Buying an expensive piece of jewellery can be a daunting task these days. There is now a flood of information available to consumers, but not all of it is accurate or even correct.

You may read a number of online buying guides, each making entirely contrary recommendations. Things could then get even more difficult when the jeweller makes a further, alternate recommendation.

This article hopes to clear up a few of the myths and misdirections and hopefully give you some guidelines and direction for your diamond purchase.

Most buying guides advise that you only shop at trustworthy, reputable jewellers, but how does the average consumer make the distinction?

In order to build trust with your jeweller you need to listen to the sales talk and read between the lines. This is not difficult if you simply understand the following basic concepts.

If there is no trust, or you feel slightly uncomfortable with a jeweller, walk away! If you do not, you will most likely have problems down the line.

Establish that you jeweller sells significant diamonds with a diamond grading certificate. Your jeweller should have all significant diamonds already graded.

A significant diamond is a diamond that is costly for you. Bear in mind that small diamonds are generally not certified, but some smaller high quality or coloured stones can be exceptionally valuable. For smaller or low value diamonds, the cost of certification may be disproportionate and unnecessary. But if you are paying good money for a specific quality then certification becomes vital.

It is still important to only deal with reputable jewellers even if you are buying very small or inexpensive stones. You should still use the following guidelines by inquiring about larger stones with the jeweller. Once you have established their credibility, you can then safely purchase your smaller stones.

If your jewellers first response to requests for certification is that it is unnecessary, then you should be on alert. Sometimes a jeweller will happily agree to getting a diamond certified but will quote exorbitant prices. This is serves two purposes. It either discourages you from pursuing a certificate or it allows the jeweller to now supply you the ‘correct’ diamond as per their quote or sales pitch.

A specific case in point occurred when a consumer had been offered a significant, uncertified stone for around $3000. Upon insisting on a certificate, the consumer was quoted $1000 for the certification! The fact of the matter is that a stone of the quality quoted actually retailed for around $4000! There should be NO significant difference in price for stones of equal quality, Certification should be included in the cost of the stone.

The jeweller may try sell the diamond to you with a valuation certificate. He may do this in various ways. The jeweller may tell you that a valuation is as good as a grading certificate or he may attempt to pass off a valuation as a grading certificate. He may show you the valuation to substantiate the fact that you are getting the deal of a lifetime, or simply a very good deal.

There are a few problems with these practices. Firstly, a valuation is NOT a grading certificate. A valuation of an uncertified diamond is simply an opinion or educated guess of the quality of a diamond. This is because a valuer will normally evaluate the diamond in the setting, does not have the same sophisticated equipment available to a laboratory and does not grade to the same stringent standards as a grading laboratory.

Secondly, a valuation is usually a statement of insurance replacement cost. A valuation will generally NOT be a good indicator of the true, current retail price of a diamond. Check the fine print on the valuation certificate. You will be surprised.

The ACCC has released advice to the jewellery trade that they should not use a valuation as a selling tool. A jeweller can however offer you a valuation for free or at a discount if you purchase the diamond. This is a perfectly acceptable offer.

A valuation should simply be used for determining your insured value. Nothing else. (There are other types of valuations, but you are less likely to encounter these. Nonetheless, they should not be used as part of the sales process.)

Even though many consumers are now mindful to ask for grading certificates, a proliferation of grading laboratories has added more confusion to the mix. Consumers now have the added task of figuring out which grading certificates to trust and accept.

You should always demand a grading certificate from an independent, internationally recognised grading laboratory. Such a laboratory grades to the highest international standards. It’s procedures, equipment, procedures and affiliations meet the requirements for such recognition.

Again, it is up to you, the consumer, to verify the credentials of a laboratory. The hard way would be to become familiar with the diamond grading process and requirements. Then contact the laboratory directly and ask them to substantiate any claims of international and national recognition as well as equipment and procedures used. This can be an extremely difficult and tedious task. You would require significant knowledge to do this effectively.

A far simpler method for the authentication of a diamond grading laboratory is to stick to the well known laboratories. In Australia, you will mostly come across the GIA, HRD, DCLA, IGI and EGL. A full list of common internationally recognised grading laboratories can be found at www.independentlycertifieddiamonds.com.au You should also verify the status and credibility of local laboratories with the national trade organisation. In Australia, this is the Jewellers Association of Australia (JAA)

It is also important the issuing laboratory of a certificate does not trade in diamonds and is not affiliated to any organisation that does trade in diamonds. This leads to a conflict of interest with the potential incentive to produce lenient gradings for their own stones. Such an affiliation is considered to be highly unethical within the international diamond trade. The laboratories listed above do not trade in diamonds.

Diamonds are an expensive purchase and as such need to be approached with knowledge and consideration. The major reason for the advice given above is to protect you in case something goes wrong. In most cases, you will have a pleasant, trouble-free experience. You will purchase a magnificent gem and you will be happy.

Unfortunately there are still far too many cases where just the opposite has happened. By following the simple advice above, you will ensure that you choose a trustworthy jeweller. These steps all result in ensuring that you have recourse when something does go wrong.

If you purchase without an internationally recognised grading certificate, from an unethical jeweller, you recourse will be limited.

With a recognised grading certificate, everyone is assured of the quality of the diamond. All that remains is to agree on a fair price.