, Zune and Stitcher Radio.  If you have anything that plays an MP3 I am just about everywhere you look to download.

If you are looking at buying and want some individual protection you might take a look at the free PDF Affidavit of Diamond Buying Agreement

I talked with a branded cutter here in the U.S. who has stopped outside polishing of the diamonds they produce. They found it is too hard to control the quality of production where price is the selling point for polishing job export.

Also the big question!

Plan and prepare for your diamond purchase.

1. Set aside your funds
2. Give yourself a time frame (write things down)
   1. Make a decision on diamond
      1. Get all your questions in order
   2. Make a decision on ring
      1. Pay Attention
   3. Make a decision on asking for hand
      1. Start thinking now!

And I may re-record Episode 3 and re-release it – oh how I hate the recording quality!!
J. Christopher

1. To Cert or Not To Cert

1. Cost
2. Rarity
3. Guarantee

1. Affidavit of Diamond Grade

2. Blood diamonds – New Alerts and response by the industry.
   1. 1 is to many
   2. Illegal in U.S.

1. Even Kimberly Approved diamonds can still be illegal in U.S.
2. Kimberly is the starting point
3. Affidavit of Diamond Grade

3. Polished in the U.S.
   1. Started Networking

1. I will start calling out people individuals and companies with polishing
   facilities operating in the United States.

2. Forum is finished and is open to all. Just visit with us at the community.

4. Started working on a video for comparing the three optical performance
   tools used in the selling and grading process. For the uber geek I have built
   models in a ray tracing program to show the difference between the three
   and will have this video out in the couple of weeks.

Follow up join the forum, if you are buying today.. use the affidavit of diamond
grade if the stone does not have a cert. Help promote polished in the U.S.
ask you jeweler for diamonds polished in America.

Well that’s all for this week.

If you have any questions call me – for free advice- 803-793-1326 and
one more way.. join the forum ask – or send it through twitter at damjcguritz.

Video Instructions for the Diamond Answer Man Forums.

1. Register Account

2. Check your email for password

3. Login with your username and supplied password from email.

4. Start Participating.

J. Christopher Guritz

Resolutions for 2013.

With Special Guest!

Update to blog coming soon.

Current News

This week we find that De Beers October sight sold about 750m. This is the largest sight in 2012. Sight-holder had deferred previous sights. DTC allowed them to defer up to 50% of the Intent To Offer period which ends March of 2013.

All this means is that hopefully the Sight-holders  also known as Suppliers of Choice (SOC) – Hopefully have sold their sitting goods and are ramping up to meet the near end of season or they are preparing for after this season. I think most of this season is locked up in deals already. The American jewelers both independents and chains are so locked into the memo portion of the business – I see some hopeful holiday trends – However, I feel sales overall will be flat. The season really doesn’t start rocking until the last 15 days before Christmas. My guess is chains will be over the top – pushing sales EARLY – Flyers will be earlier in the season and more often. Brick and Mortar stores holding on strong with bread and butter – Studs, Pendants, Diamond Bands ! I am hopeful – that when the election is over the buying sentiment will open up. Remember diamond jewelry is for memorializing special moment and the holiday season is one about family – past, present and future – how better to memorialize our feelings and moments for the year.

Also in the news an article by Rob Bates Senior Editor at JCK.

Talking about the Shaky Ground your labs producing Synthetic or Cultured diamonds – whatever term you may use.

When I was working for The Diamond Broker – I would over see the repolishing of diamonds and I worked with a few synthetic stones. When I worked at EightStar – My wife who was a polisher their – polished a few synthetics and HPHT stones – No matter how well these diamonds were polished and how beautiful they were – customers always were interested in WHITE or Colorless Diamonds.

When I worked as the diamond buyer – I worked with Gemesis diamonds – Though my focus was always on Natural – Mined stones – we always kept an open mind for preferences and interests a buyer may have had. The number one driving reason we sold very few Synthetics stones – was the simple fact – none or very few were white or colorless.

The Synthetic diamond manufactures did this to themselves – though. They are floundering in the retail market – because of the simple fact they PUSHED white diamonds even though they weren’t realistically available. Producers put pictures on their websites – when they received recognition in the press they showed pictures of various colors including white – even though what the readily had available was – yellows and browns. If you create demand for a specific product – you should be able to produce that product. The article which I will link to on my website is an easy read – and can be summarized by the fact that producing white diamonds is difficult and diamond labs have over promoted production and capabilities way to many times.

Come on become part of the industry!

So you want to join the industry – maybe you personally love jewelry, or have been curious about things behind the scenes. You will find many jewelers looking for part time seasonal help right now. Go out and visit with your preferred local jeweler and put in an application.

