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How Diamond Prices Are Determined

(category: Diamonds, Word count: 507)
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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


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


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.

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Selecting Diamonds

(category: Diamonds, Word count: 459)
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Diamonds are graded for certification by

laboratories using grading criteria. Four of

these criteria are critical to understand when

making a diamond purchase or investment.

Known as the "Four C's" these criteria are:

color, cut, clarity and carat.

Color is the result of the composition of a

diamond and it does not change. When a

jeweler is describing the color of a diamond

they are referring to the presence or absence

of color in white diamonds. Because a

diamond with no color allows maximum light

to pass through, colorless diamonds are

preferred for their sparkle.

Cut refers to a diamonds reflective quality.

Most diamonds are cut with 58 facets. The

brilliance of diamonds is heavily dependent

on the cut. The different angles and the finish

of a diamond determine its ability to reflect

light and cause its brilliance and fire.

Remember that the cut of a diamond can

have an impact on its durability as well as its

beauty. Some cutting faults can make a

diamond prone to breakage. A diamond

that is cut too thin can also cause light to

leak out of the back and the diamond will

lose some of the sparkle and appear not

to shine. So, as you can see the Cut is

probably the most important of the Four C's.

During the formation process, inner flaws, or

inclusions occur in most diamonds. The

number and size of these inclusions

determine what is referred to as the clarity

of a diamond. Diamonds that are clear

create more brilliance and therefore are rarer

and highly priced. To be considered

"flawless", a diamond must have no surface

or internal imperfections visible upon being

viewed by a skilled diamond grader using

10 power magnifications.

Carat is the unit of weight by which diamonds

are measured. One carat is equal to 200

milligrams. A carat is divided into 100

segments called points. 150 points would

equal one and a half carats.

When you go to the store to make that all

important diamond purchase, do not be shy!

Ask questions, get the answers needed to

make an informed purchase. Shopping for

certified diamonds enables you to make an

informed selection. Knowing the "four C's"

allows you to comparison shop and purchase

the best diamond at a fair price. But, before

making a purchase, shop around and decide

what shapes and styles really appeal to you.

Enjoy your diamond for years to come!

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All About The Clarity Of Diamonds

(category: Diamonds, Word count: 231)
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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.

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What Are Dirty Diamonds

(category: Diamonds, Word count: 209)
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A dirty diamond is one of two things: a rough

diamond, or a diamond that hasn't been

cleaned in a while. Rough diamonds are

uncut and unpolished - hence, they are dirty.

But that type of dirty diamond will soon be

cut and polished and sitting in a beautiful

jewel box in a display case. Then someone

will purchase it, and before long, it will

become a dirty diamond once again.

Diamonds become dirty. When you wash

your hands with a diamond ring on, soap

scum clings to it. When you put on hand

lotion, it gets grease on it. Shower with your

diamond earrings or necklace, and again,

you get soap scum. In one short day, your

brand new diamond could be dirty!

Purchase an ultrasonic jewelry cleaner the

same day that you purchase your diamond

jewelry, and use it every single day, without

fail. The clarity of the diamond changes

when the diamond is dirty - it loses its

sparkle. By taking one minute each day to

clean your diamond jewelry, you can avoid

this, and your diamonds will never be dirty!

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How To Sell A Diamond

(category: Diamonds, Word count: 503)
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There are many reasons why you may want

to sell a diamond that you own. Perhaps

you've gotten divorced, or you are strapped

for cash. The reasons why don't really matter

- getting the best possible price is what

counts! The way to obtain the best price

for the diamond is to not be in a rush. Slow

down, and carefully consider all of your

options - there are many.

First, have the diamond appraised. In fact,

have it appraised by two or three jewelers to

get an accurate idea of the diamonds value.

Tell the appraiser that you want the Rapaport

Value. This is the wholesale value of the

diamond, and it basically tells you the highest

price that you can sell your diamond for. If your

diamond has no certificate, you should

consider getting a certificate from GIA. This

may help you get a better price for the

diamond as well.

First, try to sell the diamond yourself, to

people you know. Friends and family

members may be interested. If you don't have

any luck with friends or family members, you

should turn to outside sources. Absolutely

avoid pawn shops! A pawn shop will only offer

you about 10% of what the diamond is worth!

