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Northwest Gemological is the Source For All Your Gemological Needs!

Whether you like it or not - Ruby and Glass is all the Rage...

When I first became a gemologist in the late 1970’s I appreciated emeralds. Very little treatment over the centuries. Just a bit of oil to seal the surface-reaching characteristics and brighten the stone. Then, came Opticon a resin filler that greatly improved the overall appearance and introduced otherwise cheap material thereby crashing the emerald market. It has since recovered a bit and resins are now the norm.

I then came to appreciate sapphires – usually heated but nothing more. Then came the diffusion process, then beryllium diffusion screwing up both the blue and fancy colored sapphire markets respectively. Sapphires may still be cool but untreated reigns supreme.

Ruby? While almost always heated, the process of using a crucible with flux leeches synthetic inclusions into their natural host - sometimes making them almost indistinguishable from a synthetic ruby. Yikes!

Now the prevalent ruby has a lead-glass in-fill that makes them truly a composite of ruby and glass. Transparent material that has a $2000/carat look sells for about a hundred. Lower end stones are a couple bucks a carat. The problem is many stores are selling this stuff without knowing what it really is.

Case in point. An NGL client walks in for a ruby appraisal. The ruby is glass-filled and valued at a small fraction of what his Internet seller has offered it at. He swears off the Internet and goes to a mall jeweler to buy a legit ruby. The jeweler confirms that they do not sell glass-filled rubies and obtains a stone from a respected source. Back to NGL for confirmation and guess what? SAME MATERIAL. LEAD-GLASS FILLED RUBY. The jeweler thought they were safe. The consumer thought they were safe. The reality was otherwise as a two thousand dollar ruby sale was reveled to be a sham. This a prevalent occurrence and one that usually goes unnoticed because the public rarely checks out their purchases and jewelers do not have the equipment or expertise to verify every vendor every time.

While this material, has been around a while, it seems to now be commonplace as not only cheap Burmese but African material has been so treated. So when buying a ruby, have your source specify what they are selling and offer an unconditional money-back guarantee if it proves to be otherwise or you are not happy. Important (expensive) rubies should be certified by the GIA, AGTA, AGL or Gübelin Lab for treatment disclosures. Many other “labs” (and a lot from Asia) just do not cut it, so a certificate may only be worth the paper it is printed on. An opinion of value is then placed by an independent lab (one not ready to sell you another stone) that you trust. Remember, an appraisal is an opinion of value by that appraiser and may not be reflective of what you are paying in your transaction. The colored stone market is not only complex for individual evaluations but extremely variable because of sale conditions and markets that can fluctuate from local economies or global market conditions. You should always buy based on what you like, not an appraised value, but you should also get what you were promised.

For more on identifying gems and their treatments take our Gemstone Identification I & II class, then follow up with Gem Evaluation for pricing information and join us at the world’s best classroom, the Tucson Gem and Mineral Show.

Pricing-Enhanced Diamonds

Just got a call that has me riled up – again.

It was from a “diamond dealer” (“I am selling diamonds on the Internet so I must be a diamond dealer”) who started railing on me for under-appraising a clarity-enhanced stone he had sold to an NGL client. Although I instantly recognized his lack of knowledge in the area, I allowed him to “school” me on why following how GIA grades diamonds was akin to following Adolf Hitler (no, I’m not kidding). I think the main reason for his rant was because my value determination was less than 20% his retail representation based upon the document of his “highly reputable” laboratory in New York. Never mind that by his own admission, my “low” value still exceeded his transaction price by 40%. He couldn’t understand why his lab’s “value” of seven times the purchase price was out of line!

Sadly this is a scenario I see repeated over and over again. If the seller would just represent their goods fairly and not promise the sky, they would not lose their sales when guys like me appraise them. Unfortunately, “guys like them” love to inflate both the “clarity” grade and value of clarity-enhanced diamonds. I used “ ” around clarity because the nature of this enhancement precludes the Gemological Institute of America (GIA) from issuing a grade. They simply identify the process and return the diamond, un-graded. But, since there is a viable market for this product, the industry is left open to “call ‘em as they see ‘em” by establishing “visual-only” equivalent grades. More on that in a minute. But first…

CE Background

This process was developed by Zvi Yehuda and came to market in the mid 1980’s simply known as the Yehuda process. Kind of like a windshield repair, surface-reaching feathers are filled with a glass-like substance rendering them less visible. Many others now utilize this technology but Yehuda maintains the best-known brand name in this business.

