About a Diamond Purchase

For most people, buying a diamond is a emotional purchase driven principally by desires. They may have may an idea of what factors create the worth of a diamond, but rarely why. It is our sincere hope that this document will help you gain the knowledge and understanding you need to proceed in making one of the largest purchases you'll make in your lifetime. What did I say? Yes, amongst the largest you'll ever make! Diamonds are "High Ticket" just like cars, homes and fine art. A diamond purchase will for most individuals rank in the top ten single most expensive purchases they'll ever make.

Many consumers have been led to believe that jewelry prices are high because jewelers are making huge profits. The jewelry business can be very lucrative without question. However, let's consider that most fine jewelry is principally made from the earth's most rare elements and minerals. These are difficult to find, mine, process, fabricate and deliver to the corner jeweler in your neighborhood and these intermediate processes add significantly to the overall cost of jewelry. So when one factors into their thinking that the components of jewelry are scarce and expensive, its easy to see why most jewelry is a "High Ticket" merchandise. As to the relative size of profits in the industry let's look further.

Retail jewelers generally maintain high cost retail stores, sometimes lavishly decorated to engender customer confidence, They remain open extremely long hours; are staffed by highly trained and well compensated personnel; they carry large inventories of very expensive goods. Most retail jewelers maintain credit and layaway programs, repair departments, free lifetime services on goods they sell, re-purchase/trade-in programs for fine gemstones and many other special services. The retail jeweler runs a very high cost retail business designed to cater to the needs of a generally unknowledgeable buying public who desires to purchase some of the rarest materials on earth which are manufactured and distributed through a very complex and expensive distribution channel. The cost of jewelry maybe high, but that is principally because the materials are rare, the amount of labor employed to create and design the piece, the delivery channel costs and retail site with expensive operations. The profits realized by typical local jewelers is no more than for any other fashion focused retail establishment, although the average sales ticket is much higher. So you see high cost doesn't necessarily translate into exorbitant profits, at least on a comparative percentage basis to most other luxury goods.

It would have been difficult to find yourself at this point in life without being significantly exposed to aggressive advertising from many different types of Jewelry sellers. Within the jewelry retail trade there are many types of establishments.

The traditional "Credit/Pawn Jeweler"; who as the name implies cultivate a trade of buyers that "Buy here Pay here". These establishments will buy or make small loans against items of value and precious items. Often times these retailers will claim items taken as loan collateral and offer them for sale. They will supplement the steady stream of used merchandise with lower price point goods. In small towns this type of jeweler maybe the only game in town.

In larger cities you'll find at least one or more "Discount & Catalogue Jewelers" who cater to the price sensitive bargain hunting consumer and will offer middle of the road quality jewelry, but with a concentration in lower karat gold and pre set jewelry using small diamonds and colored gemstones. These merchants frequently offer crystal and even house wares to smooth out the seasonality of the jewelry business. The focus of this retailer is to sell jewelry of moderate quality at affordable prices on a mass market scale. They are typically located in large free standing buildings or in malls.

The local Jeweler, is typically the home of all classes of merchandise in limited selections, but has something for everyone. Their inventory will generally be in better goods and include some true designer pieces as well. You'll also see some better Swiss watch lines along side Asian imports here as well. These establishments will be locally owned and a family affair. This jeweler will typically have repair departments, do custom engraving, even may make customized settings. They will maintain an inventory of unset gems and may also make up some set pieces on the premises. They will be found in strip shopping centers and stand alone buildings.

Then there is the "Carriage Trade Jeweler" (may also be the Local Jeweler) that trades in the highest caliber merchandise which is sought by the most effluent of our society. This merchant will carry several designer lines, large unset stone inventories and top end gift items in crystal, china and selected accessories. The environment would be described as sumptuous, lavish or even palatial. Staff will be well dressed and often haughty mannered even to the point of being "stuffy". The locations will be in top end malls and high traffic areas close to affluent neighborhoods or in the business districts of downtowns. In a few cases a department store might maintain such a jewelry department if their overall marketing plan is to cater to the very affluent shopper.

In recent years a new merchant has appeared. And you're here now as a result of that new emerging virtual marketplace. The internet jeweler. This new breed of retailer has emerged because of the vast world wide web and its reach in to the homes of consumers has spawned this new e/Merchant class. The new distribution channel has opened the opportunity to short circuit the costs of delivery, stocking costs brick and mortar expense in favor of bringing the consumer benefit of lower prices. These new merchants or e/Jewelers come in all flavors. Some are garage operations, pawn shops, e/departments of the large retail chains. In our case or legacy has been diamond wholesalers selling to the jeweler.

We at Diamondtique began utilizing the internet to test finished product designs for consumer acceptance before committing production in the orient or to sell close out stock. We soon discovered we were selling more goods on a streamlined system than our wholesale ever would allow.

But the one aspect common to all these retailers is the consumer expectation, who through years of advertisements has been solidly conditioned to expect, a "Good Deal" no matter where they shop for jewelry or a diamond! A "Good Deal" is most often related to by the buyer as getting a large DISCOUNT. Its our hope to sway your attitude away from being a discount driven buyer and convert you into a quality value driven buyer. In gemstones, and you can write this in stone "The discount driven buyer is going to pay too much for what they get every time." Please understand, I didn't say to convince you to over pay for your diamond purchase, but rather to get your attention on focusing on value.

Since you've come here to learn about diamonds, we'd like to share a reality in that there is no one in the jewelry industry that can offer to sell you diamonds below cost and stay in business. As a axiom, the larger the discount off claimed retail prices you are offered, the larger was the mark-up over wholesale cost was in the first place. If you are offered huge discounts on diamonds BEWARE of over pricing on the retail price to begin with. Diamonds are priced at wholesale from an industry accepted and widely used pricing table. This pricing report is compiled by the Martin Rapport organization. The reports are updated and published weekly and are available only to jewelry industry subscribers. Their reports are commonly referred to within the trade as "Rap" and these price reports are accepted and used world wide.

Now this will surprise you, the local retail jeweler can purchase at prices that are very close to that obtained by the largest retailers and discounters, ands that is a fact. An internet jeweler can't buy at substantially lower prices either. Low LOW prices in diamond are a result of poor cuts, low demand sizes, poor quality crystals and cutting techniques employed to minimize labor at the expense of beauty. The big discounts most consumers are accustomed to seeing advertised are largely made up from marketing hype and the stretching of the facts involving the 4C's of a diamond. Anyone selling as a business is there to make a profit and they expect to make a profit on every transaction.

Large chain stores sell huge amounts of diamonds, because they advertise extensively and easily absorb the high cost of mass advertising by spreading these costs over a large number of establishments. Large chain jewelers that advertise "Discounts" as the main attraction in their ads continually tend to sell diamonds of lower grades marked up very high so that they can discount them heavily and appeal to price driven consumers. One such national chain uses as their buying standard for all diamonds under 40 points "I" clarity grades and will not purchase better than that, yet they sell a “bazillion” dollars a year in jewelry with stones under 40 points. What do they know that you may not about clarity ratings? Yet, such grades of diamond would not be found in Carriage Trade stores in any sizes.