Also avoid offers of selling the ring on

consignment. There are many things that

can go wrong, and there is no shortage of

diamond scams - even in well known

jewelry stores.

If the diamond is important, you should

strongly consider auctioning it off through

one of the famous auction houses, such as

Christie's or Sotheby's. If it isn't what is

considered an 'important' diamond or a

high-end diamond, you should try to sell it

to an individual using classified ads, or even

eBay. However, selling to an individual that

you do not know could put you in danger -

especially if the diamond is worth a lot of


Your final option should be a jewelry store. It

is vital that you not let your diamond out of

your sight while in the jewelry store - you

might find that the diamond you walked in

with is not the same diamond that you walk

out with! The jeweler will try to tell you that

your diamond is of poor quality or low

weight. Inevitably, there will be some

problem with the diamond. This is where

your appraisal and/or certificate will come

in handy.

If the jeweler is fair, they will offer you

between 60% and 80% of the value of the

Rapaport Value. Do not accept anything less

than this. Again, do not let the diamond out of

your sight until you have been paid for it.

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Synthetic Diamonds

(category: Diamonds, Word count: 246)
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The first synthetic diamonds were produced

by General Electric in 1954. A synthetic

diamond is basically a rock that has the

durability, refractive index and hardness of

a natural diamond - but it is made by man.

A synthetic diamond should not be

confused with stimulant diamonds, such as

glass, cubic zirconia, or moissanite.

Although the technology for synthetic

diamonds came into play in 1954, no

synthetic diamonds were ever seen on the

market until the 1990's. This was due to the

fact that it took many years for General

Electric to produce a synthetic diamond that

could compare with the quality of a natural

diamond - and when they figured out how to

do it, they found that it cost more to produce

a synthetic diamond than it did to mine and

cut natural diamonds.

Finally, a small company by the name of

Gemesis Corporation figured out a way to

produce synthetic diamonds that were of the

same quality as natural diamonds, at a

cheaper price. Today, Gemesis produces

synthetic white diamonds, and colored

diamonds as well. These diamonds sell for

about 1/3 of the cost of a natural diamond,

but there is a shortage of them, and they are

hard to find. In fact, it seems that synthetic

diamonds are rarer than natural diamonds!

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How To Clean Your Diamonds

(category: Diamonds, Word count: 478)
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Through our day to day movements our

diamonds get smudged and soiled. Even

when we are not wearing them, they collect

dust. Lotions, soaps, our natural skin oils,

can cause film and grime on diamonds

and inhibit their brilliance.

Want to keep that Brilliance and Shine?

Diamonds require cleaning so that maximum

amounts of light can refract fiery brilliance.

Remember that all it takes is a few minutes

and a little care to keep that diamond as fiery

as the day you first saw it.

You can use an small soft brush such as an

eyebrow or lip stick brush and soap and

water to clean your jewelry. Simply make a

bowl of warm sudsy water with a mild

detergent and place your pieces in the

mixture. Then brush the diamonds with the

soft bristles of the brush while they are in

the suds. You will need to make certain that

you rinse them clear of the suds after

cleaning them. You can use a small kitchen

strainer such as a tea strainer to contain

them while rinsing under warm water. Use

a lint free cloth, or a jewelry polish cloth to

pat them dry.

If your diamonds are in need of a stronger

cleansing, you may want to soak them for 30

minutes in a solution of half and half water and

ammonia. Once they have soaked for 30

minutes, remove them and gently brush the

mountings with a small brush. Then replace

the pieces to the solution and swish them

around in the mixture before removing them

to rinse and pat dry.

If you find your self too busy to be mixing

soaps and ammonias, many department

stores sell liquid jewelry cleaners. Most are

kits, with everything you need included. You

need to read the labels to determine the one

that is right for your diamonds and other

jewelry. Read the complete directions and

follow all the precautions.

And if you find yourself more the

"high-tech type", even in your diamond

cleaning routine, there are multiple ultrasonic

cleansers on the market. These machines

use high-frequency to create a cleaning motion.

All machines are not the same, so please read

the instructions before using.

Only you can choose the cleaning method

right for you. But, it is essential to keep

your jewelry clean to keep it brilliant and

sparkling. Between cleaning, try not to touch

your clean diamonds with your fingers or

handle your jewelry by its edges. This will

help maintain its shine and brilliance for

longer periods.

