New Gem Lab Wants to Beat the Big Guys

The World Gemological Institute (WGI), the relaunched diamond grading lab from Israel, said it promises a three to four-day turnaround time and a low price list that will be half that of the GIA’s.

Uri Schwartz, chairman of the Israel Gemological Institute, said at a press conference Tuesday that the aim is for the WGI to be among the top three labs in the world in terms of reliability. CEO Yinon Feldheim added that one of the leading goals of the lab during its preliminary stage was to achieve consistency in its grading.

The lab, established in 1977, is currently grading diamonds from Israeli firms as part of a trial run.

Because diamond grading takes as long as four and even five weeks at some of the leading labs, Schwartz and Feldheim promise to add extra shifts and run the lab 24 hours a day if necessary – to ensure they meet the four day limit they have set.

According to Israel Diamond Institute (IDI) Chairman Moti Ganz, “we see our competitors reacting already. That is a sign that we are a serious alternative.”

The WGI will Initially offer two types of reports, a small certificate – called  Precis – and a full diamond report, grading diamonds 15 points and larger. It plans to grade smaller stones in the future.

Precis will include a laser inscription on the girdle.

Feldheim said that among the services the lab will offer is advice on how to improve a polished stone. This will serve as an additional revenue source for the WGI.

In addition, the lab is currently involved in a number of research projects with local universities: however, Feldheim preferred to not disclose their nature at this stage. “We plan to be in the forefront and ensure that we are an advanced lab,” he said.

So far, the lab is not equipped to detect treated diamonds; however, they are in the process of acquiring the necessary tools, planning to be ready in the next few months.

The most important question though, is who their customers are. While the press conference put a strong emphasis on Israeli polished diamond wholesalers, Feldheim told IDEX Online that their marketing strategy is to reach retailers and even consumers.

So far, the lab has produced some 950 certificates for about 60 clients. The official opening will take place in the first quarter of 2008.