Going Beyond the Grading Report

As a gemologist and diamond salesperson, one of the most common mistakes I find clients making when shopping for diamonds is that they compare diamonds on the basis of the certificate ("cert"; grading report) alone.  I tell my clients that, as cliche as it sounds, a diamond is more than the sum of its parts.  Grading reports are a great assurance to the consumer of the quality and authenticity of the diamond that they are purchasing, but they are limited in their use.

Imagine for a moment that you are in a diamond showroom and the salesperson brings out ten diamonds of the same color and clarity and all with grading reports from the same laboratory.  The carat weights are all quite similar, varying in only a few points, and all of them received Excellent cut grades.  Each grading report you read seems to look like a copy of the last one that you saw.  How are you going to choose which diamond is best buy for you when you cannot base your decision solely on the reports?  You look at the diamonds laid out in front of you, and you see that they strike you differently.  The store's gemologist shows you each stone under a gemological microscope and you see that although each is VS1-clarity, their internal characteristics look quite different.  Some seem to have brighter, more white flashes and others are very fiery and colorful.  What you have done now is you are looking into the heart of each diamond.  You are buying based on which diamonds speak most to you.  You have gone beyond the grading report.

Well, what does this mean for you, the consumer?  It means that although there are many outlets for you to see scores of diamonds ranked by the details of their grading reports alone, you are missing the true visual element of each stone.  Use those outlets to narrow your quality parameters to best match your price range.  Decide on what approximate carat weights are most affordable for you.  Then, bring this information to your trusted jeweler, and go beyond the grading report and into the beauty of the diamond.  After all, when a woman wears her stunning new piece of diamond jewelry, it is this beauty you see, not the grading report.

Originally posted by me to LibertyDiamonds.com on 3/9/2010.

Diamond Prices: A Comparison Conundrum

If you are reading this blog, you are probably a web-savvy person like myself that researches every purchase to the fullest extent to find the best quality and price for an item.  This price comparison method works great with electronics and other items that are branded and have model numbers for quick reference.  Mother Nature, however, never gave her diamonds model numbers.  She did give them varying color, clarity, and size.  But is that enough to compare diamond prices by matching color, clarity, and carat weight?  Nope.  I tell every client I see this one simple phrase that may seem cliche, but keep it in your mind through every step of your diamond shopping: "A diamond is more than the sum of its parts."

Diamond pricing (and gemstone and finished jewelry pricing for that matter) is complicated.  Each stone is unique and has its own set of value factors.  While most people are familiar with the concept the Four C's, these four characteristics offer a very limited way to compare diamond prices.  Assuming the value of a diamond by only taking into account the 4 C's is a gross generalization.  As a Graduate Gemologist and diamond salesperson, it is my job to search the inventory of loose diamonds from vendors across the globe.  I can quickly and easily set acceptable ranges for the Four C's, but this only narrows down the selection of diamonds to a general area.  Now I have several dozen diamonds that are extremely similar in carat weight, color, clarity, and cut grade but all have varying prices.  How am I supposed to pick the best stone for my client now?

Let us look at an actual example.  I just performed a search for round brilliant diamonds weighing exactly 1.00 carat with GIA grades of G color, VS2 clarity, and Excellent cut.  After setting these parameters, I am left with 21 diamonds that are, to the extent of the Four C's, exactly the same but all have different prices.  Think about it.  Is the carat weight different?  No.  Is the color different?  No.  Is the clarity different?  No.  It must be the cut grade.  No, they're all Excellent.  In order to demonstrate the price fluctuation between these 21 diamonds, I applied our standard mark-up (same percentage) to achieve the retail prices.  The 21 diamonds range in price from $5,500 to $7,050.  That's a huge difference in price when you are a client buying a diamond.  Why should my client pay $1,550 more for the same carat weight, color, clarity, and cut grade?  How can my client compare my prices with those of others if he or she only looks at the standard Four C's?  Well, he or she really can't, and this is why diamond comparison shopping is next to impossible.