Schools

Revere Academy of Jewelry Arts
Texas Institute of Jewelry Technology
California Institute of Jewelry Training.
GIA Carlsbad and New York
Gemmological Association of Great Britain……FGA

There are many others you you may source with this link

Current news

Diamond Prices Soft throughout September

RAPAPORT… PRESS RELEASE, October 3, 2012, New York: Certified polished diamond prices ‎continued to soften in September as buyers remain cautious ahead of the fourth-quarter ‎holiday season. The Hong Kong Jewellery & Gem Fair reflected mediocre Far East ‎demand as buyers concentrated on inexpensive lower-quality diamonds. ‎

The Archduke Joseph diamond is going to auction on November 13th and is hoping to fetch 15 million. It was sold by Christies about 20 years about for 6.5 million. or roughly 10.3 million in current dollars. A diamond from a Famous mine called Golconda – which the Koh-i-noor and other were found. Diamonds from this mine are said to the most fantastically transparent – for unknown reason. Dealers sometimes called them Super “D” D already being the most transparent of the colorless rarity class.

Debeers is restructuring the DTC and Diamdel under its Brand De Beers.

“However, for years we have thought of the consumer as the end of the diamond pipeline – with an industry driving their demand without fully allowing their demand to drive us. In fact, for De Beers, the reality of a far more competitive landscape is that the consumer must stand at the beginning of our pipeline, shaping our business and enabling us to anticipate the cyclical needs of our sight-holders so we can continue to adapt as necessary.” VARDA SHINE

What memo means.

How its beneficial

better availabilities

Tighter resale margins to be competitive

How its negative

Memo Vs Buy

30 60 90 vs Immediate or 10 day.

I was on vacation in the last month so I am going to pick it up – in hopes to be ahead of the holiday season.

First in the news.

Swallowing Diamonds

Strange things happening here in the US and around the world. Both in jewelry stores and trade shows. Thieves are pulling an old time trick out their dark hearts – that is the strange act of swallowing diamonds and jewelry in an effort to steal them.

As I have stated in tweets, posts and shows, Jewelers and Consumers need to be engaged and aware – whether your  sales staff is showing diamonds and jewelry to the soon to be engaged or you’re a consumer who has contractors in your home – always be mindful of your valuables.

3 Reminders for Jewelers

1. Set a maximum limit for items being shown
2. Never loose sight of the items being shown
   Examples:
   • Don’t turn your back
   • Don’t be distracted by phone or loud sounds
3. Create a plan of action – Holiday season is coming up fast – have meetings and discuss actions to take if  your staff thinks that someone is trying to distract them. Roll play on how to assist a client, give great customer service , maintaining both safety and security awareness.

3 Reminders for Consumers

1. Put away valuables when you are away for extended amounts of time
   Examples:
   • Use a secured home safe
   • Use a safety deposit box – remember the 80/20 rule, 80% percent of the time you wear the same 20% or less jewelry items – lock up the other 80 to 99% for those special occasions.
2. Get referrals for contractors – Hey this is 2012 and I know craigslist is used by licensed contractors and the unlicensed. Be smart not cheap when allowing someone in your home for repair. My wife and I home-school our children – we are members of a home-school group and try to always hire contractors referred from this group. Network with church members, friends/co-workers or get verified referrals. Another option is to pay a referral service like Angie’s List (this is not an affiliate link and I’ve never used them)
3. Stay aware – keep alert , do not allow someone to enter areas in your home off limits. Question everything and stay in control. This is your home and whether entertaining friends (new or old) or repair work needing outside contractors – protect your domain and valuables.

Both jewelers and consumers should always maintain appropriate insurance.

Its Big and Beautiful – but size is its most important asset. (outside link)

Russia’s largest diamond miner Alrosa discovered a unique diamond weighing 158.2 carats and worth over $1.5 million, the company said on Tuesday.

The diamond was found in September at diamond-mining factory No. 16 of the Nyurbinsk ore mining and processing enterprise in the Republic of Yakutia in Russia’s north-east.

via Alrosa Finds 158 Carat Diamond Worth $1.5 Mln | Business | RIA Novosti.

Diamond sales at retail still at a low –

It is still a good time to buy. Prices are flat and holding. If you are looking for an engagement ring diamond now may be the time. Diamonds where margins hold strong are in the 1ct GH/SI ranges – though less pct than some of the rarer color and clarities – the 1ct GH/SI ranges tend to discount for less because of demand.

The AGS ASET

The time to buy is still now? And why is that diamond blue!!

First!

We have some great news for the people of Botswana. De Beers is moving its operations to Botswana ahead of schedule.  The Botswana government is excitedly running its own buying and selling organization Okavango Diamond Company (ODC) in direct competition with De Beers  Diamond Trading Center (DTC).  Though there has been some bumps in the road recently with the price of rough the Botswana Diamond Manufacturers Association has strong members – pushing for local growth in the country and community where this local resource is mined and it is showing positive results.

De Beers will eventually move all of its sights to Botswana – showing in my opinion full support for the diamond community there. Botswana today is filled with great examples of positive and ethical business initiatives.

Though I am biased for a return of polishing to the U.S. – I am fully supportive of everything I know of happening in Botswana today. Jewelers support the companies that mine and polish there! They are an example to Zimbabwe and the rest of the WORLD!

Zimbabwe

Zimbabwe is part of the Kimberly Process but is not in my opinion an ethical choice for consumer diamonds today. If your a jeweler ask your dealer and if you consumer ask your jeweler or better yet download my free Affidavit of Diamond Grade And Statement of Buyers Rights.  There may be no possible way to make sure you dont receive a Zimbabwean diamond – However just by asking – you make a big statement!

