To successfully address the question of “How do I value my diamond?” We believe it is crucial to define the cut and color’s purpose and consider the diamond’s appearance to address its value and worth.
The most straightforward approach to determine a diamond’s market worth is to look at the prices of diamonds with the same carat weight and the same clarity, cut, and color grading.
You may perform your study online and determine an average cost to use as a ballpark figure for the worth of your diamond.
The Four C’s are the main determinants of a diamond’s value.
Even though compressed carbon makes up the majority of diamonds, each stone is distinct and unusual in its own right. Diamonds may be distinguished by a wide range of internal and exterior properties and a vast range of forms, sizes, and hues.
All polished diamonds have some value, but how precisely can one calculate the value of a diamond?
Let’s find out!
The Price Of A Diamond Depends On Several Different Variables
The experts in the diamond business utilize a specific set of rules to determine the precise quality and attractiveness of a diamond to settle disputes over its value.
The Gemological Institute of America devised these rules, known as the “4 Cs,” which serve as the foundation for determining a diamond’s worth. They consist of:
The weight of a diamond is a crucial determinant of its value. The word “carat,” derived from carob tree seeds that were once used to balance scales, is used to describe the weight of a diamond.
Two hundred milligrams, or 0.007055 ounces, make up one carat. The metric carat standard divides each carat into 100 points. A 50-point diamond weighs 0.5 carats or half a carat.
The price of items increases with their weight, just like everything else in the world. But a diamond’s value can also be influenced by many other things.
And these may have an even more significant impact on the diamond’s eventual value.
Let’s move to the next one – color!
However, white or colorless, diamonds are the most prevalent hue. A white diamond will be worth more the more colorless it is. Also, a colorless diamond lets more light through.
Additionally, even when a diamond’s cut, clarity, and carat weight are the same, its price might vary significantly just because of its hue.
The colorless white diamonds are graded from “D” to “Z.” (noticeable color).
Blue diamonds and other colored diamonds have an entirely new grading system where the more vividly colored they are, the more expensive they become.
By contrasting the stone with brilliant round diamonds of known colors, a diamond is color-graded in a laboratory designed explicitly for diamond grading under stringent control.
It’s crucial to understand that a diamond’s color grade refers to the body color rather than how it appears when it’s face-up.
Our third one will be clarity! Let’s take a look!
A diamond’s clarity is a description of its purity. A diamond’s clarity is determined by the number and placement of inclusions, internal faults, and blemishes, exterior markings.
A diamond’s value increases with rarity; the more minor faults it has, the rarer it is. Under 10X magnification, each diamond is meticulously assessed and plotted.
The clarity ratings given by different diamond grading labs range from being entirely flawless to having visible flaws.
Five essential criteria are used to assess a diamond’s clarity qualities, including its internal and external faults and how they affect the clarity grade.
They consist of the quantity, location, kind, size, color, and relief of inclusions and flaws.
Clarity is the characteristic of a diamond that sets apart each stone, helps separate the imitations from the real deal, and helps provide gemologists and scientists valuable information about the formation of a diamond.
Notably, the naked eye cannot distinguish between diamonds beyond a certain level of clarity. So, clarity significantly affects how diamonds are valued: the more significant the clarity, the higher the price.
Last but not least important – Cut!
While the diamond’s other Cs are nature-driven, the value and brilliance of a diamond are increased or decreased at the hands of the craftsman who cuts it.
The quantity of light reflected through a diamond is determined by its cut. The cut allows the ideal amount of light to contact every angle and facet, releasing a diamond’s fire and brilliance naturally.
Let’s find out more about diamonds’ value and their carat weight!
Related Read: Why Are Diamonds Valuable? What Makes Diamonds Valuable?
Value Of A Diamond and Total Carat Weight
Two things are at play when diamonds are marketed as jewelry.
The setting comes first. The purpose of many diamond ring settings is to make the central stone appear considerably more significant than it is.
The total carat weight is the second consideration. The total carat weight of all diamonds in a ring or other jewelry item is what this means.
Large individual diamonds are far more valuable compared to lesser diamonds that come up to the same total carat weight. A 2-carat diamond, for instance, is far more costly than a ring with smaller diamonds totaling 2 carats.
However, as was previously said, a diamond’s worth is considerably more than just its carat weight.
Each of the four Cs dramatically influences the value of a diamond. For example: a 1-carat diamond with a “D” color, exquisite cut, and internal flawlessness may be valued at more than $20,000.
