2012

Posted on January 30, 2012 by Greg Miller

I think the best thing about the New Year is getting 2011 behind us all. It was a year of ups & downs for us all that gave us everything from great hope to deep despair. The last few years has taught us one thing for sure. We have learned that we are stronger and smarter than we ever gave ourselves credit for. 

One thing we know for sure is that we are able to survive even through the most difficult times. The last few years have been an obstacle course for all of us both financially and emotionally. As the smoke clears, those of us left standing are better business people and better human beings. Now we need to take all this new found perspective and move forward into what promise to be a better market place.

The upcoming year has many challenges for the diamond business. The economy is recovering but still weak. People are resistant to spending money and the media and politicians think it’s better to keep us in a state of panic then to give us hope. That being said, we need to look at the reality of where we are and where we need to be.

People will still be getting engaged, maybe more so because so many have been holding off. The Census data fromWashingtonshows that marriages are at the lowest rate since the 1930’s and we have seen this first hand. As our economy recovers people that have been holding off will return to the marketplace. There are also many graduations, anniversaries and special events happening every day and we need to work to remind the consumers that jewelry is still the number one gift that people want for these occasions. The opportunity is there if we choose to pursue it.

We can look at these times as the end or the beginning. It is up to each one of us to take control of our direction. 90% of the battle is in our heads and hearts and once we win that there is nothing that can stop us from achieving what we have worked so hard for.

2012 will be what you make of it. Are you working to evolve your business into what the marketplace requires or have you given in to the defeatist rhetoric. It’s your choice…It’s your future.

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Faith

Posted on January 11, 2012 by Greg Miller

It’s an interesting time to own a business selling luxury items. With our entire country being held hostage by panic and fear, consumers are sticking to only buying what they deem as necessities while they wait for things to get better.  

It seems that a majority of Americans have left it to the President, Congress or Big Business to magically create the jobs we need. In reality they can only do so much. The truth is that we can create those jobs ourselves if we all get back to living our lives and go back to spending money at American businesses and stop sending all of our hard earned money to China, India and any other country that make the products that fill the shelves at Wal-Mart and Target.

Consumers have stopped spending money. As a result we have seen sales fall at the counter. Many Retail Jewelers have had to rethink their business models and depend more on buying gold, custom design and repairs to generate the profit they need.   

As we go through these times one thing we could use is a little faith. If you watch the news or read the paper it’s hard to feel good about anything. The media is intent on keeping us in a state of panic because they know that is what sells.

Recently I was riding the elevator in one of the buildings here on Jewelers Row and as usual I was grilling some poor random person on how their business was doing during these tough economic times. It’s no surprise that most everyone I talk to has had a tough year.

As the elevator door opened and my victim made their escape, on walked a well known fixture of Chicago’s Jewelry community. One of the oldest Jewelers in Chicago, a man with over 65 years of retail experience under his belt. He has seen more changes to this industry and the world than you and I could possibly imagine. So I asked him what he thought about the current state of the economy and the jewelry business.

With the serene knowing stare of an enlightened master, he put his hand on my shoulder and said “Tough times don’t last, tough people do.” With that the elevator door opened and he smiled and walked off. As I pondered his statement I missed my floor and had to take the ride back down. This struck me as being one of the most profound, honest and inspirational things that I have heard. This was the kind of answer you could only get from a person with such a depth of experience in life and business. The smile on his face said it all and it gave me great comfort in our future.

These lean times have forced us all to evaluate our businesses and make some drastic changes to how we do things. Even though change can be painful it will be well worth it once we round the corner. Once we have cleared this hurdle our operations will be smoother, our costs lower and our potential greater. As we look to the upcoming months we should do so with a sense of purpose and excitement.

Regardless of the situation life goes on. Engagements, weddings, birthdays, anniversaries and special occasions happen every day and people are buying gifts. In the not too distant future our economy will recover and our days will once again be hectic and profitable. The question is how will we use the time between now and then?

We all fight this battle hand in hand and as we do find our way out of the darkness you can be sure of one thing. You are not alone and the sun will once again rise on all of us. Don’t give up!

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Deception?