Diamond Prices

Diamond prices are still holding soft on the polished side.  No changes in the major prices lists this week! Prices are still soft and jewelers are holding back. If your a consumer – listen Five Simple Angles to your best diamond deal! If your a jeweler ask for that extra percent or more on your memo purchase. What is the worst that can happen?? If your paying outright – you are crazy if you dont ask!

Hearts and Arrows Viewer

The heart and arrow viewer (side note  the viewer and its diamonds were originally sold as heart and arrow *notice no pluraziation) – Heart and Arrow was the originally trademark term and then in the West – we adopted a pluralized form – Hearts and Arrows – I go back and for between the two.

The viewer was originally made to hide imperfections in diamond made by Appollon 8 a failed fork (for a hacker term) of Eight Star Japan. The diamond cutters at Eight Star Japan used a technique of cupping their hand around the diamond to show trainee, American Polishers, the star effect. This technique was then adopted by the Apollon 8 polishers and when the company failed – Kinsaku Yamashita purchased the remaining assets of Appollon 8 and the failed Eight Star like diamonds and created the Hearts and Arrow viewer after the hand cupping technique. It is a very good tool! However, Hearts and Arrow stones come in varying degrees of performance and when buying one – you should use another performance tool to verify the performance analysis. If you visit wikipedia you will see that history – which I wrote around 10 years ago – All the way up to Gary Wrights – HeartsandArrows.com – some time later HOF and Brian added their dates into the time line.

Is now the time to buy? And why is that diamond RED!!

News Update!

Rapaport Diamond Report is stating 1ct. diamonds are trading at a discount of 18.3% from a year ago. How long will this take to positively influence your purchase price and when will we see a reversal?

If you are buying from a jeweler that is bringing your diamond in today – you may see it today.

It has also been reported that suppliers of choice have rejected sites because of rough prices from the Diamond Trading Company. Diamond Rough is at a high!

All this mean is the first update is most likely short term…

This will eventually filter down to supply and availability. If polishers aren’t polishing – and sales keep occurring, naturally the prices will return to their pre-discount levels. It’s all dependent upon sales at the retail level.

Could prices go lower? Yes. The largest market in the world continues to be the U.S. If sales are soft this holiday season, I could see the prices going lower. However, for dealers I believe that is OK! They need to turn inventory! And stop thinking like they are banks… sometimes you make money and other times you lose money…ask any retailer. The market will adjust!

As a side note for reasons unrelated to diamonds. The gold market could go a lot higher in my opinion. I have been tracking gold and platinum for years and 4 years ago I stated that platinum would be bested by gold. Anyway – this is not a gold investors site… sorry for the digression.

Back to diamonds, If you are getting engaged today – its all relative. The prices today in my opinion on newer diamonds could be a very good buy.

Diamonds over the last week or so have reported to be flat as far as costs go.

The most popular color and clarity ranges over the last week have been 1ct. G-H, SI1 diamonds in  all shapes.

It will be hardest to negotiate in these ranges and if you haven’t yet I suggest you listen to my series on BPS it will help point you in the right direction for making a confident decision. My wife wears an F/VS1 diamond – why not a G SI1 or 2? Well, because I can see the inclusions without magnification and I didn’t what that! It was all about how I felt about it. And because in the early years of becoming the diamond answer man – I had access to diamond cutters/polishers and I was able to experiment early on with cutting. I was able to custom cut her diamond into a modified round brilliant. Different than any other diamond out there. I used the BPS technique early on to figure out what I wanted to present her with as a diamond engagement ring.

Now let’s talk about performance.

Why do you hear about performance?  Well frankly it matters when it comes to the diamonds beauty.  On my podcast “Diamond Cut – The Most Important “C” you can learn more about performance.

In this and future series I will talk about tools used for diamond performance grading – just so you know I am biased. I am the self anointed Diamond Performance Evangelist – traveling about the country training  jewelers and staff in the art of performance grading –and way, way back I even used windows net-meeting and the whiteboard to educate or as I might say Evangelize later performance proponents.  I fully believe that you can buy diamonds that can consistently be the most beautiful they can be, if  you buy the highest performing diamond. I know it sounds redundant – but performance is everything.

So together over the next few podcasts I will give a short explanation of the different analog performance tools.

We will talk about the FireScope / SymmetriScope and how it works.

This is a rendering and some generated computer images of what happens in a firescope/symmetriscope. This is my own rendering and I’m sure some science guys like my friend Michael Cowing might laugh at my rendering but take a look!

When you look at a diamond for the first time – just about every diamond is beautiful! Then when you start comparing and your eye gets used to seeing the little differences – you start to wonder why? Well the firescope was invented for that reason. If a dealer said a diamond was “Ideal” how was a consumer or jeweler supposed to know. In Japan, a man by the name of Takanori undertook the whole movement to push the industry to a higher level of honesty and awareness. Today you find generic variations of this tool in just about every jewelry tool catalog and on the internet. The original Japanese Firescope is in the jewelry market in few locations. My guess is that there are less that 60 original Japanese Firescopes in the U.S. All the rest are generic versions sold under names like Symmetriscope, IdealScope, IdealLoupe and others. One new variation to the very powerful performance tool is the AGS – A.S.E.T.