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Bonded Diamonds

(category: Diamonds, Word count: 458)
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Before you start shopping for diamonds,

consider dealing with a bonded jeweler.

Bonded jewelers sell bonded diamonds,

and there are very few bonded jewelers in

the world. In fact, out of all of the jeweler's

in the world, only about 5% of them are

bonded. Buying a bonded diamond will

cost more than buying a non-bonded

diamond, but when you look at what you

get with the bonded option, you will see

that it is well worth the extra expense.

First, bonded diamonds have a buy back

policy for the life of the diamond. No matter

how long you have had the diamond, you can

take it back to the bonded jeweler and sell it

back to him or her, for a 100% refund. If a

jeweler does not offer a 100% buy back

guarantee, for the life of the diamond, then

you should take a closer look at the diamond

to see what is wrong with it.

Bonded diamonds also have a breakage

policy. If the stone breaks or chips, the

bonded jeweler will replace it with a new one

- one time. No jeweler would ever offer such

a policy on any stone that was not 100%

natural, so just the offer of such a policy

should give you piece of mind concerning

the quality of the diamond. Bonded

diamonds are natural and untreated.

Bonded diamonds increase in value, with a

fixed appreciation rate that is designed to

keep up with inflation. This means that a

diamond that is worth a certain amount of

money today will be worth more in the future,

as the price of diamonds continues to rise.

This generally does not apply to buy backs,

however. It typically applies to trade-ins.

Alternately, by purchasing a bonded

diamond, you are protected against the

possibility of a market crash. If a market

crash occurs, the value of diamonds will

drop. However, the bonded jeweler

guarantees to refund you the difference

between what the diamond is now worth

and what you paid for it before the market


It may be difficult to find a bonded jeweler in

your area, but if you can, this is who you

want to deal with, as opposed to dealing

with an un-bonded jeweler. Specifically tell

the jeweler that you are only interested in

bonded diamonds. You can find a bonded

jeweler in your area by using various online

resources, or by calling the local jewelry


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Buying Diamonds Online

(category: Diamonds, Word count: 510)
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With all of the potential for scams concerning

diamonds, buying diamonds online almost

seems unthinkable! However, you actually

can purchase diamonds online, without any

problems - as long as you are careful.

First, think about your reasons for wanting to

purchase the diamond online, as opposed to

making a purchase from a local jewelry store.

The most common reason is price. Due to

low overhead costs, online jewelers and

wholesalers are able to offer lower prices.

However, you must be careful - sometimes

a price that is too low is a sure indication of

a scam.

One of the best things about purchasing

online is the unlimited selection. When

shopping offline, you are limited to the

selection in the stores in your general area.

Online, there are no limits. But again, you

must use a great deal of care and

consideration before handing your money

over to someone that you cannot see and

have never met!

Before shopping, learn as much as you can

about diamonds - especially cut, color,

clarity and carat weights. When you are

knowledgeable about diamonds, it will be

harder for a con artist to rip you off. Once

you know more about diamonds, you will be

ready to start shopping.

Take your time. Don't purchase the first

diamond that you see that interests you.

Instead, look for similar diamonds for sale.

Do some comparison shopping to find the

lowest prices. Once you have found the

lowest price, start doing your investigation.

You know about diamonds, you've found a

diamond that you love, and you've found the

lowest price - but you are still quite a ways

away from actually purchasing that diamond!

Ask about the seller's credentials, such as

professional jewelry associations that they

belong to. View and print the seller's return,

refund, and upgrade policies. Also inquire

about additional services, such as settings

and mountings, sizing, and free shipping. Do

a search for customer reviews on this

particular company around the Internet. Also

check with the BBB Online to see if there have

been any complaints.

Ask for a diamond grading report from an

independent laboratory such as GIA, HRD,

EGL or AGS. You should see this before

making a purchase. Finally, use a reputable

escrow service for high dollar diamonds -

preferably one that will have the diamond

appraised while it is in their possession. The

seller sends the diamond to the escrow

service, and you send the money to pay for

the diamond to the escrow service. The

escrow service has the diamond appraised,

sends the diamond to you, and sends the

money to the seller. This is the surest way to

protect yourself...again, make sure that you

use a reputable escrow service!

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