THE TOP TEN MISTAKES MADE WHEN PURCHASING A DIAMOND 1

THE TOP TEN MISTAKES MADE WHEN PURCHASING A DIAMOND 1

THE TOP 10 MISTAKES MADE WHEN PURCHASING A DIAMOND There's no denying that most marriage proposals still involve an engagement ring that will cost the person popping the question a hefty chunk of change. The last thing anyone wants to do is get it wrong. The diamond business can be as cold as ice and it preys on most consumers by providing a combination of misinformation and unethical sales techniques. So before you buy a hunk of cubic zirconia online thinking it's a diamond, be sure to work with a jeweler that is knowledgeable, ethical and has your best interests at heart. ADX understands that selling the diamond is only the beginning. Once you've purchased a diamond someone still needs to set it into your jewelry, offer a comprehensive guarantee should something go wrong and help you care for it for a lifetime. We pride ourselves on our commitment in ensuring that our clients are fully informed when it comes to the tricky task of buying a diamond. We've come up with this basic informational guide that can help you find a rock that fits your budget and your beloved's finger. 2 THE TOP TEN MISTAKES MADE WHEN PURCHASING A DIAMOND

THE TOP 10 MISTAKES MADE WHEN PURCHASING A DIAMOND With a purchase that puts this much pressure on you, it's important for every consumer to be aware of the top 10 mistakes to avoid when buying a diamond: 1. Buying a low quality diamond from a shopping mall jeweler because it's "on sale". 2. Assuming a designer brand means a higher quality diamond. 3. Not knowing or understanding the 5 C's well. 4. Making a decision without knowing your beloved's style. 5. Buying a diamond without viewing it under magnification. 6. Buying a diamond with a thick girdle. 7. Not knowing the difference between an appraisal and a lab report. 8. Not understanding the importance of depth and table percentages. 9. Not understanding florescence and its effect on a diamond. 10. Not getting the customer service, professional guidance and guarantees that you deserve. At ADX we offer a FREE one-hour education consultation for every prospective client. We'll teach you all the tools and tricks on how to buy a diamond like an expert with absolutely no obligation to purchase. We ask that you leave your credit card at home on the first visit no buying, just learning. We encourage you to shop around. Our prices are extremely competitive and our service is friendly, knowledgeable and very professional. PLEASE CALL OR E-MAIL US TO SET UP YOUR COMPLIMENTARY DIAMOND LESSON TODAY! Phone 403.262.5212 or Toll Free 1.877.322.7287 contact@abdiamond.ca THE TOP TEN MISTAKES MADE WHEN PURCHASING A DIAMOND 3

4 THE TOP TEN MISTAKES MADE WHEN PURCHASING A DIAMOND

Mistake # 1 Buying a low quality diamond from a shopping mall jeweler because it's "on sale" Most diamond retailers are dropping like stones. That's mostly due to the fact that the diamond and jewelry business operates using an outdated business model. The basic model is characterized by a fancy store that is located inside of a shopping mall that has very expensive rent, significant advertising costs, huge lines of credit, massive insurance costs and pushy commissioned sales people who are usually poorly trained. In order for this business model to be effective, large mark-ups (normally 100% to 300%) are crucial. To make things worse, many chain stores are forced to reduce the quality of their diamonds so that they can achieve the mark-up they require in order to earn a generous profit to afford their excessive overhead. At ADX, we do business differently. We've chosen to operate in an office space rather than expensive retail space. Our marketing is predominately internet based and we don t carry an excessive inventory. Because of these reasons, servicing interest on a line of credit is not required and neither are the major insurance costs that go with a large inventory. Our highly-trained and knowledgeable staff is compensated strictly by salary, so NO PUSHY SALES PEOPLE are present. However, our biggest advantage is that ADX has a database that is connected to over 280 different diamond cutting factories, providing us with thousands of diamond choices for our consumers at significantly reduced rates compared to our competition. THE TOP TEN MISTAKES MADE WHEN PURCHASING A DIAMOND 5