What these large discount chains focus on is COLOR in smaller diamonds. Additionally, these larger stores will price their RETAIL stock well above that found elsewhere, sometimes 3 to 5 times their net cost. Why? Simply to be able to discount their goods 50-75% offering these large discounts in their advertisements! Reality, their net selling prices are at the same mark up levels as the local jewelers and carriage trade stores. Such stores sell medium color and lower clarity grades with cutting proportions, (in the trade referred to as "MAKE"), that emphasize carat weight, at the expense of reflective beauty. Those huge discounts the consumer is offered are made possible by over pricing in the beginning and under delivering quality in the end and giving the consumer a piece of paper called an “Appraisal” to cling to that proves they got a GREAT DEAL.

Now we find e/Merchants selling diamonds and fine jewelry direct to the consumer at or below wholesale prices, auction merchants operating businesses on sites such as eBay as we do, and internet divisions of chain stores all are active in the internet environment. The prices available from such merchants can be attractive and are possible largely from the elimination of the expensive retail facilities. These new merchants are in some cases diamond trade leaders, in other cases little more than consignment agents for used goods. As the jewelry trade becomes more diverse in its methods of marketing diamonds to you, you will need to become more knowledgeable and aware of what is a quality diamond and what is a "FAIR" price to pay for it. Notice I said fair, not cheap. If you seek cheap, you are "ripe for the pick'n" as my granny used to say.

If you don't take anything more away from our Buyers Guide to Diamonds let it be this. Buy from a knowledgeable seller, who will provide you with accurate truthful information that can be verified by others. If you lack the interest or patience to learn about diamonds, I suggest you give serious consideration to making your purchase with a local high end brick and mortar retailer that has a positive reputation, has posted selling standards of ethics and will guarantee that what they have told you is what they have in fact sold you. Irrespective of where you buy I think you have a right to know with whom you are trading and can establish a personal relationship with the OWNER.

The question is asked in order to open a discussion about using this medium to buy successfully, or how to avoid wasting a lot of your time and emotional energy. We discussed earlier that the local jewelry store has an inventory on hand, you can touch it feel it eye-ball it, try it on and generally become attached to it during the buying process. During that process you become familiar with the goods, the company selling it and have sold yourself on the piece. What is different about buying goods on line in the place I call "Cyberville," is that you can not hold it, sniff it, roll it in your hands and otherwise convince yourself that the item will really suit your desires, and that it is worth the price asked. In the firm world of here and now when you come to a commitment to buy you flip out the plastic with a "Oh what the heck, I'm worth it", and swagger up to the to the cash register to settle up. Here in "Cyberville", things work different.

First you must be able to emotionally come to grips with the idea that you are going to buy something that you've NEVER held in your hands, tried on or verified it even looks good on you. YOU really have to KNOW YOU, and what works for you and be able to project your self into the pictures you see. Even though we've been a nation of catalogue shoppers for years, in "Cyberville" the merchant is different from the big national catalogue houses and local names you trust. In most cases in the jewelry sellers, the e/Merchant company will be a person or firm you've never heard of and works from "Pipe Rack” facilities or from home. There is no Italian marble floors, Egyptian alabaster columns and rosewood display cases to engender confidence that the merchant has any substance about them at all. This Merchant of Cyberville is likely to be an individual or a small department of a small retail operation. In some cases they are consignment merchants, pawn shops or stall holders in antique malls etc.. Of course there are large organizations as well, but the web is the great equalizer. A small business can look as big as the biggest. So this egalitarian aspect of the web throws off the stereotypical expectations of where and how jewelry is bought and requires a new mind set.

Then there is the money. In on line jewelry sales, business is conducted principally in cash. Credit card issuing banks run for cover if their merchant client wants to take charges over the web. In the case of auction environments such as eBay, those auctions, as they have for centuries, settle in cash. Premiums are additional amounts to be paid or withheld as the case maybe to compensate the auction house for their services. Now on eBay there is no buyer's premium added by the auction house, who historically collects the high bid, plus a service fee from both buyer and seller. The modern e/auction is where e/Merchant's sell direct to the consumer at near cost prices. Margins are narrow and most sellers can't absorb the 2-7% discount deducted by the charge card houses. These retail like costs aren't loaded into the cost structures of the auction as they are when you buy retail. So the buyer has to face paying for the goods up front, and if they charge it paying they might be asked to pay for card processing fees, and delivery. That takes a lot of faith in the e/Merchant that doesn't have an alabaster column to lean on!

Think about this hypothetical situation. You went to the mall to shop a three carat diamond set in platinum. But of course you’d like to better price than was offered at Gotrock's Jewelry for $50 grand, right? I know you can match or beat the quality if you do your part, and I know you can find it (try us! a small but sincere commercial... sorry). So consider that, on line, you were able to find a very acceptable match to your heart's desire. Now think about this seriously, can you wire off a serious four or five figure sum to someone that hasn't even snubbed you in a haughty manner from behind those rosewood cases yet? If your palms get sweaty and you squirmed in seat and your forehead broke out in a sweat on that idea, you probably will have a difficult emotional time actually getting to consummate a purchase with an e/Merchant or finalizing settlement from an auction for such a high ticket purchase.

The wholesale diamond trade is business to business and sales are on a cash basis. If you want to buy that "ROCK" at the rock bottom prices just as stores do, you'll probably have to forgo the haughty service, the marble floors, alabaster columns, six inch pile carpet and pay cash for a very expensive item that you haven't held in your hand from someone you can't look in the eye and size up in the traditional ways. I don't know if you can do it or not, but you'll have to decide for your self. A big gut wrenching question isn't it?

But, don't loose hope! Now shopping in Cyberville has some new services to help the faint of heart. They are called “on-line payment processors” such as PayPal a division of eBay. These are companies that provide the financial service interface that retailers have on a local level, to wholesale e/Merchants and their consumers. These companies will take charge cards for purchases made with an e/Merchant, and guarantee to that eMerchant that your card is good, guarantee that he'll get paid. They collect the cash from your card and transfer it to the eMerchant with instructions as to how to ship to you. It's not just a one way street. Some of these on-line payment processors will provide escrow services and buyer assurance plans of their own to protect the buyer. The e/Merchant on the other hand has demonstrated to the service company that they aren't "an empty suit "and can ship the goods as specified. In escrow services if the e/Merchant fails to deliver they don't get paid and the payment service gives your money back. Sounds good so far? Here's the catch, you will have to trust this e-service with your vital statistics. Who you really are, your real home address, your real credit card numbers, your real checking account info, all the vitals, in essence you'll have to strip away your anonymity to charge on line.

Well on small dollar risks some will, but on big ticket sales most won't, here is why. Normal consumer credit card charges are transacted between the credit card issurer and the merchant in what is called “non recourse”, meaning that if you don't pay the card company, the merchant still gets paid without charge back. However, the charge card system is based upon personal presentment of the card at time of purchase, (note all those fancy anti counterfeit spots on your card?) Merchants that accept telephone or web based transactions and do not have signed orders can be charged back for bad sales for fraud and in some cases non payment etc. and (we haven't even discussed disputes). So you see in the jeweler's situation someone could get that $25,000.00 diamond ring and all the e/Merchant would have is a charge back against their bank account as a result of John Runsfast whose address is an empty patch prairie in South Dakota. High ticket items on the web trade in cash or through some payment guarantee system, that's the commonplace way. Can you disclose your personal vital stats to a nameless form hosted on server located in who knows where by who knows who, so you can save thousands?

