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View Full Version : Diamond fiasco, warning to those buying online


Quinn
05-04-2005, 01:39 PM
Fair warning, this is a long post.

Two years ago when I became engaged my fiance and we decided upon a modest budget to buy a ring. We had both just graduated from college, money was tight but future incomes looked good. We decided upon an amount and then, being modern well educated people, started researching diamonds on the internet.

I came across several sites that were packed with information. There were lots of disscusions on buying diamonds loose over the internet and having them sent to you, saving a huge amount of money. It seemed to make sense. By cutting out the middleman I felt I was beating the "system"

I contacted several online dealers. They provided me with huge lists of stones they had available. The ones that I wanted always seemed to be unavailable or sold out quickly. I attributed this to being a very hot market and that they must be selling out their inventory quickly. I was assured that each stone would come with all the latest documentation, so I felt very comfortable about my purchase.

After several attempts at purchasing a stone and getting the same old "already gone or no longer available" I purchased a 1.08 ct princess diamond. It came with an EGL certificate. I had saved $865.00 over what the same stone would have cost at my local jewelers.

I then purchased a nice 14 kt gold setting and had it sent to my home, again saving a percentage over what my local jeweler could sell it to me for. I was elated!

However there I was, a diamond in a folded paper and a setting. I took these to several of the jewelers in town to have it set and fitted. Each place declined. They stated that for insurance reasons they would only set their own diamonds. One place mentioned that I should send it to whoever provided the stone.

I finally found a store that would set my diamond but they wanted $480.00 to set the diamond and $40.00 to size the ring. They also pointed out that the heading I had with the ring was not right for a princess diamond, more money needed. I said ok, they told me to come back in 4 days.

3 days later I get a phone call. There has been a problem. My diamond sustained a chip in the process of being set. A rather large chip. It also now had a rather large black streak in it. The store had the diamond sent to an independent appraiser prior to calling me to see the extent of the damage. He stated the damage was possibly due to strain on the stone, the "streak" was from laser filling, a recut would yield about a .64 ct diamond. I was shocked.

I drove over to the store to see the remains. The diamond had a rather large hunk out of one corner and a very noticeable black streak. The benchman said the black streak appeared as soon as he put the torch to the stone to adjust the prong. He stated he had a light hand however upon putting pressure on the prong and the heat the stone just chipped. He was very sorry. The jeweler who was there suspected that the stone had been fracture filled after the EGL report to have it look nicer.

The EGL certificate from 2002 showed the diamond as an SI2 however when I viewed the stone I couldn't see anything. It was bright and sparkly.

Here I was with a broken stone. The store that set the diamond said they would not give me the money for the stone. That I had assumed the risk since I had bought the stone from another source. I contacted the person from online that I bought the stone from. He said all he was was a drop-shipper. He stated he had never even seen the stone. He stated no refunds since I had had the stone to another jeweler who broke the stone.

Since I don't own a home I was not insured. I was planning on insuring my jewelry but wanted to have it set first. I was heart broken.

My future in-laws came to the rescue. They brought me to their jeweler who lives in their town. He had several stones in his case that met my needs. They all came with the paper work. I was now very, very paranoid after this first fiasco. I no longer trusted anyone in the jewelry world. He took a LOT of time with me. Let me compare each stone under his microscope that he had on his desk. He answered all of my questions.

I picked a sweet .94 ct diamond, princess cut, G color, VS 1 within my budget. Within 5 hours the diamond was set on my band in a platinum head. It was perfectly sized to my finger. He included the setting in the package. It came in a wonderful ring box.

It all went so smoothly. Instead of the hastle and confusion I felt with the first diamond I felt cared for. My ring sparkles and shines happily on my finger and each time I see it I smile. My in-laws family jeweler is now my family jeweler.

I chalk the first experience up to my greed. I thought that by going the unconventional route I was somehow getting a better deal. It bought me heartache and over $5600.00.