Besides the Four C's, diamond prices are affected by dozens of different factors.  Naturally, where you buy the diamond has a huge impact on price.  A retailer at a mall is probably going to have much higher operating costs than an internet retailer or a jewelry store in location off the beaten path.  Those mall retailers have to mark up their merchandise with a larger profit margin in order to cover the costs of doing business.  This concept is pretty much common knowledge now, and many people expect to see higher prices at mall stores.  In turn, those customers seek other benefits that cannot be provided by most other retailers like accessibility and one-on-one service.  A diamond's price will vary within the same mall depending on the brand reputation of the store selling the stone.  So-called "luxury retailers" enjoy much handsomer profits on the same quality stones because they can command a higher price for shopping under their name.  Despite the glitz of shopping at these locations, the increased price is rarely justified in a true difference in quality.

In our business, our customers have come to expect the very best in terms of diamond quality.  We have the knowledge and the technology to be able to explain minute differences between diamonds to clients in an understandable manner.  While offering the best merchandise makes for well-satisfied customers, it also makes more smaller profit margins.  The highest-quality diamonds constantly command the a premium price on the diamond market.  While some retailers can get by with selling a medium-quality diamond at the same price point, we have chosen to only sell the best.  Therefore, in our market, profit margins are, at best, only a few percentage points.  You may not believe me, but it is the truth.  It also a shocking juxtaposition to the hundreds of percentage points some mall retailers routinely get on their merchandise.

So, when shopping for diamonds, one has to understand that apples-to-apples comparisons of price are very seldom accurate.  Rather, it is in your best interest to research the sellers from which you are researching diamonds and make a close relationship with one of them - a relationship in which trust and straightforwardness govern the transactions.

Originally posted by me to LibertyDiamonds.com on 4/5/2010.

From the Gemologist: More about Clarity

How a Clarity Grade is Assigned

When a trained diamond grader is evaluating a diamond for its clarity, he or she will view the stone with the naked eye and with 10x magnification to assess the overall impact of the diamond's clarity characteristics.  External characteristics do not affect the clarity grade below Internally Flawless (IF).  They will, however, factor into the polish grade.  There are many types of internal characteristics, but here is an brief explanation of the most common ones you will see:

  • Crystal - A foreign crystal trapped inside the diamond during the growth process
  • Feather - A break inside the diamond that is caused by blunt force or pressure applied to the stone
  • Pinpoint - A tiny crystal that appears literally no larger than a pinpoint when viewed at 10x magnification
  • Cloud - A series of pinpoints grouped together
  • Needle - An included crystal shaped like a rod
  • Indented Natural - A portion of the skin of the rough diamond crystal that falls below the polished surface of the diamond

After identifying all of the inclusions visible under 10x magnification, the grader then assesses the overall impact of the internal characteristic(s) based on five factors:

  • Size - How small or large is/are the inclusion(s)?
  • Number - How many inclusions are inside the diamond?
  • Position - Where are the inclusions located?
  • Nature - What type of inclusion(s) is/are present?
  • Relief - What is the visual impact of the inclusion(s)?

Once the diamond grader has identified the internal characteristics and assessed their impact on the diamond, he or she determines a clarity grade based on established guidelines set forth by the laboratory.

Reading Clarity on the Certificate

On the grading report for a loose diamond, you will see a single clarity grade assigned to the stone ranging from FL to I3 on the GIA scale.  Some labs such as AGS use their own nomenclature.  In addition to the clarity grade, the grading reports for most stones above one carat with be accompanied by a "diamond plot," or a map of the external and internal characteristics of the diamond.  Inclusions (most properly referred to as "internal characteristics") are found inside the diamond and are marked in red on all major laboratory reports such as GIA, AGS, and EGL.  Blemishes (or "external characteristics") are found on the surface of the diamond.  Blemishes are only noted on a grading report if the diamond is graded Flawless (FL) or Internally Flawless (FL), and they will be marked in green.

How/Why Clarity Matters

While given the choice, most women would probably want a Flawless diamond, a very high clarity grade is not needed for a diamond to be free of visible characteristics that may detract from the beauty of the stone.  Most people cannot see an inclusion with their naked eye until the diamond reaches the SI or I range.  That being said, one can still find a diamond that is essentially "eye clean" at SI1 if the stone is selected properly and by a knowledgeable diamond buyer.  For a diamond to be brilliant, it must return as much light as possible that enters the stone back to the eye.  Inclusions can interrupt the path of light and result in dull, lifeless stones regardless of the precision of the cut.  Inclusions can dramatically affect the durability of the diamond depending on their size, type, and location.  For example, a feather reaching the girdle of a diamond leaves the stone prone to chipping during the setting process or normal wear.  Keep this in mind when considering diamonds in the I range.