Posted on August 26, 2011 by Greg Miller

I have been in the diamond business for over 25 years and during that time I have seen the many in the retail business go the way of the used car lots. What was once an industry of professionals that was rooted in honesty is now a carnival sideshow where they use smoke and mirrors instead of honesty and integrity to try to make sales. Don’t get me wrong, there are still plenty of honest jewelry professionals out there. You just need to know where to look.

In the fight to survive the economy many stores have resorted to less than honest business practices to try to compete with the American Consumers need to get everything at a “too good to be true” price. In my opinion, one of the culprits in helping to perpetrate this fraud are diamonds that have supposedly been certified by EGL-International.

To help you have a better understanding of what is going on I will give you a brief history of the E.G.L (European Gem Lab).   

Founded in 1973 in Antwerp Belgium and at the time was a leading provider of gemological reports outside of the US based GIA. The EGL had a reputation for being a good consistent lab that enjoyed worldwide success. As time went on the EGL-International group had opened affiliated in many different countries. You can now find them in Israel, Hong Kong, Thailand, Brazil, India, South Africa, Turkey and I’m sure eventually Mars. All of these labs are owned and operated independently and you will find everything from accurately graded diamonds to ones that are off by 2-3 grades.

 The problem you face as a buyer is that they are all going under the name EGL-International so it is almost impossible to know which lab your diamond was graded at and many times your “jeweler” will not know either.

I see the junk coming from these other labs come across my desk every day. I see K colored diamonds that are rated a G color on the report or stones with eye visible inclusions getting the grade of VS. This isn’t a mistake, this is fraud.

The Gemological Institute of America (GIA) created the diamond grading scale back in 1953. This was the first widely used scale to identify the quality and value of diamonds. At the time they were the main source for issuing reports on diamonds color, clarity and technical specifications. The GIA has always been notorious for being tough on grades, slow and a bit arrogant. This opened up a need for labs that would work faster and give more favorable grades on diamonds and that is were many of the other labs were born. 

If the GIA gave a diamond a G SI1 grade and another lab would give the same stone an F VS2 grade the diamond can be sold for much more money. The question is though, what is the actual grade of the diamond? Where do we draw the line between difference of opinion and lying? 

When you are shopping for a diamond you need to rely on factual information to make the best choice. The most important factor is the integrity and experience of who you are buying from. Working with a trained, honest professional is the best way to avoid being ripped off.  That being said you also need to take steps to make sure you are not being taken advantage of yourself as well.

When you are considering a diamond purchase you should demand a GIA grading report or a stone graded to GIA standards. Then after you purchase it you should take it to an Independent Appraiser (Who doesn’t also sell jewelry) and have the diamond and report verified. Just because your diamond comes with an official looking piece of paper does not mean anything at all.

If you are one of those shoppers that have gone everywhere trying to get the cheapest price possible you will eventually fall prey to this scam and you got what you deserved. Nothing replaces working with a professional and that does not come for free. It will cost you much more than you saved in the long run.

Make sure your diamond is graded by a lab in the USA, make sure the person you are dealing with is honest and understand that you get what you pay for every time.

Like the old saying goes, “If something seems too good to be true it usually is”.

Good luck out there!

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Gem Labs

Posted on June 6, 2011 by Greg Miller

Many Internet buyers are trying to find comfort in the very exposed world of buying diamonds online by putting their faith into grading reports issued by a Gem Lab.  Many buyers feel that that piece of paper from some faceless entity somehow will protect them from being taken advantage of. The reality is rather that this false sense of security has enabled many less than honest merchants to take advantage of those who think they can become diamond experts by spending a few hours on the Internet.  

The truth is there is no substitute for buying a diamond from an honest seller. When making such an important purchase you need to make sure of not only the quality and value of the gemstone you are purchasing, but also the character of the trusted professional you are forking your hard earned cash over to. Just because the diamond comes with a GIA report means absolutely nothing. I have been grading diamonds for over 23 years and was originally trained by the GIA. I see inconsistencies in their reports on a regular basis. Diamonds are like fingerprints. Every one is unique and needs a close inspection before you even think of pulling out your credit card.

Diamond grading is subjective. When a gem lab assigns a grade to a diamond they do so by seeking a consensus among multiple graders as to their educated opinion of the color and clarity of the diamond.  There is no machine to grade the clarity of a diamond and the consistent and accuracy of color grading machines is suspect. A large majority of the work is done by a grader with a gem scope and a set of master stones. What is a VS2 one day may get and SI1 another.    

