Diamond Guild Australia

2006

Alerting Consumers to the Dangers of Buying Gemstones and Diamonds

Buyer Beware Checklist

admin — Fri, 23 Sep 2011 01:08:20 +0000

Buyer Beware Checklist

October 2006

Go to a professionally trained jeweller

Dealing with a reputable, trained jeweller can make your shopping experience easier and safer. The independent, not-for-profit Gemmological Association of Australia recommends buying from someone with recognised industry credentials such as a Certificate IV or Diploma in Gemmological Studies. Look for affiliations with jewellery industry groups such as the Diamond Guild of Australia.

Learn the Four Cs of Diamonds

The Gemmological Association of Australia has published the Four Cs – colour, clarity, cut and carat – to classify diamonds. A knowledgeable seller will clearly explain the Four Cs and encourage you to compare diamonds to suit your price range.

Get your Papers

Every diamond, especially those over one carat, should come with an independent grading report from an accredited gemmological laboratory. The Gemmological Association of Australia has endorsed the Gem Studies Laboratory (GSL) in Sydney. GSL offers a full range of diamond grading, pearl X-raying and gemstone identification services.

Secure your Purchase

Have your jewellery piece valued and insured. Insurers increasingly rely on a laboratory’s grading and identification reports to accurately evaluate diamonds and other gems. The National Council of Jewellers has 550 registered valuers around Australia. Visit: www.ncjv.com.au

If it sounds too good to be true it probably is

The Internet has created a perfect opportunity for disreputable companies wanting to sell fake and low quality gemstones and Diamonds and buyers have very little protection once the purchase has been made. It’s like gambling – you have to ask yourself if you can afford to lose your money.

2007

2006

Alerting Consumers to the Dangers of Buying Gemstones and Diamonds

Buyers Beware of Fake Glittering Mistakes

admin — Fri, 23 Sep 2011 01:05:57 +0000

Buyers Beware of Fake Glittering Mistakes

October 2006

Concerned with the increasing number of Australian consumers being conned when buying jewellery, the Gemmological Association of Australia (GAA) and the Diamond Guild of Australia (DGA) have joined forces in urging consumers to be very careful – especially when purchasing diamonds and gemstones.

This warning by the two highest diamond and gemstone authorities in Australia comes after a disturbing increase in the complaints by consumers of jewellery purchases which have turned out to include fake, synthetic, inferior quality, treated and fracture-filled gems and often accompanied by fake and misleading certificates.

Many of these purchases have occurred on eBay or by consumers when travelling abroad.

Bill Sechos, founder of the Australian Gem Studies Laboratory and spokesperson for the GAA, says that the rise of dodgy and unsubstantiated gem and diamond descriptions on eBay, the Internet and in retail outlets is astounding.

“We have had customers come in with diamonds they purchased on eBay for thousands of dollars only to find out that they are far below the quality that they believe they have bought. Often they turn out to be a man-made artificial stone such as cubic zirconia (CZ) or paste and are practically worthless,” he says.

It’s a trend he has also noticed with Australian travellers returning from Asia and South America with gemstones and diamonds they’ve purchased believing them to be authentic and discovering through a gemmological test that they are either a synthetic or a different stone entirely.

According to Bill, these customers claim that many sellers provided certification and valuations of the diamonds and gemstones, which they thought were legitimate.

“Anyone with a computer can print an authentic-looking but worthless diamond, or gemstone certificate,” he says.

The Australian Competition and Consumer Commission, under the Trade Practices Act 1974, offers some protection for consumers buying jewellery in Australia.

The GAA has recently written to eBay to alert the world’s largest global marketplace to the growing number of misleading and incorrect descriptions of diamonds and gemstones being offered for sale by auction and private sale.

“One common inaccurate description is to describe a cubic zirconia as a “synthetic diamond” which infers that it is a diamond that has been man made in a laboratory, when cubic zirconia has no chemical or physical properties even remotely similar to a diamond,” says Bill.

For example, a diamond and a cubic zirconia both exactly the same size could vary in price from as much as $200,000 and $5.

