The Evolution of Diamond Certifications - GIA vs EGL
Finally to reiterate each of the four C's presents an obstacle of knowledge to the novice. The average layman cannot really expect to make any valid quality judgments for himself. At the same time on the other hand he cannot be expected to feel comfortable in blindly and meekly placing himself in the hands of the seller knows little about. To any knowledge the investor has led to his ability to invest wisely and confidently. That is where the FTSE comes in certification it is the subject of our next chapter.
Certification the fifth see. In the past century there have been three great developments in the diamond industry. One with the discovery and exploitation of the vast African deposits. Secondly the introduction I large time and companies of a centrally controlled marketing mechanism for overall production. Finally and perhaps the most important for modern-day investors can introduction anchor gradual acceptance of standards for grading certifying and identifying diamonds.
It all started in 1931 when the gemological Institute of America was established. The going wasn't easy for the fledging diamond grading laboratory at first but gradually the GIA's grading standards gained wide acceptance. Operating independently of any other side of the industry and using increasingly scientific methods to refine the grading standards we talked about earlier the GIA gained a reputation for objectivity and consistency. And it certificates came to be increasingly demanded in diamond transactions along with the bill of sale. In truth it wasn't until this decade the GIA certificates achieved full recognition and usage but the explosion of interest and diamonds as an investment by the public necessitated certification as a means of assuring the investor some measure of protection. Soon the GIA found that it could not meet the demand for the certificates even with three laboratories nationwide.
Competitors sprang up. In 1975 the European gemological laboratory or EGL was established in Belgium. And now has labs in Belgium New York Los Angeles which is great up to 100 stones per day New York alone. The EGL which is based its grading standards on those of the GIA and continues to follow them has been responsible for some of the latest refinements in diamond grading. It is begun to provide more information about cup or portions and other characteristics on at certificates. It also seals both the stone and a microfilm copy of the certificate within a final package to ensure the authenticity of the graded stone. This prevents switching which is sometimes a problem with diamonds.