News letter 1
Diamond Buying
My name is Frank Damiani, and I have been the principle diamond buyer for Damiani Jewellers for over a decade.  I would like to share some thoughts about shopping for diamonds and how the internet has affected our industry.
Most people do a little research before making a large purchase.  If you understand the basics then you will feel more comfortable about making that purchase.  If you surf the net you will find hundreds of suppliers who will sell you a diamond and provide basic information on how diamonds are graded.  Most of these sources offer you a certificate or description to help you make your decision.  This is where the confusion usually begins.
Grading certificates can come from a wide variety of sources.  Some of the more popular ones are: 
GIA (Gemmological Institute of America)
AGS (American Gemological Society)
EGL (European Gem Labs)
IGI (International Gemological Institute)
Zenhokyo (Japanese lab, also in Israel)
Gem Scan (GS) (gemologists are GIA trained and has three offices, Toronto, Dallas and Mumbai)
Many other smaller labs like Harold Weinstein, etc.
One would assume that clarity/colour/cut grading is standardized from lab to lab but, unfortunately, this is not the case.  What people don’t realize is that not all laboratories grade with the same high degree of strictness and accuracy. The result is that some grading reports are more accurate and, therefore, more reflective of the true intrinsic value of the diamond than other, weaker, grading reports. If you are not aware of these inconsistencies then most people will end up buying the weaker (or juiced) grading report because they think they are purchasing the better value diamond.  I have seen the same stone graded by the G.I.A. as an SI-1 clarity G colour, and then be re-graded by EGL (Israel) as a VS-1 clarity E colour.
I spend hundreds of hours a year evaluating diamonds for my store.  It has taken me over 10 years to become an expert purchaser and I continue to learn every time I view a stone.  Understanding inclusions and how they affect the beauty and durability of a diamond is one of the keys to being a successful buyer in my profession.  For example, the SI clarity grade is one of the toughest to buy.  I avoid solid black inclusions because they are more visible than scattered or white inclusions.  I also avoid inclusions that break the surface or are on the edge of the stone because these types of inclusions will weaken the stone making it more susceptible to chipping.  I reject stones that are visibly fluorescent and look oily blue or milky white in natural light even though these diamonds can trade for up to 30% less than the same stone without fluorescence. An inexperienced buyer will jump at these “good” deals.  Some retailers seek out these types of stones to make more profits by selling these stones to unsuspecting customers, but most of these stones remain hard to sell to experienced buyers, even with the reduced price.  Diamond manufacturers have found a new distribution channel for these types of less desirable stones.  It’s called the internet.

My simple formula for buying a diamond is as follows:
*You must look at several diamonds with your own eyes and examine them with 10x power magnification.  What look better usually costs more in the diamond business.
*Larger stones (of equivalent grading) cost more than smaller stones. 
*A cleaner, less included diamond costs more than an included diamond.
*White or colourless diamonds cost more than tinted ones of equivalent size and weight.
*Well cut diamonds are better proportioned, reflect light better and cost more than poorly cut stones.  However, some cutters leave “padding” or extra weight at the girdle of the stone to make it weigh more and therefore charge the unsuspecting consumer more for a poorly cut diamond.
Asking a family member or friend to recommend a trusted jeweller is usually a good place to start. As they say ‘word of mouth’ is the best form of advertising! You should always buy from someone who has experience and can offer you after sales service as well as a fair return/exchange policy. Most customers will return with their rings for sizing, cleaning, stone tightening or repair.  A jeweller who you know and trust and one you have purchased from before will usually go out of his or her way to give you good service.
You should be offered an independent diamond grading lab report with each diamond.  Our industry generally acknowledges the fact that the best diamond grading reports are done by the Gemological Institute of America (G.I.A.). The G.I.A. is a non-profit organization which originally invented and has since standardized the diamond grading system that is used the world over.  Most of our diamonds come with either a G.I.A. grading report or a Gem Scan grading report.  Gem Scan gemologists are G.I.A. trained and I have found their grading reports to be generally accurate and useful, but not as thorough as G.I.A. reports.
Diamonds are like snowflakes in that each one is unique. No two are exactly alike! Sometimes the small but important differences that exist between diamonds are difficult to distinguish. But by using your eyes and a 10x loop to compare stones and their respective grading reports you will be able to distinguish the differences between borderline stones and truly brilliant specimens.  At Damiani Jewellers you will be able to look at two or three diamonds at once so you can compare how each diamond reflects light accompanied by a diamond specialist who can answer your questions.
