Showing posts with label Diamond. Show all posts
Showing posts with label Diamond. Show all posts

Some Details About The Clarity Of Diamonds

Clarity is an important aspect of a diamond, and it is important to know how to grade the clarity of a diamond before you buy one.

It is actually quite easy to learn how to grade the clarity of a diamond.

 There are basically two things that you must understand: Diamonds with visual inclusions and blemishes, and those that are ‘eye clean’ meaning that there are no inclusions or blemishes that can be seen with the naked eye.

 From there, the clarity of a diamond is further broken down into subcategories.

Many people mistakenly think that diamond clarity refers to how clear it is. This isn’t so.

Clarity actually refers to the internal and external imperfections of the diamond.

The best diamonds, of course get a grade of FL or IF – Flawless or Internally Flawless – meaning that it is perfect. A grade of I-1, I-2 or I-3 means that the diamond is imperfect, with a grade of I-3 being the worst.

Other grades are VVS1 and VVS2, which means that the diamond is very, very slightly imperfect; VS1 and VS2, meaning the diamond is very slightly imperfect; SI-1 and SI-2, which means that the diamond is slightly imperfect.

How To Identify Diamond Scams

When it comes to diamonds, there are numerous scams to avoid.

Most scams are minor, but there are some major ones that come up from time to time concerning the buying and selling of diamonds.

 Scams occur simply because most people who buy diamonds – for whatever reasons – don’t know that much about diamonds.

 Therefore, they are easily fooled.

A common scam that most jewelry stores participate in is the Carat Total Weight scam.

The tag on the piece of jewelry, usually a ring, only states the total carat weight of all diamonds in the piece, instead of listing the total weights separately for each diamond.

This leads consumers to believe that the main diamond in the piece is actually bigger than it is.

Ask what the total carat weight of the center stone is. Also beware of fractions.

Jewelry stores are allowed to round off diamond weights.

 This means that if the jeweler tells you that it is a ¾ carat diamond, it is probably between ½ and ¾ carat – but closer to ¾.

Jewelry stores often run ‘fluorescence’ scams to varying degrees.

Referring to a diamond as a blue-white diamond is such a scam.

A blue-white diamond sounds very unique and special, but in fact, this type of diamond is of lesser quality – even though the jeweler will try to make you think you are getting something special.

Jewelry stores also like to show their diamonds in bright lights. Lights make diamonds shine.

 Ask to see the diamond in a different, darker type of lighting as well.

Some truly unscrupulous jewelers target those who want appraisals on diamonds that were given to them as gifts or that were purchased elsewhere.

They will try to tell you that the diamond is worthless, or worth less than it actually is worth – and offer to take it off your hands or trade it for a much better diamond, along with the cash to make up the difference.

This is called low balling. Get a second, third, and even a forth opinion before taking any action.

Another common dirty trick is to switch the diamond you have chosen and paid for with one of lesser quality and value when you leave it to be set in a piece of jewelry, or leave a diamond ring to be sized.

The only way to avoid this is to do business with one trustworthy jeweler.

Avoid jewelers that you have not done business with in the past.

There are many more scams that jewelry stores commonly pull on unsuspecting consumers.

Just use your best judgment, and purchase your diamonds with the utmost care and consideration.

Diamond Brands And What They Mean

Diamonds are one of the few products that simply cannot be ‘branded.’ Even though there are different cuts, different grades, and different values placed on each and every diamond in existence, no diamond is any specific brand – just as gold is not a specific brand.

Branding is actually based on who owns the diamond.

 For instance, if DeBeers owns the diamond, it is aDeBeers Diamond – but it is still just a diamond.

If the diamond was cut by a specific well known cutter, then it might be branded in that way as well – but it usually isn’t. It is still branded based on who owns it at the time.

So basically, when it comes down to it – diamond brands mean absolutely nothing at all.

Do not allow a jeweler to try to talk you into paying an exorbitant price on a diamond because it is a specific brand.

 This is a bit of trickery used by unscrupulous jewelers when they know that they are dealing with people who don’t know much about diamonds.

Remember that diamonds are not actually branded – unless mother nature has her own brand!

