Fake diamonds, which are nothing but ordinary cubic zirconia (CZ) advertised as genuine artificial diamond, has been sold publicly at prices as high as a genuine natural gemstone, meaning around 150 times higher than its intrinsic value.
Strangely, dealers in fake diamonds have no trouble providing certificates verifying their quality and composition and brand name. But authorities and diamond firms confirm they are all counterfeit goods as Vietnam has never traded in artificial diamond.
The so-called “artificial diamond” is currently sold on the Vietnamese market with a certificate specifying its attributes and value. Since no governmental agency in Vietnam is authorised to certify diamond, buyers and dealers rely on certificates provided by foreign suppliers or domestic distribution firms. Some of these certificates are even fake ones.
Taking advantage of the regulatory loophole, diamond merchants label the synthesised material or otherwise cheap jewelry stone as “artificial diamond” and hiked up their prices to unimaginable levels.
According to a jeweler, a CZ stone priced only VND1,400 can be polished and cut into a polygonal one and sold on the market at VND350,000 (USD17).
A 105-side Swarovski crystal imported from Austria is priced over VND7 million (USD333) while its real value is only VND48,000 (USD2.3), producing a profit 145 times greater than its intrinsic value for the dealers.
To attract more customers, merchants launch regular sale-off campaigns on the firms’ anniversary day, women’s day, and on dozen other celebration days, bringing down the price by 50 percent.
On these special occasions, “an artificial diamond” sized 6.5 mm is sold at the promotion price of VND2.5 million (USD120), instead ofUSD$170.
But even at the reduced price, diamond merchants still pocket a handsome profit almost 100 times greater than their original investment.
Le Huu Hanh, vice director of Phu Nhuan Jewelry (PNJ) company confirmed that Vietnam has yet traded in artificial diamonds, so they are of course fake ones.
According to a document from the Gemology Institute of America, artificial diamond has similar qualities to a natural genuine one in terms of its hardness, weight, translucency and dispersion. Its price, therefore, is as high as a natural one.
The fake diamonds sold on the Vietnamese market are nothing but ordinary synthesised semi-precious stones.
Besides the Swarovski beads from Austria, other kinds of ornamental stones bearing the trade mark Preciosa of the Czech and Hsin Yi of Thailand have also been found on the market and sold as diamond manufactured in the US, Australia, or Canada.
