The Best Kept Secret : Colored Diamonds
Most
people have never even heard of coloured diamonds. Almost all of the
publicity and advertising for diamonds is slanted towards convincing
consumers that white, or more accurately colourless, is the only
desirable colour for diamonds, and that diamonds with a slight tinge of
yellow or brown are less attractive and therefore less desirable. While
we would broadly agree with this, diamonds do occur in a wide variety of
colours. Many of these colours are very attractive and the diamonds are
even more desirable than colourless ones. This is especially true of
intensely coloured diamonds.
Coloured Diamonds Are Very Rare!
Probably
the main reason why coloured diamonds are hardly ever promoted is the
very fact that they are so rare. Why bother to promote something with a
very limited supply that you cant get enough of? De Beers, who own or
control about half the worlds diamond mines and marketing, have their
own collection of natural fancy coloured diamonds, which they keep for
themselves, and which are not for sale. It might even be harmful to
their marketing if consumers decided that coloured stones were more
interesting and exciting than colourless ones.
Future Demand & Prices
Right
now, we seem to be one of the only jewellers who believe in, and stock,
coloured diamonds. We predict that within a few years coloured diamonds
will be in great demand, and become highly sought after. Even though
supplies are greater now than they ever have been, we believe that
demand could easily outstrip supply. The greater availability means that
more people will get to see coloured diamonds, and realise how great
they look. When this happens, prices may rocket. Why not lead fashion
instead of waiting to follow it, and also get in now before prices rise.
About Diamond Color
The
color of a diamond refers to the tone and saturation of color, or the
depth of color in a diamond. The color of a diamond can range from
colorless to a yellow or brown hue. A more colorless diamond is rarer
and more valuable because it appears white and brighter to the eye. The
most respected system used today for evaluating diamond color was
developed by the
Gemological Institute of America, (GIA). 
Even
though there are several grades in each category, there are slight
differences between the letter grades. D is the clearest and most
valuable, X is a dingy yellow and least expensive. Z grade-colored
diamonds are the rarest and most expensive. A diamond so saturated with
nitrogen that it becomes a deep, rich yellow is as rare as a colorless
diamond.
The
GIA COLOR GRADE SCALE classifies diamond color into 22 grades from letter grade D (colorless) through letter grade Z (fancy color).
Understanding the GIA Diamond Grading Report
National
Gemstone markets diamonds with GIA Grading Reports. The GIA was formed
in 1931 and is a non-profit institution. They do not buy/sell or
appraise diamonds. They are an educational and research institute.
Please note, a diamond graded by a person who graduated from the GIA is
not the same as a GIA Grading Report. Do not buy a diamond from anyone
who grades and sells it. There is too much temptation to over-grade the
diamond. The GIA operates like a neutral intermediary between the buyers
and sellers.
Shape and Cut
Each diamond is described as to its shape (round, oval, pear, etc.) and its cut (brilliant, etc.)
Weight
Diamonds are weighed on an extremely accurate digital balance. One carat equals 100 points, which weigh 1/5 gram.
Proportions
The items in this category relate to the cut (or make) of the diamond:
Proportions
The items in this category relate to the cut (or make) of the diamond:
Depth Percentage: The relationship between the depth and the average diameter of a diamond.
Table: The relationship between the table (flat, top facet) and the average diameter.
Girdle:
Describes the variance and relative width at minimum and maximum
positions. The girdle is the rim that separates the top and the bottom
of the diamond.
Culet: The bottom facet of a diamond as viewed through the table.
Polish: Refers to the quality of the surface of a diamond.
Symmetry: General comment regarding the symmetry of the diamond.
The fixed proportions have the following reference values:
Crown angle = 34°
Pavilion angle = 40.5°
Table size = 56%
Star facet length (percentage of total distance from table to girdle) = 50%
Lower-girdle facet length length (percentage of total distance from girdle to culet) = 75%
Girdle thickness (at the thickest point) = 3%
Culet size = 0.5%
Ideal Parameters
Carat Size: 1/2 carat (.50 points) or larger
Color: D-H
Clarity: Slightly Included Two (SI2) or better
Depth: 56-62%
Table: 52-62%
Girdle: Minimum Variations, No Extremely Thin or Extremely Thick
Culet: None, Small or Medium
Polish and Symmetry: Good or better
Fluorescence: None or blue is fine. Stay away from orange, yellow, and green.
CLARITY GRADE--COLOR GRADE--ANNUAL INCREASE IN $ VALUE
FLAWLESS AND INTERNALLY FLAWLESS:
D (Perfect) — 10.00%
E (Low)
VVS1, VVS2:
D (High)
E (Perfect) — 9.25%
F (Low)
VS1, VS2:
F (High)
G (Perfect) — 8.50%v H (Low)
SI1, SI2:
H (High)
I (Perfect) — 6.50%
J (Low)
Lower:
No corresponding color grades
Clarity
Clarity
refers to the summation of the number, size and placement as well as
the nature of inclusions and/or surface irregularities. Flawless stones
are diamonds free of inclusions under 10 power. Internally flawless are
diamonds without any internal inclusions. VVS1 and VVS2 have extremely
small inclusions. VS1 and VS2 possess small inclusions. SI1 and SI2 have
inclusions that can be seen easily under 10 power magnification, but
are not usually visible to the naked eye.
Fluorescence
Fluorescence
is a diamonds reaction to ultraviolet (UV) light. Some diamonds glow in
different colors under UV light, and the general rule is to avoid them.
If you put a diamond under UV light and it glows strong blue, the
diamond may look dull in the sunlight. Diamonds with strong fluorescence
may be worth up to 20% less than diamonds which do not fluoresce. Faint
fluorescence which doesnt fog the diamond is OK.
Corresponding Grading
Corresponding
grading means matching clarity grades with color grades. For every
clarity grade, theres a color grade that corresponds, or makes the best
match in determining value. Diamonds that have corresponding grading
sell for higher prices originally, and they also appreciate in value
more than diamonds that dont, and therefore have higher resale value.
Buying a diamond with non-corresponding clarity and color grades is like
buying a pink Porsche: its okay as long as you dont try to resell it.
The market for pink Porsches just isnt as good as the market for, say,
red Porsches.
The value of a stone is always based on the lowest
clarity or color grade and its highest corresponding grade. For example:
Lets say you purchased a stone with a clarity grade of SI1 and a color
grade of G. You can see above that G is not a corresponding color for an
SI1 stone. The SI1-G diamond will cost you more than the SI1-H, but
will appreciate no more over time than the SI1-H.
When you dont
correspond the grades — say you buy high clarity and low color, or high
color and low clarity — youll never get your money back for the higher
grade. For example, an SI1-F would resell no higher than the value of an
SI1-H, and a VS1-I would resell no higher than the value of an SI1-I. A
diamond that is not correspondingly-graded could be expected to
appreciate 2% to 4% per year.