More help is at hand to help you with the "Trust" thing. eBay, Yahoo, Amazon and others have installed consumer “FEEDBACK” loops where customers are reporting their experience with e/Merchants. These reports are often logged and published as a part of the description of items being offered! This is a very powerful tool. Actually, it's better than what you have with the local retailer in many ways. In the "flesh and blood" shopping experience a bad service history is shielded, because many customers don't know each other. It takes a LONG time for bad news to get around sufficiently to choke off sales. Even with bad service and products some companies survive by massive advertising to drive in new buyers. In Cybersville and especially on eBay FEEDBACK driven systems highlight a bad experience which is shared with every single future buyer of that e/ Merchant! The more good reports they have the more they are willing to do to defend that history. One bad report can kill sales for a long period. They can't just bang up and start again, their ability to sell is in large part based on that good service record. The better that record, the better a consumer should feel about doing business with them. Feedback on the behavior of e/Merchants should more than equal the marble floors, alabaster columns, deep cut pile carpets, 18th century chairs and rosewood cases of more traditional jeweler's establishments with respect to sense of security. The customers opinion published to the world right along side the item you are considering is power to the people! When buying on line, please read and leave feed back.

So to be ideally suited to web based buying of big ticket items like a Diamond, you've got to be willing to send off large amounts of cash to strangers, give very personal information to faceless entities and have the ability to trust the information you've been given and take the time to do your home work verifying that what you are told is fact. Then take a deep breath, say "Oh what the heck I'm worth it" and with great gusto fill in the form! Those that can deal with this new landscape of Cyberville can get great products and save a bundle, those that can't, really need to window shop, get a good nights sleep and go to Gotrock's next Saturday.

Oh! By the way, don't expect to waltz into Gotrocks with a print off of an e/Merchant’s offering and say match it or I'll buy from this internet guy! In most cases he can't and all you do is get their blood pressure up. Worse, he just might take you up on it and go clean out the bottom of the safe and dump a dead inventory "lunker" on you at a BIG Discount! He'll have the last laugh and you'll pay to hear him do it! Be nice... play fair.

To help you become a knowledgeable buyer of diamonds you will find some informative discussions in the following pages. So before you buy a diamond anywhere, study the facts concerning quality and pricing and you will be better prepared to make an informed and value driven purchase no matter where you decide to shop for such an large purchase.

Diamonds are perhaps the most beautiful gem man has for personal adornment. The modern brilliant cut diamond can be a so beautiful as to be mesmerizing, almost hypnotic to watch as light dances from deep with in the heart of the stone. Stone yes, diamond is a stone. it is actually one of the three forms of carbon found on earth. The crystalline structure of diamond renders it the hardest material on earth. Diamond will cut any other substance on earth. Yet one of the other three forms of carbon, graphite is the one of the softest and slickest mineral on earth. Diamonds while hard are not immune from damage. They will burn in

high temperatures and will crack and crumble when subjected to sharp blows between hard surfaces.

Diamonds were formed in the hearts of ancient volcanoes and found in our time within geological structures called "Pipes. These pipes have the shape of an inverted cone rising up from deep in the earth. The pipes are now at surface level because the volcano that towered over it has eroded away by natural forces. All natural diamonds began their life in a form called a "rough" that crystallized from the surrounding materials in the Pipe. As diamond formed it captured some of the surrounding material in the form of trace elements, gas, and un crystallized carbon which created the color and inclusions of diamond.

The natural shape of the rough is the octahedron or eight sided polygon that you see in the picture here at about 11 O'clock. The rest are the typical roughs found and are the result of the original crystalline shape being damaged by geological trauma and mining activity. It is the natural octahedron shape that first suggested the cut that has lead to the modern brilliant cut diamond we cherish and value so highly. Today there are many popular styles of cutting diamond for jewelry use. None are more desired or popular than the Round Brilliant Cut.

Now, lets examine the parts of the Modern Round Brilliant Diamond and what they are called as we'll be referring to them frequently from here

Carat Weight- carat (ct) is a standard of measure. 1carat = 0.2 metric grams. A one carat stone is referred to as weighing 100 points, ½ carat = 50 points, 1/4 carat = 25 points, etc. Diamond scales weigh to thousandths of a carat (.001). This value is then rounded to one hundredths of a carat (1 point; .01). Just to express how accurate this is - one point is less than one fourteen-thousandth of an ounce. If you are purchasing a diamond you should have the exact weight listed on your purchase documents. Larger locally owned jewelry stores set their own diamonds into mountings they obtain from a variety of sources. Mall chain retailers will stock only pre-made pieces most often made in the Orient. Major diamonds in new pieces should have the carat weight determined by scale and not estimates. If an estate (antique) piece is being considered, then an estimate maybe be in order. A jeweler isn't going to break up a piece in order to weigh the stones to reach an exact weight. This would ruin many beautiful pieces. There are industry standard estimation formulas created for these purposes that can get the weight close. Appraisals should state what method was used to determine diamond weight. Wholesale Diamond prices are always expressed in " dollars per carat" where as at retail the diamond is most frequently priced as dollars per stone and completed jewelry is priced as a complete piece.

There is an exponential increase in diamond pricing as you move into larger carat sizes. The larger the stone the more rare that diamond is. As a matter of interest it normally takes a 3-4 carat rough crystal to be cut into a single one carat diamond. This single factor has led the industry into grouping diamonds by finished size to determine price ranges. These groups start from very small 1-2 point stones to sizes up to 5 carat plus. Each grouping has a lower weight to a higher i.e. ... 0.46 - .49 or .50 -.69 and the price per carat will escalate within for the same color and clarity ratings because the total weight of a diamond has crossed a threshold in size. For example lets take two different round diamonds both an H color and SI-1 in clarity one weighs .49 carats the second weighs in a .50 carats. On one particular day, the .49 carat stone would wholesale at $2,200.00 per carat and the .50 $2,800.00 per carat. In this example, a one point move in size increases the cost per carat by $600.00 or an increase of over 27%! Yes, gentlemen size really matters!

Color- diamonds naturally occur in every color of the rainbow. Gem diamond color grades for these purposes range on a scale from "Colorless" to "Dark Brown". A colorless diamond has a grading of "D".

Most diamonds sold in the retail trade range from very nearly colorless to slightly yellow or brown. The range of D - M is considered the Jewelry Grade range for larger stones in that darker colors lack the glamour of whiter stones. When very small diamonds or "Melee" are to be used much lower colors can be chosen as these small stones individually lack the mass to project their natural color, so they will appear very white. These colors, N to R in melee are sometimes called "commercial white". In larger stones of a ¼ ct. and more, most consumers prefer "near colorless" grades G-H-I-J for use in rings over higher ones because they find them very attractive while being less expensive to acquire than colorless stones. For earrings, pendants budget minded ring settings very fine appearances can be obtained from K-L-M colors as well.

When diamonds are color graded it is always with the table down (as shown above). You do not need to be an expert to grade color but it does take some guidance. Every jeweler should have a comparison tool referred to as a “color master set” that is sued to place loose stones between for comparison. Most individuals including diamond experts cannot distinguish precisely a color grade without such tools. Two stones side by side one color group apart such as an H & I will be almost indistinguishable without a third stone for contrast comparison. Color grading a stone which already set in a mounting is for the experts, sorry.

A consumer will find that by sacrificing one color grade or two where the difference isn't all that noticeable will allow the purchase of a much larger stone than otherwise could be purchased with the same budget with little sacrifice in appearance. It has been my long standing recommendation that half carat and larger diamonds to be set in yellow gold to chose G-H-I-J or “near colorless” grades. That said, in special circumstances very well cut K-L slightly tinted grades can appear much whiter and allow the consumer to buy larger size stones. To set in white gold and platinum we can only recommend D-E-F colorless and G near colorless diamonds. If the budget won't allow better color you can choose with confidence the H-I-J in near colorless grades in but only do so in very good to ideal cuts for a very good look as well.

