EGL
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EGL Diamond Certification
Unlike the GIA and AGS, The EGL (European Gemological Laboratory) is a for-profit organization. Not coincidentally then, the EGL is consistently “looser” than the GIA. I used to call on a very shrewed jeweler in Pittsburgh named Michael Kurtz. He owned a nice little shop called Goldstock Jewelers. He used to keep a 5 carat pear shape displayed in his showcase with two certificates on either side of the diamond. One was from the GIA and one was from the EGL. If I recall correctly (it was a long time ago!), the GIA certificate graded the stone as a “J” color with a “VS1″ clarity. The EGL graded the stone with an “H” color and a “VVS2″ clarity!
EGL vs GIA
Likewise, James Allen will not stock any diamonds certified by EGL. They limit their inventory to diamonds certified by GIA, AGS, and IGI.
As a for-profit organization, they made a few very shrewd observations in the market and delivered very effective solutions. First of all, the GIA and AGS are too expensive (a 1 carat diamond can cost around $100 to certify!). Secondly, they both offer terrible service. Additionally, they used to take a very long time to grade the diamonds sent to them. Furthermore, both the GIA and AGS don’t offer “pre-cert” options — this basically allows the company sending in the diamond for certification to only pay for the grading service and not for the certificate and only decide after receiving the results if they want to pay for the certificate to be printed. Also, as I mentioned in my article about clarity, the GIA’s “I1″ grade covers too much ground. There are some “I1″ clarity diamonds that just barely miss an “SI2″, and there are some that are not even close to an “SI2.”
EGL solved all of these problems. They are cheaper, they offer better service, the are quick, they offer pre-certs, and they invented a new in-between clarity grade of “SI3.”
This explains why EGL became as popular as it did for diamond merchants, but the fact remains that as a consumer you have to be extremely careful buying an EGL graded diamond. If I had to estimate the average “upgrade” received from EGL for an identical diamond versus the GIA, I would estimate 2.5 upgrades either from color or clarity or both. For example, if the GIA would grade a diamond an “I” color and “SI2″ clarity, receiving an “H” color and “SI1” clarity would be consider two upgrades (one color + one clarity). But if that same diamond received a “G” color and “SI1” clarity, it would be considered three upgrades (two color + one clarity).
The entire diamond market is aware of this, of course, and therefore EGL graded diamonds sell at a significant discount when compared to diamonds of equivalent grades certified by the GIA.
One more important note: the different EGL locations are all separately run businesses. EGL Los Angeles, and EGL New York have the best reputations. EGL Belgium and EGL Israel are known to be so loose that they are bordering on fraud.
What I’ve explained in this article until this point is from the point of view of the diamond manufacturer. But what should you do, as the diamond consumer? Almost without exception, you should never buy an EGL certified diamond.
Firstly, lets dispose of the obvious – EGL certificates originating from Israel, Europe, or elsewhere other than New York and Los Angeles are for all intents and purposes fraudulent.
As for NY and LA – I believe you can break down EGL certified diamonds into two groups:
1) Diamonds that would obviously be graded GIA I1 – The Rapaport price list gives very low prices for I1 clarity diamonds. This is a significant problem because the GIA I1 clarity grade has a very wide range. Within that grade, there are stones that just barely missed getting the SI2 grade, and there are stones that are really strong I1s that are in a completely different class than the nice GIA I1s. Because of this discrepancy, diamond companies will almost never send their nice I1s to GIA. They will either sell them as loose diamonds, or they will send them to EGL to receive either an SI2 or SI3 clarity grade. Even though these stones will be sold at a much steeper discount to the Rapaport price than their GIA equivalent, the diamond manufacturer will still make more money this way versus selling the diamond loose or selling the diamond as a GIA I1 with a smaller discount to the I1 Rapaport price.
If you’re considering an EGL SI2 or SI3, you need to realize that while most companies don’t certify GIA I1s, some do. And those are by definition a better value for you. The companies who do use EGL for these stones are only doing it to make more money on the same stone. So you have a choice. You’re buying one stone. Would you rather that stone have a GIA certificate that says I1 and the price will be less, or would you rather that stone have an EGL certificate that says SI2 and the price will be more? Remember, it’s the same stone! The answer is obvious.
Furthermore, the majority of stones at this quality level aren’t eye clean anyway – so most definitely even if you’re considering buying an EGL SI2 or SI3, you can never do this blind – you must be able to inspect the stone first. The odds of a stone like this being truly eye clean are remote at best.
2) Diamonds that would receive SI2 or better from GIA – The modus operandi for the vast majority of diamond manufacturers is that they first send their productions to GIA. When they get the results back from the lab, they review their stones one by one to see how they can squeeze out more profit. Recheck a stone here. Recut a stone there (either to improve clarity or cut).
