What To Look For When Buying Your First / Perfect Diamond.
And how using MyDiamond will make the process a breeze!
So, you’re ready — you’ve found the “one”, they’re perfect, and it’s time to pop the question. Being the perfect individual that they are, they obviously deserve the perfect diamond! But, what exactly is the “perfect” diamond, and how do you go about looking for it? How do you know how much to spend, or better yet, what to spend it on? Are all diamonds the same? Does a higher price tag equal a better diamond? How about size? Surely the bigger the diamond, the more expensive, right?
Confused yet? You’re not alone. I hear horror stories every day from customers who thought they were getting the perfect diamond, only to find out that wasn’t the case. So, how can you tell when a deal is too good to be true, or, better yet, how can you tell the difference between two similarly priced diamonds?
In this week’s blog we’re going to cover this very topic: How to find the perfect diamond. I’ll use some real-world examples such as actual diamonds and prices, certificates, diamond retailers and designers. At the end you’ll have deep insight into the process involved in finding the perfect diamond for the best value.
Identifying Value In A Diamond
First, I want to start off by discussing actual diamond shapes, qualities and sizes. This is where the bulk of the value of a diamond rests. In future blog posts I will go far more into detail about each topic, such as color and clarity, but for the sake of sticking on point, I will offer general information about each to help guide you through the entire process.
Shape
Let’s start off with the shape of a diamond. As you can see below, diamonds come in a wide variety of shapes, each with their own benefits and drawbacks.
As you can see above, there are multiple shapes that a diamond is cut into. Diamonds can be cut into Emerald, Round, Oval, Princess, Cushion, Marquis, Pear, Heart and many many more shapes. Each shape has its benefits, and its drawbacks.
For instance, take the Oval Cut diamond. Oval diamonds are cut to exaggerate their proportions, giving off the look of a larger diamond, when compared to a diamond of similar weight, such as a Round or Princess shape diamond. On the other hand, because of the shape of the Oval diamonds, they are not the best at refracting light, and thus hold more light into the stone than a Round or Princess diamond. This translates to less sparkle, and in the case of a lower color Oval diamond (we’ll get to color next), a more obvious yellowing than a round or princess cut diamond of the same color. Generally speaking, the whiter the diamond the higher the quality. There are exceptions when it comes to Fancy Color Diamonds, like Argyle Pinks, but we’ll get to those in a little bit.
Color
Depending on the shape of the diamond, the color can display itself either more or less vividly. Diamonds are graded on a scale starting at “D” for what is considered to be a colorless diamond, and then run through the alphabet all the way down to “Z”, getting progressively more “yellow” as they go down the scale. For example, have a look at the image below:
Now, let’s get back to shape. As you can see from the above image, a yellowing occurs in some diamonds, and they are thus given a lower color grade. In some shapes, such as Oval, and Radiant cuts, the color is more obvious than it would be in a Round. For instance a G color in a round, will still show fairly white compared to a G color in an oval, which will thus look slightly more yellow, than its round counterpart.
So, by now you should know that the higher the color grade, the more valuable the diamond. Shape on the other hand doesn’t impact the value too much, with a few exceptions. Round cut diamonds are generally traded at a higher price within the industry, and those higher prices are transferred down to you, the consumer. But conversely, that also means that if things don’t work out and you want to sell the diamond, you will be able to ask more for a round diamond than you would for most other shapes.
I’m a realist, and this I know: sometimes things don’t go as we had planned, and you just end up having to sell your diamonds. I will do a piece about selling your diamond in the future, but for now, let’s focus on the beautiful parts of buying a diamond.
Clarity
Now that we have quickly run through color and shape, let’s move on to “clarity”. If you have a look at the below two images, you will find similar diamonds when it comes to shape and even color. But what stands out is the actual clarity of those diamonds.
For instance, compare the first diamond with the second. What do you see? You should be seeing a number of black specks in the second diamond, where as the first is practically clear as crystal. That is what is referred to in the diamond industry as Clarity, or Purity. The clarity grade of a diamond refers to how clear that diamond is, in terms of imperfections within the diamond. An imperfection can most commonly be a small “ chunk” of carbon, known as an inclusion, as you see in the second image.
In image two, we also see something called white inclusions, this time taking the shape of “clouds”. The imperfections found in diamonds can take many forms, and all “imperfections” will influence a clarity grading. That being said, most imperfections will usually appear as small black carbon “inclusions”. When grading for imperfections, a diamond is usually graded by the standards set by the GIA (Gemological Institute of America).
According to the GIA, the absolute best grade a diamond can get, with regards to clarity, is an “F” grade. “F” in this case stands for “Flawless”. From there the grade slides down, to Internally Flawless (IF) , followed by “Very Very Slightly Included” (VVS1 — VVS2), “Very Slightly Included” (VS1-VS2), “Slightly Included” (SI1-SI2), and lastly “Included” (I1-I3), on the lower end of the scale. There are diamonds that are graded below an “I3”, but they are generally not considered to be “Gem Grade” diamonds at that point. Beyond that , you are essentially looking at commercial grade diamonds, unsuitable for jewelry.
Of all of the quality factors of a diamond, after size, clarity carries the most weight on how much value a diamond has. The higher the clarity, the higher the value. The higher the clarity, and color, the higher the value. The larger the diamond, as a round shape, with a high color and clarity, the higher the value.