6 THE TOP TEN MISTAKES MADE WHEN PURCHASING A DIAMOND ASSUMING A DESIGNER BRAND MEANS A HIGHER QUALITY DIAMOND

Mistake #2 Assuming a designer brand means a higher quality diamond The power of branding and advertising can convince people to spend two to three times more for the exact same diamond because it's perceived to be a higher quality thanks to fancy packaging or a designer label. Whether its furniture, electronics, clothing or jewelry - quality should always be the most important factor when purchasing an item. Unfortunately, higher quality is not necessarily associated with a particular brand. As a result, many consumers are paying far too much for a diamond when they shouldn t be. At ADX, our advice to you is to spend a little time learning about diamonds and you will save thousands of dollars without sacrificing quality. THE TOP TEN MISTAKES MADE WHEN PURCHASING A DIAMOND 7

8 THE TOP TEN MISTAKES MADE WHEN PURCHASING A DIAMOND NOT KNOWING OR UNDERSTANDING THE 5 C S WELL

Mistake #3 Not knowing or understanding the 5 C's well While a stone doesn't have to be flawless to be beautiful or precious, subtle differences in quality make dramatic differences in the price. You've probably heard diamond experts talk about the 4 Cs (color, cut, clarity and carat), however, at ADX we've added an additional "C" (certification). The Gemological Institute of America (GIA) is the inventor of the modern day grading system and is the world s foremost authority in the diamond industry. We recommend that you start with a brief intro of the 4 C s developed by GIA by viewing their short minute video on the 4 C s which you can view by visiting www.gia.edu. There is also plenty of material available online including in our own educational section regarding ADX's 5 C's available on at www.abdiamond.ca. We invite you to visit our office and spend an hour with us to view and learn about different colors, clarities, cuts, carat sizes and certification. This session is extremely beneficial in determining which factors are most important to you. You will be able to hold, see and examine the differences in person, allowing you to make an informed and intelligent diamond selection. If you are unable to attend in person, you can also book a phone appointment online with one of our diamond specialists so that we can ensure that you have a firm understanding of the 5 C s. Before purchasing a diamond, you should do your homework, learn the 5 C's and work with a jeweler that you can trust. THE TOP TEN MISTAKES MADE WHEN PURCHASING A DIAMOND 9

10 THE TOP TEN MISTAKES MADE WHEN PURCHASING A DIAMOND MAKING A DECISION WITHOUT KNOWING YOUR LOVED ONE S STYLE

Mistake #4 Making a decision without knowing your loved one s style After you ve fallen in love with a stone, the next step is figuring out what to put around it. An engagement ring should be a timeless, classic symbol of your love that will last forever. Every woman adores a diamond ring, but they will definitely have a distinctive preference when it comes to the style or category of their much awaited engagement ring. Since she'll be wearing it every day for many years, it's important to consider her personal style. Does she prefer vintage, simple, classic, avant-garde or modern designs? Her lifestyle comes into play as well. You'll need to consider her profession, daily activities and whether her ring will withstand her lifestyle. Balancing personal style with lifestyle can be challenging so if you're not sure what would suit her best, you have some investigating to do! HELPFUL TIPS: The next time that you re out shopping together, stop by a jewelry store and have her try on some rings to get a feel for what she likes. (Be careful not get too caught up in the moment and be tempted to pay excessive retail prices.) Talk to her mother, sister and friends (that is, if you can trust them to keep a secret!) You may have a female co-worker or friend that will provide you with valuable insight. Ask ADX to send you a variety of diamond design links from designers located all over the world. Bring her along for the first visit! More and more couples are designing engagement rings together. THE TOP TEN MISTAKES MADE WHEN PURCHASING A DIAMOND 11

