I look after UK sales for an Antwerp-based diamond trading company
that supplies diamonds at trade prices to consumers as well as fellow
traders and jewellers.
Antwerp is the largest diamond market: 8 out of 10 rough diamonds
mined anywhere are handled in Antwerp (See
http://www.hrd.be/index.aspx)
Diamonds like any other commodity has a trade price. Buying directly
from a diamond trader will get you the best price as traders have
lower margins than retail shops. Otherwise a diamond bought from a
shop will generally depreciate 50-70% when you walk out of the door.
For instance, we sell at trade prices to consumers as we buy diamonds
directly from the cutters for a bulk discount - the difference between
our discount and the trade price is a small margin (our profit). Shops
have higher overheads and hence often charge x2-3 the diamond trade
price.
Its hard for consumers to buy directly from the cutters (there are
more than 2 telephone directories worth of cuters in Antwerp alone)
and most will only sell in bulk rather than one to two diamonds.
Please note that earrings totalling 1.8 carats (2 x 0.9 carat) will
cost 30% less than earrings totalling 2 carats (2 x 1 carat) as
diamond trade prices rise steeply at 1 carat. In practice the visual
difference between 0.9 carat (6.3mm diameter) and 1 carat (6.5mm
diameter) is hard to see especially when the diamond is set.
We strongly recommend NOT to buy any carat such as 1.00ct or 2.00ct.
Diamond prices per carat are ca. 30% more for 1+ carat diamond than
for 0.9+ carat diamond. Hence, we, the diamond traders look at these
stones with suspicion because most of the time, the polisher has had
instructions to do whatever is necessary to keep the stone from
becoming 0.99 or 1.99 ct. In our 25 years in the business, we have
seen many diamonds that still had a bit unpolished (rough) just to
maintain the commercially interesting 1.00 carat or 2.00 carat weight!
Hence at the trade level 1.00 trades at ca. 10% less per carat than
1.01+ carat.
Diamond trade prices depend on 4 key factors;
1. quality of the cut: for any shape diamond the most important factor
is Cut in the sense of the proportions, symmetry and finish of a
polished diamond. To get from the raw diamond to the cut gemstone
requires the skilled hand of a master cutter. The better the CUT
proportions, the better the diamond handles light to create sparkle. A
well-cut diamond reflects maximum light and so sparkles the best.
Shallow-cut and deep-cut diamonds let the light escape at the sides or
bottom. For example, two diamonds of the same shape with EQUAL carat
weight, colour and clarity can be different size depending on how well
they have been proportioned. The better cut diamond will appear bigger
and more sparkly than a less well-cut diamond!
The sad fact is, 75% (3 out of 4) of all rounds and 88% (4 out of 5)
of all other shapes on the market are poorly proportioned to retain
carat weight rather to maximise sparkle. Poorly cut diamonds often
trade at very large discounts due to the lesser quality.
2) Diamond colour: The diamond colour scale starts from D (The best
blue White) to Z (for dark coloured diamonds). For white/colourless
diamonds, the top 6 colours: D (the Best Blue white), E (exceptional
white), F (Very very white),G (rare white), H (white) and I (slightly
offwhite) are all considered to be shades of "white" when set in a
jewellery and are hard to tell apart to the untrained eye: e.g. an E
is hard to tell from a D, an F is hard to tell from an E, though the
difference between say a D and an H may be more discernible when the
diamonds are compared loose.
Professional grading labs judge colour from the side of the diamond
not from the top.
3) The majority of diamonds are born with miniscule ?birthmarks? known
as inclusions. The smaller and fewer the inclusions, the more light
can pass through the diamond, contributing significantly to its rare
beauty. A diamond does not need to be Internally Flawless (no flaws
visible with x10 magnification) to sparkle beautifully. The bottom
clarity grades (I1 to I3 or P1 to P3, often called ?piquet? by some
shops) are to be avoided as they have flaws that are visible to the
naked eye. SI1/2 (Slightly Included) are the first grades that are
technically eyeclean i.e. no inclusions visible to the naked eye
though it requires careful selection to find good diamonds in these
grades. Grades VS1/2 (Very Slightly included) and VVS1/2 (Very Very
Slightly Included) have fewer and harder to detect inclusions but that
is all with X10 magnification - they all look the same to the naked
eye. People who choose: VVS and IF, do so because they would like a
diamond that is more perfect even if they cannot visibly see the
difference.
4) Carat: The weight of a diamond is measured in carats - one carat is
0.2 grams. This is the easiest factor to determine. However, weight is
NOT the same as size! Two diamonds of the same shape cut from the same
rough (with equal carat weight, colour and clarity) can be different
size depending on how well they have been proportioned. The better cut
diamond will appear bigger than a less well-cut diamond! Also as
diamond prices go up exponentially with carat weight, doubling the
carat weight from say 1 carat to 2 carats more than doubles the price,
but the visible size of the table (the largest surface at the top of
the diamond) goes up by only 30%. As about 50% of the rough diamond is
lost when cutting, the larger the diamond the rarer it is in nature
hence the price increases most steeply with carat. Approximately 250
tons of ore must be mined and processed in order to produce a single,
one-carat, polished, gem-quality diamond.
I hope this helps you.
Best wishes
Indira
www.designsbyindigo.co.uk |
