A Client Pays for a Mined Diamond, but an Appraisal Reveals It Is Lab-Grown

WHEN BRYAN PROPOSED to Allison 15 years ago, he could only afford a $600 diamond band. They were just starting their lives together and building their own business from the ground up. Over the years, their business became a success, and the modest ring remained a cherished possession for Allison, a reminder of where they started.

With their 15th anniversary approaching, Bryan wanted to surprise Allison with something extraordinary. He decided to buy her a diamond ring that would complement the original band, preserving the sentimental value while adding a touch of luxury that would symbolize how much they’d grown together.

Bryan knew exactly where to go. He had been a longtime customer of Jayde’s Diamonds. It was where he had purchased that $600 band and where he had continued to shop for gifts over the years. He had developed a personal relationship with Michael, a seasoned salesperson who had guided him through many of these decisions.

After browsing through the options, Bryan decided on a 1.5-carat round solitaire priced at $10,000. Michael assured him that the diamond was of the highest quality and presented a respected lab report along with an appraisal valuing the ring at $15,000. Bryan left the store, eager to see the look on Allison’s face when he surprised her on their anniversary.

However, Bryan’s excitement did not overshadow his sense of responsibility. He wanted to make sure everything was in order for insurance purposes, so he decided to have the ring independently appraised. He took it to an experienced independent jeweler who examined the diamond under a microscope. After a few minutes, the jeweler informed Bryan that the diamond was lab-created.
Bryan was stunned. He had specifically paid for a natural diamond. The lab report, the appraisal, everything had indicated that it was a natural stone. How could this be?

Confused and upset, Bryan returned to Jayde’s Diamonds and informed Michael of what he had learned. Michael couldn’t understand how such a mistake could have happened. He had personally overseen the sale, confident in the diamond’s authenticity.

The store manager was brought into the conversation, and soon the store’s internal gemologist was called to re-examine the diamond. The gemologist confirmed the shocking truth: The diamond was indeed lab-created and didn’t match the lab report or appraisal Bryan had received for a natural diamond.

An internal investigation was launched. The store manager, who was responsible for overseeing the inventory, discovered that the lab-created diamond had been mistakenly swapped with the natural diamond while it was in the shop being set. The store did have a process that as soon as the jeweler received the diamond to be set, they were to confirm the laser inscription — but in this case, that process did not happen.

The manager explained the situation and offered to reset the original diamond Bryan had looked at. The other option was to give him a refund.

Jayde’s Diamonds had built its reputation on trust and integrity. This was not just a simple error; it was a breach of that trust. Bryan was in a state of disbelief. The jewelry store he had trusted for years had let him down. What was meant to be a joyous celebration had turned into disappointment.

Maarten d.
Boise, ID

This is a simple fix. Apologize for the mistake and either replace the synthetic diamond with the correct natural diamond or offer a full refund. The simple truth is that mistakes can happen. Nobody is perfect. Customer loyalty is very often enhanced by owning and correcting a mistake. And, of course, always recheck the finished piece before you deliver it to your customer.

Mark M.
Shelton, WA

Set the natural diamond in the solitaire and show Bryan the diamond’s inscription under magnification after the stone has been set. And issue a full refund, including the independent appraisal cost. Install a more rigorous internal “paper trail” to help assure this does not happen again, including checking the inscription after setting the stone.

Jim T.
Akron, OH

The way the owner handled the situation was the way most owners that have built their reputations on trust and integrity would have handled the situation. But in addition to that, I would have offered another solution to not only make the purchase right, but also give the customer an added value and hopefully restore the relationship. I would offer to set the natural diamond the customer originally paid for and thought they were receiving; in addition, I would offer to mount the lab-grown diamond in a pendant at no charge. The cost of a lab-grown 1.5-carat round is much less than the cost of losing a customer and having them share their experience with others. Situations like this are an owner’s worst nightmare. The hope is to handle the issue with integrity and in the end build an even stronger confidence by doing the best for the customer and not the bottom line.

David B.
Calgary, AB

Who has not had this happen, let him throw the first stone! The diamond should have been checked after setting. Bad! But the first thing is to offer a full refund. Or reset the diamond and come up with a make-good offer, such as free tipping, rhodium and inspection for life to show the mistake was honest and the store wants to make good. Most reasonable people can sit down and accept an honest mistake and effort to make it up. Then go back to staff and make sure they know they have a responsibility to the store and customer that this should not happen. As an owner, try to segregate lab-grown diamonds from natural, avoid shapes with identical weights and always have staff check what goes to the goldsmith. Our goldsmiths also look at the inscription and write it on the job bag as a further check.

Marcus M.
Midland, TX

This is another reason why I don’t sell lab-grown diamonds. It’s a nightmare. Although a sticky situation, I don’t think it’s that big of a deal if Jayde’s honestly admits to their mistake, apologizes and puts the right diamond in the ring. They should be able to explain how it happened and assure the customer that they will make changes to their policy so that this never happens again. Then maybe give him a $1,000 gift card. As far as making sure this never happens again, quit selling lab-grown diamonds!

Ligia S.
Guatemala City, Guatemala

A good gemologist would recognize the difference with a loupe, even though it should be procedure to examine the stone in a microscope and compare it with the papers prior to departure of the customer. As a policy in my store, I always invite the costumer to confirm the engraving with me. This ensures both parties that the correct stone is set on the piece. Such a mistake ends up hurting the good reputation of the jeweler.

Ila S.
Block Island, RI

Setting a lab stone exactly the size and shape of the natural by mistake? Sorry, a “mistake” like that sounds intentional. The original diamond was still available? I would not trust that store — not the salesmen’s fault totally; however, before any sale or repair job leaves the shop, I have a sticker on the completed job envelopes: “Expertly repaired and inspected by _______.”

To regain the client’s trust? Buy a lab tester and thank the customer for ensuring this could never happen again to anyone else due to this error in your shop, and I would give him that $10,000 ring at no cost. That shop would lose a lot more than $10,000 in bad press and gain 10 times as much business in word of mouth for such stellar above board compensation for the “trauma.”

Steve W.
Clearwater, FL

Now haven’t we all seen this train wreck coming for the last five years or so? Jewelers have sold their soul to greed, and what’s worse, zero regard for the lifeblood of every fine jeweler’s future: the natural mined diamond industry. Sorry, but I don’t feel sorry for this jeweler as a simple CVD machine detector could have prevented this disaster.

When the lab-grown synthetic diamond scam first appeared years ago, we invested in three CVD detector machines and checked every piece in our store over three weeks. We found that 80% of our vendors had sold us product with CVD. Now we check every piece and every loose diamond that enters and leaves our store. I’m sad to report we still receive merchandise with CVD every week. Of course, our vendors all deny knowing, but many don’t bother checking. It will take us all years to recover, and reputations are going to be destroyed.

Peter T.
Show Low, AZ

I would apologize to the customer and explain that while rare, we do make mistakes just like any other human. Some customers will understand, some won’t. If they understand, a stronger bond will be developed with the customer. If they don’t, it’s time to move on to other customers. This appears to be a one-time event. Review store procedures with the entire staff, then put this issue to rest and move on with business as usual.