*APPRAISER’S NOTE: The clarity-enhancement process is a treatment to fill surface-reaching fractures with a foreign substance to render those characteristics less visible. The apparent color may also be affected by this process. While historically stable under normal wear, this treatment is not stable under the conditions of jewelry repair work. Disclosure is required to anyone conducting repairs to the mounting or to subsequent buyers. The Gemological Institute of America (GIA) does not assign clarity grades to clarity-enhanced diamonds. This report provides a visual-only equivalent for insurance coverage.

The preceding statement is part of every CE diamond we appraise. Yes NGL appraises CE diamonds, but only for the consumer (not the dealers) and then using proper GIA standards in establishing what “visual-only” means. Even though the GIA will not recognize them for grading, a segment of the public likes the idea of buying a diamond “enhanced” through this process. The pricing is higher than the original clarity but less than the “visual only” grading.

So, this glass in-filling makes the diamond appear better but how do we grade it? The GIA says no grade but the public wants to buy it, so the appraiser has to establish parameters for an insurance appraisal. The general rules for clarity grading say to examine five factors of the characteristic inclusions and blemishes and how they appear at 10X magnification.

Those factors are the size, number, location, color and nature of the characteristics. There is no particular order of importance, but a give and take between what relevance each has with respect to an individual diamond. The “nature” factor has to do with what type of characteristic it is. A feather, which is a break in the diamond, i.e. fracture or cleavage is the most severe but if tiny in size has minimal impact. A crystal is not by its nature too detrimental but if dark and eye-visible is another story.

Since feathers are the principal characteristics being affected by the CE process the nature aspect is changed only by a lessened visibility. The feather itself is still there to its full extent. While warranting a higher visual-only grade, the type of inclusion has not gone away. The treatment is not permanent so its removal would immediately downgrade the look of the diamond. These facts cannot be ignored, but most labs pre-grading this material for the diamond brokers and manufacturers seem to not only disregard them but forget to use 10X magnification in the process altogether!

The caller I alluded to at the outset claimed that the GIA process of grading was not the only way and since the gates are wide open for interpretation on CE diamonds, I see what he means. I have examined numerous diamonds that had eye-visible feathers after treatment and still looked I-1 or I-2, only to be graded SI-1 and above on the accompanying “lab” reports. As a GIA Graduate Gemologist, I elect to follow the old school five factors guideline.
Funny that in pricing CE diamonds I am fair and consistent with the product sold so I must know its price. So, why must nearly every CE diamond get high-graded from the original labs and given stupid values only to get refuted when in the hands of a legitimate appraiser?

The issue is further exacerbated by non-disclosure many sales involve or the cryptic way the treatment is revealed. While the Yehuda folks and others have full disclosure, guarantees, etc. most of the sales we see come from second, third or fourth parties. We have addressed that before, so I won’t dwell on the issue. I merely want people to be reasonable in their representations, not hide behind bogus lab reports (which do not obfuscate the seller’s responsibility anyway) and make a fair profit selling something the public wants. Just like kids soccer - everyone wins!

To learn more about clarity-enhanced diamonds and how to identify them, take our Diamond Grading class where you will examine them as well as substitutes and synthetics.

Driving a hybrid diamond?

The gemological community has recently been a buzz about the sale of so-called “hybrid diamonds” - a product we first encountered over five years ago but haven’t seen much of at NGL until just recently.

The stones recently received were identified as Cubic Zirconia (CZ), the most prevalent diamond substitute on the market, and available at less than a buck a carat. Our clients told us they had purchased synthetic diamonds - quite a different animal (mineral?) A true synthetic of diamond has the same basic chemical, physical and optical properties as a natural diamond (sounds like a definition, doesn’t it); it’s just grown in a laboratory. A CZ, or anything other than crystallized carbon does not qualify and is properly called a diamond substitute or imitation. The question then became, “Does this CZ have anything coating the surface?”

