“...50% Off, 70% Off, and more.” Do jewelers really make that much profit?
No, they don't. If they did, they couldn't be competitive enough to stay in business. The discounts are fictitious, and the reason they can get by with those claims is because it is so easy to fudge on claimed “value” when the item is a blind item where the buyer is unable to determine real value. And this is compounded by so many sellers who are also unable to determine the real value themselves. (Incredibly, diamonds are now even being offered by lumber yards!) They simply pass on information given to them when they buy the diamond from some dealer in New York or elsewhere. If that information is flawed, and the seller can't judge the real value - and the buyer can't either - it leads to all kinds of phony price manipulation that ultimately penalizes the buyer. And to compound the problem, it is not illegal to sell an item for any price the seller wants to, as long as there is no proven intentional misrepresentation of the quality. So the seller can claim any “regular price”, and “subsequent discount” he wants to and still be legal. It is a major problem where the buyer has no recourse.
There are several gemological laboratories that issue diamond grading “Certs” that are supposed to be an unbiased third-party opinion. The oldest and best known of the certs is the GIA Diamond Grading Report. The GIA Report is indeed unbiased, but not always 100% accurate since diamond grading is subjective and different graders, with different levels of experience, will have different opinions, especially on borderline grades. Many other certs are notoriously inaccurate and are extensions of the seller with grades dictated by the seller. But the great shortcoming of all these certs is that they lack a decisive cutting grade, and more importantly a Beauty Grade®, which is the most important factor that controls beauty. Even with the GIA Report there is not enough information on the report to determine beauty or value. “A lab report doesn't describe beauty.”
By contrast, Underwood's Certified Appraisal, which is issued with all of our diamonds, accurately states Cut, Color, Clarity, Carat Wt. and value to the cents. In addition, it includes a Beauty Grade® the single most important number you can know when selecting a diamond because this Beauty Grade number is a direct measurement of the light return, or optical efficiency, of the diamond. And our Certified Appraisal is notarized, making it a legal document. LINK to the Beauty Grade explanation under DIAMOND QUALITY.
At Underwood's, we hold the highest professional titles in the industry as we have since 1957...so we have a valuable reputation to protect. In addition, we issue a Certified Appraisal on each diamond we sell with all grading factors clearly stated. That Certified Appraisal is notarized and becomes a legal document. So the information had better be accurate. By contrast, most sellers simply offer you an opinion of the grade, and even the various gem labs have a disclaimer to that effect when they issue their report. The fact is, while the idea of an “independent” lab issuing a grading report sounds like a great idea, not all of the labs are truly independent. There are documented cases of some labs issuing grading reports dictated by the seller, rather than what the grade actually is. And there are also documented cases of counterfeit and altered reports as well as substituted diamonds that don't match the report. The biggest difference in dealing with a Certified Gemologist with a reputation to protect is that you can go back to him “face to face” and have local recourse if there is a problem with your purchase.