Some Places Where Diamonds Are Mined

Argye mine located in the Kimberley region in the far north east of Western Australia.

Owned by Rio Tinto, this mine is the world’s largest single producer of volume of diamonds.

 However, due to low proportion of gem quality diamonds it is not the value leader.

 It does produce 90-95% of the world’s supply of pink diamonds.  

Diavik is also owned by Rio Tinto, located in Canada it is a very large mine.

It is located north of Yellowknife and south of the Artic Circle on an island.

The island is connected by an ice road.

 It is also an important part of the regions economy employing more than 700 people and producing more than 8 million carats annually.

Ekati diamond mine is owned by BHP Billiton and located south of the artic circle in the Northwest Territories of Canada.

The Ekati is Canada’s first operational diamond mine.

Diamonds mined here are sold under the Aurias trade name Authenticity is verified through Canada Mark service.

CanadaMark service is also owned by BHP Billiton Diamonds, Inc.

Baken diamond mine is located along the lower Orange River in South Africa. 

It is owned and operated by Trans Hex.

 The average size stone for 2004 was 1.29 carats.   In 2004, this mine produced a 78.9 carat D color flawless diamond that sold for more than 1.8 million dollars (US), as well as a 27.67 pink diamond that was sold for over 1 million US dollars.

Merlin is the second of only two diamond mines in Australia. No longer operating it was owned by Rio Tinto and sold to Striker Resources, who has explored the possibilities of reopening the mine.  

Orapa is the world’s largest diamond mine.  It us located 240 Km west of Francistown.

The mine is owned by “Debswana” which is a partnership between DeBeers and the government of Botswana.

This mine operates 7 days a week.

 It maintains pre primary and primary schools for its employee’s children.There is also a 100 bed hospital and game park.

This mine began production in 1971 and is the oldest mine owned by the Debswana Company.

The Premier mine located in Cullinan, South Africa produced the largest gem diamond ever in 1905.

The Cullinan Diamond weighed 3,106.75 carats.

This mine also produced the Golden Jubilee diamond which weighed 545.67 carats.

 This mine is owned by the De Beers Company and was renamed The Cullinan Diamond Mine in 2003 in celebration of its centennial.

How Diamond Prices Are Determined

Pricing most products is quite easy.

Determine how much it costs to make the  item, how much it costs to market that item, and then mark it up by 15 – 30% or more.

Simple, right? Well, pricing diamonds isn’t quite that simple. There are many factors that are considered when diamonds are priced.

Diamond prices are determined first by adding the cost of the rough diamond, the cost of cutting the diamond, and all other costs necessary to turn the rough diamond into a marketable diamond.

Depending on the importance of the diamond, an independent company may be called in to certify the grade of the diamond based on color, cut, clarity, and weight.

At this point, the diamond becomes more expensive each time it changes hands, until it finally reaches a retailer, where the price is raised a bit more.

Before reaching the retailer, however, the diamond must travel from the mine, to the cutter and polisher, to the independent grading company, and then to the Primary market.

Once it has reached the primary market, it will be purchased by diamond dealers and wholesalers, and from there it will be sold to retailers.

As you can see, the earlier you can purchase a diamond in the process, the lower the cost   of the diamond will be – but not the value.

The value is based on what the diamond will sell for in the market place – through a retailer.

If you own a diamond, and you have no idea how much it is worth, you can have it appraised, but the appraisal may not be accurate.

You will be better off obtaining a certificate through GIA – Gemological Institute of America.

 With the information on this certificate, you can use a cutter’s guide to accurately determine what your diamond is worth.

There are also many diamond price calculators available. These can be found on the Internet, and many diamond dealers use these as well.

You must realize, however, that before you can accurately price a diamond, without a Diamond Grade Report, you need to know quite a bit about diamonds, such as different cuts, clarity, color, and weight – and how each of those aspects adds to the value of a diamond, or decreases the value of the diamond as the case may be.

Again, you will be better off if you get a Diamond Grading Report on the diamond, and use that information to look up the price in one of the guides that the diamond cutting industry uses.

This will give you the most accurate value of the diamond in your possession, or of the diamond you are  considering purchasing.