Look for more in another post…

5 simple angles you need to work for your best diamond price!

So you are finally ready to take the plunge for an engagement ring!  You’ve done a little internet research and think you know what you want in terms of Beauty,Purity and Size . Let me suggest that you head on over to my show covering BPS© and then follow the next shows,Cut, Color, Clarity and Carat Weight.

Now before you head on over to your local jeweler or call up your internet retailer, don’t forget to do a little research on who  you are buying from! I know this may seem like overkill but, you need to get referrals and their background information. You could just walk into a store and walk out with a ring and be done. However, if that was your plan you probably  wouldn’t be here right now! So do a little more research and read the blogs, forums,reviews and visit BBB. Then only do business with a person or company that has a liberal return policy of no less than 30 days on in-stock items, and never set foot in a store that has a posted “ALL SALES FINAL” policy.

Always get your agreements and terms in writing on the receipt when you are buying a diamond. You can also use my FREE ” Affidavit of Diamond Grade And Statement of Buyers Rights” . Now I don’t want you to fret the buying, but I do want you to be prepared as a buyer to protect yourself and always look for a win/win situation with the seller. The jeweler or retailer is in the business of making money and providing you with a diamond or piece of jewelry that will help you memorialize your special moment. Please do business with someone you will want to work with again and again, Brick and Mortar , Online retailer, Private Appointment or Otherwise. Remember you have the power.

Remember you can always negotiate a cash price. Cash prices can be as much as a 3% reduction on top of your negotiated purchase, unless you’ve already disclosed you were paying by cash. You will also pay less tax because the purchase price has been reduced. If you are liquid enough always ask for this discount.
It is a win/win for both parties. The jeweler will not have to wait to be paid and they will not have to pay the percentage to the credit card company, yes, that is how credit card companies make their money. If you are not able to pay by cash try your credit card company for a promotional check. These are the checks they use to entice you to use their products and services. Many of these checks have a low or no interest rate for a promotional period. These can also be used to negotiate a cash purchase price. Be cautious though! Make sure the promotional interest carries over to new purchases and not just balance transfers. Always pay off your balances before they are due and never default, otherwise you will pay BIG interest penalties.

Make sure you check the internet for prices on generic diamonds, branded diamonds don’t usually have prices listed.
If you find a diamond online that you like, take that print out to your local jeweler and see if they can source that same diamond. Many diamond price search engines will list several retailers for the same diamond. This is because the online retailers don’t actually own the diamond and the inventory is virtual.  So your local jeweler may be able to get the same diamond for you, usually within 24 hours or so. Many online prices are cash based prices – keep this in mind when working with your local jeweler and also keep in mind that you will need to pay local sales taxes . However, even if you buy from an online source there are taxes in place for almost all states called “Use Tax” . So no matter what, you will need to pay some form of tax usually in the amount equal to the state sales tax where you reside.

Now you can also trade old gold, jewelry, diamonds and watches that you don’t use to get a cash credit back towards
your purchase. It can’t hurt to dig through that old jewelry box!

Never forget to negotiate! Always ask for the best prices. Let them know you have been shopping around and have been on the internet. A good store will welcome you with open arms and give you the best service they can. Be free with your knowledge and always be respectful and never argumentative. Remember this should always be a win/win
situation!

Also, ask yourself “am I willing to pay a little more for excellent service, convenient location, ease of availability, the stores reputation or repair service on sight?”

The 5 simple angles to think about:

1. Cash
2. Credit
3. Internet
4. Trade
5. Negotiate

My diamond is broken?

In this series we find out what to do when your diamond gets damaged.

First you need to find out if it is merely chipped or is it indeed broken?

If you look at the  side profile of a diamond from the flat top to the point at the bottom you see about 3/4’s of the way down there is a horizontal line in your diamond. This is not a break or damage to your diamond,this is the reflection of the table (flat top) in the pavilion (bottom portion) of the diamond.

After your initial assessment if you believe you have an issue, immediately visit with your jeweler.
You should have them inspect the diamond under the microscope and then if possible clean the diamond. Once cleaned make sure they reinspect the diamond and ring under a microscope. Many times you do not have a problem at all. What you thought was a chip or break is just dirt or lotion, basically all the things that come in contact with our hands gets on the ring. This gunk is what inhibits the brilliance, brightness, fire and scintillation in your diamond, so try to clean regularly. If you don’t have cleaner I suggest Brilliant Jewelry Cleaner.

What to do when you have assessed that there is indeed damage…

Contact your insurance agent!

Find out about repair coverage or replacement coverage – In the event you receive a replacement diamond or a cash pay-out, make sure you inquire as to who keeps the broken or chipped diamond.

Besides using the company that supplies your home owner or renters insurance, the company, I recommend you take a look at is Jewelers Mutual visit them at Perfect Circle Insurance.

What if you want to sell?

There are many  reasons for you to sell  unwanted diamonds or pieces of jewelry. Diamonds and jewelry that  have no positive emotional value or history may be a reasonable source of expendable cash. But, how do you go about selling the item?

First you need to do a little research, which means that you are going to have to get out from behind your computer and meet a few people.

