Dear Bourse Member,
The World Federation of Diamond Bourses president Ernie Blom put out an open letter on diamond grading, on Nov. 21, 2014.
As Canada`s only diamond trading organization and on behalf of the Board and with regard to this issue, the Diamond Bourse of Canada is fully supportive of the WFDB`s stance on the overstating of grading and we are in agreement on the terminology in regards to this matter.
The DBC recognises the need for increased transparency and honesty in the manner in which diamonds are traded and sold to consumers.
We advise all our members to adhere to the DBC code of ethics and to act at all times, in accordance with the highest standard of business ethics, personal integrity, honesty, including business practices that do not mislead or deceive.
As a Bourse member and supplier, it is your responsibility as a seller to ensure that the diamonds you sell are accurately graded to the standard accepted in the global diamond industry, which is the GIA.
As Mr. Blom stated, “ethical grading and certification are the most basic principles of the industry and these cannot be compromised. “
David Gavin, President
DIAMOND BOURSE OF CANADA
(Jeweller Magazine, Stephanie Chan)
The Jewellers Association of Australia (JAA) has taken steps to improve consumer confidence in diamond grading by publishing a list of six “approved” diamond grading laboratories.
Blom: Open Letter Regarding Over-Grading Certification
(Rapaport, By Ernie Blom)
The diamond industry is facing a serious challenge to its integrity, which could lead to major consumer confidence problems, if diamonds are sold with overstated certification. I want to stress that this is an industry problem that must be resolved by the industry in order to retain consumer confidence in our product and sustain and develop the international diamond trade.
Recently, awareness was raised regarding problems existing within a specific laboratory group and the overstating of grading from certain laboratories in this group, which has led to the exclusion of said laboratories certificates by the Rapaport Group.
Overgrading is not just a legal issue, it is an ethical issue facing the diamond and retail industry.
(Rapaport Magazine, Martin Rapaport)
Is it okay to sell a diamond as a G color when the color is really an N? How about if the G is really an L? Shockingly, a lot of the people in the diamond trade think that it’s perfectly okay to use third-party diamond grading reports to overstate the color and clarity of the diamonds they sell.
Rapaport Calls for End to Rampant Over-grading of Diamonds
Cites Threat to Industry and Calls for Full Disclosure to Consumers
PRESS RELEASE, November 10, 2014, New York … Martin Rapaport, the chairman of the Rapaport Group, has released a comprehensive editorial titled “Honest Grading” that discloses the over-grading of over 100,000 diamonds, valued at more than a $1 billion. Rapaport calls upon the legitimate jewelry trade to reject those selling over-graded diamonds that fool consumers into believing they are getting better diamonds than they are receiving.