What Factors Determine Diamond Prices?

If you have been shopping for diamond jewelry, you have probably noticed that jewelry such as engagement rings, eternity rings, diamond necklaces and earrings are on the market for a wide range of prices. In fact, the difference from one diamond ring to the next can easily be several thousand dollars. For most consumers, price is an important factor in a buying decision, so it is important to understand what you are paying for when you purchase a brilliant piece of diamond jewelry.

As with many consumer products, diamond prices paid by end users are affected by the value that is added at each level of the supply chain. Diamonds are mined from the earth in what can be expensive, elaborate mining operations, incurring an initial cost. Of course, diamonds do not emerge from the earth in the beautifully polished cuts commonly seen at jewelry retailers. After being mined, diamonds are typically cut and polished before being sent to an independent laboratory for grading. Then diamonds are placed on the market for purchase by wholesalers or diamond dealers, who in turn sell them to various retailers. Finally, diamonds are in retail stores and ready for purchase by consumers. Each stage of the supply chain adds some kind of value and incurs markup, each of which are reflected in the end price a consumer will pay for a diamond.

The cost to mine, prepare and market a diamond is not the only determinant of the end price of a piece of diamond jewelry. Also included, of course, is the complete cost from mining to market of metals and other gemstones that make up a piece of jewelry, as well as crafting of the piece itself. Diamonds are appraised and valued individually based on evaluation of the four Cs—carat, cut, clarity and color.

The price of a diamond is calculated based on some determined value per carat. That is to say that the value of a 0.5 carat diamond which is valued at $3,000 per carat would be calculated as $3,000×0.5 = $1,500. However, despite the apparent simplicity of the (price per carat x carat weight = diamond price) equation, several factors influence the determined per carat value of an individual diamond. Evaluation of a diamond’s color, clarity, and cut contribute to the determination of its per carat value, with diamonds exhibiting the most attractive combination of features being considered the most valuable and thus the most costly., the carat weight for an individual diamond is also affected by its rarity. Since a one carat diamond is much rarer than a half-carat diamond, a one carat diamond will incur a higher per carat weight than an otherwise equivalent half-carat diamond. Though tempting, it is inaccurate to assume that you can simply plug the carat weight into an equation to determine the value of a diamond. Each diamond must be individually appraised in order for a value determination to be made.

About the Author: Ian Maher is the CEO of Maliere, a leading provider of eternity rings and other diamond platinum rings and gold rings. For more information, please visit www.Maliere.com.

Jewelry Industry Terminology – What is a Diamond Grading Report?

Shopping for diamond engagement or eternity rings for the first time leaves some consumers overwhelmed with the seemingly foreign terminology and grading systems that are prominent in the jewelry industry. Intermingled with talk of the four Cs, diamond shape and color grading, shoppers may encounter mention of the term “certificate” or “diamond grading report” in relation to diamonds. Though the term “certificate” is still widely used by people in the industry, “diamond grading report” is becoming the more preferred terminology. A diamond grading report is a document issued by an independent laboratory that describes in detail the identifying characteristics of a diamond as analyzed by a diamond grader.

First, the distinction between a diamond grading report and an appraisal stands to be clarified. A diamond grading report is prepared by a major gemological institute and represents precise characteristics of an individual diamond, while an appraisal ascribes a monetary value to the diamond. Grading reports describe individual characteristics of the quality of a diamond, but do not assign the diamond a value. By contrast, an appraisal assigns a value to a diamond but does not authenticate its quality. However, the information contained within a diamond grading report can influence the value of a diamond reflected in an appraisal. A diamond grading report is designed to provide concrete diamond quality information that outlasts diamond market price fluctuations.

A number of gemological institutes certify diamonds worldwide, though arguably the most widely recognized diamond grading reports in the United States are performed by the Gemological Institute of America (GIA) and the American Gem Society (AGS). So what type of information does a diamond grading report provide us?

First, an individual diamond described in a report is identified by a unique number called a certificate or report number. Included in the report are specific measurements of the diamond to one hundredth of a millimeter accuracy, as well as its exact carat weight. The clarity and color grade of a diamond are also analyzed based on widely accepted metrics, and values are included in the diamond grading report. Another important metric included in the report is a description of the diamond finish, which encompasses the polish quality as well as the diamond’s symmetry. A diamond’s fluorescence as noted by the diamond grader is another included feature. A graphical representation of the diamond depicts the existence and location of imperfections that help identify the stone and affect its value. In addition to the concrete values determined to be associated with an individual diamond, a comments section is included to cover other identifying characteristics that further define a diamond’s quality.

See an example of a Diamond Grading Report.

About the Author: Ian Maher is the CEO of Maliere, a leading provider of eternity rings and other diamond platinum rings and gold rings. For more information, please visit http://www.maliere.com/.

Shopping for Gold Jewelry? Understand Gold Terminology

Gold has been sought, utilized and glorified throughout ancient times, and has found innumerable uses in our society today. Highly valued for purposes ranging from the crafting of fine jewelry to circuitry, gold continues to play an integral role in both the culture and advancement of the world today. Alongside the ever increasing uses for gold have evolved varying methods of crafting this precious metal into gleaming art and jewelry. Some of the methods that have evolved as people have strived to craft durable, affordable gold jewelry have spurred the terminology you will undoubtedly encounter when shopping for jewelry such as gold charms, earrings or eternity rings. Let us take a look at some of the most frequent terms you may encounter when shopping for gold jewelry—gold plated, gold-filled and solid gold:

-Gold Plated: Gold plated jewelry is comprised of a metal base with a coating of at least 10 karat gold applied to the outer surface. Gold plated jewelry may be indistinguishable from solid gold jewelry to the untrained eye, but gold plated jewelry is only protected by a thin sheet of gold, which has a tendency to wear away with use over time. Thus, gold plated is not typically the most desired option for heavily worn jewelry such as wedding bands and eternity rings.

-Gold-filled: In order for a piece of jewelry to be designated as gold-filled, gold must constitute at least 1/20th of the weight of the piece. Gold-filled jewelry is comprised of a base metal coated with one or more layers of gold that have been mechanically bonded to the outer surface.

Jewelry that is gold-filled strikes a middle ground between gold plated and solid gold jewelry. Gold-filled jewelry is enveloped in a significantly thicker layer of gold, giving it less tendency to wear over time than its lightly plated counterpart. For many jewelry consumers, gold-filled jewelry is a desirable alternative to solid gold jewelry due to its strength, resistance to tarnish, cost effectiveness and resemblance to solid gold.

-Solid Gold: Any jewelry or other article claiming to be “solid gold” or “pure gold” must be comprised of 24 karat gold throughout. Solid gold’s resistance to corrosion and enduring brilliance have made it a desirable metal for jewelry and art throughout ancient history. However, the softness of pure gold makes it practical in many situations to mix pure gold with other metals, increasing its strength for intricate jewelry designs and lowering its cost to end consumers. Today, gold jewelry usually includes a mark designating its karat weight, with 24 K representing solid gold.

About the Author: Ian Maher is the CEO of Maliere, a leading provider of eternity rings and other diamond platinum rings and gold rings. For more information, please visit www.Maliere.com.