Here are a couple things I am going to clarify for you here on www.diamondanswerman.com  so that you can go in with reasonable expectations when selling.

Appraisals:

Appraisals/Valuations are for insurance replacement and they should reflect a new replacement price at or near your actual purchase price.   An appraisal  is not a tool or a figure for estimating your liquidation/resale value. For your comfort you may purchase a liquidation valuation to receive a base line to work up from. I only suggest you get an appraisal when you are going to act as the seller to another consumer  in order to  help you with  identifying the characteristics, building your buyers confidence and comfort. You don’t need one when you are visiting with business that specialize in diamonds and jewelry buying but, it doesn’t hurt .

Value:

You have an item that is previously owned or worn which means it is no longer new- even if it is mint new in box , it is still previously owned and will return less than your purchase price. Jewelry and diamonds that return at, or above the original purchase price are items of provenance. For example, items worn by someone famous, made by a specialty designer, or during a special era. Other items that don’t necessarily have provenance can still garner a better amount if they are high demand brands such as Cartier,Tiffany, Harry Winston and the like.

Now that you understand that I  believe you have 5 different avenues to take.

So what are your avenues?

1. Sell it yourself on:
2. Ebay-be ready to invest-
   1. Time
   2. Money
   3. Trust Building
      1. Appraisal
      2. Lab Report
      3. Lots of communication
         1. Its going to be a hard sale!
            1. You need to develop you ability to garner trust!
            2. Communication and conversation
            3. Meet In Person
            4. Lower your price to meet the favorable risk balance factor.
3. 1. Craigslist-all of the above plus-
      1. Where are you going to meet?
      2. How are you going to get paid
   2. Friends
      1. Selling to your friends – May return better than any other situation
         but it will be a tough sale.
         1. Still at a discount vs the original purchase.
         2. How much depends on the willingness of the friend.
   3. Family
      1. Family may also be willing to buy and you might get a good
         return.
   4. Businesses that buy, sell, or auction:
      1. Liquidators
      2. Estate Dealers
      3. Jewelers
      4. Auction houses

Besides working for two diamond polishing facilities – I’ve also had the pleasure of working on liquidations and estates with a focus on Diamonds. You see, I’ve met just about every type of person possible at one time or another wanting or needing to sell a diamond, gemstone, watch or other precious collectible. I firmly believe that you should only do business with an individual willing to be completely transparent! Yes, should include the estimation or should I say the difference from what they will pay you and what they will make. I think it’s possible to calculate most estimations either on the spot or on larger valued items like a 3ct. Diamond – within a working business day or so. Some things are quick and others a little more intensive – be patient and prepared – with time you may receive more.

If you could hear the mind of your buyer it would sound like this “How fast can I turn this diamond? Can I sell it  Today, Next week – Next Year??”

Is your diamond item readily available elsewhere in the market and what is the retail cost variance?

How great a difference does it need to be for resale??

What if your item is one of a kind? Be prepared for reasonable offers that you may find unreasonable.

Usually the wider the market the easier it is to sell. However, you narrow the market once you go to sell it. Some people are just not interested in secondary jewelry.  Once you narrow the market on an item that has little or no “provenance” you need to remember you are not selling a “New” item. Once it left the store it became previously owned… even if you never wore it. Therefore,under most state laws it now needs to be sold as used or previously worn or some like kind variation to ethically disclose to the next owner. Previously owned diamonds and jewelry are sometimes perceived negatively, especially if it’s a contemporary piece or a recent purchase. Individuals who look to buy estate jewelry tend to apply a positive emotional value to older diamonds and jewelry.

Quick on the spot liquidation on high valued items generally receive lower payout to reduce the risk to the buyer. Long  term time investments such as 3 months to a year may achieve a greater realization – at a cost. The cost is time and possibly a commission.  If you need an immediate or near future liquidation consignment may not be your best option.

Your check list before you visit with a buyer (Remember you don’t need any of these things.. but, the more you have the better)

1. Appraisal
2. Receipt
3. Report
4. Historical Documentation
5. The Original Box
6. The Original Bag

Items with provenance will need as much historical proof as possible to bring the  best monetary realization.For items without provenance you can reap more by reducing the amount of time and effort you and the person you’ve trusted to do business with supplying the above mentioned.

The more information you are able to give .. the less risk is involved in the buyers purchase – returning you a better amount.

For questions or information on diamond and estate liquidations or if you need to liquidate and have no options in your town please call me at 803-792-1326 I’ll find a referral for you .

Know when to walk out the door!

Diamond Answer Man episode 8 is a show that I am releasing with this one goal, helping you recognize when not to buy or  honor someone with your business. I am talking about stores that do not operate with the total goal of delivering the level of WORLD CLASS experience or the mind blowing WOW kind of service. We are going to use  last weeks ABC News broadcast titled “Elderly Michigan Man Mistakenly Buys $25k Diamond Necklace” . This is a situation where I feel that the jeweler did not go the extra mile to serve the customer and in effect damaged his reputation and the Jewelry community at large. I want to remind everyone searching for engagement ring now or in the future – only do business with a person or company whose entire goal  should be to help you deliver a gift that will eternally memoralize your special moment (they are not just selling widgets). Whether it is an engagement, anniversary, birthday, graduation ,or whatever moment you put in there – always make sure they are your partner in making it happen.  Then always read the fine print.