As you can guess there is a bigger demand for labs that give easy or fraudulent grades on a diamond. In one example, if you have a 2.00 round diamond that GIA grades a K I1 and you can find another lab that will call it a J SI2 (just one grade higher on color and clarity) it just about doubles the retail price of the stone. There are many “labs” pushing out fraudulent reports and the Internet, Mall Stores and a disturbing number of Independent Jewelers are selling them to the consumer. You need to make sure that all the guarantees you get on your diamond are legitimate and if you follow a few simple steps you can help to avoid being ripped off.

Insist on a report from a Gem Lab based in the United States

  • Only buy from a reputable retailer local or online
  • Have your diamond appraised by a local Independent Appraiser  
  • Examine your diamond under a Gem Scope
  • Ask questions and make sure that all guarantees are in writing 

 My personal opinion is that if you are buying a diamond you stay with one that comes with a GIA, PGS or EGL USA report. I would avoid any lab that is not based in the United States they do not have the same controls or restrictions that the labs here do. When you get a stone with an EGL report verify which lab did the work. There are currently EGL Labs in Turkey, Israel, Thailand, Belgium and India. I see paper from these labs every day and am amazed at the inconsistency in grading and the blatant fraud going on. Don’t let the false hope of an unbelievable price cloud your judgment. You get what you pay for!

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The Anatomy of a Diamond Report

Posted on February 20, 2011 by Greg Miller

When you finally purchase a diamond many times it will come with what your Jeweler may call a Diamond Certificate. This term in itself is a bit misleading. The word “certificate” gives one the misconception that the grade on their diamond has been certified or guaranteed. Nowhere on this mysterious piece of laminated paper is the word certificate so why do they keep using it? These are called Diamond Reports. It says so right on the front in big letters. The truth of the matter is that the first 5 words on the report’s disclaimer are “This report is not a guarantee”.

It could be said that Gemology is a science of educated guesses. Much of the criteria used in grading a diamond cannot be measured or weighed but rather needs to be estimated by combining data, opinion and experience. This being stated, I still suggest you insist the diamond you purchase comes with a report from an accredited Gem Lab that is located in the United States. 

 The Gemological Institute of America (GIA) is by far the most reliable Gem Lab in the world. They developed the grading scale that is used today to grade diamonds and they are responsible for the training and accrediting some of the finest Gemologist in the world. Below is a copy of one of their reports.

The reports are fairly straight forward in their format. Their job is to give you a detailed list of data to help you in the evaluation and identification of your diamond. Below is a brief breakdown of each category.

GIA Report Number • This is the number the GIA uses to identify your report and diamond. Many times the report number will be laser inscribed on the your diamond as the image below shows.

Shape and Cutting Style • This tells you what shape your diamond is. The most popular shapes are the Round Brilliant, Princess Cut, Radiant Cut and Cushion Cut Diamond. We have a page with many of the shapes diamonds have been cut in over the years at our website at www.gregorydiamond.com/shapes 

Measurements • On a Round Brilliant they measure the circumference and the depth of the diamond. On Fancy Shapes they measure the length, width and depth of the diamond.

Carat Weight • Carats refer to a diamond’s weight. The term carat comes from the carob bean which was once used to weigh gemstones because carob beans have a uniform weight. One carat equals 200 mg while 5 carats are equal to one gram.

Color Grade • The color scale runs from D (colorless) to Z (fancy Yellow) think of this as having a small glass of water and introducing yellow food coloring to the glass one drop at a time . With each drop the water in the glass takes on a warmer color and hue. This is how the color grading scale works.

Clarity Grade • When a diamond forms in the earth it is not under perfect conditions. Many impurities are present and they become become part of the diamond. The less foreign material in the stone the rarer and more valuable it is. This is why a one carat diamond can run anywhere from $600.00 to $19,000.00. 

 

Cut Grade • The cut grade category is fairy new on most Diamond Reports. For many years Gemologists have been trying to develop a system for classifying the overall beauty of a diamond. This has been no easy task due to the subjective nature of Gemology. With all the variations of proportion, angles and finish that play into a diamonds beauty it is a difficult job trying to classify what combination yields the most brilliant diamond. You can click here to read an article from the GIA’s website with a more indepth explaination of the tolerances for the GIA diamond cut grading system that is promised to make your head hurt.