Quinn

Bearman
05-04-2005, 07:43 PM
Fair warning, this is a long post.

Two years ago when I became engaged my fiance and we decided upon a modest budget to buy a ring. We had both just graduated from college, money was tight but future incomes looked good. We decided upon an amount and then, being modern well educated people, started researching diamonds on the internet.

I came across several sites that were packed with information. There were lots of disscusions on buying diamonds loose over the internet and having them sent to you, saving a huge amount of money. It seemed to make sense. By cutting out the middleman I felt I was beating the "system"

I contacted several online dealers. They provided me with huge lists of stones they had available. The ones that I wanted always seemed to be unavailable or sold out quickly. I attributed this to being a very hot market and that they must be selling out their inventory quickly. I was assured that each stone would come with all the latest documentation, so I felt very comfortable about my purchase.

After several attempts at purchasing a stone and getting the same old "already gone or no longer available" I purchased a 1.08 ct princess diamond. It came with an EGL certificate. I had saved $865.00 over what the same stone would have cost at my local jewelers.

I then purchased a nice 14 kt gold setting and had it sent to my home, again saving a percentage over what my local jeweler could sell it to me for. I was elated!

However there I was, a diamond in a folded paper and a setting. I took these to several of the jewelers in town to have it set and fitted. Each place declined. They stated that for insurance reasons they would only set their own diamonds. One place mentioned that I should send it to whoever provided the stone.

I finally found a store that would set my diamond but they wanted $480.00 to set the diamond and $40.00 to size the ring. They also pointed out that the heading I had with the ring was not right for a princess diamond, more money needed. I said ok, they told me to come back in 4 days.

3 days later I get a phone call. There has been a problem. My diamond sustained a chip in the process of being set. A rather large chip. It also now had a rather large black streak in it. The store had the diamond sent to an independent appraiser prior to calling me to see the extent of the damage. He stated the damage was possibly due to strain on the stone, the "streak" was from laser filling, a recut would yield about a .64 ct diamond. I was shocked.

I drove over to the store to see the remains. The diamond had a rather large hunk out of one corner and a very noticeable black streak. The benchman said the black streak appeared as soon as he put the torch to the stone to adjust the prong. He stated he had a light hand however upon putting pressure on the prong and the heat the stone just chipped. He was very sorry. The jeweler who was there suspected that the stone had been fracture filled after the EGL report to have it look nicer.

The EGL certificate from 2002 showed the diamond as an SI2 however when I viewed the stone I couldn't see anything. It was bright and sparkly.

Here I was with a broken stone. The store that set the diamond said they would not give me the money for the stone. That I had assumed the risk since I had bought the stone from another source. I contacted the person from online that I bought the stone from. He said all he was was a drop-shipper. He stated he had never even seen the stone. He stated no refunds since I had had the stone to another jeweler who broke the stone.

Since I don't own a home I was not insured. I was planning on insuring my jewelry but wanted to have it set first. I was heart broken.

My future in-laws came to the rescue. They brought me to their jeweler who lives in their town. He had several stones in his case that met my needs. They all came with the paper work. I was now very, very paranoid after this first fiasco. I no longer trusted anyone in the jewelry world. He took a LOT of time with me. Let me compare each stone under his microscope that he had on his desk. He answered all of my questions.

I picked a sweet .94 ct diamond, princess cut, G color, VS 1 within my budget. Within 5 hours the diamond was set on my band in a platinum head. It was perfectly sized to my finger. He included the setting in the package. It came in a wonderful ring box.

It all went so smoothly. Instead of the hastle and confusion I felt with the first diamond I felt cared for. My ring sparkles and shines happily on my finger and each time I see it I smile. My in-laws family jeweler is now my family jeweler.

I chalk the first experience up to my greed. I thought that by going the unconventional route I was somehow getting a better deal. It bought me heartache and over $5600.00.

