How to Determine the Value of a Diamond
Each diamond possesses a unique value, stemming from its distinct shape, size, color, and internal attributes. One determining factor is rarity; the rarer the diamond, the more appealing and valuable it becomes.
Jewelry professionals meticulously evaluate a diamond’s value using a systematic approach devised by the GIA (Gemological Institute of America) in the 1950s. This method assesses four main attributes known as the 4Cs: clarity, cut, color, and carat weight. These characteristics combined determine the diamond’s overall worth.
The 4Cs
The 4Cs—color, clarity, cut, and carat weight—enable diamond professionals to appraise a diamond’s value comprehensively.
Color
Color—Even subtle differences can significantly affect a diamond’s value. The closer a diamond is to being colorless, the higher its value. Diamonds with light yellow or brownish hues have less value. In our earlier discussion, we noted that colorless diamonds are quite rare, thus making them the most valuable.
For an in-depth understanding of the 4Cs, visit our education section on carat, clarity, color, and cut.
Clarity
Clarity pertains to the number of inclusions within the diamond. Much like other natural stones, diamonds can have inclusions, blemishes, and scratches. Surface flaws like blemishes and scratches decrease a diamond’s value, while inclusions affect its internal clarity. Higher clarity (fewer visible inclusions) means a higher value. While finding a flawless diamond is rare, those with barely noticeable inclusions are valued higher.
Cut
The cut relates to the diamond’s proportions, affecting how light interacts with it. Properly cut diamonds maximize light performance, resulting in enhanced brightness and brilliance. A good balance of naturally bright and dark areas lends to a diamond’s sharp and clean pattern. The rule of thumb is that a better cut correlates with a brighter diamond.
Carat Weight
The carat weight of a diamond is a well-known indicator of its value—the heavier the diamond, the more valuable it is. Larger diamonds with higher carat weights are rarer than smaller ones, making their value higher.
Factors Reducing a Diamond’s Value
If you’re looking to sell a diamond, its value at resale is crucial. Now that you’re familiar with what determines a diamond’s worth, here are factors that can diminish it:
- Surface scratches, even if barely noticeable
- Blemishes on the diamond
- Yellowish, brown, or unclear color
- Numerous inclusions, especially visible ones
- Small size with low carat weight
- Lack of unique characteristics or rarity
Maintaining a Diamond’s Worth
To preserve a diamond’s value, consider these preventive measures:
Minimize handling. Diamonds attract grease and can be challenging to clean. Touching a diamond transfers oils from your fingers to its surface, affecting its brilliance. Handle it as little as possible.
Clean your diamond regularly. Soak it in a mild degreasing solution, like water with a few drops of gentle dish soap, once or twice a week. Use a soft toothbrush to eliminate any residual dirt. Reserve a specific toothbrush just for cleaning diamonds.
Be gentle. Handle your diamond carefully, particularly during cleaning. Use a lint-free, soft cloth for drying, and always close the sink drain to avoid accidental loss.
Avoid exposing your diamond to harsh chemicals. Keep it away from abrasive household cleaners and bleach. Chlorine, for instance, can damage metals used in diamond settings.
Following these tips will help maintain your diamond’s value over the years.