INSIDERS TIP: Bargain Hunters read here.

Now this is an insiders secrete for you. Very nice appearances in white metal settings can be had from J-K-L Round Brilliant diamonds even up to 3 carats when the stone selected has a fine or "Premium" cut. These stones will face up much whiter than conventional wisdom suggests. These well cut stones have been called in the trade for years "Bluff Stones" because they can look so much better than the facts say they should. A well chosen Bluff Stone can really save money and give the satisfaction of wearing a fine large diamond.

In smaller stones, under 1 carat, a few color grades can be dropped down as the smaller the stone the less color they show. As a matter of interest, the average diamond sold is slightly under one half (.46 points) and of L-color (slightly tinted yellow). Diamonds in the G-H-I-J true color grades will show off much whiter than most of those your friends diamonds, unless they too have read and bought using this guide!

Q: What is the grade I should consider for investment. portability and security:

A: Diamonds for investment purposes, I only recommend 1, 3 and 5 carat sizes in Round Brilliant Cuts. As for investment color only D-E colorless with Flawless, Internally flawless and VVS1 clarity grades. IN all cases the cut must be an “Ideal MAKE ", “polished perfect" as the trade says, and nothing less. These stones are the rarest of rare and hold their value well in tough times and rise rapidly in the boom times. They can be recognized collateral in financial dealings and can be sold in reasonable time frames. Where discrete portable wealth is required investment grade diamond is unequaled.

Such diamonds should be certified and laser girdle inscribed. Such stones can be used as jewelry with out question, but adequate insurance is absolutely essential. Individuals wishing to place some of their long term assets into investment grade diamonds should consult with a knowledgeable dealer and discuss frankly their intent and establish an acquisition program. Such programs should take into account the total investment amount, the investment horizon and acquisition timing criterion. It is reasonable that a brokerage arrangement would include retainer and commission arrangement that would result in far less total acquisition cost than buying under contingent dealer mark-up arrangements. The services the dealer will provide in such arrangements will be; search, competitive comparison, investment grade analysis, gemological services, sourcing outside consultants, price negotiation, authentication of certifications, courier and secure delivery, purchase facilitation, temporary safe keeping, financial consultation, your travel arrangements if necessary, selling advice and marketing and above all your anonymity. You will have to provide the long term commitment and the ready funds to facilitate sizable transactions that are characteristic in these programs.

Fancy Grades are yellow, pink, blue, green and many other colors. Fine natural colored fancy diamonds are amongst the most expensive diamond in the world. But not all colored diamond is of high value. In contrast, a large Canadian diamond mine has produced a huge quantity of brown diamonds with decent clarity. They have been promoting the retail market trying to develop consumer taste for Brown diamonds, now called romantically "Champagne, Chocolate and Cognac", but for my part they are not recommended by our firm for serious gem use unless the color is the deciding factor in the design of a piece. Consumers need to be on notice that the price of these brown tinted champagne/cognac colored stones is far less than white diamonds. So don't let romantic names and hype cause you to over pay for these colored diamonds as their value just isn't in the same league as that of natural yellow, pink, blue and other fancy colors, some of which cost hundreds of thousands of dollars PER CARAT!

Clarity- is the degree to which a diamond is free internal inclusions and external blemishes and cutter's mistakes. Blemishes can include external scratches, small nicks, and parts of the rough crystal’s natural skin (referred to as NATURALS) left on the finished stone. Inclusions are inside the crystal's structure and are comprised of mineral crystals (or diamond), gases, feathers, traces of distortion in the crystal structure, or even drill holes made with a laser to lighten or remove other inclusions. Diamonds without inclusions are very rare and command dramatically higher prices, as much as three to four times as much! In general the more included the diamond the lower the cost.

Much advancement has be made lately in artificially enhancing the clarity of diamonds. Laser drills are used to vaporize an open pathway(s) into diamond to allow in strong acids used to vaporize internal inclusions. The resulting holes and internal voids are then filled with semi durable plastic materials. Heating and many other procedures in setting and repairing diamond may destroy these fillers which open the stone to dirt intrusion. This can create inclusions worse than the original inclusions. Other processes using high Heat/Temperature or radiation are becoming more prevalent as well in enhancing color and clarity in diamond. Artificially enhanced diamonds are not valued on the same scale as natural diamonds and these stones should only be sold to consumers with full disclosure. Our firm doesn't sell enhanced diamonds without clearly stating the nature of the stone and how it has been enhanced. A positive note about inclusions is that they serve as fingerprints for your diamond. No two diamonds have the same internal structure, much as fingerprints differ from individual to individual.

It is important to note that round diamonds are graded for color and clarity with the table down, viewing the internal structure of the diamond from the culet or bottom, which is not the way we normally enjoy the view of the diamonds beauty. Hence the grading is a more critical view than through the table facet. This is a very important factor to keep in mind in seeking the well valued diamond. Here is what the descriptive grades mean in general terms.

F - Flawless: No inclusions or blemishes, internally nor externally observed under 10X magnification. There are few characteristics that if present will still qualify a stone as flawless such as:

-Small extra facets on the pavilion which can’t be seen when the stone is face up.

-Internal graining which is neither reflective, whitish, colored, nor significantly affecting transparency.

IF-Internally Flawless: This grading applies to diamonds that have no inclusions observed under 10X magnification but have minor surface blemishes as described in VVS.

VVS1/VVS2 - Very Very Slightly Included(1-2): These grades represent diamonds that have very minor inclusions that are difficult to see under 10X magnification and then only by the trained eye. Some external blemishes maybe allowed.

VS1/VS2-Very Slightly Included (1-2): These inclusions are visible under 10X but they are characterized as minor or small in appearance and are not visible to the unaided trained eye.

(1) Table down, these inclusions are not noticeable to the trained naked eye unless the diamond is large, a carat and larger and should not be noticeable to the untrained eye. The numbers and types of inclusions will me more than for VS quality stones, however some diamonds may have fewer inclusions than a VS, but larger and hence more visible.

(2) Table down the inclusions maybe be seen by the trained eye and possibly by the untrained but would be easily spotted under 10X examination. The Table up examination should be clean to the eye. The number and magnitude is typically more than for Si-1 stones.

SI3- Slightly Included 3: This grade is an attempt to parse those few diamonds that would otherwise have been graded I-1, but the nature and placement of inclusions is such that they are difficult to spot with the unaided untrained eye, table up. These stones are often referred to as "eye clean". I support the use of this grade although it is not recognized by GIA. These stones can present good value to the consumer and make larger diamonds more affordable. And yes, size does matter, in diamonds! Normally, the price of an SI-3 diamond is averaged between grades SI-2 and I-1 and such grades command a premium over straight I-1 prices. The inclusions in SI-3 stones are easily spotted to the naked eye when the diamond is observed table down as in the I-1 diamond.

I1-I2-I3- Included: The differences between these grades are matters of degree. Most of the promotional jewelry sold on the market by Discount and Credit Jewelers fall into I1-I2 categories and many consumers are quite happy with such pieces. In fact I believe good value can be had in the I-1 grade for well chosen stones, as long as the consumer knows what they are getting. In general, the "I" grade diamonds have inclusions and surface blemishes that are likely to be seen to the unaided eye and very obvious under 10X magnification. In I 2 & 3 grades these imperfections will be easily noticed with the unaided eye even in stones down to .30 carat. Brilliance is seriously affected in the I 2 & I3 grades.