Another popular way to squeeze every bit of juice out of a diamond production is to review the results from GIA and decide which stones have the potential to receive enough of an upgrade from EGL to offset the higher discounts to the list prices and therefore make more money. There’s little risk in doing this, since EGL offers pre-certs – meaning that the company sending the diamond for inspection only pays the full amount if they OK the results (as opposed to the GIA where you have to pay the full amount regardless of the results). And you know what the company will do if the diamond gets enough of an upgrade to make the stone worth more as an EGL certified stone? They simply throw away the GIA cert and pretend it never existed.
So I ask you again – The same stone is certified by GIA as I SI2 and certified by EGL as G SI1. Would you rather pay more for the stone buying it as an EGL, or would you rather pay less buying the stone as a GIA? Again, it’s the same stone!
As you can see, in pretty much every case across the board, the very presence of an EGL cert almost invariably implies that the stone is certified this way to make more money for the vendor vs keeping the stone’s original GIA certificate. You’re better off searching for a GIA certified stone that’s two or three color grades lower and one or two clarity grades lower and most importantly – cheaper.
Bottom line is, don’t buy an EGL certified diamond. No matter how “cheap” it seems to you compared to GIA certified diamonds, it’s all a game. Any EGL certified stone in the market is, by definition, more expensive than itself as certified by the GIA.
If you have any questions, please post them in the comments below. I will usually respond within 24 hours.
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Is it really fair to say “do not buy an EGL-certified diamond” or more accurate to say “do not overpay for an EGL-certified diamond”? Like you mentioned in the article, it’s the same stone no matter where it’s certified, so really it’s a matter of what you’re getting for your money, right? With that in mind, I’m close to purchasing an EGL diamond 1.31ct, G/SI2, ideal-cut with VG polish (roughly 63 depth, 58 table). What should I be paying for this particular stone? For what it’s worth, there is a significant difference in color and clarity of this diamond compared to EGL HI/SI2 stones.
Hi Brad. I’ll repeat the simple fact from the article: in cases where a stone would have received an SI2 or higher from GIA, then, by definition, the stone will be more expensive as an EGL. For example, if a stone would have received J SI2 at GIA, and now it gets H VS2 from EGL, it will be more expensive as an EGL. If it wouldn’t get enough of an upgrade from EGL to have it make more money, the dealer will ALWAYS sell it as a GIA because they’re easier to sell.
The one exception to this rule are stones that would get I1 from GIA. Since your stone is an SI2, then your stone falls into this category. The only thing I would say is that since you’ve seen your EGL SI2 (GIA I1) and you like how it looks, you should consider looking at GIA I1s to see if you can find a better deal. Most dealers won’t sell a stone certified as GIA I1 since the list price for I1 is usually really low. But some do.
Here’s a stone that looks similar to what your stone might be: http://www.jamesallen.com/diamonds/I-I1-Premium-Cut-Round-Diamond-1423574.asp
Is that what you’re being quoted more or less?
That price is very close to the sticker. However, I have to say that the diamond I’m looking at looked much cleaner under the microscope than the one in the link. I don’t doubt the color is likely closer to HI than G, but this stone doesn’t have as many inclusions as the other I stones I’ve seen. It sounds like this stone, despite the inflated EGL grading, might be a good deal at $5-6K? Thanks for all your help.
Try this:
http://www.jamesallen.com/diamonds/G-I1-Ideal-Cut-Round-Diamond-1445827.asp
Or these:
http://www.jamesallen.com/diamonds/G-I1-Ideal-Cut-Round-Diamond-1445828.asp
http://www.jamesallen.com/diamonds/G-I1-Good-Cut-Round-Diamond-1364476.asp
Great, thanks! I would say the diamond compares most favorably to the first link in the second post (1445828), but still maybe a little cleaner (and larger). Anyway, this has been a big help and gives me good info to take back to the dealer. Thanks again!
I just came across this site as I am in the market for buying an engagement ring. I have been to 2 different wholesalers in the area and have seen several diamonds. unfortunately, most of these are EGL diamonds. Should I pull the trigger on the following:
EGL Cert
2.03 carat
G color
VS1
Excellent Cut
Excellent Polish
Table – 56
Depth – 60
The wholesaler is asking $17,500. What should my recourse be in determining whether this is a legit price and the diamond is legit? I appreciate any help.
