Why do EGL diamonds cost less than GIA diamonds?

Question

Accepted Answer

The EGL price is lower because the EGL grade is softer, not because it is the same stone at a discount. An EGL G might come back as H or I when re-graded by GIA. An EGL VS2 might come back as SI1. The market prices each lab against its own scale; if you pay the GIA price for an EGL stone, you are overpaying. EGL, the European Gemological Laboratory, operates as several independent entities sharing the initials and a logo. EGL USA went through a 2014 to 2015 settlement and remediation programme over historical grading discrepancies. The trade convention since then is that an EGL report on a typical engagement-grade stone will return one to two steps softer than the GIA equivalent: a G colour at EGL is often an H or I at GIA; a VS2 clarity at EGL is often an SI1 at GIA. The market does not discount EGL stones for being EGL; it prices them against the EGL scale, which is softer. So the dealer who quotes a lower price on an EGL stone is reflecting the true grade, not offering a deal. The risk is the dealer who quotes the EGL stone at a price closer to the GIA equivalent, on the assumption the buyer does not know the difference. The remedy is a re-grade. Any stone can be submitted to GIA for a fresh report; the dealer will usually know in advance whether the grade will hold. The full grading-lab landscape is in A reader’s guide to SA diamond certificates.