The GAA has also alerted eBay to the fact that a number of sellers are producing fake certifications from bogus organisations – such as the Gemmological Institute of Australia – which does not exist.

Chairman of the DGA and GAA graduate, Cameron Marks of Sydney’s high-end jeweller Percy Marks, is also concerned with the damage being done to consumers by disreputable and uneducated sellers.

According to Cameron, there is no way that the average consumer can tell the difference between a fake diamond, such as a cubic zirconia and a real diamond. Nor can a consumer identify whether the diamond has been treated with heat or pressure to change the colour – or whether it has been fracture filled – a practice he explains is like a motor dealer selling a car as brand new when in fact it has been patched together from wrecks and touched up.

Both fracture filling (a term to describe injecting a colourless substance into a crack in the diamond to make the diamond look better and clearer) and treatments can have a significant impact on the diamond’s stability as well as its value. A reputable jeweller will disclose fracture filling and treatment.

“There are also a lot of gemstones such as cubic zirconia, and even white sapphires, clear spinels, quartz and white zircons which have been substituted for diamonds and only a qualified gemmologist would be able to positively identify these stones,” says Cameron.

And to further complicate the picture, in 2002 a new stone was created in the laboratory called synthetic moissanite, which has some similar characteristics to a diamond and requires professional gemmological testing to be identified.

“In total there are well over 50 stones that can easily pass as a diamond to the untrained eye.”

Cameron says he is especially concerned for people who have bought diamond engagement rings from a website. “In so many cases they have invested with such emotion, yet their purchases turn out to be worthless.”

The advice from both the GAA and DGA for consumers buying gemstones and diamonds is to only do so from a reputable source.

“When shopping for gemstones or diamonds, either online or bricks and mortar, only buy from a respected jeweller, preferably someone who has credentials from the GAA, such as a Certificate IV or Diploma in Gemmological Studies or is accredited with the Diamond Guild of Australia or Jewellery Association of Australia,” says Bill.

“Also every diamond should come with an independent grading report from an accredited gemmological laboratory.”

2007

2006

Alerting Consumers to the Dangers of Buying Gemstones and Diamonds

Media Releases – Conflict Diamonds (Blood Diamonds) FAQs

admin — Fri, 23 Sep 2011 01:02:00 +0000

Conflict Diamonds (Blood Diamonds) FAQs

What are Conflict Diamonds?

Conflict diamonds are diamonds that have been sourced and traded through illegal means in order to fund conflict. The term was coined in the last 1990s when rebels in some African countries used diamonds to fund armed movements against legitimate governments and caused many human rights abuses.

At the height of the problem, diamonds from these sources accounted for around 4% of the world’s diamond supply. With the initiatives the industry has put in place, they now account for considerably less than 1%.

What is being done about the problem of conflict diamonds?

Since the late 1990′s, the world’s diamond industry has been taking steps to address the problem of conflict diamonds. Working with international governments, the United Nations and other humanitarian organisations, two important programs were established in 2003 to ensure only legitimately sourced diamonds are traded. These programs are the Kimberley Process Certification System (KP) and the System of Warranties (SoW). All diamonds traded after 1 January 2003 are required to comply with these programs.

Australia is one of 69 counties that are signatories to the Kimberley Process.

What is the Kimberley Process Certification Scheme?

The Kimberley Process sets rules for the import and export of rough diamonds, ensuring that every shipment of diamonds that crosses a border must be certified, numbered and sealed. The diamonds are shipped in tamper-resistant containers and accompanied by government validated certificates in order to verify the diamonds have been sourced from legitimate sources not involved in funding conflict.

Can you explain how the System of Warranties works?

The diamond industry adopted a System of Warranties to further assure consumers of their diamonds. Once imported and ready to be traded, a written statement must accompany all invoices, guaranteeing that the diamonds or diamond jewellery being sold are from legitimate sources.