Finish • The finish of a diamond is broken down into 2 categories. Polish and Symmetry.

Polish • Polish refers to the quality of the polishing of each individual facet. Is it free from irregularities and grain lines.

Symmetry • Symmetry is how all the individual facets line up to each other. Do the lines flow straight from facet to facet or are there irregularities that cause the lines to miss their intersections.

Fluorescence • Fluorescence is a common phenomenon in diamond.  When examined under invisible ultraviolet rays many diamonds will to glow blue, green, yellow, orange, or a combination of these colors. On a diamond report you will see fluorescence identified by its color and also by its strenth (none, faint, medium, strong, and very strong). The most common color for fluorescence in a diamond is blue which in medium and lower strenths many times will make lower color diamonds look better than without it. Most of the time fluorescence will not have a visual impact on a colorless or near colorless diamond unless it is strong to very strong which can cause a diamond to look milky.

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Certified Diamonds and Unicorns

Posted on January 21, 2011 by Greg Miller

Lots of folks think they can spend a few hours on the Internet and become expert diamond buyers. The first thing you learn from the sites trying to convince you to give them a credit card number is that as long as you buy a diamond that is certified by a gem lab you are protected. All this means is that at some time this diamond was sent to some “lab” where is was measured, examined, weighed and assigned a color and clarity grade by mysterious lab employees that make a living doing this stuff and tell us they are experts. There are many “labs” out there ranging from state of the art to boiler room scams.

In all reality if you walk the lab floor you will find many of the “graders” working in even the largest  labs are in fact recent Gemological graduates with little time in the industry and a small arsenal of experience to access while making their educated guesses. In Gemology you have book smarts and street (market) smarts. I prefer some of the first and a double helping of the later.

I’m not trying to disparage these young Gemological hounds working at the lab. They have worked hard to learn their trade and in time will make their own marks on the jewelry industry. I respect and applaud each one of them. That being said, diamond grading and valuating is as much an art as it is a science. There are so many subtle variances that play into assigning an accurate value to a diamond you need some experience under your belt to make an accurate call. If you don’t have that then at least make sure the person you are buying your diamond from does.

I have been buying and selling diamonds for over 23 years and feel that I still grade to old school GIA values. Anyone that sees diamonds on the market regularly can tell you there has been a visible softening of grading standards which translates to a higher price on your diamond. That’s why these days when I look at certified diamonds from different vendors it drives me crazy to see the inconsistency from all the labs out there. I’m not just talking about the ones pushing fraudulent paper stating over inflated grades but even with the Doris Day of Gem Labs the GIA itself

To put more trust in a piece of paper from some stranger on the internet over a local merchant you can deal with face to face is just stupid and if you get ripped off you deserve it. Don’t be a fool, go support your local economy and make your purchase from a local business that not only can educate you but give you the piece of mind that you have made the best choice. 

I will be discussing different Gem Labs in the future there are so many to choose from but few that put out a respectable product. I will help you wade through the hype and make it easier for you to make the right decision on this very important purchase.

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Welcome to my Blog!

Posted on January 21, 2011 by Greg Miller

My name is Greg Miller and I am the owner of the Gregory Diamond Company an importer of diamonds and manufacturer of diamond jewelry founded in 1995. Our office is located on Chicago’s Jeweler’s Row on the corner of Madison and Wabash in Downtown Chicago.

I have over 23 years of experience in the wholesale diamond business and am GIA trained in the evaluation of diamonds.

During my 23 years in the diamond business I have had the opportunity to work with some of the  largest manufacturers of diamonds in India, Israel and Belgium. During this time I have examined, graded, bought, sold and valuated every size, shape and quality of diamond you can imagine and consider myself an expert in diamonds as well as the inner workings of the supply chain from the mine to the consumer. 

I hope through this blog I can share my experience, expertise and opinions and help give my readers a better understanding of the diamond and jewelry business.

I welcome your comments, ideas, and questions. I am new to Blogging, so this will be a learning experience for the both of us. If you would like to contact me my email is blog@gregorydiamond.com my website is www.gregorydiamond.com and you can follow us on Facebook at www.facebook.com/gregorydiamondco

Regards, 

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