Thanks,
LDP
They price is good, but not great. It’s in all likelihood the equivalent of a J SI1 in GIA terms. So see this to compare:
http://www.jamesallen.com/diamonds/J-SI1-Ideal-Cut-Round-Diamond-1378152.asp
Mike: My daughter saw this ring advertised for sale locally by an individual and really like it, but was disappointed to see an EGS certification. What is EGS and is there any value to that certification? We would also appreciate any thought you have on this ring in general. Thanks in advance for you help!http://chicago.craigslist.org/chc/jwl/2789773650.html
don’t touch it! EGS is one of a hundred no-name labs. They used it because the stone is “clarity enhanced.” See the bottom of the cert.
;(
after reading this article im very sad, my boy riend bought one diamond to do my engagement ring and he was very happy cause he thinks he got the best diamond for my ring actually it is came with certificate of EGL so we both was happy that we have got what we want. he spend over £1000 pound to get it. now i can not even tell him it might not worth that much it will break his heart. don’t know what to do.
anj
If the ring looks nice, then just be happy with it. Don’t focus on the ring, it’s meaningless in the big picture. Your life together is what’s important.
Hi Ira,
I would really appreciate your opinion about this stone:
http://www.jamesallen.com/diamonds/E-I1-Ideal-Cut-Round-Diamond-1390821.asp
Do you think the inclusions will be visible to the naked eye?
Your help is much appreciated.
Thanks,
Alex
Hi Mike
Excellent informative article that I’m really glad I found. Good of you to take the time to publish it!
I’m coming to New York with a friend next month as she wants to buy a diamond ring and is hoping she can get a better deal than here in good old blighty!
Her requirements are:
carat – min of 1.5
colour – min of H
Clarity – min of SL1
Cut – VG preferably
She would like it set in a plain 4 prong platinum band.
She has a budget of around $15-18,000. Is this possible/realistic? What would you suggest she looks for?
Really hoping you can help.
Best wishes and thanks – wendy
Hi Wendy. Great to hear from you! It’s definitely possible. Here are a few great choices for her:
http://www.jamesallen.com/diamonds/H-SI1-Ideal-Cut-Round-Diamond-1452033.asp
http://www.jamesallen.com/diamonds/H-SI1-Ideal-Cut-Round-Diamond-1396751.asp
http://www.jamesallen.com/diamonds/H-SI1-Premium-Cut-Round-Diamond-1408251.asp
All three are eye clean and all three have top cut grades (2 Excellents from GIA and 1 Ideal from AGS).
One word of advice – you should order online and have it shipped to the nearest Fedex location in New Jersey. For the time being, sales tax is only applied in the USA when something is bought within the same state from which it’s sold. James Allen is in NY, so if you buy it from them directly in NY, you have to pay an additional 8%. If you have them ship it marked “hold at facility” to FedEx in New Jersey, and you go pick it up, you won’t have to pay the tax. That’s a savings of 1360 USD – well worth the cost of a round trip taxi.
Hi Mike
Lovely choice of stones! and thanks so much for the advice to avoid the 8% sales tax! It will definitely be worth doing that. Are there any bigger stones you could recommend? She would ideally like a 2 carat but her budget includes getting it set on a platinum band when we return to the UK.
So glad I discovered this site!
Many thanks – wendy
This one’s pretty close: http://www.jamesallen.com/diamonds/G-SI2-Ideal-Cut-Round-Diamond-1451196.asp
If she can stretch it to an I color (which I think is fine), this this is a great option:
http://www.jamesallen.com/diamonds/I-SI2-Good-Cut-Round-Diamond-1447387.asp
Hi Mike
Thanks so much for the information. Both stones are suberb, especially the second one. My friend has now upped her budget again and is considering a 2.5 carat (heck, she’s only going to do this once so wants to get the best she can afford!!) and is looking at this one:
http://www.jamesallen.com/diamonds/J-SI2-Ideal-Cut-Round-Diamond-1425339.asp
what do you think? Also, she is considering this setting: http://www.jamesallen.com/engagement-rings/solitaire/platinum-solitaire-diamond-rings.html would you forsee any issue with this given the stone size?
Your help is so appreciated and we are really looking forward to coming over!
Thanks again – wendy
Hey Wendy. That’s a great choice and it’ll look fantastic with that ring!
Mike,
i am buying a 4.02 Ct, SI2, VG, VG diamond from a New York jeweler thats been selling to my future fiance’s family for 20 years. the appraisal came with the stone from EGL for $65k. does this sound right?
Jim
First of all, you didn’t tell me the color of the diamond. Secondly, you didn’t tell me the price of the stone. The appraised value is meaningless. Those are always severely inflated.
sorry…color is G and the price is $29k…remember its EGL certified….
