COLOR – colorless diamonds are ideal
CLARITY – the less imperfections, the better
CUT – is the cut such that it reflects light very well?
Most people know the carat weight of their diamond, but few know the clarity or color off the top of their head – let alone the cut and then the other though lesser factors – depth, table, crown, symmetry, girdle, flourescence, etc.
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The details of your diamond can be found on an official certificate from the industry-accepted rating agencies such as the Gemological Institute of America (GIA), , European Gemological Laboraory (EGL), Hoge Raad Voor Diamant (HRD), or the . Insurance appraisals are helpful too, but the details of the rating from your insurance appraisal are more of an estimate than it is a factual statement to the characteristics of your diamond.
But how are you supposed to estimate the value of your diamond if you don’t have one? That’s OK too. Our diamond experts will examine your diamond to provide a rating, thereby assessing its value. We will give you a very precise estimation before we even take it off the setting.
The actual value of a diamond can vary greatly based on the Four C’s. For example, let’s look at two identical diamonds whose only difference is the color.
Diamond Market Conditions
Ultimately, the value of your diamond is dependent on market conditions as well. As you can imagine, jewelry stores markup their diamonds for resale. In some cases, jewelry store markups could be five times the actual cost of a diamond! This is because there are many costs associated with a diamond that incur along the way of that diamond eventually being sold to you, the consumer.
How the Diamond Trade Works
Diamonds are first mined and then cut by a specialized diamond cutter. They are then sold to a diamond broker, or wholesaler, who in turn sells that diamond stone to a jewelry store. It is then set it in a piece of jewelry and is placed on showroom floor. The jewelry store then has its own costs that factor in to the markup of their jewelry. Stores have rent to pay, advertising costs, salaries, insurance, etc. It is not uncommon for a diamond ring to sit in a showroom for six months or more before being purchased which continues to add to the cost.
Diamond rings and other diamond jewelry do still retain some value. However, it is just not realistic to expect you will be able to sell your diamond for the amount you paid for it. The most important fact to consider is that a jewelry store doesn’t have to pay you what you paid for your diamond – they can merely buy diamonds wholesale for much cheaper. Thus, you must be willing to sell your diamond for less than a jeweler can.