Let’s go back in time……

The first product we saw was marketed as an “amorphous diamond coating” over an undisclosed core stone. Since amorphous means non-crystalline, and diamond must be crystallized carbon, this is an obvious oxymoron regardless of what their supporting labs said. Being sold from our own backyard and documented by a local appraiser, we took interest and upon examination saw our old friend CZ. While the representative denied a CZ core, he finally relented and disclosed that yes, it was CZ, but with a proprietary overgrowth of diamond. If a coating was present it was beyond our methods of detection. We never really saw them for appraisal at the lab and I pretty much forgot of their existence other than the annoying fact that a local lab was providing paperwork and “graded” them with GIA standards as if they were a diamond. But, without a disgruntled client, I wasn’t about to “go after” anybody in this industry for just being misleading (I’d be up all night).

Fast forward……

Now, with our disgruntled client list growing and the gemological community questioning the process and its disclosure, we are in the middle of it.

I have been to a lot of gemological conferences in the past few years and the coating of stones has lately been a hot topic – not from an identification standpoint, but from their prevalence in the marketplace with exotic names and innovative marketing. (Topaz is given a layer of metallic ions and ouilá Mystic Topaz!) In the past few months, however gemologists around the world have been discussing the “diamond coating” topic and I harkened back to the old days thinking “So, what’s new?” Well, it turns out it’s the number of companies marketing this or a very similar product.

So, I put on my forensic gemologist hat and took a look at some of the leading
websites to see how they described their products. If, as a Graduate Gemologist and jewelry appraiser of thirty years I was having trouble deciphering their lingo, what must the consumer think? A problem I saw was different marketing interpretations on what I later found out to be the same product. Different brands had different disclosures and words like “diamond hybrid” seemed most prevalent. If I read them right, technology has provided us with the breakthrough of an inexpensive diamond-like product free from conflict and environmental concerns. The talk shows love this kind of stuff. No support of terrorists. No exploitation of the environment or little kids in Botswana. Nice.

But, remember class, a name placed before or after “diamond” means it’s either a really famous diamond or a FAKE. So back to the question, is there anything on the surface and if so, what is it? I contacted a few of the manufacturers to enlighten myself.

The first thing I found out was many of the brand names come from the same lab. I also discovered that some of the manufacturers don’t like each other very much and claim the “other guy” doesn’t even create a coating. While the process may vary (and one may claim a different substrate, one a middle layer, etc) the overgrowth is basically a process that I’ve been talking to my students about for years - chemical vapor deposition (CVD). CVD diamond was developed in the mid 1950’s and can now produce full-grown gem quality synthetic diamond crystals when grown upon a diamond seed crystal. When grown onto another material it is not truly crystalline but polycrystalline – without geometric alignment. This may lead to a diamond-like resistance to scratching and if composed of carbon, you can see the effort to call it a diamond-like coating (DLC). But, since the process cannot yet produce crystalline diamond, it is not transparent and as the coating gets thicker, the surface clouds – not a good attribute for a diamond substitute. So in order to not loose transparency, the layer must be incredibly thin – possibly on the order of nanometers (one billion to a meter) if not angstroms (ten billion to a meter) making detection virtually impossible.

The fact that a diamond coating has not yet been detected by some of the world’s best gemological laboratories makes it hard to rate this product as being coated at all. NGL does not have the expensive equipment to do chemical analysis (donors welcome), but a colleague with the same equipment the sellers claim to have been used to “prove” the process, detected no surface treatment whatsoever. To take his testing further, (where no gemologist should ever go) he tried to scratch the surface with a number nine hardness point (sapphire) which would have no impact if the surface was diamond-like. In fact, he obliterated every surface. So, are the testing labs the manufacturers employ to justify their product just getting a better-treated specimens than the public or are they reading something into their findings?

As I speak, bigger brains than mine are looking into how to address this product, but I am willing to share some personal views.

For sake of argument, let’s take the manufacturers at their word and put their product to the identification test for synthetic diamond. By definition, a synthetic has the same, physical, optical and chemical characteristics of the natural.

Physically. Diamond’s big number is 10 - its hardness. Claims as high as 9.8 for the deposited material drop to a resultant coating of 9.1-9.3 and some direct testing of released samples were scratched by sapphire (9). Strike one.