Hi Jim. They’re actually selling it to you at the wholesale price. I looked it up and found the stone on rapnet. It happens to be that rapnet has a picture of the stone as well: http://certs.rapnet.com/userfolders/19133/Images/92304316D.JPG
The black inclusion at 4 o’clock can and should be pronged. Otherwise, it seems like a very nice SI2 for an EGL – especially one this large. The cut doesn’t look too great, but the price really is good, so that’s a choice you’ll have to make.
thanks for the quick response….can you tell by the pic if the color is closer to a G than an I (according to your previous correspondence below)?
No, you can’t see color in these photographs at all. There’s no way it’s close to a G, or else it would be selling for much more money. If I had to guess, I’d say it’s a J I1, but a nice I1.
Hi Ira,
I’ve owned an EGL 1.4 Ct F VS2 Cushion Cut with VG Polish & Symmetry and Moderate Blue Fluorescence for just about 2 yrs. Shortly after we purchased it, I saw (while driving, if that tells you how obvious they should have been) two black inclusions that at first I thought was a little surface dirt. They’re not. I took it back to the jeweler & he spoke to his dealer who said it was, indeed, a VS2 despite what he & I can see. Needless to say, I STILL am not happy about it & have recently told him to find me some comparable GIA certified stones.
I have two questions: How much should we have paid for this stone two years ago and what suggestions do you have on a 2 Ct F VS2 (or a quality-equivalent) Asscher or Cushion cut stone – I’d like to upgrade after I get this situation straightened out.
Thanks!
Hi Valarie. I don’t have any historical price lists, so I won’t be able to answer your first question. As for what I would recommend, here’s what I think:
http://www.jamesallen.com/diamonds/H-SI1-Ideal-Cut-Cushion-Diamond-1393107.asp
I think an H color is fine, if you like the COLOR of your current stone, because that’s what it really is in all likelihood. If you’re not particular between the two cuts, then I would suggest you go with the cushion, since it’ll hide inclusions better and you’ll be able to go with an SI1 like this one.
Let me know what you think!
Hi Ira,
Your article is really insightful, which I actually came across as while googling the difference between GIA & EGL certifications.
I’m planning to get a round diamond for my engagement & was looking on Diamond Ideal website for loose diamonds.
Saw this particular 1 that caught my eye, but am really disheartened from the “lax” grading of EGL. EGL had given good ratings for it and I have included the link of the report.
http://www.diamondideals.com/search/showCertimage.cfm?img=UOXT55080-BR.jpg&lot=UOXT55080-BR
What will I really expect since I have not seen the actual diamond or wouldn’t be able to see it before purchase since it’s going to be an online sales.
Will really appreciate your advice!
Thanks!
Hi Kenneth. The color is hard to see in that link, but it looks like J. An EGL J SI2 is like a GIA L/M I1. That’s a low quality stone. In a stone of this size, the inclusion will almost certainly be eye visible and the color will definitely show some yellow tint.
Hi Mike, thanks for the quick reply. Guess i would have to re-look & see if I can find a better stone. The Missus’ expectations are at least a 1.5c & at least J color. It’s back to the drawing board for me then.
Thanks!
I’d be happy to help. What’s your budget?
Dear Mr.Ira Weissman, Many thanks for your professional explanation above listed, I am living in Hong Kong and would like to buy a nice diamond for my wife celebrating our anniversary. I haven’t purchase diamond since year 2008, and when I shop around today I found diamond are unbelievable expensive than before. Anyway, make long story short, I went to a shop which I always purchase diamond before the economic crisis happened, and they have introduced a 2.02 Ct., D color, VS2, VG Round brilliant diamond to me and was certified by EGL certificates, and the price are much lower than other D, E, F diamonds certified by GIA, and so this is the reason I make some research online and have read your above professional information. I knew this shop since year 2003, the boss is a nice gentleman and told me that he bought this diamond at a very cheap price so he offers me a good price as an old customer, anyway, the price he offers me is similar to G color diamond with GIA certificates, so shall I take it as a F color standard stone to compare the price level? Look forward to your esteemed response, yours truly, Jonathan
It could be an F, for sure. But you need to take it as an SI1 or SI2, not a VS2. And the cut might be “good” as well, and not VG.
Thank you for your reply, does it worth USD33,000??
No, not even close. See these GIA equivalent examples:
http://www.jamesallen.com/diamonds/F-SI1-Ideal-Cut-Round-Diamond-1442455.asp
http://www.jamesallen.com/diamonds/F-SI2-Premium-Cut-Round-Diamond-1361487.asp
I would recommend something like this, however:
http://www.jamesallen.com/diamonds/F-SI2-Ideal-Cut-Round-Diamond-1435999.asp
http://www.jamesallen.com/diamonds/F-SI2-Ideal-Cut-Round-Diamond-1380522.asp