Diamonds have long been one of the most sought-after gemstones available. For those in the loose diamonds industry, this puts them in a good position to ensure the longevity of their business. Diamonds can be sourced from many different areas. They are ranked on a variety of categories, including carat and clarity. EGL certified diamonds are rated by the European Gemological Lab. Their rankings are generally considered “loose” compared to the rankings provided by the GIA (Gemological Institute of America) and that reduces their value on the open market.
The hypothesis behind EGL rankings being less valuable than GIA ranks is that the EGL is a for-profit business. It has been shown that diamond wholesalers can spend more money to have their diamonds ranked better with the EGL, and this has negatively affected the credibility of the EGL in the long term. However, diamonds that are GIA ranked are significantly more valuable. The GIA is not a for-profit business, so their rankings are not biased toward the wholesalers willing to pay for better appraisals of their diamonds.
Considering the conflict of interest that the EGL has created by being a for-profit organization, it goes without saying that you are better off buying GIA loose diamonds. This is one of the major problems in many industries. Just like the BBB, the EGL has created a system in which people can pay for better rankings, thereby devaluing the rankings that they provide to anyone who has received one. It is a rough truth to deal with, but thus is the reality of our free-market economy.