5 Tips for not buying from someone.

Tip #1

1. Never buy from a store that has an all sales final policy.
2. Same as Tip 1
3. Same as Tip 2
4. Same as Tip 3
5. Same as Tip 4

Get it! I hope so!

Any company or person that has an “ALL SALES FINAL” Policy on “NEW” Jewelry isnt really standing behind their business or you. This is not a “Win – Win” situation, it is an all “Win – Maybe Lose” Situation. Remember the gift you are thinking about buying is one that is special – it’s your moment and your memories. Don’t get involved in a situation where you might create bad moments and memories.

Think about it!

J. Christopher Guritz

Buyers:

I know it is hard to see the differences in the diamonds and you just want to protect yourself.

Wouldn’t it be nice if you had an agreement that what you were buying  is what it is?

Well now you do! (download today) GET IT FOR FREE TODAY!

When I was working in retail I had a form that I used for customers that made strong statements about my conviction and willingness to earn you and keep you as a client. Now when you’re  presented with a diamond from a retailer,  buy in confidence and have a return agreement built in – regardless of the stores standard return policy. Present this document to the store before you buy – Its free just click the image to the right or any download link and a pdf will open.

DOWNLOAD HERE

Jewelers:

Sign up and use this form in your store! It’s free and it will make a strong case for your customer to shop with you! No, it wont increase your  sales 10 fold. Only operating a highly ethical, moral,  trustworthy business, staffed with the greatest people you can find, offering mind blowing service and an unparalleled product mix can do that!

Alright I’ve bantered enough the form is called “Affidavit of Diamond Grade And Statement of Buyers Rights” If you are wanting a custom version of the document without the bottom text – contact me at 803-792-1326 and we can discuss options.

OH! and please read my legal disclaimer!

Disclaimer

1. I am giving this away for free! In fact this is an update of what I started using many years ago (except I gave it out at the counter) , it’s also not my original idea. If recall it was in a National Jeweler article in the 80’s, I would give the jeweler credit if I knew who they were. (If you know who this person is – call me and let me know) To make this a little more usable for everyone, I paid an attorney on elance.com, local to me, to update it and make it generic. I’ve modified it further still.
2. Trust me, if you do use it you will scare the pants off a bad jeweler and they just might act like you’re a little crazy!  However, a GOOD Jeweler will jump at the chance to show you they are REPUTABLE.
3. Jewelers USE this form and make a strong positive statement to your customers – Its free – even if you never have to use it – just because you’re willing to will make a strong case for earning your next customer. I can also create a custom one with your logo! Call me with any questions.
4. I, J. Christopher Guritz am not a lawyer and the Diamond Answer Man show is not a law show or firm. So if you want a contract or something drawn up professionally, get a referral for a local attorney. This document may or
   may not be binding – even if signed by the principal, manager or sales person, laws do vary by location. However, if you get in a jam this signed document could be brought to a really smart attorney who for a little coin…
   might be able to help you out. Oh yeah and make sure the jeweler puts a full description including all the rarity characteristics, Cut, Color, Clarity and Carat Weight with any documents or identifying characteristics… such
   as a laser inscription on the receipt too.  If you got into a bad situation I would imagine your attorney would like that also.
5.  I must say that if you really feel you need to use this form with a jeweler or vendor – you probably shouldn’t do business with them anyway and that steal of a deal is really a rip-off and you’re really a dope. A great jewelry store will provide you with a great return policy and bend over backwards to take care of you! If they don’t …then give your money to someone who deserves it!

This being said, there are thousands of GREAT stores to buy from! I know this because I’ve met the owners, buyers, and sales people personally when I was a road dog (sales rep days), a sales trainer, or at trade shows around the country. I can think of hundreds of great jewelry store owners and store managers who are on the up and up and I know you have at least one in your town. These STAR individuals live, eat, and sleep the business and would never do anything to ruin their reputation – EVER. These special people would smile signing this form because they know – no matter what – they
want you as a client for life and will do anything to keep you FOREVER!

P.S. If you would like other verbiage added to the document or think you can do it better.. Let me know and Ill post it!

NOTES —————————————————————————————————————————————–

First Version 04/12/2012

UPDATED 06/12/2012 JCG

A great read that came out on 11/27/2012

How to Buy an Ethical Diamond – UB NewsCenter

BUFFALO, N.Y. — You’ve already decided that you’re going to pop the question. Now comes another quandary: Where to get the ring, if you’re buying one?

The holidays are a busy time for engagements, and Trina Hamilton, a University at Buffalo expert in corporate responsibility, says socially minded consumers have a lot to think about when it comes to finding the right rock.

via How to Buy an Ethical Diamond – UB NewsCenter.

Figuring out your best value!

I think there are times when we as consumers become to focused in one area of our buying process. This can easily happen when it comes to buying an engagement ring. I want to help you stay on track and to think about all factors concerning your purchase. This is not an exhaustive list of all factors relating to an engagement ring purchase,but it is a great place to start. This podcast is about 48 minutes and walks you through several areas that might help you make a better, more confident decision when buying.

