Diamond Shopping

For most people, buying a diamond could be a challenging exercise. Diamonds are shining rocks that come in different sizes, shapes and colors, and to the untrained eye, many of them look almost the same.  Diamond education is critical since minor differences in color, cut or clarity of these beautiful rocks could significantly impact on the final price. The goal is to get the “best diamond” at your price range and for that we need basic diamond education.

Prices of Diamonds Always Rise

In shopping for diamonds, it is important to realize that the cost increases dramatically as diamonds move through the retail chain. A diamond purchased straight from the source (i.e. the mining company) could easily cost less than half the cost at the retail store. Purchasing a diamond in a wholesale center or in major diamond exchanges (located in Israel, Belgium, Russia and South Africa) will dramatically reduce the overall purchase cost. A 1 Carat GIA certified round diamond, with G color and VVS2 Clarity could easily cost $8,000 at a US retailer. The same diamond could be purchased at a direct wholesale exchange in Israel or Belgium for less than $4,000.

What Makes Diamonds Unique

Every diamond is unique, and there are a variety of factors which affect the price of a diamond. Focus on those factors most important to you, and choose a diamond that satisfies your individual standards for beauty and value. This might be a very different diamond than someone else with a similar budget would choose. The first important thing to consider when shopping for a diamond is its certification. There are many certifications available but I would recommend the GIA (American Gemological Association) certification. It is a high standard certification that provides a thorough, independent evaluation of the diamond’s quality and is accepted around the world. Review the link to learn how GIA diamond grades are established, and how those grades affect the diamond’s price. The GIA guide provides a simple explanation of the 4 C’s (Carat Weight, Cut, Color, and Clarity).

The four C’s determine the true value of a diamond:

1) Carat Weight

The first of the C’s is Carat weight. A bigger diamond will have a higher Carat weight and it is important because a bigger diamond cost more in general and is more impressive. The diamond shape must be considered because each shape will have different dimensions for the same Carat weight. Two diamonds of equal carat weight may also appear very different in size based on the shape of the diamond. For instance, a 1 carat marquise tends to appear larger than a 1 carat round. The chart below illustrates why.

As the carat size of a diamond increases, the diamond’s price increases at an increasing rate because the larger the diamond, the more increasingly rare it is. Fewer than one in one million mined stones are large enough to produce a finished 1 carat diamond. So, as carat weight increases, you will typically pay much more in total price. The cost of a diamond is categorized id Carat Bands, so it is recommended to look for a diamond at the upper end of the carat cost band (i.e. 0.99 carat or 1.49 carat) in order to get the biggest diamond in the carat cost band. The table below illustrates the typical relationship between diamonds of equal quality and increasing carat weights:

Two diamonds of the same shape and carat weight may still appear different in size based on the proportions. A deeply cut diamond has a greater proportion of its total weight “hidden” in the depth, resulting in a smaller diameter than a well cut diamond. A well cut diamond may even have a slightly lower carat weight than a deeply cut diamond, yet still have a larger diameter, making it appear larger in size.

 2) Cut

The second C is the Cut, and diamond cut proportions are important because they determine the “fiery” multicolored reflections out of a well cut diamond. When light strikes a diamond, approximately 20% immediately reflects off the surface (as glare). Of the 80% that enters, a portion will escape through the bottom of the diamond. A well cut diamond will have each facet properly placed and angled so as to maximize the amount of light that reflects back out of the crown (top) of the diamond, to the eye of the observer. This reflected light is perceived as scintillation, fire, or brilliance.

In the diagram below, three common light patterns are shown. When light meets any facet of a diamond, it will either reflect (bounce back) or refract (bend while passing through the facet). The angle that the light hits the facet determines whether the majority of light reflects or refracts, which is why cut is so important.

 3) Color

The third C stands for Color. Diamonds come in a variety of colors, however in a pure white diamond is preferred because the presence of a yellow tint will degrade its beauty and lower its price. The less body color in a white diamond, the more true color it will reflect, and thus the greater its value. The GIA grades diamonds on a scale of D (colorless) through Z (light color). All D-Z diamonds are considered white, even though they contain varying degrees of color. Below is the GIA diamond color chart.

4) Clarity

The fourth C stands for Clarity. Clarity refers to the degree to which imperfections and inclusions are present inside the diamond. Diamonds which contain numerous or significant inclusions or blemishes have less brilliance because the flaws interfere with the path of light through the diamond. The position of an inclusion affects how easily it can be seen. Diamond cutters make every effort to cut a stone so that inclusions are not visible through the table of the finished diamond. Almost all diamonds are graded for clarity using the 11 point GIA diamond clarity scale. In grading diamond clarity, the GIA considers the number, size, color, reflectivity, and position of every flaw visible under 10x magnification. The GIA diamond clarity chart is provided below.