You may want to think twice before you invest in gemstones that are being sold to you over the phone. The Federal Trade Commission says unscrupulous telephone solicitors are selling what they call "investment grade" colored stones.
Jewelers of America Inc., a trade association based in New York City, advises consumers to never purchase a gemstone over the phone.The association says preliminary reports suggest that there are a number of such telemarketing groups, operating in or around the area of Toronto, Canada. They are all doing business under different names.
The U.S., Canada, Great Britain, Holland, Sweden, Denmark, Belgium and Ireland have all issued consumer warnings but the telemarketing groups still continue to flourish.
The networks operate under dozens of names including Can European Gem Services, Euro-International Diamond Trading, Equity Estate Galleries and Royal Antwerp Group.
The groups appear to operate this way: A consumer, often someone who has previously purchased gemstones by mail or phone, or who is a retiree with a nestegg, receives a call from a gemstone "dealer." The salesman employs high pressure tactics promising "big profits with little risk."
The consumer is told that once purchased, the stones can be liquidated through a company's "rebrokerage" service.
Once the consumer makes the payment, he receives an official looking package containing a lower quality emerald, ruby and sapphire mailed in sealed plastic. An official looking "grading" report accompanies the stones.
The promise of being able to resell the gems have proved false.
Jewelers of America advises you to never purchase a gemstone over the phone and to be extremely cautious when anyone offers a quick return on gemstones of any tupe.
The association says that many gemstones retain their value and provide more than a lifetime's worth of wearing enjoyment, but they are rarely purchased as investments.
For free brochures with guidelines and tips about purchasing and cleaning jewelry, send your name and address to Jewelers of America, 1185 Avenue of the Americas, New York, N.Y. 10036.