Quinn

Quinn,

I am glad your story had a happy ending.
It's a shame but "buyer beware", online or even in jewelry stores.
Unknowing buyers make wrong decisions all the time.
You don't have to be an expert but the stores that take the time, explain grading and give a nice assortment of stones are those that succeed and prosper.
Taking care of your customer from the start sets the tone for long relationships.

Princess
05-05-2005, 02:49 PM
I'm glad everything worked out well for you. Sometimes things do get over simplified online. Buying a diamond for your wedding is an important milestone in life. Something best handled by the pro's.

GGJoe
05-06-2005, 01:04 PM
Back when dinosaurs roamed the earth, I managed an exercise equipment store in college. I started out assembling treadmills, gyms, exercise bikes, blah blah blah. Upper scale equipment, Trotter, Precor, Lifefitness, ect ect ect.

A bike rep came in the shop and opened us up for these new kinda bikes known as Mtn bikes. Iron Horse mountain bikes. I ordered myself a mtn bike and assembled it when it got in. Shimano Deore LX was just names and initial to me then. Didn't really seem like a big deal and afterall, I had good experience assembling exercise equipment. Threw the bike together in a few hours. Here's another funny tidbit. I used to do triathalons (about 80 lbs ago), and rode a Peugeot road bike; 28" frame. I ordered the 28" frame in a mtn bike. FYI, for those who don't ride a bike.......Road frames and mtn bike frames are not the same! Anytime I rode my mtn bike, I ran a very high risk of singing alto the rest of my life.

Later on in life, when dinosaurs still roamed the earth, I went to grad school. Ended up somehow becoming the bike mechanic at an outdoor store. The guy I was replacing was a certified team USA bike mechanic. Needless to say, I had a lot to learn before he took off and left it all up to me. I also learned how piss poor of a job I did on my mtn bike a few years earlier!! Throwing a bike together isn't at all the same as assembling it and adjusting wheel bearings, bottom brackets, head tube bushings, truing wheels, ect ect ect.

Relavence to Quinn's story is..... if you'd a bought an Iron Horse from my undergrad years, it wouldn't be near the same quality as if you'd purchased the same bike from me after I was properly taught how to actually do it right. Jewelers are the same as far as this point goes. You know, the jeweler I apprenticed under used to tell me to be a jeweler, all anyone really has to do is own enough jewelry to fill up a case, and sell it for a profit. Of course, this was before the internet came along. Online I can make you think I got a full head of hair, tall, with six pack abs; when in reality, I can be confused with George Costanza on Seinfeld.

I've a sign in my office. "The bitterness of poor quality can remain long after the sweetness of low price is gone." Especially when it comes to the internet!

GGJoe

Quinn
05-06-2005, 01:50 PM
. You know, the jeweler I apprenticed under used to tell me to be a jeweler, all anyone really has to do is own enough jewelry to fill up a case, and sell it for a profit. Of course, this was before the internet came along. Online I can make you think I got a full head of hair, tall, with six pack abs; when in reality, I can be confused with George Costanza on Seinfeld.
GGJoe

The thing that surprises me is the only qualifications that a diamond setter needs in order to do this service in any state in the union is the willingness to attempt it. I really thought that Jewelers had to achieve some level of expertise to operate.

To cut hair or operate a salon which applies fake nails the technician needs to be licensed with the state.

oldminer
05-06-2005, 02:41 PM
Quinn: Your long story is excellent for giving a clue to B&M retailers on what they need to know to compete with alternative sources of diamonds,,,,,the Internet and direct selling wholesalers who will sell to anyone.

I don't think overcharging someone to set a diamond is a good way to make up for lost profits, but that is for each store to decide. Personally, I think selling a mounting and setting a diamond for a fair price helps to make someone a customer. Each firm makes their own mind up on this.

As far as accepting the risk for chipping a princess cut. This is a huge problem. I advise folks to insist the seller of the diamond offers to set it and to be responsible in case of breakage. It is the ONLY safe way for a consumer to choose. It is a shame you had such a huge problem, but I imagine you learned a lot. DIrect experience is a powerful teacher.

