Latest / Success Story with Scott Clary / Lessons - Avoiding Getting Scammed When Buying a Diamond | Olivia Landau - Founder and CEO of The Clear Cut

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Lessons - Avoiding Getting Scammed When Buying a Diamond | Olivia Landau - Founder and CEO of The Clear Cut · Success Story with Scott Clary

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  a dot com slash Scott for thousand dollars off in this lessons episode uncover the complexities of
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  the diamond industry how lab-grown diamonds differ from natural ones the environmental and ethical
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  misconceptions surrounding them and why they lack long-term value learn about the rampant fraud
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  in the market and the importance of transparency and building trust with consumers
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  when you when you got into that you've been in this industry for a long time so you're obviously
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  very well aware of what's what's good value what's good quality what's what's real what's
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  not in terms of lab-grown but is there in this particular industry because like in all luxury
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  good industries there's a certain amount of fraud is there a significant amount of fraud in this
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  industry or is it not because of GIA and other sort of bodies like that you know I think there's a
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  lot of there's a lot of ways that customers can get taken advantage of but there have been a lot
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  of elements in place to protect customers like GIA certificates I think right now with the lab
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  grown and natural I think there's a lot more fraud going on because it's harder to detect the
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  differences like we have a machine that every single piece of jewelry we make goes through so it
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  can detect if there's any like mixing in like parcels of lab-grown with natural I think you know
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  I've seen a lot of people trade in their natural diamonds for larger lab-grown diamonds which
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  I believe in and of itself is fraud because that jeweler is taking something with value and
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  giving them something bigger that's worth zero dollars and misleading the customer so in terms
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  of fraud I think that's the most rampant thing that's happening and it's I think you know our
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  responsibility as like anyone in the industry that if you're dealing with the consumer directly
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  like it's your responsibility to be honest and upfront but unfortunately that's not not the case
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  a lot of the time so let's talk about let's talk about lab-grown so maybe just give a brief
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  just like a brief explanation as to how they're actually made for people that don't understand
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  and what they are I am curious about why why you feel that they're worthless how they're priced
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  I'm curious about profit like the the points that you can make on a lab-grown versus a natural
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  so let's just go into it and this can be like a master class on you know candlely why not
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  to to buy a lab-grown diamond so like start off with how they're made because I don't even know
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  so basically natural diamonds are formed under the earth's service near camera light pipes
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  can relate to positive over you know in very specific circumstances under high pressure high
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  temperature over billions of years it's kind of like a natural miracle that occurs there are no
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  new diamonds that are being formed all diamonds the natural diamonds have already been formed we're
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  just extracting them so most diamond mines will be depleted in the next 20 or 30 years and some of
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  the largest diamond mines like the Argyle mine Narshalia and a very large mining canada have already
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  been depleted so I think it is a misconception to think they're unlimited supplies of natural diamonds
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  and they're not a rare and finite resource because they are and that's why they maintain value lab
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  grown diamonds mimic this natural formation process but in a laboratory there are two main ways of
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  creating lab-grown diamonds there's chemical vapor deposition CVT or high pressure high temperature
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  HPHT basically you know slight nuances and differences between how to make them most of them come
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  with a carbon or diamond seed and then it is built the lab-grown diamond is built around that
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  and then basically most lab-grown diamonds are mass manufactured right now most of them are
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  being produced in China and in India the rough which is no before the diamond is cut and polished
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  obviously a rough natural diamond looks a very very different than a rough lab-grown diamond
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  lab-grown diamonds are kind of like in these cookie cutter sheets they're cut into these like
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  perfect squares and then they're polished and cut so obviously the inclusions in lab-grown diamonds
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  are going to be very different than natural diamonds because natural diamonds have natural
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  like organic inclusions that you know you can't you can't replicate or they would they're not
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  trying to replicate those natural inclusions but chemically if you're going to go to the chemical level
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  like yes they are chemically the same thing in terms of carbon their growth structures are different
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  there are ways of telling the differences through machinery but if you are looking at your
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  friend's ring and you're not inspecting it you're probably not going to be able to tell the
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  difference the main difference is their mass would you be able to if I'm insisting would you
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  be able to do yes but if I'm just looking at it like like I probably couldn't tell the
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  difference between a real Birken bag and a fake Birken bag if someone was burning it all be there
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  but the main difference is it's a mass manufactured product there's unlimited supply a lot of people
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  have the misconception that it's more ethical or more sustainable which is the fact that is I mean
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  like that bothers me so much because like they use an insane amount of greenhouse gases especially
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  methane it's basically the fast fashion of diamonds once you purchase the edges worth the zero
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  there's zero resale value it's not like they're less value they are completely worthless
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  and it's not going to help those diamonds aren't helping anyone whereas with the natural
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  diamonds like I've been to Botswana I would say three times in the last 18 months and that's one
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  of the locations where most of our natural diamonds are mined from and the fact that an entire
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  country like relies on a natural resource that they have you know have you know used to better
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  like their people and their economy they were one of the poorest countries pre 1960s after independence
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  they found their natural diamond deposits and have used that to become a very wealthy nation every
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  single person in the entire country goes to school for free anywhere in the country through graduate
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  school they free healthcare they've amazing infrastructure and I think that us as Americans
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  which and we are the largest consumers of of diamonds in general we like to think of Africa as one
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  place and it's bad and like their children dying in these minds it's a highly technical operation and
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  you need you know very skilled labor to extract the diamonds it's not like they're like children
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  digging holes so I think that you know we grew up with that narrative of blood diamond but it's really
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  actually doing actual Africans into service to blanket everyone together and just be like well
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  I'm going to buy a lab ground because it's it's more ethical or more sustainable when in fact it's
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  and I want to just sort of paint this picture because you are in this industry and you're in this
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  business and several and you have this stance but I want to make sure people understand that this
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  stance is not biased and what I mean by that is I know several of your competitors are probably very
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  happy to just go with the market and to sell lab grown and to make money on it because you can
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  you can make a good margin on lab grown and you can build a good business so it's not like
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  oh I started in natural and that's why I don't like lab grown it's really you you have strong
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  convictions for a reason and it's and it and you could in theory overnight start selling lab
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  under the clear cut and make money on it and and and it could turn right you have the customer base
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  you have everybody set up we have left millions and millions of dollars on the table like
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  the reason why we decided not to sell lab grown when I mean it would have been the easy thing to do
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  to just be like yeah we'll sell lab grown it's like oh you can make so much more money on it because
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  you have like 300 percent margins on lab grown diamonds right now you
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  is that the case is that actually the case when that's how much money you can make on it yeah
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  right now so we we were the first people to launch a free lab grown travel ring to like show the
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  value I'm purchasing lab grown diamonds right now for about a hundred a hundred and fifty dollars per
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  carrot more traveling and these are these are like I so a two-carat diamond would be
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  let's conservatively say like three hundred dollars whereas some of my competitors are selling
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  that exact same diamonds same quality for last year like fifteen thousand dollars maybe now like
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  five thousand dollars so it's an insane margin that's why like the misinformation is really being
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  perpetuated by the industry and a lot of people are like you know what I don't really care about
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  you know my consumer or like the long term you know value of my brand I just want to make money
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  now so you know the reason why we decided not to sell lab grown is because when we first started
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  the whole goal was I will never recommend something to one of my customers that I wouldn't recommend
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  to my best friend or it was built on education and that's something that we felt very strongly that
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  we still wanted to empower our customers and really give them the proper information to make
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  the right types of purchases so it didn't feel right to you know to sell lab grown even though that
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  is the easiest way to make money right now for sure thanks for tuning in if you found this valuable
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