Estimating a Diamond and Diamond Ring’s Value
We get asked a lot of estimating diamond value is possible. The short answer is yes. A diamond’s value is determined by its famous 4Cs: carat weight, color, cut, clarity. A value of a diamond is determined by an appraiser using these four dimensions while the value of a diamond ring adds the additional element of the quality of the band.
A diamond’s carat weight is easily determined by the diamond’s mass, as expressed in carats. One carat is equal to 200 mg. Although the determining carat weight is straightforward, carats effect on value is a bit more complex. The value of a diamond increases exponentially with diamond carat because bigger diamonds are rarer. For example, if all other factors are the same (color, cut, clarity), a 2 carat diamond will be more than double the value of a 1 carat diamond. Thus, the diamond value per carat increases as the total carat weight increases.
How this is determined
The other factors of a diamond’s value—color, cut and clarity—can be graded on an established grading system such as that determined by the Gemological Institute of America (GIA) the world’s foremost leading authority on diamonds. Traditional colorless diamonds are graded on their lack of color, with the most colorless diamonds regarded as the most valuable. The stronger the yellow tint of a diamond, the lower its value.
While the traditional diamond is graded on its lack of color, fancy color diamonds are graded differently, with a grading system more closer in style to that used with colored gemstones. In addition the value of fancy color diamonds are also more strongly affected by demand, which can fluctuate with trends, celebrity publicity, and time. For example, a black diamond’s value changes depending on whether it is natural or treated. But estimating diamond value for a black stones needs to factor in its increased popularity in fashion. Brown diamonds, commonly marketed as chocolate diamonds, have many different value factors as well. The impact color has on a chocolate diamond’s value is based largely on the strength of the color, with stronger, darker chocolate diamonds being more valuable. In addition, the secondary color is crucial for chocolate diamond value. The rarer its secondary color, the higher the chocolate diamond’s value.
Diamond Cut is determined by the proportions of a stone and its proximity to the benchmark for an ideally cut diamond, with each diamond shape having a different ideal cut. The benchmark for ideal is the cut which maximizes the diamond’s brilliance and sparkle. However, it is to be noted that some diamond shapes have a higher value than others.
Diamond clarity looks for the appearance of inclusions, or natural flaws, on the diamond and grades the diamond against a clarity scale. Diamonds with fewer inclusions visible under 10x magnification have a higher value while diamonds with inclusions visible to the naked eye have the lowest value.