How Much of a Threat is the Internet?

Troy Kelsey was an unhappy diamond shopper. A 29-year-old graduate student, he shopped around his home base of Champaign, Ill., for a diamond for his 25-year-old fiancée, but he couldn't find anything he liked. “The size of the city makes the selection of jewelers limited,” he says. Every stone he looked at had something that turned him off – bad cut, no “cert,” low clarity/color, even yellow fluorescence. And so, the self-described Internet junkie booted up his computer and went cyber-shopping, rifling through 10 Web pages before settling at “The Diamond Net” ( Diamond Net's Fair Oaks, Calif.-based owner, Rick Fischer, put Kelsey in touch with a cutter in New York, who agreed to send him a stone with no money down. When the stone arrived, Kelsey was impressed, and soon the two were saying the cyberspace equivalent of “Mazal.” The entire process

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