To select an eye clean diamond, I recommend purchasing diamonds that are grades VS2 (or perhaps SI1 if well-selected) or higher.  This way you can maximize the other three C's and get the most out of your budget.

Originally posted by me to LibertyDiamonds.com on 4/5/2010.

Cut: A Diamond’s Most Important Value Factor

"I saw the angel in the marble and carved until I set him free." - Michelangelo

A diamond cutter is like a sculptor.  He has a piece of rough diamond in front of him, and he must envision the finished diamond.  He asks himself many questions: What shape diamond will best fit this piece of rough?  Should I cut the rough into one larger diamond and sacrifice cut quality, or should I cut two diamonds of smaller size but of finer cut quality?  How can I maximize the value of the finished diamond(s) that will come from this piece of rough?  This planning stage can take days, weeks, months, even years if the piece of rough is of great importance.  He polishes a window to see into the stone, and he looks for the angel within.

Cut is the Most Important Human Contribution to a Diamond's Value

Unless a diamond undergoes treatments in a laboratory, man cannot change the color or clarity of the diamond rough.  He can just cut around inclusions and work to minimize the impact of a rough diamond's color.  The diamond cutter, however, has complete control over the cut of the diamond.  If he has a colorless, flawless rough diamond and cuts it to poor proportions, the diamond will be lifeless and dull.  But if he cuts the diamond to more exact, precise proportions with a fine finish, the angel will be set free from within the diamond.

Factors Affecting the Cut of a Diamond

There are many important factors in a diamond's cut that are precisely measured and weighed against carefully determined guidelines.  Round brilliant diamonds are the only diamonds that receive a final cut grade through the GIA cut grading system.  Polish and symmetry grades are given on all diamond cuts.  Here is a list of those factors that you will most likely come across:

  • Table size
  • Total depth percentage
  • Crown height
  • Crown angle
  • Star facet length
  • Girdle thickness percentage
  • Girdle thickness verbal description
  • Pavilion depth
  • Pavilion angle
  • Lower girdle facet length
  • Culet size
  • Polish
  • Symmetry

Each one of these factors has many different possible values that are considered in order to end up at the final cut grade.  They are all weighed equally with the exception of polish and symmetry.  Polish and symmetry grades are bumped up one grade when determining the diamond cut grade.  For example, a diamond can receive a GIA Excellent cut grade and have Very Good polish and symmetry grades.

Value of a Diamond

So how is that you can have 10 1.00-carat, G-color, VS1-clarity, round brilliant diamonds all graded by GIA and they each have different values (read: prices)?  The cut grade is most likely the answer.  All other factors being equal, a diamond with an Excellent cut grade is worth far more than one a lower cut grade.  These diamonds sell at a premium because they are the most coveted round brilliant diamonds.  A well-selected diamond with a Very Good cut grade can also be a great value, as usually there is one cut factor that through off the grade.

To maximize your diamond budget while getting the most beautiful diamond you can, I recommend a GIA cut grade of Excellent or Very Good.

Originally posted by me to LibertyDiamonds.com on 4/6/2010.

Clarity Enhancements: The Why and How

Why Clarity Enhance a Diamond?

Clarity-enhanced diamonds are interesting creatures in the diamond industry.  Some jewelers love to offer them as an affordable alternative to paying for a higher clarity grade, and others won't touch them with a 10-foot pole.  The most important point to remember about clarity enhancement is that it does not improve the clarity grade of the stone.  This might seem silly at first.  If the big black inclusions have been dissolved away or bleached out, why shouldn't the clarity grade go up?  The answer is that clarity enhancements are not natural and are not accepted as a normal part of the diamond finishing process.  They only improve the apparent clarity, or what the diamond looks like to the eye after the enhancements have been carried out.  A reputable gemological laboratory will grade the clarity of a clarity-enhanced diamond as if the inclusions were in their original state.  Ironically, these enhancements can actually worsen the clarity grade!  The purpose of clarity enhancement is to make the diamond more saleable to the consumer.  A jeweler can purchase a lower clarity diamond at a much more substantial discount than if purchasing higher clarity stones.  He or she then decides to have the diamond clarity enhanced with the ultimate aim or reaping a larger profit margin.

