Wednesday, December 21, 2005

Update: A diamond is just a rock

Here's an update to the post 'A diamond is just a rock' from a few weeks ago.

Getting a second opinion on your diamond:

The still-unfolding scandal over diamond ratings is fueling anxiety among both jewelers and jewelry customers.

Laboratory workers at the leading rater of diamonds in the world, the Gemological Institute of America, are being accused of taking bribes to give higher-than-deserved ratings to stones. The GIA, which in October fired four lab workers after a four-month internal investigation, says only a handful of rogue dealers and a relatively small number of stones were involved. But the institute isn't saying how many stones may have bogus ratings. The incident has diamond buyers around the world wondering if they overpaid for their purchase...

This brings up a fundamental question as to the value, specifically monetary value, of any item. A diamond may be forever, but just a rock in the end.

Here's a quote from the article that's worth its weight

...Mark Vadon, chief executive of Blue Nile Inc., a leading online retailer of diamonds and other gems, says it sells diamonds with certificates from both the Gemological Institute and the American Gem Society. He says he considers the GIA case as an isolated incident and still regards the group's gradings as trustworthy.

In addition, Blue Nile has its own team of gemologists to check the accuracy of the grading, because as he says, "There is some subjectivity to it."

The billions of dollars spent world wide on diamonds will be seen as our tulip craze by future historians.


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