10 Things Your Jeweler Won't Tell You

1. “Our prices are on the rise.”

After increasing 23% in 2009, the price per ounce of gold this year has dipped slightly and is hovering around $1,100. With investors continuing to seek safety in this precious metal, it’s a bad time for consumers to buy gold, says Joyce Jonas, president emeritus of the American Society of Jewelry Historians.

It takes roughly six to eight months for the price of gold to impact the price at which gold jewelry is sold to consumers, says Jeff Green, the president of Mill Valley, Calif.-based Jeff Green Partners, a retail consulting firm. That means that around now the higher prices of gold are being reflected in retail jewelry prices. Consumers who don’t need to buy gold jewelry should refrain from doing so in the hopes that prices will dip in the near future, although it’s extremely unlikely that they’ll return to pre-recession prices, says Jonas.

In addition, the price of platinum – a precious metal commonly used for higher-end engagement rings – is also on the rise. In February 2009, it was just below $1,120 an ounce and by January it was above $1,610; it recently retreated to around $1,500. Because of market prices, Jonas says it’s very likely that retailers will increasingly turn to white gold – a cheaper, comparatively lower-quality alternative – unless the customer (who’s willing to pay the higher price) requests otherwise.

2. “Your ‘perfect’ diamond has had a face-lift . . .”

Thanks to science and technology, the brilliant-looking diamonds in your jeweler’s case aren’t all necessarily what they appear to be. In some cases, they could be “fracture-filled,” for instance, referring to a treatment in which visible cracks are filled with a glasslike substance, making a stone appear more expensive than it is. The treatment usually isn’t guaranteed to last because if the stone ever gets repaired using heat, the filler can come out, says Harry Glinberg, owner of Harry Glinberg Jewelers in Milwaukee. Instead of fracture-filled stones, he says, consider a diamond that has been treated with pressure and heat to whiten the color and increase their appearance dramatically.

Either way, it is fine to go with an engineered stone — as long as you know what you’re getting. They should cost less than the all-natural goods and marked accurately. Consumers’ best bet is to stick with jewelers who are certified gemologists from the Gemological Institute of America, says Glinberg; “You don’t need a license or title to open a jewelry store,” and that places GIA-certified jewelers in higher regard. (You can also call the GIA to confirm their certification.) To establish that your diamond is legit, make sure there’s a return policy before you buy, and then take the piece to an independent certified appraiser; you can find one in your area through the American Society of Appraisers, at www.appraisers.org.

3. “. . . and these emeralds, sapphires and rubies have all gotten dye jobs.”

By the seeming bounty of them available at any jewelry store, you wouldn’t guess that natural-colored stones are an increasingly rare commodity. But the truth is that few truly stunning ones are found these days; deposits are either depleted or are producing inferior rocks. The result: The gems at your jeweler likely consist of rubies, emeralds and sapphires that have been treated with techniques, such as heating or oiling, to make them look more vibrant.

One new product is sometimes marketed as genuine “treated” ruby. In actuality, it’s a fragile ruby-and-glass mixture that should cost $10 to $20 (or less) per carat. Instead, there are jewelers who might sell it for hundreds per carat, says Antoinette Matlins, a gem expert and author of Jewelry & Gems: The Buying Guide. Since it is unlikely a consumer will be able to spot the difference, the best protection is to ask explicitly whether the ruby is a composite, and to get the answer in writing on the sales receipt, she says. Then, quickly head to your trusted appraiser to confirm what you’ve bought.

Another route is to ask your jeweler to order one of the excellent alternatives to expensive natural-colored stones — tsavorite garnets instead of emeralds, for example, or red or blue spinels in lieu of rubies or sapphires. Their sparkling colors are beautiful without any treatment and usually much cheaper. “In fact,” Matlins says, “a red spinel is the centerpiece of the Imperial State Crown in London, which for centuries was believed to be a ruby.”