Very expensive – retail stores in China sell loose diamonds at a price at least two or three times of the Rapaport report price

Poor quality – most of the diamonds sold in China are without grading reports issued by GIA, HRD or other reputable international diamond research and grading institutes, therefore no or very little quality insurance

Misleading information given by diamond dealers in China – Some diamond dealers in China to maximize their profit margins often mislead ordinary consumers with respect to the quality of diamonds.  They often mislead consumers by only emphasizing on the clarity and carat weight of a diamond and disregarding the two other very important elements: cutting and color.  So, it is very difficult to purchase a loose diamond in China which has balanced 4Cs.

Diamonds always come with settings – difficult to grade the diamond – this is a common strategy of some Chinese diamond dealers to cover the defects in their loose diamonds and to confuse ordinary consumers in China.  A loose diamond once put on a setting will be very difficult for a fair assessment and grading.

Value appreciation of loose diamonds – a beautiful lie in China – many diamond dealers in China claim that consumers will enjoy a value appreciation of loose diamonds by 5-10% a year.  This is a beautiful lie and there is no way for ordinary consumers to enjoy such value appreciation if they purchase diamonds at an outrageously high price at the beginning.