Understanding the Valuation of Diamonds

 


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Diamonds are by far the most popular gem in the jewelry market and they are designated by Carat. The question then becomes, what is the valuation process for these gems.

Diamonds are arguably the most valuable substance on Earth. From jewelry to other more practical applications, diamonds are an important part of everyday life. Jewelry made with diamonds is the most expensive part of the diamond industry with many factors going into the relative cost of the diamonds. So, what is the valuation process?

There are four C's to regard when purchasing a diamond: clarity, color, cut and carat weight. Clarity refers to the purity of a diamond – how cloudy it is, if there are any inclusions (small specks), cracks or other abnormalities in its looks. Clarity is graded in 11 steps as follows: F – Flawless (best), IF – internally flawless, VVS1 – very, very slightly included 1, VVS2 – very, very slightly included 2, VS1 – very slightly included 1, VS2 – very slightly included 2, SI1 – slightly included 1, SI2 – slightly included 2, I1 – included 1, I2 – included 2 and I3 – included 3 (the worst grade, where there are obvious inclusions to the naked eye).

Color refers to how colorless the diamond is, and it is also graded on a scale. It does not take into consideration fancy colored diamonds, such as blue or yellow, rather, these are all grades for a typical clear diamond. Grades D, E, F, G, H, I are all degrees of colorless (white diamonds), J, K, L – near colorless (white), M – faint yellow, N, O, P, Q, R – very light yellow, and S, T, U, V, W, X, Y, Z – light yellow in color (worst grades),

Cut has to do with the shape that the diamond is cut in, which can range from round to oval, princess (square) to heart shaped. These three, along with the fourth C – carat weight all, determine the valuation per carat. As a general rule, the list below shows how much different carat weights are worth. Larger diamonds are harder to find, so even if you have two small diamonds that add up to a large weight, they will never cost as much as one single large carat diamond. Happy diamond shopping!

Example prices for Round / G / VS2:

0.46 - 0.49 Price per carat: $ 2,800

0.50 - 0.69 Price per carat: $ 3,600

0.70 - 0.89 Price per carat: $ 4,700

0.90 - 0.99 Price per carat: $ 5,700

1.00 - 1.49 Price per carat: $ 6,600

1.50 - 1.99 Price per carat: $ 8,400

2.00 - 2.99 Price per carat: $ 10,200

3.00 - 3.99 Price per carat: $ 11,600

4.00 - 4.99 Price per carat: $ 13,000

5.00 - 5.99 Price per carat: $ 16,700

Obviously, there are other factors that go into buying a particularly piece of jewelry including the setting, metal and other gems included. Nonetheless, this is a fair guide to the valuation process of raw diamonds.

Arsene Bergkamp is with http://www.jewelrystoresforyou.com - a directory of jewelry stores and jewelry articles.

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