However, a diamond of the same size and weight with significant imperfections, an “excellent” cut, and a “J” color may only be valued at $3,000 or less.
Related Read: What Is A TW Diamond Compared To CW?
Certification is the most crucial stage. If you are spending more than $1,000 on a diamond, it is an essential need. Having confidence that you are getting the diamond they say is the goal of purchasing a diamond with a certificate.
Only certifications from the GIA and AGS labs have that information. They serve as the diamond industry’s gold standards.
The Diamond Certificate, given out by several grading laboratories located worldwide, represents the diamond grade that has been thoroughly assessed and allocated to a particular stone.
A qualified, unbiased inspection verifies the qualities of a diamond. The Diamond Certificate confirms the diamond’s color, carat weight, clarity, and precise dimensions.
Most reputable diamond grading laboratories are known to use and abide by their vocabulary and criteria. Every diamond vendor must comprehend the differences between the various grading systems and how they stack up against one another.
That is because a diamond certificate is crucial in determining the value of a diamond. In our perspective, GIA has the most precise and valuable criteria to guarantee a diamond’s good quality.
A grading report identifies quality traits in a consistent laboratory setting, enabling you to assess and contrast quality and value.
So far, so good. Let’s move on!
Value Assessment of Diamonds for Sale
The truth is: you can’t sell your diamond for what it is now worth on the retail market.
When they can get the exact stone for less money at wholesale, buyers of diamonds like jewelry stores or diamond dealers won’t pay you retail prices.
Also, because you will most likely receive less from jewelers or dealers, wholesale prices are unreliable for resale value.
Because you can’t offer guarantees and warranties, advantageous financing terms, marketing assistance, and other benefits that wholesalers do, they have no motivation to pay you as much as they do their suppliers.
You may expect to receive between 20 and 30 percent of the diamond’s current retail price and, in the best-case scenario, 60 to 70 percent (or 80 percent if you’re fortunate).
You may receive between 30% and 80% of the retail price if you sell the stone to the general public (via online classifieds or auction websites, for example).
These pricing ranges are broad because they might differ significantly based on who you sell to and where you sell. For instance, a pawn shop will probably present you with a bid at the lower end of these ranges (or even below).
Different Diamond Markets
Let’s talk more about diamonds’ markets and explain them all!
- Retail Price – This is the cost you should anticipate paying if you visit a physical jewelry store. This is the price you would probably find if you go diamond shopping at your neighborhood mall or jewelry store.
- Online Price – Online Shopping? You may anticipate paying this amount at an online merchant. However, you may explore several reputable, top-quality online stores on eBay and many more sites.
- Peer to Peer / Craigslist – If you’re utilizing a peer-to-peer site like Craigslist, this is the pricing you may anticipate. Online P2P platforms are also available. However, they frequently charge an extra 20% commission if you sell a diamond. Suppose you’re purchasing or selling a costly diamond. In that case, these may obviously be riskier, so take precautions to be particularly secure – both physically and making sure you aren’t getting scammed – if you are doing so.
- Diamond Buyer – You should receive this amount if you sell your diamond to an online buyer. However, it’s always a good idea to receive many bids and use our diamond value calculator as a reference to ensure you’re receiving a reasonable price for your diamond. In addition, we have a list of reliable online diamond buyers that we suggest.
Read More: Where to Sell Diamonds for the Best Price?
Now the question is: how to identify my diamonds’ quality? Let’s take a quick look!
Identifying the Diamond Quality
The four main qualities of a diamond, known as the 4 Cs: color, clarity, cut, and carat, primarily influence its value.
Evaluation of the stone’s quality and comparison with other stones are made relatively straightforward if a diamond is accompanied by a certificate in which these attributes are given values and grades.
So, determining a diamond’s quality grades should be the first step in determining its worth.
You can visit a diamond broker to acquire a price for your item if you’re interested in selling your diamond jewelry and want a rapid appraisal.
Learn More: How Are Diamond Prices Calculated?
Let’s get a concussion on today’s topic!
We hope that by giving you as much information as possible on diamonds, the renowned Four C’s rule, their cost depending on a variety of elements, and other topics, we have also addressed the initial query: How do I value my diamond?
Examining the pricing of diamonds with the same carat weight and the same clarity, cut, and color grading can give you the best idea of a diamond’s market value.
Price and quality are usually inversely correlated, especially in the case of diamonds.
You should thus take the famed “four C” rule into account if you choose a diamond on your own to assist you in making the best decision. Don’t forget to look at different diamond markets and their advantages!
We hope you had fun reading the post as we were while writing it!