Looking to sell your diamond? The first step is to understand how the secondhand diamond market operates and how diamond buyers price stones. Below we answer some of the most common diamond pricing questions we receive and highlight key factors that affect pricing.
What factors affect a diamond’s price?
The first thing a gemologist will look at in order to determine a diamond’s price are the 4 C’s: carat weight, cut grade, color grade and clarity grade. These components play a crucial role in determining the value of your stone. While not the only factors that affect a diamonds price, they are important terms to become familiar with as they play a fundamental role in diamond pricing.
How does carat weight affect price?
Carat weight (abbreviated to ct.) has a direct correlation with diamond price. The higher the carat weight, the more valuable the stone is. Of course, there is a lot more that goes into the pricing, but carat weight is the most simple and straightforward part of the process.
It is important to note, however, that carat weights are divided into price specific brackets: 0.90ct-0.99ct, 1.00ct -1.49ct, 1.50ct-1.99ct etc. There are significant increases in price from one price bracket to another. Understanding these pricing categories will help you determine what you can get for your diamond.
How does cut affect price?
Because of the price difference between a 0.99ct and a 1.00ct diamond, diamond cutters try to save as much of the stone as possible. This can result in poorly cut diamonds as they attempt to keep the maximum amount of carat weight. When re-selling your diamond, you may be informed that your stone has to be recut, which will effect the price you receive as the diamond will loose in carat weight.
Although not one of the 4 C’s, cut can also refer to the shape of the diamond. Depending on whether or not the shape of your stone is in fashion, this can also affect the price you receive. Round diamonds are always popular followed by princess cuts, while other cuts tend to come in and out of style.
How does color affect price?
Every white diamond falls on a lettered scale of colorless (D) to undesirable color (Z). The most sought after diamonds will be clear and white, while the less desirable colors will have a yellow or brownish tint. Differences in diamond color are subtle and require a trained eye, but they do have a significant impact on price.
The opposite holds true for natural fancy colored diamonds however, where the more color present the more valuable the stone.
How does clarity affect price?
Clarity refers to flaws (blemishes and inclusions) in a diamond. More often than not, these imperfections will only be visible under magnification. Blemished are external flaws, while inclusions are internal flaws. The more heavily included your diamond is, the lower the price will be.
What if my diamond is enhanced?
Diamond enhancements are designed to counteract any natural flaws in a stone, such as a low color grade or clarity grade. While this improves the look of a diamond, it has a negative impact on its value. The reason being is that there is significantly more demand for natural diamonds. Once a diamond has been tampered with, it becomes less valuable. And while this may help a jeweler make an original sale, the secondhand market is less forgiving.
Diamond enhancements are yet another reason why it is beneficial to have a certificate. A diamond certificate should clearly state whether your stone is natural or enhanced, which you may have been unaware of if the jeweler did not disclose this information. The GIA will not certify stones that have undergone temporary treatment, only natural stones and ones that have undergone permanent treatment.
Are diamond grades subjective?
Not all laboratories follow the same grading structure, but it is important to note that the GIA follows the strictest standards and are considered the foremost authority in gemology.
A diamond buyer adhering to the GIA’s grading structure may disagree with the findings on a jeweler’s appraisal, insurance appraisal or certificate from a non-GIA laboratory. A jeweler’s appraisal is simply one jeweler’s opinion. And other laboratories have been known to inflate grades.
How can I get the best price for my diamond?
The best price for your diamond will come from the best diamond buyer. With all of the different components that affect the price of your stone, you need a buyer with experience, a team of GIA trained gemologists and a great reputation for offering fair prices. Doing your research is key, make sure to look for a company that has an A+ rating with the BBB, offers a free and streamlined service and has great reviews. You