Rejection: This is a grade of finished diamond that is also called Pique or Spotted. Often jewelry set with these stones are sold in the US by "buy here pay here" jewelers, pawn shops and other types of retailers who's clients want the pleasure of owning a diamond but lack the knowledge and/or means to buy better goods. Rejection grades are marketed heavily in third world countries as well. These stones are heavily "Included", often the color of the crystal is shaded heavily by the amount of inclusion material in the stone, it is also common to see asymmetrical cuts, cleavages and voids that break the facet surface in the crown and table, missing facets and chipped and bearded girdles as result of the cutter making quick work of the cut and polishing to minimize labor costs merchandise.

The photographs above show a beam of light reflected through three different diamonds. If a diamond is cut properly (in proportion) then nearly 100% of the light that comes into the stone is reflected out of the crown and table facets. A stones proportions determine the extent to which it achieves optical excellence. Cut is the most important of the four C's because it directly affects the weight, color, and clarity of the finished stone. With this illustration it is easy to see why I place such importance on quality of cut or "MAKE" when advising a client. A .90 carat diamond can show off better and appear much larger (FACE UP) than a poorly cut 1.10 -1.25 carat diamond and save the client thousands in the bargain.

What constitutes an "Ideal" cut? Below I've given you a guide based upon the mathematical calculations most commonly accepted. The "Tolkowsky Cut" is what is now referred as "Modern Brilliant Cut", "The American Cut" or as is the Scandinavian D.N. standard. Where these two standards part is that the Scandinavian D.N. suggests a wider table in proportion to the diameter and a thinner crown. There are two other cutting standards referred to as the "Eppler" , or "The European Cut" and is the desired cut in Germany and most of Europe, and the "Johnson & Rosch" which is more widely accepted in Great Britain. You can see that some variation can still result in an ideal cut depending upon the standard. It is common that even the finest diamonds will vary from these theoretical standards, because of the realities of the rough crystal and the state of the market conditions.

Dimensions	Tolkowsky	Scan. D.N.	Eppler	Johnson & Rosch
Diameter of Girdle	100.0%	100.0%	100.0%	100.0%
Diameter Of Table	53.0%	57.5%	56	56.1
Thickness of Crown	16.2%	14.6%	14.4	19.2
Thickness of pavilion	43.1%	43.1%	43.2	43.1
Depth, Table to Culet *	59.3%	57.7%	57.7	62.3
Angle of Crown Facets	34^o30'	34^o30'	33^o10'	41^o5'
Angle of Pavilion Facets	40^o45'	40^o45'	40^o50'	38^o40'

* Must add 1-3% for thickness of girdle based upon actual gemstone to determine Total Depth.

"The cut of a diamond determines the overall brilliance or scintillation. But what is brilliance? A modern cut stone (round brilliant cut) has 58 facets; 57 if the culet is not faceted. The sparkling flashes that you see when light is reflected from a stone’s facets as the stone, or you move is scintillation. For good scintillation, the facets need to be large enough to produce distinct, individual reflections, but small enough so those reflections are small and bright, not big and flashy". GIA

The internal alignment of the pavilion facets in relationship to the crown and table facets has everything to do with brilliance and scintillation. Brilliance is the sum total of each individual reflection being radiated out of the table and crown of the diamond. More than a 5% variation can cause a diamond to lose over half it’s life (brilliance). This is why price fluctuations come into play over cut. For example a one carat diamond I may ask $6,400.00 for, but another seller claiming the same carat weight, color and clarity asks $3,800.00! How do you know who to believe and if you are comparing truly similar diamonds let alone getting a fair deal? Value is in the quality of MAKE! The color and clarity describe what the crystals structure is all about, MAKE describes how the beauty of the crystal was developed by the cutter into a finished diamond as we know them.

The following is a table of measurements that can give you some guidance and is worth becoming familiar with. There are also similar measurements for most of the fancy shapes and I'd happy to advise you about these if you are interested. This list should be read from top to bottom. The millimeter size is on top and the diamond size is directly below. These diameter sizes are for modern round brilliant cut diamonds.

5mm	5.25mm	5.5mm	5.75mm	6.0mm	6.25mm	6.5mm	6.75mm	7.0mm	7.25mm	7.5mm	7.75mm
50pt	60pt	65pt	70pt	75pt	85pt	1ct	1.10ct	1.25ct	1.40ct	1.50ct	1.75ct

I don't want to mislead you into believing that diameter should be the sole factor to consider in determining if a diamonds cut is ideal, because from what you learned earlier you know its not, however it's a good place to start or discussion. You see, the closer the diameter is to that stated above given the carat weight, the greater is the chance that crown & pavilion facets will be in good relationship to each other and hence the more light that will be refracted out the table of the stone AND the more diamond the eye will see. I've seen many stones that are smaller than the ideal width yet the cutter has still made a fine appearance in the stone by adjusting the crown/pavilion alignment angles so as to get more life than the normal depth would have allowed. But that said, in such stones one must understand that more diamond weight is concentrated at and below the girdle and not visible to the eye, hence it should not sell at a price even close to a better made stone of about the same weight. Stones that are more narrow and deep cut, or are too spread cut are sold at lower prices than ideal cuts and therein may justify their purchase.

But what now follows is very important! These "Off Makes" cost the jeweler less and he should be offering them for less. This type of diamond is what you will see frequently offered on eBay auctions in $1.00 opening bid No Reserve auctions and at deep discounts by retail jewelers. Look out for deep cuts, spread diameters to weight, and overly thick girdles! These are the signs of a stone that should sell for less because you are going to get less in lovely appearance. These off cuts can have dead hearts, interior sections of the diamond that are dark or go dark as the stone is turned. Some will even have what is called fish-eye, which is a cold dead spot directly under the table. There can be halos or coronas as the light is poorly reflected and refracted internally. All these observable issues significantly diminish the value of a diamond because it is less beautiful. These stones are best used in ear studs, larger settings such as brooches and necklaces, as the faults are more easily disguised. The contemplation of using such off makes in solitaire settings for rings is an exercise in self deception and is ill advised.

So what's acceptable? In the example of a 1 carat Round Brilliant Gem the following gives a fair short hand guide to get a good diamond without having to sell the "first born" or become an expert beyond the contents of this guide. If a 1 carat diamond you are considering is outside these parameters yet you still like the look, great, just make sure the price you are being asked to pay is less than similar gems that do fall within the guide. Diamonds in this range are not going to be sold at steep discounts, trust me, as there aren't enough of these to go around.

This diamond will cost more than the "lunkers" and they should because they are more what the round brilliant diamond is all about. As for price, it is not likely you are going to get one of these in the half carat size and up for $1-2K a carat. It won't happen unless the seller is severely uninformed or you're in the process of being taken. So how much more? About 30-80% percent more than the color clarity comparable off make. But if you buy smart on the web you will pay about 50% off "fair Retail" and that is real money and worth the effort. Diamonds that are truly "Ideal" cut will cost more, a lot more than "off make" diamonds. A realistic range differential is probably at least twice, maybe more, of what a off make would cost you. Whether they are worth the difference is a personal judgment call, but the beauty will say it all.

