Most retail consumers lack the ability to determine the identity and quality of gemstones. That is where independent, third-party gemological laboratories exist to support both the buyers and sellers in completing their transaction - fairly and transparently.
Gem labs, or more formally known as gemological laboratories, exist as a specialised professional service to offer independent evaluation of an item related to gemstones. This evaluation basically includes the identification of the materials and detection of any treatment or enhancements artificially performed on the item, altering its original visual appearance. More labs are starting to offer geographical origin determination for certain gemstones as different origins often command different prices in the market, and some labs also provide objective quality grading to help consumers understand the quality of the items they are buying.
With this context, consumers can consider the use of a gem lab’s services in these instances:
Purchase of item conditional to gem lab’s evaluation
You are genuinely interested to buy a particular jewellery and your seller has shared with you the details of the jewellery, particularly the identity of the gemstone(s), their treatment status and potentially where those gemstones were mined from. These gemstones do not have any independent, third-party evaluation. In such cases, to protect both the buyer to only purchase what is intended and the seller from after-sale dispute, we recommend that the transaction becomes conditional on what the third-party gem lab assess it as. That is, with or without a refundable deposit, let the seller of the jewellery piece send the item to a gem lab of the buyer’s choice.
Thereafter, (1) the transaction proceeds if the details of the item is what the seller has claimed, or (2) the transaction is cancelled with the refundable deposit returned if the gem lab has independently determined details of the item different from what the seller has claimed. Therein also lies a third option for the transaction where the price can be renegotiated if the details of the item identified by the gem lab is different but still acceptable to the buyer.
Price of item exceeds S$500
Generally, we recommend the use of a gem lab’s services when the item is more than 10 times the price of a report. S$500 is of course an arbitrary number that everyone should adjust based on their risk tolerance. For example, one can easily get an independent evaluation of their item at GemRight Gemology from as affordable as S$40-50. This amount is probably worthwhile spending to have an assurance that the S$500 is spent buying what he/she really wanted.
Selling price is too good to be true
In the jewellery trade, most of the gemstones have passed through enough hands to make it to a rough market rate. Even if the seller has their own ways to minimise this process and gets near to the source, there is little incentive for them to undercut the market rate by a lot. In fact, unless they are in financial distress, the logical assumption is that most jewellers will want to preserve their margin to reward their expertise and time. This market rate is of course difficult for retail customers who seldom buy jewellery to know. Thus, consumers should certainly understand the seller’s exchange or refund policy before purchase and decide at which point to engage a gem lab’s services.
Seller has provided a report from a gem lab
You may want a second opinion from a gem lab that you trust when:
(1) you have grounds to doubt the credibility of the gem lab or gemologists, and/or
(2) the item is of sufficiently high value and seeking a second opinion still makes financial sense
If you have decided that you need a gem lab, do discuss with your buyer or seller who should bear the cost of the gem lab’s services and at what share with the other party. There is no hard and fast rule as long as both parties are agreeable.
If you need help deciding which gem lab to go for, read our article on how to choose the best gem lab:
How To Choose The Best Gem Lab In Your Locale? — GemRight Gemology