Archive for October, 2008

How Diamond Prices Are Determined

Friday, October 31st, 2008

Determining the selling prices of most products is quite easy. Simply determine the manufacturing cost , then the cost to market it, and finally mark up of 15 – 30% or more. It’s that simple. But the price of diamonds is not quite as simple as that. Many factors are taken into account when diamonds are priced.

The price of diamonds is determined primarily by adding the cost of rough diamonds, the cost of cutting diamonds, and all other costs necessary to turn rough diamonds in a marketable diamond. It also depends on the importance of the diamond. In this aspect, an independent company can certify the quality of diamond based on color, cut, clarity and weight.

The diamond becomes increasingly expensive each time it changes hands. When it finally reaches a retailer,  the price is raised a little more. However prior to reaching the retailer, the diamond must travel from the miner, cutter and polisher to an independent classification society, and then the primary market. When finally  it has reached the primary market, it will be purchased by traders and wholesalers to the retailers.

The sooner you can buy a diamond in the process, the cost will be lower but not the value. The value is based on the amount the diamond will be sold through a retailer in the market.

If you’ve got a diamond, and you have no idea how much it is worth, you can have it appreciated.  But then the appreciation might not be accurate. It’ll be better to have it certified through the GIA – Gemological Institute of America. The information on the certificate can be used as a cutting guide to the determine exactly how much your diamond is worth.

Prices calculators for diamonds are available on the Internet, and many diamond dealers use them. You must understand that before you can accurately price a diamond, without the Diamond Grade report,  you need to know a little about diamonds such as different cuts, clarity, color, and weight.Each of these adds to the value of a diamond, or decreases the value of diamonds.

So better get a Diamond Grading Report on the diamond. Then use this information to get the price that the diamond cutting industry uses. Doing this will ensure that you have  the most specific value of diamonds in your possession, or diamond that you are considering to purchase.

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One in A Million Diamond

Thursday, October 23rd, 2008

Are diamonds really rare? Many people don’t realize this. Walk into a jewelry store and you’ll see all diamonds in all different settings which are for sale. Seeing all of them displayed makes it difficult to believe that diamonds are actually rare. People won’t even stop to consider how this diamond came to be seated in the jeweler ’s case! Let us discover how.

Only one diamond will be found to be one carat quality diamond for every one million diamonds mined. To find two carat quality diamond, about five million diamonds must be dug in the mines . To find a small diamond, more than two hundred tons of ore must be mined . But even then, over 80% diamonds that are mined are only good for industrial use, such as diamond bits.

That’s why the next time you visit your local jewelry store, ask to see a one carat of diamond. Watch this new diamond with awe and appreciation knowing that it is a genuine diamond in a million!

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Four C's in Buying Diamonds

Wednesday, October 1st, 2008

Diamonds are graded by certifying laboratories using classification criteria. Four of these criteria are important to understand when making a diamond purchase or investment. These are known as the “Four C”: color, cut, clarity and carat.

1. Color. This is the result of the composition of a diamond and it does not change. When a jeweler described the color of a diamond he refers to the presence or absence of color in white diamonds. Colorless diamond allows maximum light to pass through; colorless diamonds are preferred for their luster.

2. Cut. This refers to a reflection of quality diamonds. Most diamonds are cut with 58 facets. The brilliance of diamonds is heavily dependent on the cut. The different angles and finishing of a diamond is used to determine its ability to reflect light because of its brilliance and fire. The cut of a diamond can affect its durability and its beauty. Breakage is caused by some defects in a a cut diamond . A diamond that is cut too thinly can also cause the light to leak out of the back and the diamond will lose some of the sparkle and appear not to sparkle. Cut is probably the most important of the four C.

3. Clarity During the training process, internal defects, or inclusions can happen in most diamonds. The number and size of these inclusions determine the clarity of a diamond. The diamonds that are clear create more sparkle and, therefore, are more rare and very expensive. A “perfect” a diamond does not have any surface or internal flaws visible to the eyes of a qualified personnel using diamond grader 10 Power magnifications.

4. Carat. This is the unit of weight in diamonds. A carat is equal to 200 milligrams. It is divided into 100 segments called points. 150 points is equal to one and a half carats.

When you shop for a diamond, ask questions and get answers before making a purchase. Shopping for certified diamonds allows you to be informed about your choice. Knowing the four “C” will allow you to compare and buy at the best diamond shop at a fair price. But before making a purchase, know the prices and decide what forms and styles really appeal to you.

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