Colored Diamond Info
DIAMOND & GEMSTONE INFORMATION => GIA Reports, Diamond Color Grading, Cut Questions => Topic started by: Trinkette on April 29, 2013, 05:36:05 PM
We've touched on this topic in a couple of other threads, so I thought I'd grab the bull by the horns, and make a full thread of it:
I'm wondering how GIA reports now impact wholesale diamond exchanges (and in turn retail sales), compared to, let's say, 20 years ago.
My impression is that it used to be: a couple of guys in the business, who knew diamonds, got together, studied a stone, argued over its beauty, its pluses and minuses and, in turn, bartered over the diamond's worth. It was more about the eye-appeal of a stone and trade experience in knowing and judging stones, than what the stone actually was (by the numbers, so to speak).
Now, however, there is often a GIA report on the table that presents scientifically verified FACTS about a stone – but not necessarily ALL the facts, and certainly, the piece of paper is not able to really "see" the diamond as it appears to the human eye.
So D, what is the impact of a report on inter-trade dealings? How has it changed – if at all – the process of doing business these days?
Great topic Trink!!!
My earliest recollections of trade implications would be from the early '80's.
At that time GIA reports were indeed rare.
Diamonds have always been assorted in the rough to some degree.
Back in the old days ( jeez I feel like grampa) I was exposed to true "wholesale" selling of diamonds.
M Fabrikant was a massive trader. Goods were purchased in the thousands of carats. Even fine goods.
Each lot had a cost. Then, as now, your milage may vary so some of the stones were worth qute a bit more than others in the lot.
They had to make a profit on the lot. Generally that was done by assorting the polished goods before offering them for sale.
Stores generally bought the goods sans GIA reports.
In this regard it was totally different than today.
But the real differences are more fundamental- GIA plays a HUGE role- but the truth is that the entire supply side has collapsed.
With the current structure, internet consumers have removed a few levels from that supply chain.
Primarily brick and mortar stores.
There's a book- the "red Book"- listing every retail jeweler in America. Back in the late '80's it weighed about five pounds.
Now it's 20% the size.
There's a lot less retail (B&M) stores that can make money selling diamonds to the retail public meaning there's a lot less B&M jewelry stores.
A double edge sword.
There's still the "mass merchandisers". Mall stores, big box stores.
In some cases they still sell goods that never see the light of GIA
But finer goods, today, need to have the GIA - or AGSL report to command the price.
I feel that GIA reports pretty much have taken a monopoly effect on the industry. I've seen many companies only take their reports seriously as compared to others.
True indeed- although AGSL has crept up a little.....
But the truth is, there's not a good substitutes, and I don;t see how one can emerge in the current market situation