Thank you for taking the time to give us such a complete version of the story.

Kelly
05-06-2005, 03:52 PM
I highly doubt that anyone other than a well trained professional would ever attempt to set a diamond.

GGJoe
05-07-2005, 03:45 PM
The thing that surprises me is the only qualifications that a diamond setter needs in order to do this service in any state in the union is the willingness to attempt it. I really thought that Jewelers had to achieve some level of expertise to operate.

To cut hair or operate a salon which applies fake nails the technician needs to be licensed with the state.

I guess chipping a diamond isn't really considered as much of a health threat liability as chemicals being used on the skin and hair are. ;)

While it upsets me to no limit when something I'm soldiering won't behave itself or a stone I'm setting decides to chip or break, I still always TRY to look at the bright side and remind myself no one's health is put at risk for when I do make a mistake; excluding mine (I've grown more gray hairs from being a jeweler than I have from being married to a redhead).

It is true. Liabilities are a touchy subject and are many times up in the air in the stone setting, metal soldering, stone recutting business if not ironed out before the work is done.

But I agree with Quinn's original statement of sticking with a winner after you find one. I made a three stone ring for a client, where he wanted to use his wife's original modified step cut diamond (1/2 carat) on one side and have me supply him with a 2nd two grainer and a center four grainer modified step cut to match. I sent the client's diamond to the founder of this network, Mr. Greg Miller ,because I knew I could count on him to match her diamond perfectly with length/width ratio, table percentage, depth percentage, keel line, ect ect ect and clarity and color (SI-1, H). I also knew the original diamond would be the right diamond too. :D I Set all the diamonds in white gold (as ordered), and she was ecstatic.

She was showing her ring to everyone and anyone in public. Even saw my wife across the cafateria of our kid's school to openly brag on her ring and me. The best advertisement in the world; makes me feel proud of what I do and makes me even more proud to be advertised as one of the "good guys" in the jewelry industry.

Well about 8 months later, the husband brings her 3 stone ring in, for what I thought was a cleaning and inspection. "My wife was looking into having a diamond wedding band made to go with your ring and the other jeweler said he wouldn't be held responsible for the chipped center diamond." Sure enough, there was a chip BESIDE the prong on the girdle, but directly next to the prong. Of course, now I was being accused of selling a faulty diamond and/or responsible for it getting chipped. My heart sunk. I was hurt, frustrated, and disappointed.

Just like that, Joe's a bad apple even though for 7 months I hung the moon in this couple's eyes. The other jeweler didn't help matters either by being what he considered to be "competitive", and saying how the diamond probably wouldn't have chipped if they'd used him to begin with. :rolleyes:

To do my best at damage control, I took the ring in and ordered another center from Greg, and said I'd completely remake the ring in platinum and was going to eat the whole thing to hopefully regain my "good apple" status. At the same time I tried to gently get it through to the guy the claim was like buying a new Porsche that runs perfectly for the first 7 months, then bringing it back because another dealer points out a dent in the door. But it really wasn't about me being right more than it was trying to save my reputation.

Anyway, Greg came through as usual and got me another carat diamond to match. I asked him if I could send the chipped one up to him to look into getting recut for minimal $$ lost.

Here's my point that agrees with Quinn.................

I got in one morning and heard a message from Greg saying "There was somthing funky in the diamond that looks like it could have caused the chip so we'll call it a wash."

Tell me how confident you'd be to hear of an internet person doing something like this! I was and am still completely blown away by Greg, for this and many other things he's done for me, just like this network. I'm still not real comfortable for considering it "a wash" because I know just as much as Greg does MY CUSTOMER'S WIFE OR THE OTHER JEWELER chipped the diamond.

But . . Just like ya said Quinn. When you find a winner, stick to him or her.