Optically. It would be interesting to compare the refractive index, (R.I.) but alas, that measurement has not been made or cannot be performed (even though at least one website claimed diamond’s R.I. for their product). And, since if grown to measurable thickness it is not transparent, it would certainly not be gem diamond. We would call that bort. Strike two.

Chemically. Diamond is essentially carbon. Additional elements, like nitrogen if present are in trace amounts. The manufacturers own reports show a high degree of non-carbon elements present, like Yitrium. Diamond has no Yitrium! If this is the CZ substrate being recorded, that itself shows insignificant coating. Strike three. But then you’re out of this game with just one strike.

Conclusion. I don’t have a problem with the sale of coated CZ. I have a problem with the way this particular product is being marketed - confusing some and downright misleading others. If people want to spend $100-500 for seventy-five cent CZ with the hope of an improved look or durability, they may do so. This is America. However, the purpose of an enhancement is to improve an aspect of the product. This is a fundamental question here. The technology certainly exists to make what is claimed, but because of its very nature, has their been an improvement? And, since the claim of “diamond coated” is erroneous what terminology is acceptable? The public is very familiar with the term “diamond”. We are trying to teach them what a “synthetic diamond” is. The confusion level on this product is unfair to the consumer and needs to be addressed. The term diamond-like coating may be adopted but needs to be proven to the satisfaction of the gemological community. Then, an affordable test that confirms treatment must be available or the consumer has to take the seller’s word for it and appraisers won’t touch it.

This brings me to the other major point to be discussed. Is the gemological community and the public OK with labs that first accept the seller’s statements and then apply terminology as if grading a diamond? Color, clarity and “equivalent” diamond weight? The sellers love to take this information for price comparisons. “If this were a natural diamond it would cost…”

When confronted with this several years ago, I didn’t see enough to raise any issues. Since the certifying labs are in my own backyard, I also didn’t want the appearance of bashing a competitor. When asked if interested in being one of those labs I have always declined. Many respected gemologists just shake their heads over this practice, but remember there are few legal rules for evaluating gems and jewelry. In the gray areas for now, gemologists can practice however they wish.

With full and accurate disclosure I say buy it if you like it. “Because it’s not your mother’s CZ, it’s Diamondzilla - new and improved with DLC!”


- Learn more about these and other diamond substitutes in our Diamond Grading class -

Ted’s Tucson Tour Review 2009

BUYERS’ MARKET FOR SAVVY NGI STUDENTS

Well, we are back from the great Tucson Gem and Mineral Show and it was pretty much as I expected. It was a buyer’s market IF you knew what you were buying and what it SHOULD have cost. Our first-time students seemed to be very happy with their purchases, but are already anxious to prepare for next year with a better idea of what to expect in this overwhelming extravaganza. With about forty venues, you have to select the best sites for you. My tour provides expertise at the three major shows for loose colored gemstones – the sites where a minor miscalculation may cost you several hundred if not thousands of dollars. Many ancillary venues offer lower-end items, mineral specimens and fossils where the costs don’t impact a miscalculation as much but offer great fun and adventure.

Our returning students gobbled up some great buys and commented on how certain major European vendors – some known for the finest product in the marketplace – were willing to negotiate their prices below previous show offerings. With their high cost of being at the show and the fact that many of their compatriots were not attending, European vendors were prompted to deal more freely with what many consider to be the high-end goods of the show.

The number of students attending was one of our highest in years. We enjoyed a buyers’ market and the prospect of spending more time with the preeminent vendors of the industry. As a group, we certainly spent less money than usual but gathered more information and made wiser purchases in the process. First-timers saw the mechanics of this incredible show and returnees picked the best bargains from eager vendors. Our students this year included soon-to-be gemologists, stone cutters, collectors and future jewelry designers.

But buying at low wholesale isn’t the only reason to attend. Where else can you speak face-to-face with award-winning gemstone cutters like Bernd Munsteiner and Constantin Wild of Idar Oberstein or American John Dyer about their craft, meet with the designers of SPECTRUM award jewelry and rub elbows with preeminent gemologists like John Koivula, Cap Beasley, Alan Hodgkinson or Dr. James Shigley? The people we talk about in class are accessible at this show!