Are you starting to see a pattern here? If so, good! You now know the basics on what gives a diamond value. On the supply end of the chain, the most important information for a dealer to evaluate a diamond is, Shape, Size, Color, and Clarity. If you understand how to differentiate between those four characteristics, you are further ahead than most, when it comes to understanding how diamonds are evaluated.
Size
So now that you have a good idea of how shape and colour can influence the value of a diamond let’s quickly cover size. The bigger the diamond the more valuable. There. That was easy right? Except it’s not completely true. Say you have a 2.00ct 12 clarity diamond that is an M color. And I have a 1.5ct vvs1 clarity D color diamond. Which is more valuable? If both diamonds were the same, mine would be. But in the case of you having a 2.00ct diamond and I have a 1.5ct, well, mine is still more valuable. Far more, to be honest.
Wholesale Value Chart
You see, diamonds, on the wholesale level are valued, based on the aforementioned shape, size , color, and clarity, but it goes a bit deeper. There are industry metrics, usually a matrix chart, that will distinguish between shape, color, weight, and clarity to create a neat chart, where every row, and every column can meet, offering you a basis for valuation.
For instance, imagine a matrix determining the price of 1.00 to 1.50 carat diamonds. On the x axis you may have color, and on the Y axis you will have clarity. Each axis will intersect to give you a number. So D color can intersect with any of the clarity ranges (f, if, vvs, vs, si, i). Lets say you have a D color diamond, graded as an si clarity. you look through the matrix, and get a corresponding and intersecting value for SI / D . Based on that number, you start to get an idea as to what your diamond is worth, at least on a wholesale level.
Of course retail stores have overhead and will pass along some of that to you, but, either way it gives you a rough idea of how diamonds are appraised. Knowing this little bit of inside information, you can now begin to understand what is a “good” deal, and what is a “great” deal when purchasing the perfect diamond.
For that reason, you can have diamonds that are similar in both size, shape, and colour, but due to a varying clarity grade, they are all priced differently.
Budget
So, that now you have a basic idea of how grading a diamond works, you want to know how much to spend. Well, that part is actually very subjective. Everyone will have a different budget, but the trick is to make that budget work for you. So if you have say a $5000 budget to spend on the diamond alone, excluding the ring, you should first decide which criteria is most important to you. Do you want a huge, 2.00ct diamond, which is a very low clarity and colour, or perhaps a smaller diamond, around 0.75ct which has a very high colour, clarity, and cut rating?
While most of these options are subjective, they offer you some benefits. Firstly, once you decide on the criteria that is most important to you, say size, you know what other criteria you are willing to compromise on. Secondly, you can now begin to compare different diamonds, with similar criteria. The easiest way to do this is to use a service like Gemsby to choose your criteria, and then sort the results by price, distance, or perhaps refine the search fields further. This way you have a very good idea of what is available to you locally, within your budget, and you now have the knowledge and the tools (MyDiamond) to help you make an educated choice.
See It In Person — Book A Viewing
Awesome. You have used Gemsby to narrow it down to 5 stones, all under $5000. Each of these stones is a round diamond, ranging from si1 to I1 in clarity, and are all “H” or better on the color grading scale. Here comes the next step. Use Gemsby to book appointments to see each of the 5 stones. Why? Because each and every diamond is unique. What looks good on paper, may not always translate into the shiniest or most stunning diamond. Gemsby did the hard part for you already by searching for, then sorting, all of the perfect diamonds to meet your criteria. The next step involves you actually going to the stores to see those specific diamonds in person.
Keep in mind, you now have a pretty good concept of how diamonds are valued, so you should make sure to look for those features in the diamonds you are shown. Retailers selling their diamonds through the Gemsby platform are vetted to ensure quality and customer service, so that you know you can trust the jewelers you meet. That being said, there is still one very valuable bit of knowledge I have to offer, the diamond certificate of appraisal.
Certificates
While all gemology labs must uphold a standard of quality, they do use different criteria to certify or grade a diamond. The benchmark appraisal within the industry is GIA (Gemological Institute of America). That being said, it doesn’t mean that other gemological labs are less equipped to evaluate your diamond. Many labs across North America uphold the same standards as the GIA, and thus having your diamond certified by them, will offer the same peace of mind as having a GIA certificate. Those labs include, but are not limited to, IGI, GemScan, AGS, and HRD. There are many more, ofcourse, so feel free to email me personally if you need help verifying a report.
Apply Your Knowledge
Ok, so hopefuly you now have an idea as to what is involved with pricing a diamond. Using this knowledge you should be able to start looking for diamonds through the MyDiamond mobile app, or online at www.Gemsby.com. There are other criteria involved in searching for a diamond, but they are more buyer specific. For instance, take fluorescence. Most buyers of diamonds don’t care if their diamond is flourescent under a black light, and since it rarely ever effects the quality or clarity of the diamond, it is an issue that only the most adamant investors will worry about. Most gemology labs wont even display a value for flourescence unless you specifically ask for one.
That being said, have a look at www.Gemsby.com and see if you can find something that fits your budget, using the Carat Size, Cut, Shape, Colour, and Certificate fields. Those should be more than enough for you to make an educated decision. In the next post, I will delve deeper into Cut grades, but for now you should just know that they are fairly self explanatory. For instance and Excellent cut diamond is cut better than a Good Cut. Easy enough right? The diamonds below are all fairly similar, but have varying cut grades. Do you see a difference in value? Would you attribute that difference to the cut grade or do you think there are other criteria in those diamonds that may affect the prices?
Next blog post: Cut Grades, Polish, Symmetry, Fluorescence, and Fancy Color Diamonds