How Diamonds are Clarity-Enhanced

There are two main ways of enhancing the apparent clarity of a diamond: laser drilling and fracture filling.  These treatments may be appear separately or together in the same diamond.  Each method targets specific inclusions, and they are not a cure-all for included diamonds.

  • Laser Drilling - Diamonds are laser drilled in order to improve the appearance of dark, included crystals or staining caused by iron oxide.  An infared laser beam is aimed precisely at the inclusion, and it burns a microscopic hole (less than 0.2 mm wide) from the surface to the inclusion.  The heat of the laser can sometimes destroy the inclusion enough that no further treatment is necessary.  If not, the diamond is submerged in sulfuric acid dissolve the inclusion or to lighten the color of the inclusion.  Diamonds can actually have other diamonds in them as inclusions, and these cannot be removed because of diamond's immunity to sulfuric acid.  The laser leaves behind a permanent reminder of the treatment: a laser drill hole (LDH).  Laser drill holes become clarity characteristics that are taken into account when determining the clarity grade.  They are also noted on the diamond's plot.  The laser drill hole looks like a tiny tube extending into the diamond from the surface (not to be confused with a naturally-occurring growth tube).  To fill the hollow void left my the laster drilling, they might also be fracture-filled.  Laser drilling must be disclosed to the consumer.  GIA will grade laser-drilled diamonds so long as the laser drill holes have not been glass-filled.
  • Fracture Filling - Naturally-occurring breaks within a diamond can produce a white, feather-like inclusion that detracts from the beauty of the diamond.  To improve the look of these fractures, a special type of glass filling may be injected into the fractures.  The glass filling will ideally make the fractures more transparent and less noticeable.  If the fracture breaks the diamond's surface, the glass can be injected directly into it.  If the fracture is internal, a laser may be used to drill to fracture.  Laser drill holes themselves may be fracture-filled to diminish their appearance.  Fracture filling (and the accompanying laser drilling, if used) must be disclosed to the consumer.  Fracture filling is not considered a permanent treatment, as the glass come out of the diamond during normal wear, cleaning, or jewelry repairs.  Special care is required for fracture-filled diamonds.  Important: GIA will not grade fracture-filled diamonds.  This means that diamonds that are glass-filled to minimize the appearance of laser drill holes are ineligible for grading by GIA.  This is because it is not possible to accurately assess the pre-treatment clarity of the diamond.

Care and Disclosure

All diamond treatments must be disclosed to the consumer at every step of the sales process.  Diamond treatments such as fracture filling require special care and handling considerations.  These should be told to you by the jeweler.  The market for treated diamonds remains small compared to that of natural diamonds, so resaleability will be negatively affected.

Originally posted by me to LibertyDiamonds.com on 4/6/2010.

All About Carats/Karats

 What Is a Carat?

Well, a carat is a root vegetable that...No, sorry, we're not talking about "carrots."  The term carat refers to the generally accepted unit of measure for the mass ("weight" for common purposes) of a diamond.  The term carat is often abbreviated as "CT."  Each carat is divisible into 100 units called points.  One point equals 1/100 (0.01) of a carat.  One carat equals

  • 100 points
  • 1/5 gram
  • 200 milligrams

What Does "CTW" or "CTTW" mean?

When there are multiple diamonds or gemstones in a piece of jewelry, the total of the carat weights of all the stones are referred to a Xcarats total weight.  Carats total weight is abbreviated at CTW or CTTW.  Most jewelers have a tolerance for variation in the total carat weight established.  If the weight is approximate, the jeweler is required to specify the accepted variance.

Why aren't diamonds just weighed in grams?

Good question.  Diamonds are generally sold by their weight (mass).  A small fluctuation in weight can mean a large difference in price.  Therefore, one gram is too large of a measurement to use for the weight of diamonds.  A carat, being equal to 1/5 of a gram, is much more precise.  Diamonds weights are carried out to the second decimal place (e.g. 1.75 carats).

Does that mean all diamond weights are really just rounded?

