N e w s

The customs confiscate millions of dollars worth of smuggled objects. According to the specialists the data is not reliable. A precious stone certificate can be purchased for $10.

The efforts of Russian militia who stop the illegal import of precious stones and recover millions of dollars for the budget deserve all the due respect. At the same time, the achievements are not always as grand, the real cost of confiscated valuables being less than reported.

This fact has a simple explanation. Yuri Shelementjev, chairman of Appraisal Department of Moscow State University Gemmology Center lists three main reasons for overstating a costs of precious stones and jewelry in documentation.

Firstly, it brings benefit to the traders as in this case they have a chance to realize the product at a higher price.

Secondly, the precious stone pricing policy in Russia is still very inefficient. Before introduction of obligatory certification last August, such certificate could be given by virtually any person. But, as a matter of fact, the regulation is only operating in Moscow and the paper can be easily obtained in other regions.

Thirdly, both the seller and the buyer can benefit from stating a higher price. For instance, a bank can nominally increase the authorized fund by stating a $40 thousand price for a stone instead of real $4 thousand. Or issue a bill to be secured by a precious stone or jewelry article.

Thus it can be inferred from Yuri Shelemenjev's words that the real product cost may differ from the stated by 10 and more times. Things are made even worse by the fact that according to Russian laws a purchased jewelry article cannot be sold back or exchanged. Most interestingly, such actions of the smugglers cannot be qualified as fraud because prices in our country are considered free. Only illegal storing and transportation of precious stones can be subject to law persecution. However, if the examination committee determines that the illegal turnover does not exceed 500 minimal wages, the smuggler can get off with a fine.

It needs to be specified that a gemmological expert examination provides information on the kind of a stone, its natural or synthetic origin, and if the stone had undergone refining process. For instance, a gemmologist can tell if the stone contains a special filling that is put into cracks to make them invisible. Stone cutting is not considered a refining process. Therefore expert examination is no more than a description of a stone's physical characteristics, and not an appraisal examination.

Gemmologists all over the world have a professional code which implies that the specialists must not include the stone cost in the official appraisal document and can only give oral recommendations on its cost and market situation. This means that on the market a stone is presented only by a certificate and can change the cost according to the market situation, while its qualities remain the same.

The cost of a gemmological examination resulting only in oral appraisal is approximately $10. A written appraisal costs at least twice as much. Thus, to receive an expert appraisal of a one carat diamond would cost $50-$60.

For truth's sake we need to note that law enforcing institutions sometimes turn to gemmologists for re-examination and appraisal. In this case a special appraisal document is written that contains the cost of a stone on the basis of a current price list which has not changed since 1998 when precious stone prices were state regulated. However, prices on this kind of merchandise seldom experience any significant change.


Source: Izvestia