BUYING A DIAMOND WITHOUT VIEWING IT UNDER MAGNIFICATION 12 THE TOP TEN MISTAKES MADE WHEN PURCHASING A DIAMOND

Mistake #5 Buying a diamond without viewing it under magnification Before you purchase a diamond that will be sitting pretty on her left ring finger, nestled in a tennis bracelet or pronged on a pair of earrings, you want to know that it's good quality. But it's hard to be sure especially since the naked eye can't tell the difference between what makes one ring more expensive than another. It's surprising as to how many people visit a jewelry store, spend thousands of dollars on a diamond and never examine it. Professionals within the industry would never contemplate buying a diamond without first thoroughly examining it. Don t ever purchase a diamond without taking a good look first! When you meet with us for a diamond lesson, we will show you all the various diamond grades with the appropriate magnification tools. There are also many tricks that some jewelers use to enhance the appearance of their products and we will explain how to watch out for these tactics. Before you spend your hard-earned money, it s best to put some time in to ensure that you receive the best possible value for your dollar. THE TOP TEN MISTAKES MADE WHEN PURCHASING A DIAMOND 13

14 THE TOP TEN MISTAKES MADE WHEN PURCHASING A DIAMOND BUYING A DIAMOND WITH A THICK GIRDLE

Mistake #6 Buying a diamond with a thick girdle This is an area that you will not find many other jewelers talking about. It s been going on for quite some time now. Start by looking at the diagrams presented below. These diamonds both have great table and depth percentages and they appear to be exactly the same from a top view. 1.00ct 0.90ct WHY DO YOU THINK THAT THE CUTTER WOULD CUT A THICK GIRDLE? It s the widest part of the diamond, which equals weight, which, in turn, equals a higher justified price. The price difference between a 0.90ct and a 1.00ct is approximately $1,500 to $2,000. This is a very significant financial incentive for diamond cutters and jewelers. In fact, over 50 percent of the diamonds on the market today have thick girdles. The ideal girdle is classified as thin to medium. Very thin girdles are prone to chipping and should be avoided as well. THE TOP TEN MISTAKES MADE WHEN PURCHASING A DIAMOND 15

16 THE TOP TEN MISTAKES MADE WHEN PURCHASING A DIAMOND NOT KNOWING THE DIFFERENCE BETWEEN AN APPRAISAL AND A GEMOLOGICAL LABORATO- RY REPORT

Mistake #7 Not knowing the difference between an appraisal and a gemological laboratory report Appraisal An appraisal s function is to provide a retail replacement value for a piece of jewelry and is typically used for insurance purposes. There isn t a standard protocol for appraising and not all appraisers are qualified or unbiased. It is relatively common to see the same piece receive radically different appraisals from different laboratories in terms of dollar value and quality grading. As a result, it s always wise to ensure that you re dealing with an appraiser that has a strong reputation and the credentials to prove it. Gemological Laboratory Report A gemological laboratory (lab) report is a document prepared by highly-trained diamond professionals with advanced tools and technologies. It's a complete analysis of a stone and accurately documents specifics such as carat weight, dimensions, clarity and color grades. It doesn't state any type of monetary value, as the report is designed to be accurate and useful, regardless of the diamond market at any particular time. The quality of the stone should never change unless it is damaged. Just like appraisers, diamond lab results can vary from lab to lab. ADX places its trust in the Gemological Institute of America (GIA), which is considered to be the worldwide standard for evaluating diamond quality. This prestigious laboratory is the author of the 4 C s, is the world s leading gemological research centre and has become an institution with more than 200,000 graduates from 3 schools in 10 countries. With the proper paperwork, such as a GIA lab report, you can be certain that you know what you re about to buy. You can also be an effective shopper comparing apples to apples and oranges to oranges. You don t have to rely on the seller and their abilities, equipment and partiality. Given the vast number of consumers that have been misinformed, we strongly encourage you to ensure that you receive a reputable lab report and know how to read it when purchasing a diamond. THE TOP TEN MISTAKES MADE WHEN PURCHASING A DIAMOND 17

