When buying online, check the reputation of the vendor.  The relative anonymity of the online vendor can make scamming an unwary buyer much easier; however, the vast reach of the Internet and the ease of disseminating information almost always ensures that a shifty vendor will be quickly revealed once they have scammed a few buyers.

A vendor’s reputation can be checked online even if they are a bricks and mortar operation.

You can check a vendor’s reputation online in the following ways:

a) Ascertain what you want and then let your fingers do the walking. The cyber world is small and is located in your home at the touch of a button. Do your homework, compare prices (there is a big difference between competitive low prices and ridiculous/unbelievably low prices). Become a cyber sleuth – it is interesting, fun, and financially rewarding.

b) Google the company and check for any negative buyer ratings or experiences. The Internet is viral and bad news spreads fast. Be wary if bad customer experiences are posted online. If the company has reviews from outsourced sites pay special attention to these as these results cannot be modified and should represent an honest reflection of customer experience.

c) If buying on eBay, check feedback. Although feedback is not sacrosanct, eBay has greatly improved its methods of monitoring vendors.

d) Check the site ranking on Google, Yahoo!, and other search engines. If the website has high search engine rankings for all most relevant key words (organic, not sponsored links) of what the company sells, it usually is a sign that it is a reputable company.

e) Check with PayPal to see how many verified customers the vendor has – the more, the better.

f) Most reputable companies will be members of organizations that are related
to the trade or jewelry industry.

You can only be a member of these organizations if you are a real company from the diamond jewelry industry.

If the company isn't a member of any trade organization (NCDIA, WFDB,), it should be a red flag. If they are members, contact the relevant organization to verify their membership.

g) Is the company publicly listed? If yes, it is usually a good sign.

h) Check for online reviews with the company name. They are very easy to find and you will be surprised how appreciative a happy customer can be; they love to share a good experience. The opposite is true for an unsatisfied customer.

i) Check diamond forums. Enter reputable diamond forums and register as a user. Ask about the prospective company. Forum participants usually give an objective view of the vendor.

j) Check the company website and read the customer feedback. Contact the company and request references from customers in your country. Contact the reference/s.

k) Contact the company and request to speak to an employee listed in the ‘About Us’ section. If the company does not provide the specific names of employees in senior positions, keep away.

l) Does the company provide a GIA certificate (or IGI certificate for cheaper items)? Even though these can be altered, a phone call to the relevant laboratory can quickly confirm or deny any suspicions.

m) Does the company provide a Full Money Back Guarantee? Steer clear of companies not providing money back guarantees or offering to swap the diamond if you are not satisfied.

After perusing this list you probably feel more daunted than before you started this undertaking. Fret not. This type of research can be fun, will save you money, and most importantly, give you peace of mind.

Almost all the points above can be summarized as follows:

• The reputation of the vendor is tantamount and almost every point is a way of verifying that reputation. Once you find a reputable dealer, your search for the right diamond at the right price is almost complete.

• Before finalizing the purchase, make all conditions of the deal CLEAR upfront - price, shipping costs (if any), what will your receive for your money, RETURN POLICY (extremely important - if a company doesn't want to offer this, run for your life. Most common is 30 days and a full refund but check it out.)

When buying property, the golden rule is, “Location, location, location.” When purchasing a diamond, perhaps the golden rule should be, “Reputation, reputation, reputation.” For as is stated in Ecclesiastes, “A good name is better than fragrant oil.” Why? Because the aroma of fragrant oil only spreads a short distance, however a good name spreads everywhere. The advent and proliferation of a modern technology - the Internet, has only reinforced these centuries’ old words.

Click to read Diamond scams part 1