An update on EGL certificatesSeptember 26, 2014
In possibly the most important news in the diamond industry this year, RapNet the largest wholesale diamond trading network is refusing to list for sale diamonds with European Gemmological Laboratories (EGL) certificates from 1st October 2014.
This is important news for us, as we commonly get diamonds from EGL to value. It has been our experience that diamonds graded by EGL are frequently more than 2 grades higher than the Gemological Institute of America (GIA) industry standards.
This frequent overstatement of diamond quality grades has misled many diamond consumers and it is a sign of a positive and maturing diamond trade that this action has been taken. Consumers have the most to gain from this.
A search of current wholesale prices shows a 1 carat diamond with a GIA certificate is worth an average of 20% more than a diamond with the same grades but provided with an EGL certificate. This anomaly has lowered trust and created confusion in the diamond retail marketplace.
RapNet is a highly influencial marketplace and there is no doubt this action will have a significant affect on the availability of diamonds with EGL certificates. How the industry changes from this point will be interesting to watch.