Value Factors

1. Focus (Specialty)
2. Quality
3. Availability
4. Convenience
5. Guarantee
6. Return-ability
7. After Sales Service
8. Incentives

Be wary not to get caught up in all the advertising and market hype “Wholesale To The Public” and 90% off scams. These may not be illegal but, in many cases are very unethical. Just ask any experienced independent appraiser. More often than not – you get exactly what you pay for.

Hire the Right People!

If you have ever worked with a person or had the pleasure of doing business with a team that was single minded in purpose and why – then you’ll understand the  priority jewelers should have to staff their stores with people who are special.  Or as I like to call them “ROCK STARS” or as Seth Godin calls them “Linchpins”.

Even though the first half of this podcast focuses in on jewelry store owners driving their own business by hiring and staffing right, it is still geared toward everyone. It will help you even if you are searching to buy a diamond today! Hopefully you’ll pick up some insight in finding the right store and person to work with.

There is only one point I want the jewelry store owners to focus on before they get started, that is to know the “why” they are in this business.  I suggest you pick up the book “Start with Why” By Simon Sinek. Then follow up with reading the book “Linchpin” by Seth Godin. These books will help get you a push in the right direction and also help you to identify those very much needed Linchpins in your world.  I am very grateful if you click either of these links – Amazon does give you an extremely good price on them.

So pick up these two and then get moving on staffing your store with people who have your why. Then follow these tips…

1. Look Inside – but be open and enthusiastic about looking outside the industry
   1. Hire Personality!
      1. What I mean by that is, hire someone who is interesting
      2. Someone with a story
   2. Hire Enthusiasm!
      1. Someone who shows lively interest in what they are learning and
         sharing
      2. Another way to describe this is – is someone who is eager and exhibits
         a high degree of pursuit for a win/win situation with the client
         – closing the sale on a positive for both you(jeweler) and you the(client).
   3. Hire Integrity!
      1. High Moral Character
      2. High Degree of Ethics – Professionally and Personally
         1. An understanding of rightness and wrongness in all aspects
2. Train Knowledge
   1. Home Study
   2. One Week Studies
      1. Trade Shows
      2. Special Events in Cities Near You
   3. Encourage the reading of trade magazines
      1. Books
      2. Videos
   4. Study at one of the schools
   5. Foster interactions between stores and memberships and guilds.
3. Lead By Example
   1. Show them!
   2. Have them Show You!
   3. Coach
   4. Follow Up
   5. Counsel
   6. Reward!

Though, I do think you can go out and find people right in your area – possibly in another business -simply by talking, interacting and shopping with them. Leave it to me, I have great experience doing casting calls for employment searches. Contact me with any questions.

Get Your Ring Checked!

At least twice per year!

I received a question about an engagement ring – from a listener by the name of Jeanette. Jeanette thought her center diamond was loose. Upon further communication we found that her diamond was indeed loose and the fact that in space of one year she has never taken the ring in for inspection and based upon what she described to me.. the prongs were either worn down through wear or the original setter completed the job poorly. I encouraged her to take her ring in and have it examined – she took it to another jeweler who confirmed that the setting technique was fine – she had completely worn down the prongs and her ring required 6 new tips – the tips are the top part of the prong which holds your diamond in place – these can be built up if they are not worn to far. If they are worn down to far or the setting technique was improper the entire head should be replaced.

So here are my “tips”

1. Shop with a reputable jeweler
2. If possible the jeweler does all the work in house
3. If they don’t do the work in house, the Jeweler or trade shop they work with should have at least one titled or diploma’d bench person.
   1. For Example:
   2. JA BENCH PROFESSIONAL CERTIFICATION
   3. or GIA Graduate Jeweler Diploma
   4. or education from one of the other schools
      1. Such as Revere Academy of Jewelry Arts
         1. As Jewelry Technician
      2. Other schools
4. Have your Ring Check at a minimum Every Six Months
   1. Under a Microscope
   2. Cleaned
   3. Checked Again
5. Insured
   1. Jewelers Mutual
   2. Chubb
   3. State Farm
   4. Issues with type of insurance
      1. Like Kind Replacment
      2. Full value cash out
      3. Replacement value cash out
         1. Your Jewelers
         2. Their replacement source
      4. Talk to your agent and ask questions

Not to Scale

Diamond Carat weight is very easy to understand when it comes to values and costs. The heavier the diamond is the more rare it is and therefore more costly – all other things being equal. The carat weight or size of the diamond is the “S” in the BPS  system.  There are a few things that I suggest – one being – buying your diamond loose. When you buy the diamond loose you can weigh it on a scale to confirm the diamond and its weight. This scale should be NTEP certified.

Diamond Clarity is something that will definitely affect the beauty of the diamond in the three least rare grades. However, in the SI1/2 Category, inclusions can become visible starting around .85/.90 and up, though their degree of  visibility is dependent on type of inclusion and actual size of the diamond. How obvious you see it may depend on your eye -physical ability or how much you care -personal choice.  Enjoy this latest podcast on the 4 “C”s in relation to the BPS scale. Call me with any questions!