NOT UNDERSTANDING THE IMPORTANCE OF DEPTH AND TABLE PERCENTAGES 18 THE TOP TEN MISTAKES MADE WHEN PURCHASING A DIAMOND

Mistake #8 Not understanding the importance of depth and table percentages It is very common for consumers to embark on a quest to seek out a diamond of a specific size, color and clarity for the best possible price without considering the way the diamond has been cut. This typically results in purchasing a diamond without any sparkle. Knowing the right table and depth percentages will ensure that your diamond is cut properly with the correct proportions to maximize fire and brilliance. Depth percentage is the depth of the diamond (table to culet) divided by the average girdle diameter of the diamond. The higher the number, the deeper the stone will be. The lower the number, the shallower the stone will be. If the cut is too shallow, light escapes out the bottom and the diamond loses brilliance. If the cut is too deep, light is lost out of the side and the diamond appears to be dark or dull. Table percentage is the length of the table divided by the average girdle diameter of the diamond. The table acts as a window into the diamond s interior and greatly influences its brilliance (depending on the shape of the diamond, these percentages will differ). There are many different table size preferences in the diamond industry, however, modern research has shown that a table that is very small or very large tends to negatively affect a diamond s appearance and cut grade. THE TOP TEN MISTAKES MADE WHEN PURCHASING A DIAMOND 19

NOT UNDERSTANDING HOW IMPORTANT THE EFFECT OF FLORESCENCE IS ON A DIAMOND 20 THE TOP TEN MISTAKES MADE WHEN PURCHASING A DIAMOND

Mistake #9 Not understanding how important the effect of florescence is on a diamond Fluorescence is a phenomenon that occurs when there is a presence of nitrogen in a diamond. This causes the diamond to glow blue (and sometimes green, yellow or orange) when exposed to ultraviolet light. Approximately 25 to 35 per cent of diamonds exhibit some degree of fluorescence. In some cases, diamonds with fluorescence can appear hazy, oily or foggy. The GIA grading system of fluorescence is as follows: None Faint Medium Strong Very Strong ADX will work with you to provide a detailed understanding of fluorescence and how to detect it. THE TOP TEN MISTAKES MADE WHEN PURCHASING A DIAMOND 21

NOT GETTING THE CUSTOMER SERVICE, PROFES- SIONAL GUIDANCE AND GUARANTEES THAT YOU DESERVE 22 THE TOP TEN MISTAKES MADE WHEN PURCHASING A DIAMOND

Mistake #10 Not getting the customer service, professional guidance and guarantees that you deserve Anyone can sell a diamond, but would you trust buying a diamond from just anyone? Many people in the jewelry industry possess limited knowledge of diamonds, so their ability to guide you in making the best diamond purchase is limited as well. At ADX, all of our Diamond Consultants have successfully completed Gemological Institute of America (GIA) courses and are GIA graduates. A description of a diamond and the actual diamond can be two very different things and subtle differences can make an enormous difference in the beauty and the value of a diamond. So even when a diamond appears to be exactly what you are looking for at the price you want to pay, it may not be. We will tell you everything we know, as well as show you the difference between diamonds those that you should purchase and those that you should stay away from. There is no substitute for experiencing the diamond first hand - you need to hold, feel, see and compare diamonds in person. Most sales people don t want to tell you everything about what you re buying because they are paid on commission, so there is incentive to make the sale at all costs. Conversely, when working with a salaried representative at ADX, there's an emphasis on providing the best customer service possible. We are dedicated to providing you with as much useful information as possible so that you are equipped to make an informed and intelligent diamond purchase decision. At ADX, we're committed to maintaining our strong reputation in the market. It is of the highest priority to us that our clients are continually impressed with the way we do business. As such, we strive to ensure that you are dealing with the most experienced and professional diamond and jewelry specialists. Not only do we offer the best customer service in the Canadian market, we also take pride in all of our merchandise: all of our diamonds come with an appraisal, lab report and a lifetime warranty. A beautiful diamond speaks to us and when you see it in front of you it is easy to understand why it's the universal symbol for love. THE TOP TEN MISTAKES MADE WHEN PURCHASING A DIAMOND 23