The Diamond Certification Dilemma

AGS, EGL, GIA, or IGI? Does it impact price?subjectivity. Therefore, the more standardized the tools
The debate over diamond certification and grading isand strict the process the more consistent the results.
not new, but the increasing growth of Internet diamondGIA and AGS founded the standards and have
jewelry sales has fired up this debate and brought it torefined them over the last 75 years. This is why
the consumer's doorstep. Diamond jewelry shopperscomparing two like diamonds with the same grade for
are overwhelmed by information, some accurate,color, clarity and cut, the EGL and/or IGI diamonds will
some not, but mostly confusing.be cheaper. It is assumed it's off by at least one grade,
The purpose of this article is not to settle the debate,e.g., graded F color by EGL may be grade G or H by
but merely to provide a real world perspective forGIA. It's a common assumption in the industry that IGI
what I've seen evolve over the last decade fromand EGL diamond grades are softer than GIA and
within the industry of diamond dealers, to the street forAGS.
the diamond shopper.For now the consumer just needs to understand that
Ten years ago buying a diamond or diamond jewelrythese biases exist in the marketplace and drive pricing.
was a magical experience requiring the consultation ofAn important factor driving the increase of EGL and
an expert. Diamonds were bought and cherished.IGI certified diamonds into the market is the
Today it is a dog-eat-dog Internet world, wherecommoditization I mentioned earlier, when diamond
diamond dealers are "perceived" not to be trusted andgrades are easier to get it increases the margin for
consumers are educated to the point of commoditizingthe dealer.
something that was once precious and rare.2. Will my diamond be more valuable with a
The allure is gone, trusted expertise dwindling, and thecertification?
debate over diamond value rages on. In my opinion, thisA diamond is not more valuable with a certification per
is not a good thing or a bad thing; it is just the result ofse. A diamond can be sent to any grading lab and
an evolving industry. Just as in any industry there is areceive a certification at any time (note it should be
continuum of change and control, with the sellers atun-mounted). The initial value of the certification is two
one end and the buyers at the other. Sometimes thefold, first it gives the credibility at time of purchase that
change goes too far in one direction or the other, butit has been independently graded. Secondly, if you ever
over time control comes back to balance because ofwant to sell or trade your diamond, the certification will
basic economics. The diamond industry is in the middlemake this process easier.
of this change.3. How do I know the certification is for the same
The diamond certification is one way diamond dealersdiamond?
are differentiating their product. With so muchThis is a trickier question, and why a diamond shopper
information available on diamond education, thestill needs trusted sources and experts. A diamond
consumer has become a self-proclaimed expert and iscertification provides detailed criteria about the
in search of the perfect diamond at the cheapestdiamond, including specific measurement data. One
price. When making an investment in a fine qualityway to know for a fact the certification goes with the
diamond it should be certified by an accrediteddiamond is the measurements, this requires specialized
independent gemological laboratory and of coursediamond measuring tools. If you need to verify a
purchased from a reputable dealer. The most popularcertification/diamond combination I suggest taking it to
certifications being discussed today are:an independent jeweler who can provide you with a
- GIA - Gemological Institute Of America (foundedSarin Report, a high-tech automated cut grade and
1931)diamond measuring device.
- AGS - American Gem Society (founded in 1934)Another way a professional can verify your diamond
- EGL - European Gemological Laboratory (foundedand certification is by clarity grading. A diamond's clarity
1974)is akin to fingerprints, no two diamonds are alike. A
- EGL USA (EGL USA is not affiliated with any otherprofessional jeweler can tell you the exact location of
EGL labs outside North America. Founded 1977)the clarity birthmarks, feathers, inclusions, etc. and
- IGI - International Gemological Institute (founded 1975)verify the certification.
Let me address the most common consumer4. Should all diamonds be certified regardless of size?
questions about certification:I frequently get questions about whether or not all the
1. Are all certifications created equal?diamonds in the ring are certified. It is not necessary or
Based solely on reputation, not all certifications arerecommended to certify multiple small diamonds in a
created equal. This is fact in the diamond industry,ring. Certification is reserved for larger center stone
there are biases in the marketplace and this alsodiamonds, .75ct and greater. While you can get all the
varies by what country you are in.diamonds certified, it doesn't add any value and it's
In the United States, GIA and AGS, are the marketexpensive.
leaders, the most trusted sources. For that reason aAs a diamond shopper your choices are endless,
diamond graded by either one of these institutions willwhat's important to take away from this article is the
be more expensive than like diamonds graded by theirunderstanding that certification is not a guarantee of
competitors, period. Conversely, expect a discount forvalue, but merely one more decision that impacts price.
EGL and IGI graded diamonds.A diamond shopper will need to make this decision
The debate is not purely about reputation, but aboutalong with color, clarity, cut, and carat, in your search
standards of quality. No matter how you look at it afor the perfect diamond at the best price.
diamond is still graded by a human and open to