Prevent Getting Swindled When Buying Diamonds
As jewelry lovers ourselves, we understand the passion you share with your customers as you create or find the perfect pieces of jewelry that mark their special life moments. You’re also creating lasting and trusting relationships as they come back to you for repeat purchases.
When your customers turn to you, you want them to feel confident they are getting what they pay for. That confidence starts with you – making smart, safe and secure diamond and gem purchases for your inventory.
Staying vigilant and knowing how to lower your chances of vulnerability to scammers is the best way to protect yourself, your business and the customer relationships you’ve worked so hard to build.
Here are five tips to buying diamonds and gems safely and smartly for the sake of your business and bottom line:
Tips for Buying Diamonds
1: Watch out for unsolicited phone calls or emails
According to the Gemological Institute of America, sellers may use unsolicited phone calls or emails to advertise beautiful gems and tell prospective buyers they can make a large profit “buying direct from the source”.1 You may feel pressure to act fast or risk missing the sale without consideration for the long-term consequences of buying from that type of seller.
2: Don’t let the promise of profit cloud your judgement
A great rule of thumb, if the offer sounds too good to be true, it is. Gem and jewelry scammers prey heavily on those who are most concerned with making a profit, especially in times of social or economic turmoil. Be vigilant and make sure to avoid promises of quick cash. The security of your business depends on it. Educating yourself on other types of scams you may be vulnerable to is another great way to ensure safe and secure purchases.
3: Shop and purchase in person
In the past decade, and especially in the last year when most of our lives existed in the virtual landscape, the vast majority of buying and selling diamonds and gems have moved online. Scammers take advantage of this by posting misleading photos and information that are convincing to even the most seasoned professional. If you are buying from a new seller, and it’s possible, view and purchase the gems in person and talk to the gem specialist on staff if there is one.
Scammers have been known to switch out the gem between the first viewing and when the jeweler completes payment, so it is crucial to inspect the gem again before following through with the transaction to ensure the gem you are buying is, in fact, genuine and has not been switched out for a lab-grown look-a-like.
Completing an inspection with your own eyes — once when shopping and once before purchasing—will allow you to feel twice as confident about what you’re buying. More and more lab-grown diamonds and gems are being passed off as real, so it’s important to know what to look out for when you’re visiting in person.
4: Do your research
Steps such as requesting and checking references, requesting identification and checking reviews of the buyer online are simple but critical steps to make sure you can trust the seller. However, you can skip all these steps with the Zing® platform’s Diamond Marketplace, powered by IDEX, which allows you free and transparent access to inventory from suppliers around the globe. We’ve done the checking and verifying for you and created an excellent online resource where you can view and purchase worry-free from trusted and verified sellers.
5: Know what’s covered
While you should know the basics of what is covered under your insurance policy, there may be questions about what’s covered when it comes to buying scams. It’s crucial to know exactly what's covered and what isn’t so you can react quickly and take the needed action to protect your business should you fall victim to a gem or jewelry buying scam.
Make sure you’re working with an agent who is an expert in Jewelers Block policies. They'll make sure your business has enough insurance coverage to protect your inventory along with your business personal property.
1 https://www.gia.edu/gia-news-research/get-rich-quick-gem-scams, GIA, Russel Shor, 2016.