The diamond has been proclaimed “a girl’s best friend”. The gem is the symbol of eternal love and commitment.
However, putting sentimentality aside, if you are shopping for diamond jewelry, then you are probably wondering how the price of a diamond is determined.
When you walk into a jewelry store or shop for a diamond ring online, you will first notice that diamonds’ prices vary significantly. Of course, when making a choice, you want to pick the best diamond for your money, so it helps to understand how diamonds are graded and priced.
The value of a diamond is determined by what is referred to as the 4Cs:
- Carat weight
- Color
- Cut
- Clarity
How to Determine a Diamond’s Value
Robert M. Shipley was a former retailer jeweler during the early 20th century. His goal was to professionalize the jewelry industry in the United States. In 1931 he established the Gemological Institute of America (GIA), which focused on training jewelers. He set forth a way to determine the value of a diamond using color, clarity, cut, and carat weight – he coined the term the 4Cs which is still used today.
1. The Carat Weight of a Diamond
Engagement Ring
The carat weight of a diamond is the diamond’s mass which is outlined as carats. A single carat equals 200 mg.
The size of a diamond increases the price of the diamond because large diamonds are rare. The price of the carat also climbs with the growth in the diamond‘s carat weight.
Although most people believe that the bigger the diamond – the better. Many factors impact the quality of a diamond.
Just because a diamond has a large carat weight, if the cut is bad, or the color is clearly lacking, the diamond won’t be as desirable as a diamond with a better cut combined with greater clarity and color.
2. The Cut of the Diamond
A diamond is made up of a multitude of surfaces, each reflecting the gem’s radiance. A diamond’s cut factors in the proportions and number of dimensions that create the diamond’s telltale sparkle and brilliance.
A diamond with a flawless clarity grade (no inclusions or blemishes) can still not sparkle if the cut is too deep or too shallow.
The GIA has a grading system referred to as the GIA Diamond Cut Grading System that looks at seven components in a diamond’s cut:
Appearance Aspects:
- Brightness: How much light does the diamond cut reflect?
- Fire: How does the light disperse in the color spectrums?
- Scintillation: How does the diamond’s light and dark area reflect the light or sparkle?
Design and Craftsmanship:
- Symmetry
- Polish
- Weight Ratio
- Durability
The GIA system grades the diamond’s cut on a scale that ranges from Excellent to Poor.
3. A Diamond’s Clarity
A diamond is formed over thousands of years deep inside the earth from a combination of pressure and heat. Each diamond has its own characteristic, known as internal (inclusions) or external (blemishes).
The clarity of a diamond refers to the absence of blemishes and inclusions. Diamonds that lack birthmarks are very rare, as reflected in their value.
The GIA International Diamond Grading System outlines 11 grades of diamonds. Typically, most diamonds have a grade of VS (very slightly included) or are graded SI (slightly included).
A diamond’s value that is graded on clarity involves examining the diamond’s characteristics under a 10x magnification.
- Flawless (FL): Magnification reveals no blemishes or inclusions
- Internally Flawless (IF): No includes and only blemishes are visible.
- Very, Very Slightly Included (VVS1 and VVS2): Has minor inclusions that range from somewhat easy to see to difficult to see under magnification.
- Very Slightly Included (VS1 and VS2): Minor inclusions that are difficult to somewhat easy to detect.
- Slightly Included (SI1 and SI2): Noticeable inclusions.
- Included (I1, I2, and I3): Obvious inclusion that adversely impacts the diamond’s brilliance and transparency.
4. The Color of a Diamond
A diamond’s color matters. The less color the gem has, the higher the value. However, fancy diamond colors such as pinks or blues carry a high price tag, but they are not graded on color, so are not categorized. In a jewelry store, you will typically encounter diamonds that range from colorless to near-colorless. Some do have hints of brown or yellow.
The GIA has a color-grading scale that starts with the letter D, which represents a colorless diamond, and then goes all the way to the letter Z, which refers to a slightly yellow or brown diamond. The color grade of a diamond is determined by comparing the diamond to stones of known color. The diamond is viewed under very controlled lighting and in certain viewing conditions. In many instances, the color distinctions of the diamond are invisible to the untrained or naked eye. However, the color grade impacts the price substantially.
Conclusion: Determining if the Price of the Diamond is Fair
The price of a diamond is always determined based on the 4Cs. Now that you have an idea about each of the 4Cs you can better decide if the price of the diamond you are buying is fair.