As for the branded cuts such as "Hearts & Arrows", "Millennium Cut" etc. these are Ideal, very well cut diamonds and are made to maximize light refraction, Their beauty is stunning and so is their price. Unless the diamond is being purchased with "investment" as a consideration, I recommend that my customers focus on "Beauty" and try to get a “Chad's Super Make” staying close to ideal tolerances of the above guide and save the money for a larger stone with better color as opposed to insisting on stones of exacting dimensions. In any case, you just should know what you're getting for your money.

Polish: Another factor that is considered in the overall "MAKE" of a diamond is the polish. Polish deals with the surface of the facets and how finely they have been polished by the cutter. Problems here can be gnats (knots) on the surface of facets, bearded girdles (minor chipping from the bruting process which is much like turning on a lathe to round out the crystal). Rarely will you see this graded as poor in certified diamonds, and in the vast majority of diamonds the polish is good. In rare instances you will see very good and excellent. When we can get better grades of polish without paying a lot more for it great, but is it really worth a lot more per carat? Not for my money unless the consideration is for the "investment" aspects of the diamond.

Symmetry: Finally; we consider Symmetry. In Round diamonds the adherence to symmetrical shape is somewhat forced by the cutting standards of the Modern Brilliant Cut, however it is very common to see round diamonds that in truth are slightly elliptical. You see this in the dimensions such as 6.29 mm. X 6.37mm. X 3.8 mm., the first two measurements indicate that the stone is out of round by 0.08 mm. the larger this difference the more pronounced the loss of light will be. Other significant considerations can be: off center tables or culets; unequal facets and wavering girdles (like a bent bicycle wheel), tilted crowns ( sort of like wearing a hat cocked on ones head). In fancy cuts symmetry is equally important that the shape on one side is very close to that on the other. Other significant aspects to symmetry are the flatness of facets, the thickness of girdle. Symmetry Matters, it MATTERS A LOT!

As is proportion, Symmetry is at the heart of a great cut! The standards that result in a good or better, may not tell the whole story in this arena. You cannot buy diamond by the numbers as if it were the watt/hour rating on a light bulb. It takes expertise to conduct an analyses of the cutter's judgments to determine if this stone is a better make than another one. Here you are well advised to deal with sellers who know their diamonds and know the stone and can and will discuss the diamonds relative merits with you.

A premium price will be asked better symmetry and I recommend that the view be adopted as "worth it" for fine and excellent grades in symmetry. In stones over a half carat, if you are willing to settle for a lousy cut because it's cheap, you might just as well buy a Cubic Zirconium and be done with it, because you're going to be apologetic about the decision for a lifetime any way so you might as well have the cash. I know I'm matter of fact on this issue, but I'm honest. If you are buying a diamond for the lasting beauty and a fine diamonds repository of value, get a good one and expect to pay something more than advertised junk suggests you'll have to.

Premium values are in the cut not just the color and the clarity ratings. If you can actually buy wholesale over the internet, you are going to save so much in relationship to retail, it might be smart to stop picking up pennies in discount and get the dollars to be had in the value created by a great cut. If you can't afford the size stone you want in a better diamond buy a smaller well made one. As time and fortune favor you, trade up. You can always trade out of a well cut stone, but a "lunker" won't hold the value you paid

Yes, many natural elements will have some fluorescent properties. Diamonds are among this group. Diamonds can exhibit this property when exposed to long and short wave ultra violet light. That's right, when exposed to UV they can glow in the dark. Diamonds that fluoresce may do so in many different colors. Blue, yellow, orange, green and brown are common colors seen.

For our consideration in choosing a gemstone there are some factors we need to take into account. In some fluorescent diamonds this phenomena can be so strong that when the diamond material becomes excited by UV, an otherwise beautiful white gem can become clouded or hazy in normal light. The effect of UV can last for several minutes after strong UV exposure. This can cause a fine piece to develop a Jeckell & Hyde personality!

I recommend that gems be sought with no fluorescent properties, or slight to medium blue. Less acceptable but maybe okay are those with faint yellow, green or brown color, these stones should be examined by an expert, or you should get assurance that the stone won't become "oily or clouded" under strong UV exposure. When purchasing a setting with many side stones it will be unlikely that the manufacture graded the lot for this property, but you should consider this factor for larger center stones. Aside from the "oily" effect some diamonds may exhibit, fluorescent diamonds have little consequence on beauty or value. Actually, some experts believe that faint to medium blue fluorescent diamonds appear whiter to the eye. This “bluing” effect might be similar to that of bluing a load of whites in the wash. Do we still do that? Ummm my age is showing.

Appraisals or consultations about a gemstones character and value have been available for many years. The vast majority of these consultations are made at the local retail store that is selling the item. Appraisals are also conducted to establish value for insurance purposes, for estate evaluations and for the support of other financial matters such as loan collateral. Such valuations are based partly on facts and market conditions, but individual skill, judgment and opinion also play a large role in establishing value.

Some years ago, the jewelry trade recognized the need for a more professional and commonly transferable system of grading and judging the 4C's for diamonds and other gemstones The Gemological Institute of America ( GIA) a non-profit educational institution responsible for establishing the curriculum and training for gemologists responded in forming the GIA Laboratory. This gem lab was established as a centralized authority where trade members could submit gemstones for comprehensive analysis by trained and supervised gemologists. These laboratories render independent opinions about an individual stone. In this effort three such opinions must agree to establish a given grade for a stone. For higher value diamonds, the retail and wholesale industry has relied upon independent laboratory reports to confirm their own opinions about a diamonds character as relates to value since the inception of the laboratory concept.

These laboratories issue a consultation report or "Certificate" or Cert ( Another C) which defines their findings. Since the establishment of the GIA Laboratory, many other labs have come on the scene in competition for the increasing demand for certified stones. Some of these newer laboratories are for profit organizations and others are associated with educational non profits. Each such laboratory has its unique approach to examination of a gemstone, some have even redefined the GIA terminology or promulgated their own scales and criteria for the 4 C's which has taken the concept of establishing a common trade language and grading standards and added confusion.

The common underlying aspect of these labs claims of authority are that they issue an unbiased independent opinion. Most utilize the GIA nomenclature for grading and the three gemologist review. Some don't. The AGS organization uses their own nomenclatures and issues an opinion based upon a single review, yet issues a widely respected very comprehensive analysis of a gemstone. Is there one lab better than another? One less easily influenced by the pressures of the clients, the wholesalers and retailers? Frankly, I haven't seen enough difference in tangible results to pick one over the other. I think there is some prejudice in the world that favors GIA, but frankly since GIA went for profit, I think its sort of like grabbing for a "Kleenex" from a box of "Puffs" and that's the truth of it. I routinely submit my stones to EGL-Los Angles and PGS in Chicago because the reports are highly detailed and they provide good turnaround time.

None of these laboratories are very consumer oriented as they are established for the support of the trade. Although individuals may submit their gemstones directly for evaluation, its best to let a jeweler do it for you.

This process is not cheap! It costs a lot more money and adds significantly to the cost you'll pay for a diamond. Because of the added cost, stones of higher value that have "hard to call" characteristics which if a decision were made to the high side of a call would make large value difference are routinely submitted for certification. Smaller diamonds which were more easily graded by traditional techniques and experience are sold based upon the local jewelers opinion and reputation. With the growing proliferation of high quality diamond and other gemstone stimulants more jewelers and consumers have looked to independent analysis of their important gems.