As an example, at a chance escalator meeting, I introduced a few of my new students to Antoinette Matlins, an industry guru and author whom I attend conferences with. They were immediately treated to an impromptu gemological session as she launched into topics we had just discussed at our AGA conference the day before!

The educational opportunities alone make this trip worthwhile, as I have always advocated this to be the world’s best classroom for gemological education. You can learn about the pricing structure of colored stones by examining thousands of examples from live vendors. Actually buying at the best wholesale levels is just frosting on the cake.

If you are reading this and haven’t taken our gemstone classes, this is your opportunity to act on your passion. Take these two NGI classes - Gemstone Identification (usually offered three times a year) and Gemstone Evaluation (offered only once – in November) and you qualify for Ted’s Tucson Tour in February 2010. We will do a show preview in January and give you a two-day tour of the best gemstone venues when in Tucson. I will even negotiate with the dealers for you when you are ready to make that special purchase.

You will be exposed to industry giants and the most product – both loose gemstones (our forte) and finished jewelry at one gathering. Mineral, fossil and craft venues round out the best experience a budding gemologist, hobbyist or gem consumer could imagine. Start saving up.

Hope to see you there next year!


Ted

P.S. Did I mention the daytime temps were in the mid seventies and eighties?

New look for the new year!

This week we debuted some new features on the NGL website! You may notice that the website has a completely new look, featuring our new colors, more organized navigation, an expanded library section, but most of all, the new registration page!

On the new registration page, you can view the current class schedule, sold out dates, and purchase classes or packages online through Google checkout - a secure way to purchase online with all major credit cards!

Checkout the new website at http://www.nwgem.com/ and keep an eye here for upcoming articles, reviews of the 2009 Tucson Gem and Mineral Show, and a new Op-Ed with Ted!

NGL has gone mobile!

With more and more people relying on PDA's (myself included), I have now published a mobile-friendly version of the website! This new version is pretty basic at this point, and only includes information on the lab. Stay tuned to see the school go mobile too! Point your mobile browser to http://www.nwgem.com/mobile, or be redirected from our current website at http://www.nwgem.com/

Schedule for 2009 classes debuts today!

The much-anticipated 2009 schedule for NGI is now up and running on the website! You can view it here! The new classes will start in March, and the format is similar to this past year, with the success of our one-weekend format as opposed to consecutive Sundays as in the past. Also added is the availability to accept credit cards for tuition, something new offered as of this past summer. Diamond Grading and Gemstone Identification will both be offered three times next year, accommodating most schedules and avoiding holidays. Gemstone Identification and Gemstone Evaluation will each be offered once, so sign up early! Don't forget, that taking Gemstone Identification in conjunction with Gemstone Evaluation class will make you eligible for the Tucson Tour the following February!

Look out for the new website coming soon, where we hope to be able to accept tuition online!

Selling your jewelry?

In these tough economic times, we have been filtering a lot of calls from people wanting to sell their jewelry. For a couple years now, we have had our brochure "What You Need to Know About Selling Your Jewelry" posted on our website. It is available in both quick reference and download form. In the past, many people wanted to sell their jewelry because they no longer wear it, or a broken relationship; but more often we are seeing jewelry for potential sale to boost their current income. We start off our brochure with a dose of reality, but before you sell your jewelry, ask yourself "is selling Grandma's engagement ring really worth one month's rent", what happens next month? Of course there is nothing wrong with selling jewelry you no longer care about, but maybe think about other options before selling a treasured family heirloom.

Gemstone Identification

Just a notice to let you know that we still have availability in the Gemstone Identification class this weekend, October 11th and 12th. Taken in conjunction with Gemstone Evaluation (next month), you earn eligibility to go to Ted's Tucson Tour in February! For information on our classes, see the school section on our website.

For last minute enrollment, call Audrey at 425-455-0985.

Digging through the archives

Well, I've been digging through the old NGL archives and found our old newsletters dating back to the early '80s! I found it interesting to see issues we are still encountering today, or problems that seemed to creep up much earlier than you would think. I'll be posting them all here (or at least the relevant ones) with their original dates. Make sure to comment and let me know what you think!