1. Why is Clarity Important
1. What is clarity
   1. Clarity Is Purity
2. How is it graded
   1. Eye
   2. Loupe
   3. Microscope
3. When does it affect beauty
   1. Subjective
      1. Ability
      2. Preference
4. What Clarity is Better
   1. Personal
   2. May be related to design
5. Performance
1. Impact
1. Harder
2. Easier

10 Power Diamond Grading Loupe

Diamond Grading Microscope

Hello! Everyone! I must admit that I went beyond my time of 20 minutes on this podcast. It is 38 minutes long. I had struggled with the second “C” Color, not technically but personally. I am so passionate about cut and How the First “C” affects everything that I even started the podcast by saying “CUT” when I meant “COLOR”. The first “C” affects so much of what we love about diamonds in every way, that it comes through in everything I speak about. So I hope you enjoy my show on the second “C” Color. If you have any questions please call my voicemail feedback hotline at 803-792-1326. I will look foward to hearing from you!

My Notes from the show.

1. Why do we talk about diamond color
   1. Color Is Purity (Rarity)
1. What is color
2. How is it graded
   1. Linear scale
   2. Pyramid Scale
      1. Coloreless
         1. DEF
      2. Near Colorless
         1. GHIJ
      3. Faint
         1. KLM
      4. Very Light
         1. NOPQR
      5. Light
         1. STUVWXYZ
      6. Fancies
         1. Fancy
         2. Fancy Intense
         3. Fancy Vivid
         4. Fancy Dark
         5. Fancy Deep
3. Color Perception
   1. Subjective
      1. Human Ability
      2. Scientific Tools
   2. Subjective
      1. Laboratory
4. What Color is Better
   1. Personal
   2. May be related to design
5. Performance
   1. Impact
      1. Brighter
      2. Darker

Do you want to buy a diamond?

You came to the right place! No, I am not here trying to sell you one. I am here
to enlighten you on what the most important characteristic of a diamond is. How this
most important “C” affects all other perceived rarity factors.

On a side note, please forgive my voice as I am suffering from allergies though I don’t think you can tell – At least hope!

If beauty “B” is your highest priority I know you’ll enjoy this show.

J. Christopher Guritz
Diamond Answer Man

Diamond Cut – The First “C”

The first “C” Cut on the GIA

1. Why is Cut Important
   1. What is Cut
1. Cut Is effect by rarity
   1. Diamond Shape
      1. Brilliant Cuts
      2. Round
      3. Princess
      4. Radiant
      5. Oval
      6. Pear
      7. Step Cuts
         1. Emerald
         2. Square
            1. Specialty Cuts
   2. Diamond Performance
      1. Performance = Beauty or Not
         1. High Performance Diamond
            1. Looks Bigger
            2. Looks Brighter
         2. Percieved to be a higher or more rare color
            1. H can look brighter than and D in face up.
            2. More Fire
            3. More Contrasts
            4. More Scintillation

Hello Everyone,

This podcast in particular is something that I have been teaching to individuals
for years. It has been great fun working on this for you to enjoy!

Don’t worry it is not complex and in reality, is a very simple way to help
you make an informed decision when buying that special diamond!
Diamond buying should be about what is important to you and your bride to be.
When you learn how to prioritize the grading scale, BPS©, Beauty,Purity, and Size
guidelines you will achieve a high degree of fun & knowledge!

Below are my work notes on this podcast. I hope you enjoy it!

1. BPS©
   1. WHY BPS©

1. My Experience
   1. Education
   2. Sales Literature
   3. Development of Scale

2. WHAT BPS© DOES

1. Effective prioritization of what is important – or your goal – how
   you may feel whether or not something is important

3. HOW TO USE BPS©

1. Separation of rarity characteristics into three letter categories.

2. BPS© DEFINED
   1. BEAUTY

1. CUT
   1. What the polisher/cutter did / always related to final weight and
      price
      1. PERFORMANCE
         1. High Performance – More Beautiful
         2. Mid Performance – areas might look cloudy – overall
            stone may appear smaller but performs well
         3. Poor Performance – Looks Darker or Lifeless –
         4. We Will talk more about Performance as it relates to all other
            characteristics

2. PURITY

1. COLOR
   1. Linear or Pyramid Scale
      1. High Performance Stone
         1. Can Appear Brighter
         2. Therefore may look face up perceivably whiter
      2. Low Performance
         1. Can Appear Darker
         2. Therefore may look face up perceivably yellower or browner

1. CLARITY
   1. Linear or Pyramid Scale
      1. High Performance
         1. May obscure both white and dark inclusions
      2. Low Performance
         1. May contrast or window inclusions for ease of viewing

3. SIZE
   1. PHYSICAL WIDTH and Depth
      1. Well Proportioned
         1. High Performance
            1. Looks Bigger
            2. Looks More Beautiful
   1. Poorly Proportioned
      1. Looks Smaller
         1. Maybe Darker – Steely or Flat
         2. Maybe Lifeless – May look flat and cloudy like in appearance
      2. Looks Wider
         1. Maybe Lifeless – May Also Look Flat and Kind of Cloud Like
            in areas
   1. ACTUAL WEIGHT
      1. What it weighs on Scale
      2. Affects Price in Conjunction with Proportions