How Are Diamonds Valued?
We all know that diamonds are valuable – the way they can reflect and refract light has made them the most sought after jewel in the world. But what exactly makes one diamond more valuable than another?
The first way a diamond is valued is by its rarity; diamonds with certain qualities are much rarer than others, making them worth a lot more than more common diamonds.
In the 1940s, GIA (Gemological Institute of America) created a system to be used by professional jewellers to determine the value of the diamond. Commonly known as the “4Cs”, this system is still used today and continues to be effective to determine diamond quality.
Colour
The first factor to consider is the diamond’s colour. Even the most subtle colour difference can dramatically change a diamond’s value, so it’s important that this is taken into account in the valuing process. In the normal colour range, diamonds range from colourless (D) to light yellow (L) through to light brown (Q). Diamonds are graded further still, but the more brown in colour they are the less attractive and valuable they become. The increase in price per carat correlates to how much colour is in the diamond – a colourless diamond is deemed the most expensive.
Clarity
A diamond’s clarity can be a good indicator of how the diamond was formed, and it can also determine whether the diamond is real or synthetic. A real diamond will usually have surface blemishes and/or internal inclusions that make it completely unique. When combined with other factors, this could affect the price of the diamond; for example, a colourless diamond with few blemishes or inclusions will fetch a higher price than one of lower clarity. Finding a completely flawless diamond is extremely rare – seldom seen by most professional jewellers.
Cut
The way a diamond is cut can affect the way it appears to the consumer – if it’s not cut well, the diamond will lack brilliance and lustre and will not be as attractive as it could be. It all comes down to how light refracts when it enters the diamond. A good cut will reflect the light from one facet to another, before dispersing it through the top of the stone. If a diamond is not cut so well, light will be lost through the bottom or the sides of the stone, thus losing its sparkling effect.
Carat Weight
Diamonds are weighed very specifically, with a carat equalling to 0.2 grams (about the weight of a paperclip). A diamond will be weighed to one thousandth of a carat, and then rounded to the nearest hundredth. Depending on the diamond’s quality, the difference of a hundredth of a carat could mean a price jump of hundreds of pounds!
The team at Cuttings are diamond specialists, and would be delighted to answer any questions you may have. Just give us a call or pop in to one of our shops.