SOURCE: White Pine Trading LLC

White Pine Trading LLC

August 15, 2013 10:00 ET

WP Diamonds Spots Flaws in Appraisals of Precious Stones

Firm's Study Highlights How Grading Certificates Provided to Consumers Often Contain Optimistic Appraisals of Diamond Color and Clarity

NEW YORK, NY--(Marketwired - Aug 15, 2013) - When consumers buy diamonds, they often gain a sense of confidence and security from the grading certificates provided by jewelers. But a new study by WP Diamonds, one of the world's preeminent buyers of second-hand diamonds, quantifies the extent to which such appraisals tend to overestimate the color and clarity of the stones.

"In terms of clarity, we found that the appraisals graded an average of 1.3 grades higher than the grade determined by our evaluation team, which relies on internationally recognized standards set by the Gemological Institute of America (GIA)," said Matthew Howe, General Manager of WP Diamonds. "Our experts also found that the color grades in these appraisals were approximately 1.9 grades higher than the GIA equivalent."

The WP Diamonds study, which was conducted during the second quarter of 2013, involved 220 evaluations by the Company's graders. For consumers, the takeaway message is clear: "Optimistic grading certificates from jewelers are one thing, but when it comes to the returns consumers stand to receive in the second-hand diamond market when they sell diamonds, what truly matters is the actual color and clarity of the stone as determined by a recognized diamond-grading laboratory, such as the GIA, or respected experts, such as those here at WP Diamonds," Howe said. "Consumers should be circumspect, to say the least, about non-laboratory grading certificates as they can give a very false expectation of resale value."

For its part, WP Diamonds presents its customers with a pricing range based on first-hand evaluations by its valuation team. The company puts a premium on making this evaluation process completely transparent. "We see the dialog with clients as one of the most important services we provide, because our goal is to help them make informed decisions," Howe explained. "Our clients tend to be passionate about diamonds. Ultimately, they understand that true confidence in a diamond transaction comes, not from a piece of paper, but from fully understanding the relative merits of the stone."

About WP Diamonds:
WP Diamonds is a leading online purchaser of diamond jewelry and loose diamonds directly from the public. The Company has operations in the United States, Europe and Asia, and it purchases diamond items of all sizes and qualities. WP Diamonds is part of White Pine Trading LLC, a well-established recycled diamond company, which buys recycled, polished diamonds either loose or in second-hand diamond jewelry, from the very smallest melee to one carat and above. White Pine remanufactures chipped, damaged and poorly cut diamonds, in order to homogenize appearance. It uses a significant proportion of its diamonds in jewelry, and resells the remainder, which is distributed primarily in the U.S. and Asia to a network of industry participants, including retailers, jewelry manufacturers, diamond manufacturers, and dealers. White Pine follows the Kimberley Process and the DTC Best Practices Principles. It is a proud member of the Jewelers Board of Trade, the Jewelers Vigilance Committee and the National Pawnbrokers Association of the U.S. and U.K.

Contact Information