In the last few years competition between the labs has caused prices to fall for this service, but certification still adds significantly to the retail price. A consumer must pay by about $300 per carat on one carat and up stones for certification. Is it worth the added cost for a certificate? I think it depends. If you're buying from a chain type mall jeweler, a resort jeweler, or from a private party I think it does make good sense to ask for a certified center stone. If you're buying from a established locally owned store who will have to weather the customers opinion of their conduct over the years, then their opinions supported by your own observations should stand you well and you can save the money. That said, on a single diamond being claimed to be D-E-F with claimed clarities of VS1 and better, then I think a certificate would be at the very least comforting to you, no matter who your trading with because the values you'll be asked to pay escalate rapidly in this grade level of stone. Just understand that a certified stone costs more than a non certified stone.

Not really. Each Laboratory has a difference. For most Gem Labs there are three levels of reports offered the gem trade. I'll describe them briefly below.

Trade Consultation: This is the lowest level of consultation. It is sometimes referred to as a "Pre-Cert". This is the typical consultation requested by cutters and high volume wholesalers who plan to sell to dealers and retail jeweler's. The lab conducts a complete examination on the gem, BUT does not report all the information they develop. This level normally discloses in writing that, the lab has seen the gem and on what date, it's measurements, carat weight, clarity grade. Some labs will also provide a drawing of the major inclusions on a graph. This report does not disclose facet angles, grading opinions on symmetry, proportion and polish. These reports provide basic information BUT not the most important information, unless a larger fee is paid. The purpose of these reports is to facilitate commercial transactions between gem trade experts who are qualified to evaluate the other properties of the diamond upon physical examination. The report reduces the prospects of bickering between buyer and seller over color and clarity. Each report has a number and full reports can be ordered at a future date upon payment of the fees required.

"Mini-Cert": Sometimes called a "Wallet Cert" in that the lab issues a full report and reduces the information to a sheet 2 1/5 inches by 3.5 inches. This complete set of information is delivered in a small clear vinyl wallet along with the actual diamond in it's traditionally folded paper. Some labs will also provide as an option the inscription on the girdle by laser of the certification number.

"Full Certificate": This report is the bedrock of the trade and the reports most frequently provided by retailers to the consumer. It is Full in that it is full size at 81/2 inches by 11 inches "C" folded. The information is the same as the "Mini Cert" discussed above.

So, what you are to take to heart when it comes to certificates. The vast majority of diamonds offered on eBay are diamonds with a "Trade Consultation or Pre-Cert" and not a full certificate. The real details of the labs determinations are not disclosed to the seller nor you. If you want the full report you will likely have to pay an additional fee of about $150.00 per carat and wait about 3-4 weeks to receive it.

As for the contents of the certificates, every lab has essentially the same scientific equipment available and trained gemologists on staff to use them. Additionally, these labs conduct multiple gemologist reviews where as many as three gemologists must concur their opinions in order to achieve a grade level. That said not all labs report the same information which you might find important for consumer comparisons. The amongst the most sketchy of reports is issued by GIA Trade Lab. Their reports are "The Preferred Paper" amongst consumers but provide minimal information about the diamond. In contrast the reports issued by AGS and EGL- Los Angeles franchisee are amongst the most detailed and accurate. Now, I don't believe GIA is simply skimping, not at all. The way they report the deeper details only to the jeweler indicates a belief that the consumer will require consultation about the report at the sales counter.

What about virtual jewelers like you and others Chad, can you sell me a certified diamond?

Most all the colorless/IF - VS1 diamonds and about half the Near Colorless VS - Si1 diamonds we sell will have a trade consultation by one of the recognized labs. Especially when the characteristics are too close to call and the values significant and the stone is larger. In the near colorless and lower colors with clarities of Si2 to I2 we generally do not certify diamonds. Why not all? Well its about cost. If I keep my cost in the diamonds I offer you low, you get low unbeatable prices. Any diamond you buy from us that you want certified after the sale, we will submit your diamond to the lab of your choice, you pay only the lab and shipping fees. If the stone grades lower than we state in the auction we will refund your money and the lab fees, or prorate the diamonds value based upon the grade difference, you choose!

Q: How will I know I got the real item you described if the diamond isn't certified?

I could say trust me, but I won't. There maybe some comfort in using the certificate as a shield against the possibility that I'd be out to get you, but I have a better solution, that you'd want to consider with a certified stone any way. Within three working days of receiving the item you've purchased from us, take the diamond to a local store you trust and have it appraised by a gemologist. If their opinion supports ours you're out the new appraisal fees but have peace of mind. If the diamond doesn't grade as we've specified here's what we'll do.

We'll arrange to send the item to a gem lab for analysis, you choose. If it grades as we've said you're out the labs fees and transportation, but you've gained comfort and added to the value of your piece because its now certified. If it grades better you're still a winner because the deal you got was really great and your now more valuable stone is also a certified stone. You are still out the lab fees but you still win big! If it grades lower than we state in the auction we will refund your money and the lab fees and the fees for the local appraisal, or prorate the diamonds value based upon the grade difference, you choose! You still win because you can't get taken or you'll pay less and still have gained a certified stone! But you know, If you are truly fearful that I won't keep my word, then you shouldn't buy so much as bud vase from me.

Q: Why isn't diamond grading more simple and reliable so buyers can judge for themselves?

Much of grading a diamond is an art based in experience and training. A judgment call in most cases. A judgment call can be seen differently by another evaluator particularly one that may also be biased, that's true and THAT IS why we have buyer protection programs to protect you. With our buyer protection plans supporting you, we have nothing to gain except your continued patronage if we treat you right. We at LII wouldn't want to get ahead and prosper at your expense. That's how we're made as human beings.

A note about all our gemstones. We make a detailed analysis of each diamond along with micro photography, precision laser measurements, and inclusions plots just as the gem labs do. When a item comes back to us, it is subjected to a complete series of evaluations and comparisons to determine that the stone returned is in fact the stone we sold. Believe it or not, we're had customers complain then try to take advantage of our generous return policies and switch higher quality stones with lower grades with us!

Q: I've heard about diamonds that have been enhanced. Will a lab report protect me from being sold one of these without my knowledge?

It should. A full certification should protect you, but something more important will work almost as well and cost a lot less. These processed diamonds aren't done in peoples garages, they are done by factories and are always sold to wholesalers and retailers as enhanced diamonds (some even have this inscribed on the girdles). U.S. Federal law requires all resellers of diamonds to disclose any enhancements to gemstones to the buyer. So your first line of protection from being duped with an enhanced diamond for a natural diamond is to trade with someone that knows the law. The diamond source you choose should have an internal policy to make such disclosures to consumers and they shouldn't flinch when asked to show their policies in writing.

Now are enhanced diamonds a bad thing? I don't think so as for some consumers wanting large diamonds at a low budget price these enhanced diamonds may even be a good choice as long as they don't over pay for them. Enhanced diamonds do not sell at or even near the price for the same unaltered stones in the same grades. I believe the greatest risk in getting one of these duped onto you is in a private purchase from someone that doesn't tell you or they themselves didn't know what they had to be able to tell you.

A certified diamond report would report such enhancements as laser drilling to remove inclusions, dies, surface coatings, radiation exposure, heat treating etc. So we at LII see it as a matter of cost and integrity. We will not sell enhanced diamonds without full disclosure. That's our policy and you read it here, you'll also see it in our "Who We Are" page link later on.

Q: If the stone is certified I can be assured that I've got a great diamond, Right?

Wrong! Diamond/gem labs only report their findings as they see them. They do not tell you what the information means with respect to value. They will render a certificate on a piece of river quartz. They do not render opinions about the overall suitability of a given stone for gem use. They may include a caution in their report such as certain facets angles are over a given percentage, but that is about it.