Audrey

When selling gold, it pays to shop around

The following is a news story by KOMO 4 news reporter, Herb Weisbaum, which NGL was consulted on:

By Herb Weisbaum


Watch the Story


With gold prices nearing $900 an ounce, selling old or unwanted jewelry can seem like an attractive option, and Northwest pawn shops and jewelry stores are buying more and more gold.

"Probably 35 to 40 percent over a year ago," said David Michael with Dacel Jewelers.

If you have gold coins you know exactly what they're worth. But when you walk into a store with an old ring or chain and say "make me an offer," are you going to get a good price?

We decided to find out by going undercover.


We visited three jewelry stores and five pawn shops with a gold ring and gold chain brought in by a KOMO producer, and Linda, a viewer with a pile of gold jewelry she wanted to sell. Each store had a different procedure.

At Ben's Loans in Renton, they just took the items and put them on a scale.

Same drill at the Yuppie Pawn Shop in Kirkland.

At the Pawn Xchange in Bellevue and Super Pawn in Tukwila, they took a lot longer coming up with a price, spreading each item out and going over them in detail.

The offers for the ring and chain ranged from $50 to $120. Linda was offered anywhere from $70 to $105 for her items.

In both cases, the two highest offers came from the pawn shops, not the jewelry stores.

The Yuppie Pawn Shop in Kirkland gave us the highest price for our producer's ring and chain, and the lowest price for Linda's jewelry.

The lesson?

"I learned to shop around, that it's a good idea to get out there and take your jewelry to lots of places," said Linda.

Yuppie Pawn Shop owner Brian Lurie said he tries to give a fair price, but it might not always be the best price.

"We want your motorcycle, your rolex and we pay you more for it," he said. "We're not a jewelry store and we don't love the jewelry. We just love the weight of the jewelry."

Lurie said sellers shouldn't come in thinking they're going to get top-dollar.

"You're not going to get what gold sells for and you're not going to get what new jewelry prices are."

A lot of the gold people bring is to sell is 14-karat gold, which is only half gold. So if you have an ounce, it's not worth $900 -- it's worth about $450. But the buyer also has to sell it to the refiner.

"So you might see 30 to 50 percent less than the refiner actually pays the jeweler or over-the-counter buyer, simply to take into account those market fluctuations and the cost of doing business," said Ted Irwin with the Northwest Gemological Institute.

For example, if you had an ID bracelet that weighs a little more than an once, the scrap gold value is probably about $500.

But pawn shop owner Lurie says you're never going to get that much for it, and could instead expect about $250.

So before accepting an offer, be sure to take your gold to several pawn shops or jewelry stores to see who makes the best offer.

For More Information:

What you Should Know About Selling Your Jewelry

Counterfeiters capitalize on 'Tiffany' name

The following is a news story by KOMO 4 news reporter, Herb Weisbaum, which NGL was consulted on:

By Herb Weisbaum
Watch the story
When it comes to fine jewelry, no one shines brighter than Tiffany. So when Sarah VanGrunsven was deciding a Valentine's Day present she had her heart set on a Tiffany chain and heart pendant. "She'd mentioned that she'd found a few online that were reasonably priced and, of course, you know that sounded good to me," said Lee Van Grunsven.Lee wanted to surprise his wife, so he went online while she was asleep and ordered the chain from the tiffanyjewelry.us web site. "The website said that it was the true, legitimate Tiffany's," said Lee, who spent $89 for the bracelet -- a good price since it's listed for $190 at the Tiffany store. "A few days later I saw it was a being shipped from China and I was like, 'uh oh.' This might not be legit like the website says it is."When the package showed up, it was a counterfeit chain and pendant in a counterfeit Tiffany bag. "They never responded to any of my e-mails of course, because they knew that they were caught that they were sending a knockoff," Sarah said. Lee couldn't stick his Valentine with a cheap knockoff, so he went to a Tiffany store and bought the genuine chain. But just what do you get when you wind up with a fake? It starts with the bag. On a real bag the "Tiffany" label is embossed, but with the fake it's just printed on. And when it comes to the actual jewelry, Gemologist Audrey Forrest of the Northwest Gemological Institute had no trouble telling them apart. "Tiffany does take a lot of care to make sure theirs is manufactured with precision," she said. "They obviously use a cheaper process in the counterfeit."Tiffany engraves its heart pendant, and the counterfeiters don't. There's also a big difference in the chain links. Tiffany uses a perfect round shape, but the counterfeit uses non-symmetrical egg-shaped links, which are cheaper to make. "The Tiffany bracelet which sells for $190 would appraise for $190," Forrest said. "This bracelet which was sold on the fake web site for $89 is really not worth the Tiffany that's on there. You're looking at a $50 to $60 bracelet because it's just a silver bracelet."Tiffany says it tries to shut down web sites selling counterfeit jewelry, but cleary it can't stop them all.So, how do you protect yourself? Just remember this: Tiffany never has a sale, and it doesn't have an outlet store. There are no specials, and no discounts. If you're dealing with Tiffany, it's full price.

