These are the criteria determining the price of diamonds
1. Which criteria determine a diamond's price?
The "4 C" designate the criterias' terms that are relevant when it comes to diamond pricing: 1. "Carat" (= weight) 2. "Color" 3. "Clarity" 4. "Cut" As the quality of a certificate is of great significance for the determination of identity and valuation of a polished diamond, this factor is seen as the "5th C": "Certificate"
2. First C - "Carat": Which diamond weights (sizes) are suitable for asset protection?
To protect assets, brilliants starting from the size of a half-carat (0.50 ct) are suited. The one-carat is the classic diamond size. Depending on the amount that shall be invested and on the purpose of the diamond portfolio, a mix of different sizes can be the best solution. A large diamond portfolio should also have high quality brilliants starting from two-carats upwards. Is is important that the diamonds' weight in the single categories fits the sought-after sizes at the diamond market. These are for example one-carats from 1.01 – 1.03 ct., but not 1.00 ct or 1.09 ct. Intermediate sizes like 0.64 ct or 1.31 ct are also not advisable because they limit the possibilites of a resale.
3. Second C – "Color": Which color should a diamond have?
The whiter the diamond, the higher its price. The five highest quality categories of white diamonds range, according to the color code of the GIA (see below), from "highly fine white+" (D) to "white"(H). These best color grades are ranked highest at diamond markets. Exemptions are rarities with intensive natural colors.
4. Third C – "Clarity": Which clarity should a diamond have?
Internally flawless diamonds are of course the ones most sought after. Below that, other clarity criterions are graded according to the size of the inclusions. For large diamond portfolios, it might be recommendable to mix stones with very small (VS) and small inclusions (SI).
5. Fourth C – "Cut": Which quality of cut should a certified brilliant have?
Today, the quality of a diamond's cut is as important as its color and clarity. When it comes to asset protection, no compromises should be accepted in this respect. That is why all three of the cut criteria need to have the rating "Excellent". This is true for the cut grade as well as the polish and the symmetry. The ratings "Very Good" or "Good" are not enough.
6. Fifth C: What kind of certificate should a diamond have that was bought for assets protection?
Every diamond absolutely needs to have an independet certificate, which is like the diamond's passport. Brilliants that are suited for asset protection purposes must have a reputable and (!) internationally accepted certificate that documents the price-determining criteria of the stone and its identity. Globally, the certificates of the renowned "Gemological Institute of America (GIA)" enjoy highest acceptance and reputation. In Europe, it is the certificate of the "Hoge Raad Voor Diamant" (HRD) from Antwerp/Belgium that is respected, but it is of limited importance at the big diamond markets in the USA and Asia. The quality of the certificate determines the purchase price as much as the resale price at a later stage. Price comparisons are only useful for diamonds with the same certificates and same quality findings. DIAMONDAS exclusively offers diamonds with GIA certificates.
Have a look at a sample certificate of the GIA (PDF)
7. What else is important apart from the "5C"?
The following criteria have developed into price-determining ones: > Fluorescence indicates the presence of gas during the formation of the diamond. The rating "none" is the desirable one here, whereas the rating "strong" can lead to price reductions of over 10%. > There should no entries be found in the section "comments" like "surface graining" etc. - except for the statement "minor details of polish are not shown" for flawless stones. > The date of expertise should not lie more than two years in the past at the time of purchase. > Starting early 2014, it is important to only buy diamonds with GIA certificates in new design.
8. How can I make sure that the expertise really belongs to the diamond?
For asset protection, only diamonds with a GIA certificate should be bought whose number together with the logo of the GIA are engraved extremely thinly on the stone. This makes the diamond's identity traceable and the quality criteria of the GIA can be verified even in absence of the certificate.