The Valuation of Diamonds



There are 4 main characteristics that determine the quality and value of a diamond. These are color, clarity, cut and carat. These are known as the 4C's in the diamond business. Anywhere in the world, diamonds are described using this language.

Color

Clarity

The Gemological Institute of American (GIA) has established a color grading system. It is divided into 23 color ranges, denoted by the letters "D" through "Z". Color is the one characteristic that determines a large amount of the diamond's value. Think of an inverted bell curve. The finest colorless diamonds are on one end, the fancy colored diamonds are on the other with the diamonds of increasing color in the middle. It is not possible to determine the color grade of two stones that fall next to each other on the color scale unless these stones are compared side by side. Since each grade you go up in color increases the value of the diamond, the consumer should remember that near colorless diamonds begin with the color grade J on the GIA scale. You can not determine the color with the naked eye at this grade level. Therefore, a consumer could decide to trade off the value in color by accepting a slightly lessor color and put that value in one of the other C's.

[diamond color grade chart]

Clarity is broken into 6 main grades with two to three subdivisions within those grades. The top 2 grades do not have any subdivisions. Clarity actually refers to a diamonds perfection. If there are flaws in the crystal the price for the stone is less. Most people can not see an inclusion in a 1ct diamond until it gets to a clarity grade of I1 or I2. Most consumers do not want to see any flaws in their diamonds when viewed with the naked eye. The grade of the diamond at which you can not see anything with the un-aided eye are the SI1 and SI2 grades. The lower the number of a subdivision the more expensive the stone even though the only difference may be the location of the inclusion. The consumer needs to determine the amount of cost he/she wants to associate with the clarity. This can also be a trade-off with carat, cut or color. Below is a brief chart of the clarity gradings.

 

Grade Description Definition
F Flawless No blemishes or inclusions
IF Internally Flawless No inclusions and only insignificant blemishes
VVS1,VVS2 Very,Very Slightly Included Minute inclusions, which are very difficult to see
VS1,VS2 Very Slightly Included Minor inclusion which are difficult to see
SI1,SI2 Slightly Included Noticeable inclusions which are easy to see with 10X magnification but not visible face up to the unaided eye
I1,I2,I3 Imperfect Obvious inclusions, which may be eye-visible face-up. I3 stones may be so included as to affect durability and beauty.

Cut

Carat Weight

The cut of the diamond refers to the porportions. A well cut diamond that adheres to the proper angles for the best light distribution by the prism. For a diamond, the crown needs to be cut at a 34.5 degree angle and the pavilion with a 40.75 degree angle and the rest portioned as shown in the diagram below. This is where the consumer needs the help of a professional since the cut is not easy to ascertain with the untrained eye. If you compare a well cut diamond with one not as well cut, it becomes obvious. Well cut diamonds have a premium price since they take more time to cut from the rough and there is more waste.

[diagram of diamond cutting angles]

Carat weight is based on the gem's specific gravity. Specific gravity is the ratio fo the density of any substance to that of water at 4 degrees C. When we talk about a gem's weight we are discussing how big is it's appearance and what does it weigh. Size has to do with a gemstone's dimensions. A carat is 0.200 grams. A 5 carat diamon weighs 1 gram. For each weight their is a high and low range to take into effect the dimensions of the stone. For example, a 1 carat diamond may actually weight betweeen .96 and 1.10. The table below gives a formula to get a best estimate for each shape of a stone.

Cut Formula
Rounds diameter x diameter x depth x S.G. X .0018
Oval (length + width) x (length + width) x depth x S.G. x .0025
Emerald length x width x depth x S.G. x .0026
Rectangle length x width x depth x S.G. x .0026
Square length x width x depth x S.G. x .0023
Marquis length x width x depth x S.G. x .0016
Pear length x width x depth x S.G. x .0018
Heart length x width x depth x S.G. x .0021
Trillion length x width x depth x S.G. x .0018
Cabochon length x width x depth x S.G. x .0026


© 2001, Ciree Loftus


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