NGL is Blogging!

NGL has decided to begin blogging our articles online! Sometimes we save our articles for a few months before we publish our sometimes-yearly newsletter! Now you can read our articles as soon as we have them ready. Archives from past years will be up shortly.

Audrey

Whataya gonna do….sue? At least complain (Op-ed with Ted)

You just bought fine jewelry over the internet. You shopped several dealers offering diamonds certified by major laboratories and found a company with a much better deal than the others. Their diamonds were several grades better for the same money, in fact , their deals were “TOO GOOD TO BE TRUE”.
While the grading “labs” used weren’t the familiar GIA (Gemological institute of America – Gem Trade Laboratory) or AGS, (American Gemological Society Laboratories) they still had three initials and were represented as “independent’ so you made the purchase. Then, to acquire insurance, you visit NGL for an appraisal…...only to have your bubble burst.
We, unfortunately do a lot of bubble-bursting i.e. informing the client the grading is way off, the diamond has been clarity-enhanced without proper disclosure, etc. But, what is surprising is that most of our clients in this scenario either make a polite return (if allowed) or keep the jewelry anyway! Because the “value” amount on our appraisal is usually similar to what was paid, the client GOT WHAT THEY PAID FOR. They were just mislead when the qualitative aspects were grossly inflated.
Do they have recourse? Since most courts view damages as the monetary discrepancy between what was paid and the appraisal value, many think no. But what if the approach were to gain “the benefit of the bargain” by demanding the promised quality? In the hundreds
of such cases we have had, only a couple clients have pressed the internet jeweler to send what they promised. Since only a very, very small percentage of consumers do this, it doesn’t hurt the jeweler if they occasionally make good on their promises. Of course, if all wronged consumers did that, the jeweler would be losing money and that is precisely how you change such practices.
Northwest consumers are fortunate in the fact that our local bricks and mortar jewelers are some of the most reputable in the country and quick to investigate an alleged discrepancy, which often tend to be minor or a matter of “professional opinion”.
There is a big difference, however when you can’t see the jeweler, handle their merchandise and personally confront them if a problem arises. So one needs to investigate virtual jewelers on how they represent themselves, their merchandise, and stand behind their promises - and don’t rely on the “positive feedback” section their web listing. Talk to a real person and tell them you are having your independent appraiser verify their grading. Tell them you expect the quality to be as promised, replacement with the stated quality if not, or a financial adjustment if the grading is off and you still want to keep the piece.
Since most reputable internet dealers tend to use only AGSL and GIA for diamond
grading reports, they won’t be the ones priced way under the rest of the market. And, while there are other respected laboratories out there, the consistency does drop off after the “big two”. The issue comes more into play when the “labs” are merely producing “paper” for the jeweler and their grading (see our last newsletter) seems to be significantly high relative to the asking price. That’s your red flag.
In a recent conversation with a consumer advocate personality I know, I brought up the prospect of a news feature on the prevalence of internet jewelry fraud. His response was “That isn’t news... ……..it’s assumed.” So, protect yourself and remember you have a friend in the diamond appraisal business (that would be us).
The rest is up to you.

Ted


P.S. The Accredited Gemologists Association (of which we are a Certified Lab) has produced a consumer complaint form to report fraud or deceptive practices. It can be procured from their website http://www.accreditedgemologists.org/. along with instructions and possible courses of action.

