Purchasing loose diamonds is a lot different than purchasing diamond rings or other diamond jewelry, because there is a good chance that you are purchasing it wholesale or from a broker. If this is the case, it is a lot easier to get burned. For one thing, you often aren’t purchasing from a name-brand retailer. Loose diamonds often come with a cash-in-hand deal. This is why you want to have a few pointers so that you don’t get scammed. Here are some things you should know about purchasing loose diamonds so that you don’t get burned.
Avoid drilled loose diamonds
One of the most common scams in the loose diamonds world is where the jeweler will actually drill into the diamond to remove inclusions and then refilling the hole. Many diamonds have inclusions, which reduces the value of the diamond, so by drilling these inclusions out, you are effectively increasing the cost of the loose diamond. In the likely case that you want to sell the diamond in the future, you won’t be able to because an appraiser will catch the drilling in a second and the stone won’t worth a penny.
Fear in-house appraisers
Another way to get burned is to purchase a diamond that has been appraised by an in-house appraiser. Ideally, you want to have the diamond appraised by an impartial third party. If you don’t, you may get burned. Of course, what many jewelry wholesalers do is have their in-house appraiser jack up the cost of the diamond, so that you wind up forking over a wad of cash – a wad of cash that may be much more than the diamonds are actually worth.
The altered certificate
You may not run into this problem as much, because the market is pretty regulated, but you could wind up with a doctored certificate. Loose diamonds can also come with forged provenance documents. This is done for either two reasons: the diamond was mined from a questionable source, or the diamond has been stolen. When you look at the certificate, you want to pay close attention to any inconsistencies. If you have to, make copies and have a professional look at them.
In some cases, a jeweler may round off the carat weight of the diamond in question. This, of course, is ludicrous, because a diamond’s is a purely objective measurement. The weight can only be rounded to the hundredth of a carat. However, for some immoral and unscrupulous dealers, they may round up to the tenth of a carat, or even to the carat and charge you more for a loose diamond. This is a surefire way to get burned. It is also why you want to ask for an exact diamond weight.