The Gemological Institute of America has cut off four clients traced to hundreds of diamonds submitted with an undisclosed treatment that improves their color by as much as three grades but fades over time.
On May 12, 2015 GIA Laboratory sent out notifications about the still-unidentified temporary treatment Tuesday and is asking anyone in the trade with these 424 potentially treated stones to turn them back into the GIA for reexamination. According to the National Jeweler approximately 76 of the 500 already have been reexamined by the GIA.) The majority of the stones are 1 carat or larger.
GIA has confirmed that they have terminated the client agreements of the companies linked to the stones. GIA spokesman Stephen Morisseau said the lab “reasonably suspects” that the companies knew the diamonds were treated and did not disclose it.
The companies are listed online as: E.G.S.D Diamonds Ltd., L.Y.E Diamonds Ltd., Abramov Romok and Yair Matatov.
The GIA also said it notified the diamond bourses. In a statement issued Wednesday, the Israel Diamond Exchange said it called an emergency meeting of its board of directors upon hearing the news and has “resolved to identify the suspects” and act immediately to “take the needed measures.”
The lab became aware of this potentially new color treatment when a client purchased one of these diamonds and the treatment began to wear off, leaving him with a diamond that had a much lower color grade than what he had paid for. He returned the stone to GIA for reexamination. It was then that the GIA discovered the treatment and the stone was connected with hundreds of others that had been submitted by the four companies.
GIA hasn’t drawn any solid conclusions yet, Morisseau said they “reasonably believe” that all of the approximately 500 stones have been treated, but cannot definitively say anything until the lab reexamines them.
Morisseau said the GIA has not yet identified the treatment but are “actively researching it.” He added that they are monitoring other GIA labs worldwide for similar submissions.
You may view the list of recalled diamonds here.
Kathleen Marino M.A, G.G., AJP, NAJA