Well, not necessarily all.  A diamond can certainly weigh, for example, 1.000 carats.  In the United States, the Federal Trade Commission (FTC) allows for diamonds to be rounded up to the next number in the second decimal place if the number in the third decimal place is a 5 or higher (e.g. 1.745 carats can be rounded to 1.75 carats).  However, GIA and many diamond dealers have set their own standard that diamond weights are only to be rounded up if the number in the third decimal place is a 9 or higher (e.g. 1.749 carats can be rounded to 1.75 carats).  This means that anything weighing, as in our example, 1.748 carats or less is rounded to just 1.74 carats.  In this way, the diamond consumer pays the fairest price for the diamond based on its weight.

So gold is weighed in carats too?

No.  Although you have undoubtedly heard terms "14 karat gold," "18 karat gold," etc., a diamond's carats have nothing to do with a gold's karats.  The term karat (with a "K" in the United States) refers to the purity of gold.  Pure gold (considered 99.9% gold or purer) is rated as 24 karats.  This is the highest possible purity rating.  When gold is referred to as "18 karats" (or "18K"), the gold is 18 out of a possible 24 karats.  This comes out to be 75% purity, and this is why some 18K gold is marked as "750" (referring to 75.0% gold content).  The other 25% is an alloy of other precious and non-precious metals used to give the gold greater strength and different color (e.g. "white gold" and "rose gold").  To make matters even more confusing, in Great Britain, for example, "karat" is spelled with a "C" making it "carat."  Therefore, there is no spelling difference between the unit of weight and the unit of purity.

Is gold really sold as low as 1 karat?

Not in the United States.  In the US, the FTC limits the sale of gold to 10 karats (58.5% gold) and purer.  Anything less than 58.5% gold cannot be legally referred to as "gold"  (The legal limit for platinum is 90.0% platinum).  Again across the pond in Great Britain, gold can be sold in as low as 9 carats (37.5% pure gold; remember the difference in spelling!).  In Italy, the minimum purity level allowed for domestic sale is 18 karats (75.0% pure gold).

Originally posted by me on LibertyDiamonds.com on 4/7/2010.

Seeing Triple? SI3 Clarity Grade Exposed

The Situation

Many consumers prepare for diamond shopping by reviewing the Four C's of diamond value as described by GIA.  After looking at the GIA clarity scale a few times, one notices that the I (Included) range is the only range with three separate clarity grades.  This is true.  But then the consumer visits some jewelry stores or looks at diamonds online and sees something that upsets what they have learned about the strictness of grading standards: the clarity grade of SI3.  SI3 is an actual grade assigned by the European Gemological Laboratory (EGL).  One can review the report for an SI3 diamond and see "SI3" actually printed on the cert.

The Problem

GIA established the internationally-recognized diamond grading system that is used by almost all gemological laboratories and members of the jewelry industry.  GIA chose not to copyright the grading system because the system was designed to unify grading standards and to instill consumer confidence in diamonds.  The GIA grading system can be used by anyone without paying royalties.  The "problem" (it is not actually a problem) with the GIA clarity scale is that the clarity ranges produce levels (FL/IF, VVS, VS, SI, and I), and the price differences between two neighboring levels can be dramatic.  In order to select a good quality diamond for an engagement ring, many jewelry professional recommend purchasing a diamond in the SI range or above.  The I range encompasses diamonds that have eye-visible inclusions, which can dramatically affect the appearance and light performance of a diamond.  Thus, a critical clarity call falls between the clarity grades of SI2 and I1.  An SI2 diamond is much more salable than an I1 stone with all other factors being equal.  So with so many diamonds being graded I1, many diamond dealers became frustrated with "borderline calls," or highly-contested clarity determinations between two grades.  Their solution: SI3.

The Truth

This newly-developed SI3 grade could be applied to the diamonds being graded as I1 but believed by some to actually be SI2.  In actuality, a grade of SI3 is, at best, an I1-clarity diamond.  There is no other way of looking at it.  EGL adopted SI3 as an accepted clarity grade in order to stay competitive with GIA and other gemological laboratories.  If a diamond dealer has a stone that he feels GIA might call an I1, he may choose to send it to EGL to get an SI3, which appears to be much more palatable to the consumer.  It would not be quite right to say that the use of SI3 constitutes fraud as EGL will actually print a grading report with "SI3" on it.  Thus, there is some backing to the grade.  There is, however, no doubt that the SI3 grade is intended to deceive the consumer.  The only organization that should have the right to alter the GIA grading system is GIA.  Altering the internationally-recognized grading system for profit is just unethical.  We at Liberty Diamonds do not accept SI3 as a legitimate grade, and we will not trade in SI3 diamonds.

