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Determining Diamond Values

Updated on May 27, 2024

With over 40 years of expertise, Diamond Registry’s CEO and owner, Nissan Perla, is your trusted guide in the diamond-buying world. Recognized by prestigious publications like The Washington Post and Chicago Tribune, Nissan’s extensive knowledge and experience in evaluating, buying, and selling diamonds are unparalleled. Our commitment to integrity, transparency, and delivering exceptional value ensures that you make an informed decision when acquiring your timeless treasure. Choose Diamond Registry for personalized guidance, education, and a curated selection of the finest quality diamonds, backed by decades of industry expertise and dedication to your satisfaction.

Table of Contents

Published on March 2, 2024
Updated on May 27, 2024

A former retail jeweler professionalizing the American jewelry industry named “Robert M. Shipley.”

What makes us your trusted partner

With over 40 years of expertise, Diamond Registry’s CEO and owner, Nissan Perla, is your trusted guide in the diamond-buying world. Recognized by prestigious publications like The Washington Post and Chicago Tribune, Nissan’s extensive knowledge and experience in evaluating, buying, and selling diamonds are unparalleled. Our commitment to integrity, transparency, and delivering exceptional value ensures that you make an informed decision when acquiring your timeless treasure. Choose Diamond Registry for personalized guidance, education, and a curated selection of the finest quality diamonds, backed by decades of industry expertise and dedication to your satisfaction.

R. Shipley started to establish GIA in 1931 to provide formal gemological training to aspiring jewelers in the late 20th century.

A diamond significance gem has embodied love, mythology, and capital for centuries. However, how much would a diamond value be worth? Diamond proprietors are seldom aware of what rigidly makes one diamond more valuable than another.

Most of the time, diamond proprietors know what precisely makes one diamond better value than another. It is crucial to discern the distinctions in the diamond’s worth to get a fair deal.

To determine a diamond’s value – the diamond industry experts use a set of precise guidelines that enables designate the same quality and desirability of a diamond value.

Thus, a standardization of the diamond value terms (e.g., color, clarity, cut, and carat weight) or better known as the 4Cs.

The 4cs connects diamond enterprises to diamonds’ grading, trade, and education. The mixed factors of the 4Cs determine the rarity of each diamond value and price.

Here’s a brief guideline of the 4 C’s basis of diamond value estimation, which was established by the Gemological Institute of America:

Carat

The word ‘carat’ is obtained from carob tree seeds.

Early gem traders used carob tree seeds to balance scales in ancient times. They used them as counterweights because these tiny seeds have a relatively uniform weight. Thus, one of the primary factors determining a diamond value is its weight.

One Carat equals 200 milligrams or 0.007055 ounces. The standardized system of metric carats is further divided into 100 points. A fifty-point diamond is half of a carat or 0.5 carats.

4cs-of-diamonds-carat-weight

The current metric Carat, equal to 0.2 grams, was acquired by the United States in 1913 and other countries soon after. Currently, a carat weighs exactly the same in every corner of the world.

Color

To define a diamond’s value is by how closely it approaches colorlessness – the less color, the higher its value. Diamonds are obtainable in many shades of color, which include (e.g., blue, pink, yellow, and black)

However, Colorless diamonds are more valuable the more pallid they actually are. A colorless diamond qualifies for a more effortless passage of light, resulting in more convenient and far greater dispersion of sunlight or a sparklier diamond.

diamond rings

A diamond value is color-graded in a diamond grading laboratory under rigorously controlled conditions by comparison to round brilliant diamonds of known color. It is vital to grasp that a diamond’s color grade does not pertain to the face-up surface look of any particular diamond but rather the body color.

The GIA’s color-grading scale for diamond value is the industry standard. The scale begins with the letter D, which represents colorless. It continues with increasing color to the letter Z. All letters clearly define the range of color appearance.

The white diamond values are classified from “D” (completely colorless) to “Z” (noticeable color). Colored diamonds (i.e., blue diamonds) have a different grading scale. They are actually more valuable the more strongly colored they are.

Several of these color distinctions are subtle and invisible to the untrained eye, making a difference in diamond value quality and price.

Clarity

The description of a diamond’s purity is called its Clarity. The amount and location of internal flaws, called inclusions, or external marks, known as blemishes, determine a diamond’s Clarity. The fewer flaws a diamond has, the rarer it is, and the more the diamond value is worth.

The clarity characteristics – the internal and external flaws and their effect on the diamond value clarity grade are determined based on five key factors. They include the number, position, nature, size, color, or relief of inclusions and blemishes. Diamonds can range from “IF” (Internally Flawless) to “I3” (Included, Level 3).

diamond-value-clarity

The GIA International Diamond Grading System™ holds 11 grades. Most diamonds fall into the VS (very slightly included) or SI (slightly included) categories. A master grader uses the GIA system and evaluates the size, nature, position, color or relief, and quantity of clarity attributes under 10× coloration.

  • (FL) – Flawless. No visibility of any blemishes or inclusions.
  • (IF) – Internally Flawless. No inclusions, yet only blemishes.
  • (VVS1 and VVS2) – Very, Very Slightly Included. Inclusions are present yet visually challenging.
  • (VS1 and VS2) – Very Slightly Included. Inclusions are minor and have a range of visual levels, from complex to somewhat easy.
  • (SI1 and SI2) – Slightly Included. Inclusions are prominent.
  • (I1, I2, and I3) – Included. Inclusions are evident, which may affect its opacity and brilliance.

Cut

Cut quality is a factor that fuels a diamond’s fire, sparkle, and brilliance, contributing to diamond value attributes. The GIA Diamond Cut Grading System for the degree for round shines in the D-to-Z color range is based on assessing three characteristics in general.

  • The diamond brightness, which is the internal and external white light reflection.
  • The white light scatters into the colors of a rainbow known as “the Fire.”
  • The portion of diamond’s sparkle produced with the pattern of dark and light areas caused by its reflections is called Scintillation.
diamond-value-cut

The ratios of a diamond value determine how the light functions. The proportions, combined with the polish of a diamond’s surface, affect the overall appeal and beauty of a diamond’s value.

It’s an important reminder that the diamond value is influenced by the rarity of one or more of the Four Cs spectrum. Given the rarity of the enormous carat diamonds, they are frequently priced more per Carat as they resemble the smaller ones.

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