Diamond Investment Scams

A scam is defined in dictionaries as a dishonest way to make money by deceiving people.

Diamonds are one of the most alluring and sought after gemstones in the world. From the very first diamonds that were found in India as early as the 4th Century to the stunning diamonds that can now be bought online this stone has been a valuable investment. 

Where there is opportunity for investment there will always be scammers. Unfortunately there are individuals in the jewelry world who will draw up complex scams to part you with your money. Most diamond dealers are of course not scam artists but it is important if you are thinking of buying a diamond that you be aware of the different types of scams on the market. 

Colored Diamonds

Colored diamonds are ones which have particularly beautiful coloring, are very durable and fetch a high price .They are very rare. These diamonds are Natural Fancy Colored Diamonds are found naturally. 

It is possible these days to produce diamonds that have been treated artificially so that the end result is also an unusual coloring. It is not illegal to produce and sell these treated diamonds BUT a customer must be informed that they are not of natural origin. 

It is best when looking to buy a rare colored diamond to request a diamond certificate that will give details of the color and the origin. 

Carat Weight Scams

The carat weight of a diamond refers to the diamonds weight not its size. Smaller carat weight diamonds usually appear larger with higher cut grades. People often look to buy the biggest diamond that they can afford. This does sometime five a heavier carat weight. 

Prices change sharply from one carat weight to another. Jewelers are allowed to round off carat weights. Unfortunately some will use this opportunity to round off upwards. A 0.69 carat can be rounded off at 0.75 carats. 

This results in the final price being several hundred dollars more. Another point to watch is that a jeweler can advertise a ring with more than one stone as a certain carat weight using the combined weight as a measurement. 

Both these scams can be avoided by requesting diamond certificates that give the exact details of each diamond and their origin. 

Swapping Out Diamonds

A popular scam is that the diamond you choose is not the diamond you actually receive. Again make sure that you get the proper documentation with your diamond. If possible try and pick up a little knowledge to look for markers on the diamond you choose so that you can be sure if it is the same one you receive. 

Watch out for Flaws

Many stunning diamonds have flaws. It is no problem to sell a diamond with flaws as long as these are pointed out to the buyer. Sometimes diamonds are sold already set in rings. They can be set cleverly to hide such flaws. Of course diamonds can be viewed by themselves.

The buyer must be told about any flaw so they can decide for themselves whether to still purchase. In order to avoid such scams become educated about diamonds or take someone with you who is familiar. Make sure that you always receive accurate authentic certificates. 

Be wary of jewelers offering huge discounts remember If it’s too good to be true it probably is!