My Recommendation

It is my personal recommendation to you, the consumer, to not purchase a diamond graded SI3.  Instead, opt for SI2 or I1.  The questionability of the SI3 grade will surely negatively affect the stone's actual and resale value.  It is also my personal recommendation that you reconsider accepting a grading report from a gemological laboratory that accepts the SI3 clarity grade as legitimate.

What Is My Jewelry Worth?

Is my jewelry really worth anything?

What a good question!  Almost everyday we have a customers come into our showroom wanting to sell their jewelry.  In this economy, the second-hand jewelry and gold buying markets are thriving.  Signs offering cash for gold are all over our cities.  Though this plethora of advertising may seem tacky, it should actually make you feel comfortable about your jewelry.  Why?  Because you know that you can take a piece of precious metal jewelry and sell it in any city across the country and get at least some money for it.  Precious metals, diamonds, and gemstones are universal currency, and it's been that may for thousands of years.  If you take nothing take nothing else from this blog, please remember that your jewelry has value!

How much is my jewelry worth?

I already told you that your jewelry is worth money.  How much money, however, depends on many factors.  Let's think back to journalism class: who, what, where, when, why, and how.  Remember those key terms?  Well they are also responsible for determining the value of your jewelry.  Let's take a further look:

  • Who - To whom are you selling your jewelry?  Are you walking into a pawn shop in a seedy neighborhood or are you approaching the fine folks at Christie's?  In the retail world, jewelry has essentially two different values: wholesale and retail.  When you buy from a jewelry store, you are paying the retail price for the jewelry.  Regardless of how "discounted" the piece, you are almost surely paying more than the jeweler's cost.  That cost is the jewelry item's wholesale value: the value the jeweler paid a jewelry manufacturer or gemstone dealer for the item.  When you go to a jewelry store, pawn shop, or other immediate-payout route, you become a wholesaler selling your jewelry at wholesale value.  The jeweler has to make a profit on the item by either reselling it or by disassembling it and selling its parts.  If the jeweler were to pay you the retail value (i.e. the value indicated on an appraisal), he would most likely be losing money when he goes to sell the piece.  So when a jeweler says your jewelry is only worth X dollars, and X is way less than what you paid, please do not be insulted.  It's capitalism in action.
  • What - What piece of jewelry are you selling?   If you walk into a jewelry store with a 50-carat D-Flawless diamond, you are going to get a heck of a lot of money for that stone.  However, when you bring in a piece of jewelry that you bought at a discount jeweler, most likely you will receive a very low amount of money (usually equal to market value of the precious metal(s) + the market value of any gemstones in it).  The market value of that D-Flawless diamond is very, very high.  The market value of a mass-produced piece of jewelry is probably very, very low.  Factors that increase the value of what you are selling are brand, provenance (a historical, verifiable story behind the piece of jewelry; usually the piece goes to auction), fashion appeal, craftsmanship, and many others.
  • Where - Where are you selling your jewelry?  This can refer both to both to whom you are selling and where geographically you are selling.  The market for jewelry in a major city is going to be stronger than in a small town.  Selling yellow gold in Southern California is like selling a typewriter to a computer engineer: the buyer assigns little value to the item because he has no use for it.
  • When - When you are you selling your jewelry?  The value paid for your jewelry will most likely be directly derived from the current market prices for the precious metals and gemstones.  If the daily gold price is at an all-time high, that's a great time to sell.  An interesting thing to note is that when the US dollar is devalued, gold value usually goes up.
  • Why - Why are you selling your jewelry?  This actually plays a large part in how much you will receive for your jewelry.  If you are strapped for cash and wander into a pawn shop, you will most likely smell of desperation, and the value will go down.  It's just the nature of the beast.
  • How - How are you selling your jewelry?  There are countless ways to sell a piece of jewelry.  There's the internet, jewelry stores, pawn shops, auctions, friends and family, random people you run into, and many others.  If you can sell to another individual like yourself, you will be able to offer and receive a value closer to the retail price of your piece of jewelry.  At auction, a piece of jewelry with provenance or extreme rarity can command record-setting prices.  However, there how you sell your jewelry brings other factors into consideration like how long it will take for the piece to sell.  A pawn shop or jewelry store will pay you right on the spot, albeit at a lower price.  If you put your piece on consignment or sell to another individual, it may take a while to finally find a buyer.  Time is money, and in jewelry selling, more time on your end usually means more money in your pocket.