Let me illustrate how dependant even the trade has become on Certificates in their marketing. I once had a consignment of fancy cut diamonds sent to me to consider for purchase. All these stones were sent to us with "Trade Reports" by one lab, yet there wasn't one stone I'd buy because they were all of such poor make. Girdles so wide you could run chariot races around them, or so deep cut that they resembled railroad tie spikes or with so many gnats on the facet surfaces that the polished faces looked craggy on close inspection, all these diamonds were "certed" stones! When I returned the parcel to the supplier, they were astonished that I'd bothered to examine each stone because they'd been certified! Needless to say, this supplier wanted to hide poor quality behind a piece of paper! I never was willing to buy from that supplier again. And you can take some comfort in knowing that a diamond has been evaluated by an independent lab, but knowing what the information means and how it affects value is even more comforting.

A full diamond report will provide you with details about the character of the diamond in question, it is what that information actually means that can bring comfort. By now you should be able analyze the information to see if you should be comfortable or not with the diamond in the certificate.

Q: I've heard about dealers swapping diamonds and certificates and counterfeiting certificates how true are these rumors?

There are a lot of counterfeit certifications on the market. That's right, diamonds alleged to be certified, but in reality the certificates are counterfeit, maybe the diamonds as well. The labs recognizing this, have begun to add anti counterfeit measures to their more current documents, but those are being counterfeited now as well. So buy from knowledgeable people that will back up the laboratory's certificate with their own judgment and reputation and refund your money if there is something wrong. We at Lincoln International Imports stand behind our word and our opinions and have instituted a set of buyer protection programs that are the best in the wholesale business.

Chapter 5: Decisions Decisions!

So what to do?

Here at Lincoln International Imports we ask potential clients to establish their priorities not the least of which is how much they can comfortably spend on a diamond that will meet their desires. Then begin to establish priorities in terms of what is most important, second, third and fourth amongst the 4 C's. For instance, if white gold or platinum is the desired setting metal, then a higher consideration to color must be taken into count than for yellow gold. Similarly, shape and clarity are considered, in that some shapes; such as emerald, oval and pear cuts show inclusions more readily. In considering these shapes higher clarity grades are recommended than for rounds. It is said that "color drives the market", but so does size. Compromises are called for in establishing the trade offs for color & clarity vs. carat weight and quality of cut. Will the size of the diamond and its characteristics cause it to be prudent to get a certified stone? As you can see you'll be making a set of trade -offs to get you the best diamond you can find for the budget you've allowed. These considerations will determine the FINAL C and that's COST! These decisions are yours to make in striking balance with what you want to achieve in cost vs. beauty in the diamond.

So establish a budget. Here I'm speaking to the typical consumer who has to consider how to pay for what their heart desires and not the "open checkbook" consumer. So, be realistic, no one can sell you quality diamonds below cost and stay in business no matter how much the sales person says they like you or wants to help you. So expect that the firm you buy from is going to make a profit.

Q: How much should you plan to spend?

Well that's a very personal matter, but some circles suggest for an engagement ring a groom plan to spend 2 - 3 times a months take home salary. I think that's arbitrary and I recommend you just look at your checking and savings account and all your other priorities and be realistic. If you plan to charge your purchase, some advise grooms, as I do, to plan to pay off the engagement ring over the term of the engagement period and gage their purchase limit to their financial condition and station. If the budget is very limited, purchase with that in mind. Remember, you can always trade up the diamond a few years later for a larger or higher quality stone as life and fortune favor you.

As a guide to the groom in buying a engagement ring or someone buying a cocktail ring in considering a ring budget decision, it is reasonable to figure that a piece with a large center stone that the center stone will comprise about 80-85% of the total budget. The setting the remainder. Thus, if the budget is say $8,000.00 you could allocate to the center stone about $6,400.-$6,900.00 and the setting $1,100 to $1,600.00 . A typical 18KT Tiffany style gold solitaire mount retails for about $250-$400.00 depending on metal content and weight, so a setting with some side stones is still possible within that budget. Platinum on the other hand runs about four times the cost of 14KT gold, so that must be kept in mind. So with that budget in mind, the groom can then concentrate on finding the desired shape of diamond in a good make that has the color and clarity he can afford, shopping intelligently to get the most diamond he can for his bride to be.

Now I want to provide some advise to buyers about what a fine diamond in the one carat size range should cost. Feel free to discount my opinion in that I'm a seller, but there is a reality that you need to be aware of. Fine diamond in near colorless and colorless grades are not going to be had for prices like 30-50% of Rap Spot Cash. These fine diamonds are always in short supply and demand at strong prices are steady, good times and bad. So when you launch your diamond search, try to moderate your desire to save more than the laws of economics allow. I get dozens of calls a week from eBayers wanting to purchase fine Ideal cut diamonds at the same prices they see off make diamonds being offered in other auctions. To get a truly fine cut one carat diamond you're looking at prices in the following ranges as of 4/1/2007 and prices change frequently and these prices are not an offer to sell but provided as a guide only.

PER CARAT PRICE GUIDE FOR NATURAL DIAMOND IN THE 1.0-1.24 CT SIZE, IDEAL MAKE
	F-IF	VVS1-2	VS1-2	SI 1-2	SI3-I1
D-E	$24,000-18,500	19,600-17,200	14,000-12,000	10,500-8,500	7,600-6,000
F	18,600-16,100	17,700-14,900	12,600-10,500	9,450-7,550	6,600-5,750
G-H	14,600-13,000	13,600-10,500	11,700-9,300	9,950-7,500	6,350-5,750
I-J	9,800-8,100	9,300-7,900	8,500-7,500	7,500-6,300	5,200-4,250
K-L	8,000-7,000	7,500-6,400	6,700-5,800	5,800-4,850	4,600-3,600

Fancy shapes in natural diamond of fine or premium cut/proportions will sell are about 78-90% of these prices.

In establishing your budget you find the prices you are expecting to pay deviates from these prices more than 15% you are going to get far less than an ideal cut and lower color and clarity. Please consider buying a finer diamond in a smaller size. If not, you're going to thrash around a lot, place hundreds of unsuccessful bids and wind up buying a far lesser stone at too high a price out of frustration because you've run out of time. If you find yourself high bid at 50% of these prices you'd better get the claims from the seller in irrefutable writing, and buy it in escrow. If the seller will not accept an escrow deal on a sizable transaction, you ought to feel some hesitancy about the accuracy of their claims. Just remember the old adage, "if something is too good to be true, it probably is".

When we offer diamonds that are premium to near Ideal cuts we incorporate these fine gems into the auction reserve at the above prices less 15% and yes we may loose money if we don't get high enough bids. Our diamonds are mounted and are depicted and verbally described in detail. Mountings added into the reserve at jeweler's cost for small purchases.

We hope this discussion has been helpful and we welcome the opportunity to serve you finding the perfect diamond! Whether you buy from us or not we welcome your questions so if you'd like more information or advise feel free to email us and we'll get back you as promptly as time allows.

F	IF	VVS1	VVS2	VS1	VS2	SI1	SI2	I1	I2	I3
Inclusions only visible under 10X magnification						May be visible to the naked eye if over 1ct.		Visible to the naked eye

Here is an example of a Marketing Certificate.
	Here you'll notice the simplicity of information presented. And as is typical of these type reports, the Laboratory offers it's independent estimate of Retail Value!

Examples of Full Certificate Reports