Our store operates out of a low cost Power Center.  Our lower expenses and higher volume sales allow us to be the most competitive full service jewellery store in Canada.  Usually our loose diamond prices will be as competitive as those found on internet retailer sites.  I invite you to view our assortment of diamonds and compare our prices with theirs.  Our diamonds have been individually selected by myself and I can guarantee you that I try to buy the best looking, highest quality stones, avoiding borderline diamonds that have hard to spot problems.
High quality diamonds are rare and expensive.  Most young men I speak to are very much in love and want the biggest and best stone possible for their fiancé.  I always advise them to buy what they can afford, without going into debt.  There’s always the option of upgrading later in life.  Most jewellers will take your original diamond and credit it towards a bigger and better diamond.
If they are buying a larger diamond (0.75ct and up), I usually suggest a simpler setting that shows off the diamond.  Buying a complicated, busy or delicate design will require more care and usually leads to durability issues down the road.  Remember that the ring should be comfortable and durable so that it will give many years of pleasure.
What guarantees should I expect?
Most reputable companies will stand behind their products.  What does this really mean?  Over the last twenty years in business I have only seen a handful of items that qualified as manufacturer defects and were repaired and/or exchanged by the retailer/supplier.  What I usually see are damaged rings that were dropped, banged or twisted.  This type of damage is only going to be covered by an insurance policy, so it is important to insure your expensive jewellery.  We suggest going through your home insurance to protect your purchases since it is the most cost effective method to achieve ‘peace of mind’ (for example, usually less than $200/year for a $12,000 ring). Insure your ring and have it periodically inspected to ensure that it is in good shape. Beware of retailers promoting their “guarantee” and the “small print” behind them. Your best strategy is to buy the best value and insure the ring yourself.
I have also spoken to many young men that are willing to go out of country to buy “tax free”. I think this strategy is misguided.  Firstly, you are going out of your way in most cases and this takes time and money.  Secondly, what happens if this stone is not to your satisfaction after you purchase it and get it checked out independently?  Returning the diamond then becomes a big inconvenience.  Thirdly, there is the issue of bringing the ring in across the Canadian border.  If you do not declare the item, avoiding applicable taxes and duties, you run the risk of getting caught and all the negative consequences this can bring.  Fourthly, Canada has eliminated the 10% excise tax on diamonds so the only tax you pay is the sales tax.  If you order a diamond on line, to be delivered into Canada, you will pay the same HST at the border plus the delivery and insurance costs, and sometimes duties on top of that as well.  You should insist on a proper bill of sale and an independent diamond report from a reputable source like GIA, AGS or Gem Scan.
Buy from a store that has a large assortment of loose diamonds and engagement ring styles.  We have hundreds of designer styles to choose from and we encourage our customers to come in and try on as many rings as they like. Our rings are not brass samples but the real thing!  By trying on our rings you will know exactly what your finished ring will look like, thereby eliminating the chance that your ring looks different from the sample.  Similarly, if you want to buy a 1.0ct stone, try on rings that are designed to have a 1.0ct. center.  If you fall in love with a style designed for a 2.0ct. center diamond ring and you want to put a 1.0ct. centre stone in it, the finished ring will look different from the sample and therefore not as appealing. This is where we can advise you on your purchase and match the right diamond with the right size setting.
If you want to totally surprise your fiancé and don’t have a clue what style she may want then I would suggest a simple solitaire setting.  Firstly, it is inexpensive usually starting from $450.00. Secondly, you can easily remove the center stone and reset it in a style that she likes at anytime in the future (you will recoup the gold value of the original ring as a trade-in for the new setting).
So let’s recap some of the important points:
*Buy from a full service reputable jeweller that offers a selected inventory.
*Buy from a company that offers a large assortment of diamonds and ring styles to choose from.
*Buy from a company that will supply a reliable diamond grading report with your purchase.
*Make sure you take the time to compare diamonds and use your eyes as a guide.
*Buy from an experienced sales associate that can explain the different strengths and weakness of each stone, and that can explain the contents of the diamond grading report in plain English.
*Buy locally (within a 2 hour radius at most) because you will need service down the road.
*Insure your ring with your home insurance company.  Supply them with a copy of the appraisal and diamond report.
*Have you ring inspected periodically (every 6 months) by your jeweller.
*Buy from a company that can deliver value and competitive pricing.  Avoid jewellery stores in high cost locations.  It is very difficult for them to give you value and competitive pricing.
*Don’t let marketing confuse you, for example: 50% off sales, life time guarantees, life time trade-ins.  You should always buy the best stone value for your hard earned money.  Marketing is the art of making you pay more.
*If you buy well at the beginning your diamond can be traded in anywhere for a larger stone.
At Damiani Jewellers, we do all the above for you.  This year will be our 51st year in business. The experience we have gained and the diamond and jewellery sources we have developed over the years make our pricing and value very hard to beat. We look forward to serving you!