So what's with the value on my appraisal?

Values stated on jewelry appraisals are our number one objection to the price we offer to pay for a piece of jewelry.  Legally, there are many different types of appraisals.  However, most consumers are only ever exposed to appraisals for the insurance replacement value.  The insurance replacement value is essentially the amount the insurance company would need to pay out in order to replace the article of jewelry with another piece of comparable quality at retail value and excluding sales tax (Please note that this is not a legal definition and is not intended to serve as reference in legal matters).  More often than not, your jewelry will appraise for more than you paid for it.  This is because the appraiser is factoring a broader, easily attainable retail value.  Tip: It is recommended that you have your jewelry appraisals updated at least every two years to reflect changes in market values.  In selling your jewelry, you will more often than not  receive a value of less than the appraised value.  Refer to the above factors for why this is true.

My personal words of advice: Please do not be insulted by businesspeople and jewelry professionals who offer you a low value for your jewelry.  Many of them will try to play coy so that you cannot judge how much they actually want the piece of jewelry.  In many cases, the person really wants to buy the piece from you, but if they tell you that, you will expect a higher price.  It's just business.

Originally posted by me to LibertyDiamonds.com on 5/7/2010.

Diamond Color: A Rainbow of Choices

Diamond Color

The vast majority of diamonds mined are tinted yellow or brown.  It is very rare to find a colorless or near-colorless diamond and especially in a large size.  It easy to take diamond colors for granted when one can walk into a jewelry store and see case after case filled with glittering, white diamonds.  But diamonds are not limited to colorless, yellow, or brown; diamonds come in essentially every hue in the rainbow from blue to red to pink to green (the one diamond color not available naturally is vivid kelly green).  For this article, we will discuss diamonds within the normal color range.

Normal Color Range

Most diamonds are assigned a color grade based on the color scale developed by the Gemological Institute of America.  This scale pertains to diamonds in what's called the normal color range.  This scale ranges from completely colorless (D) to light yellow or brown (Z).  The human eye can differentiate between millions of hues, but humans have very poor color memory.  Therefore, GIA painstakingly assembled a set of master color comparison diamonds representing every color in the normal color range.  A trained grader places the loose diamond to be graded table down (face down) and compares its color with that of the master stones to determine the color grade.  Any standard gemological laboratory within a jewelry store should also have a set of master stones (either diamond or cubic zirconia), although not every grade will be represented.  It is important to note that although most diamonds have a tint of yellow or brown, the normal color range also applies to all other diamond hues that are not intense enough to fall into the fancy color scale.

Color Grade Ranges

  • D, E, and F - Colorless table-up and table-down
  • G, H, I, and J - Near colorless; usually appears colorless table-up when set
  • K, L, and M - Faint color; color visible table-up
  • N, O, P, Q, and R - Very light color
  • S, T, U, V, W, X, Y, and Z - Light color

Color and Diamond Value

The allure of a D-color diamond tempts almost every diamond buyer, but such a grade is unnecessary even if you do not want your diamond to show any color.  D-color diamonds command a premium for their extreme rarity.  In fact, all other factors being equal, the greatest difference in value is between the grades of D and E.  By definition, all diamonds graded D, E, and F are colorless.  Gemologists and diamond graders differentiate between these grades by assessing the diamond's tone, the lightness or darkness of the color.  Colorless and near-colorless diamonds will hold their value over time.  Below these ranges, the resaleability is limited.  This is why diamonds that appear to have a color below that of the J-grade are often sold without a diamond grading report or are graded by laboratories with less strict standards in color grading.

In order to maximize your diamond budget, I recommend purchasing diamonds in the I-grade or higher.

Jared W. Olen, Graduate Gemologist (GIA), Accredited Jewelry Professional (GIA), Certified Diamontologist (DCA)