For both legal and family interests - Handling Estate Issues for Fine Jewelry

Jewelry left in one’s estate usually requires thoughtful examination by an expert to determine value (or lack thereof) for disposition to heirs, taxation or just plain curiosity from family members. Even if previous documentation is available, it was probably prepared for insurance purposes, not fair market value, as used for estates. For large estates where items have significant value, written appraisals should be provided with the same depth as those prepared for insurance purposes.
But, unlike insurance requirements, more abbreviated documents may also serve the estate, providing essentials for identification and value, photographs and a signed document. We often advise this shortened format since it still provides sufficient information for probate and declaration purposes while saving the client money in the process.
In some cases, where a signed document is not required an informal consultation may suffice, where we examine articles and sort out those of value. The client receives the essential information verbally and may take notes that can be shared with the interested parties. We often recommend this route when there are a high number of costume and lower valued items, not contributing significantly to the estate.
Whenever representing an estate, make sure to state that purpose to the appraiser so articles are properly prepared at fair market value. This represents a hypothetical sale price in the market most appropriate for that article and may vary considerably from a retail value done for insurance replacement purposes. There is no set ratio to arrive at fair market value from retail. It depends on the article, its marketability and condition, with each piece being considered on an individual basis.
As more and more baby boomers are now dealing with the estates of their parents, a much greater proportion of our business is for such purposes. NGL continues to offer consultation for the best course of action in an individual case—whether documenting a multimillion dollar estate or giving descendants an idea of what Mom left in all those shoe boxes.

Larger Diamonds Need Updated Apraisals Now!

Our recommendation of updating fine jewelry appraisals every five years or “When your insurance agent bugs you” is currently revised for clients with diamonds of two carats and larger. See us now!

The jewelers’ cost for most two carat diamonds has risen 20- 40% in the past three years. Lower profit margins and fierce industry competition have left the retail “cushion” of two to three year-old appraisals painfully thin for replacement. For once the market is threatening
the mark-up.
Updating an NGL appraisal runs $20. Provide our original documentation for a current value revision and free inspection. Newly appraised items are based upon size and complexity
with rings sporting a 2 carat center stone starting at $95 by appointment.

Support your local jeweler (Op-ed with Ted)

I find it amazing how little confidence some consumers have in their traditional home town
jewelers fearing big retail mark-ups, while being perfectly willing to hand over their money to strangers on the internet or television.
True, having a physical store for you to shop in and hold actual merchandise carries more overhead than a virtual store, but what most consumers don’t realize is that many of the on-line and on-tube stores aren’t always saving you money. In many cases you are getting ripped off.
Before I alienate the legitimate virtual jewelers, let me say that there are some. The legit sites tend to offer GIA and AGS laboratory certificates on their diamonds and have a reasonable return policies. When the seller has a restrictive or no return policy, avoid them. If you are buying from an individual, maintain similar options, but remember most internet jewelry is being offered by dealers whether they represent themselves as such or not. E-bay transactions are notorious for misrepresentations often backed by fraudulent documents.
So, why not include your local bricks and mortar jeweler when price shopping with other sources? Many who buy loose stones elsewhere, end up at their local jeweler to set it, so give them an opportunity to provide it as well You may be pleasantly surprised with their response.
Wherever you buy, make sure your selected appraiser (that would be us) checks out your purchase and provides documentation for insurance.

Fun with inclusions - Being a laboratory gemologist isn't always boring

It isn’t only work, work, work at the lab. Sometimes we “play” with the stuff we are appraising by photographing neat inclusions - especially the ones that look like something interesting, like
birds, Abe Lincoln an so on.
We, of course photograph a lot of specimen inclusions for classroom use and the occasional
“doesn’t that look just like a…” formation. Sometimes the inclusions aren’t anything special by themselves, but when reflected off of other facets become more interesting. For instance, take a
look the feather we photographed in a diamond the other day. Oriented in the center of the stone near the culet, it reflects into a pattern resembling a palm tree. Or fireworks. Cool, huh?
With the release of Photoatlas of Inclusions in Gemstones , Vol. 2, John Koivula/Edward Gübelin we have another fabulous collection of microphotographs that aid in identification, show the beauty in crystals and are just plain fun to look at. It’s books like these (with the last in the series due in ‘07) that showcase gemstones - not the jewelry they often become part of and keep our profession interesting.