Factors in Diamond Valuation
Outlined below are the major factors of a diamond taken into consideration when assessing resale value. The table below highlights how these can impact its value and will help you find out how much your stone is worth.
– Size: The carat weight of the stone
– Shape: Diamonds are cut into numerous shapes
– Color Grade: A diamond’s color grade is based on its depth of color
– Clarity Grade: A diamond’s relative lack of clarity characteristics
– Fluorescence: The light emitted by diamonds when exposed to ultraviolet light
– Cut Grade: The proportions and finish
– Polish: The condition of the facets of the diamond
– Symmetry: A diamond should be symmetrical
|Element||Effect on Value||Notes|
|Size||The larger the stone, the better when it comes to resale value.
|The closer you are to a weight threshold, i.e. 0.50 cts or 1.00 cts, the better the cut needs to be. Once you pass a magic size, the price per carat increases. For example, a 1.00 ct stone is worth approximately 15%-20% more per carat than a 0.90 ct stone.|
|Shape||Rounds are more valuable than fancy shapes. Fancy shapes include: cushions, princess cuts, radiants and asschers etc.||Fashion dictates the popularity and therefore the value of a particular shape. Fancy shapes are typically 20%-40% less expensive than round diamonds.
|Color||Diamond colors range from D-Z, with D being the most valuable color.||Fancy colors are even more valuable than a white D color. Reds, blues and greens being the most rare and therefore the most sought after.|
|Clarity||The more clarity characteristics (inclusions) a diamond has, the lower it will score on the clarity grade and the lower the value.||Does the stone look clear to the naked eye or not? Imperfections may not be visible to the naked eye, however if they are, this represents a significant inclusion.|
|Fluorescence||Fluorescence is a negative for stones with D-H color (as much as -15% for a D color IF diamond)||Fluorescence can actually be moderately positive for the value of diamonds with I or lower color. Diamonds with Very Strong Blue Fluorescence typically fetch 30% less than stones with no fluorescence.|
|Cut||This scale ranges from Excellent to Poor, with approximately a 15% price difference between each level.||Only rounds are given cut grades by the GIA.|
|Polish||Polish has a lesser effect on value than cut grade.||A triple EX grade (i.e. EX cut, EX polish and EX symmetry) is generally worth 7-10% more than a triple VG grade.|
|Symmetry has a lesser effect on value than cut grade.||The more symmetrical the stone, the higher the price it can reach.|
Once you have reviewed the above table, the final aspect to consider is where you are buying or selling your used diamond as this will affect it’s value. For more information on diamond valuation, visit Diamond Valuation.
Diamond Retail Value vs. Diamond Wholesale Value
Let’s get straight to the heart of the valuation issue. The retail price you paid for your jewelry is not the same as the wholesale value of the item. Much like a new car, once purchased it depreciates in value. The reason being that the retail price is markedly higher than the wholesale price, especially if it is from a high-end brand. Retailers mark up their items due to the costs involved in manufacturing, marketing and general business operations.
However, diamonds purchased many years ago may have increased in value. Diamond prices can rise significantly during boom years, so depending on when the stone was purchased, your assets may have appreciated in value. You can also sell diamond rings on our partner site.
Selling your diamond
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- So that you are comfortable in selling your used or second-hand diamonds