Delisting of EGL Grading Reports Causes ControversySeptember 15, 14
(IDEX Online News)
(IDEX Online News)– Despite a move by the RapNet Diamond Trading Network to remove all European Gemological Laboratories (EGL)-certified diamonds from its listings as of October 1, some companies – including IDEX Online – have said they will continue to list the goods.
In reaction to the delisting decision, traders across the industry expressed their anger, saying it could affect the value of their stocks.
The controversy over EGL certification began earlier this year when a TV station in Nashville broadcast a program claiming that local company Genesis Diamonds was selling jewelry with diamonds whose grading reports, provided by EGL International, were too generous.
Currently, three lawsuits have been filed against Genesis Diamonds in the US with regard to the certification accompanying its diamonds.
Despite the cases, Genesis Diamonds maintains the validity of its certificates. "All grading is subjective, and EGL International is known to be more lenient than GIA," Genesis Diamonds ‘attorney Eli Richardson told WSMV.com.
In reaction to the delisting, EGL South Africa managing director Alan Lowe said that while he strongly agrees with Martin Rapaport that action must be taken against any laboratory that issues overstated certification and, in so doing, damages consumer confidence in the diamond industry.
“I am very disappointed that EGL South Africa was grouped with some of the other EGL laboratories around the world when it comes to ethics or grading policy,” Lowe said in a press release.
EGL Israel, based in the Israel Diamond Exchange was not available for comment.
In an email sent to its customers, MID House of Diamonds said it would continue to host EGL’s 4,000 certified diamonds on its website. “There has been a strong demand for many years and EGL is a very acceptable and important product in the diamond industry.
“In every consumer market there are always price points. Price points are what make up the retail market in our world. The consumers need to be given a choice on what they want and can afford. It is our job to clarify exactly what they are buying and if it meets their expectations, then it is their choice to purchase it.”
IDEX Online said that as long as there is no legal restriction, it will continue to list all EGL-certified diamonds on its trading platform.