Under this system, every buyer and seller of polished diamonds and jewellery containing diamonds must make the following assurance statement on all invoices:

“The diamonds herein invoiced have been purchased from legitimate sources not involved in funding conflict and in compliance with United Nations resolutions. The seller hereby guarantees that these diamonds are conflict free, based on personal knowledge and/or written guarantees provided by the supplier of these diamonds.”

Diamond traders and diamond jewellery manufacturers are required to keep records of their invoices and have them audited on an annual basis.

Where do Conflict Diamonds originate?

African countries where there has been civil unrest: Sierra Leone, Liberia, Ivory Coast, Angola and the Democratic Republic of Congo. Today more than 99% of diamonds are certified to be from conflict-free sources through the UN-mandated Kimberley Process.

Do diamonds provide any benefit to African countries?

Diamonds, like other natural resources, are vital to the economic development and prosperity for a number of countries in Africa and elsewhere in the world. Revenue is used to provide important infrastructure and health and education services.

Many countries rely on the sale of diamonds. The diamond mining industry is the largest single employer in Namibia after the government. In Botswana, it is estimated that 25% of employment is directly or indirectly attributable to diamonds.

What good does the diamond industry do?

The diamond industry employs around 10 million people globally directly and indirectly. Diamonds, like other natural resources, are vital to the economic development and prosperity for a number of countries, not only in Africa.

Diamonds bring joy and happiness to many people, helping them to celebrate the love, commitment and the milestones in their lives.

2007

2006

Alerting Consumers to the Dangers of Buying Gemstones and Diamonds

Media Releases – Conflict Diamonds

admin — Fri, 23 Sep 2011 00:57:29 +0000

Conflict Diamonds

A Statement from the Diamond Guild Australia (DGA) and the Gemmological Association of Australia (GAA)

The DGA and GAA are aware of the illegal trade in conflict diamonds but believe that strict industry programs, backed by the United Nations, which track diamonds from extraction to sale, have significantly helped reduce the trade in conflict diamonds to less than 1%.

The global diamond industry has been working for years to eliminate conflict diamonds from the marketplace. The industry, in conjunction with the United Nations, international governments and human rights organisations, has established a number of successful measures to address the issue of conflict diamonds.

Two important programs have been put in place to assure customers that the diamonds they purchase do not come from countries engaged in conflict. These programs are the Kimberley Process Certification Scheme and the System of Warranties Assurance. All diamonds traded after 1 January 2003 are required to comply with these programs.

The Kimberley Process Certification Scheme sets rules for the import and export of rough diamonds, ensuring that every shipment of diamonds that crosses a border must be certified, numbered and sealed. The diamonds are shipped in tamper-resistant containers and accompanied by government validated certificates in order to verify the diamonds have been sourced from legitimate sources not involved in funding conflict.

The System of Warranties further assures consumers of the source of their diamonds. Once imported and ready to be traded, a written statement must accompany all invoices guaranteeing that the polished diamonds or diamond jewellery being sold are from legitimate sources. Businesses are required to keep records of their invoices and to have these audited annually.

Since the establishment of the Kimberley Process Certification System and the System of Warranties in 2003, the supply of conflict diamonds onto the market has reduced from around 4% of total supply to less than 1% (source: World Diamond Council ). The diamond industry is committed to totally eliminating them.

Australia is one of 71 countries that are signatories to the Kimberley Process, which prohibits the trade in conflict diamonds.

Diamonds benefit an immense population of the world. Diamonds are one of the ways that people celebrate love, emotions and milestones, but they also help employ 10 million people globally, directly or indirectly. More importantly, the revenue obtained from diamond production helps provide vital infrastructure, health, education and economic development for many African nations.

When purchasing diamonds and diamond jewellery, customers should look for retailers who are members of the DGA and the GAA, Australia’s leading authority on gemmology, diamond grading, gemmological and jewellery education and gemmological research.

DGA members have been selected due to their strict adherence to industry best practices and ethical trade, so customers can be sure the diamonds they sell have come through reputable channels. All members of the Guild are trained diamond professionals with recognized qualifications, so they can be trusted to provide accurate information about diamonds.

2007

2006