How Diamonds are Valued?

Whether you are new to diamonds or not, one thing you must know is that not all diamonds are created equal. Diamonds come in a myriad of shapes, sizes, and colors and with varied compositions. Diamonds go through refining processes including polishing before they are “consumer-ready”. At this point, diamonds will be given certain values based on several factors.

Grading

Diamonds are valued based on their rarity and composition among other factors. Jewelry professionals came up with the grading system in the 1950s to evaluate each individual diamond.

The grading system is based on four descriptive factors, referred to as the 4Cs, to classify diamonds including Clarity, Carat Weight, Color and Cut. Diamonds will often be valued based on the 4Cs and rarity of any of the factors that they possess.

Clarity

Diamond miners always hope to find that perfect diamond that is crystal clear and the right size and shape. Well this is nearly impossible, because just like everything else in life perfect doesn’t quite exist.

Most diamonds have chemical impurities, inclusions or surface irregularities/blemishes. These are referred to as clarity characteristics and clarity refers to as the marked absence of impurities and inclusions in a diamond.

What is an Inclusion?

An inclusion refers to the internal structure of a diamond where by a foreign compound is included in the diamond’s structure as it forms. For instance black diamonds appear so because of the inclusion of graphite in the diamond’s structure.

What are Blemishes?

Blemishes can be anything like nicks or scratches observed on the surface of a diamond.

Clarity characteristics do have an influence on the value of a diamond. The more “clear” or “flawless” a diamond is the more valuable it is.

Color

Most diamonds have tints of brown or yellow and any diamond that is colorless will be considered much more valuable than those with yellow/brown tints.

For instance, there can be two identical diamonds in terms of size, cut and clarity but their value will defer based on their color alone. The slightest hint of color difference makes a world of difference when it comes to valuing diamonds.

Natural diamonds are available in a myriad of hues ranging from colorless diamonds to light brown/yellow diamonds. Colorless diamonds are most rare and most valuable.

The GIA Laboratory came up with a D to Z color grading system with each letter representing color ranges based on a diamond’s saturation and tone. When exposed to ultraviolet radiation most diamonds will emit fluorescence lights. 35% of gem diamonds are said to emit fluorescence.

Cut

Polished diamonds that have been fully refined often give off a dazzling glare. When light hits a diamond the amount of light it reflects gives it its dazzling appearance. A diamond’s cut affect how light interacts with it and in turn affects its face appearance.

A stunning diamond looks the way it does because of 3 optical effects including brightness (light reflections), fire (color flashes) and scintillation (dark and light areas). The size has a direct correlation with the pattern of the diamond. The contrast of dark and light areas within the diamond affects the pattern of the diamond. Good contrast results in a crisp and sharp look.

Carat Weight

Diamonds are measured in carats “ct”. Generally, large diamonds are hard to come by and more so large colorless diamonds. A large diamond not only costs more due to its rarity, but also it is also valued more based on a per-carat basis.

For instance, four 0.25 carat diamonds that are similar in every sense compared to a large 1-carat diamond might still cost less combined compared to the 1-carat diamond all quality factors considered.

Now that you understand how diamonds are valued you should be able to understand why one diamond costs more or less money than another.

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