PRIVATE DIAMONDS 4 SALE

Shape: Round
Carat: 0.83Ct
Cert.: DCLA
Asking: $ 2009 (QLD)
Shape: Round
Carat: 1.54Ct
Cert.: AGS
Asking: $ 10000 (QLD)
Shape: Princess
Carat: 1.34Ct
Cert.: LPC*
Asking: $ 7000 (VIC)
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You get what you pay for

A beautiful diamond with a big inclusion

A jeweller got a diamond for one of his customers. He opened the packet and it was one of the most beautiful diamonds he has ever seen in his professional career, which is around 15 years. It was a round brilliant, 1.2ct, colour: F and clarity: Si1.  This diamond had the maximum, yet perfectly balanced sparkle and he just couldn’t stop looking at it.

Soon after he got out his 10x magnifier to have a close-up look at this diamond and immediately he see’s this noticeable inclusion in the centre of the table.

He purchased this diamond at a well discounted price.  When I say "well discounted" I mean an F Si1 for the price of a G Si2 at the minimum wholesale price direct from the diamond cutter (manufacturer) in Belgium, so it’s a fantastic deal. However the Si1 clarity with this stone was more like a low Si2.

The extra high brilliance was probably the reason why this diamond wasn’t graded down to a P1 clarity since high brilliance does make it harder to see inclusions with the naked eye. If it was a slightly less brilliant diamond and it would have been enough to drop further to a P1 but it’s perfect brilliance kept it eye clean and as a genuine Si2 (but a very questionable Si1.)

The jeweller was not deceived by his supplier, after all he can always send it back and exchange it or get a credit.

What happened here is that this diamond was priced initially by the diamond manufacturer based on a low Si2 clarity (which is valued less than a normal or high Si2.) That’s why it’s price was that of a G Si2 (instead of F Si2), as being a low Si2 dropped it’s value further by a colour. The diamond grading laboratory gave it an Si1, which made this diamond more appealing to buy.

The manufacturer would know this but they kept the diamond’s price based on a colour G and a low Si2 clarity, so the diamond was fairly priced.

 

Now it was time to weigh the situation:

The jeweller got a beautiful diamond, one of the most sparkly he has ever seen.

He got it at a good price, an F Si1 for price of a G Si2 and therefore it was within his customer’s affordability.

The inclusion can only be seen easily with a magnifier. With naked eye it cannot be seen by most people. (Those with perfect vision that knew where and how to look may notice it slightly.)

His customer only cares how beautiful the diamond looks naturally (without a magnifier) and like most people she is only concerned with what she can see with the naked eye, which is a very sparkly diamond.

The jeweller also asked himself: What if the inclusion was much smaller but the diamond wasn't as beautiful, would that make it better?

If this diamond didn’t have such a noticeable inclusion in the table and sparkled the way that it does it could fetch a lot more money and be well outside his customer’s budget.  

The jeweller then gladly decided to keep the diamond and sell it to his customer, since the positives outweighed the negative. To reject this diamond was not a good option and he knew that his customer will be a very happy one.

Going back to the cliché “you get what you pay for”. This diamond is a good example because the jeweller bought it cheap, according to his customer’s limited budget. If it was a decent Si1 clarity within the low budget then something else would usually have to negatively offset it, such as less brilliance or a strong fluorescence. So with a limited budget the choice was: a better inclusion with less brilliance or a worse inclusion with higher brillance.

The system of pricing diamonds is not perfect but generally it’s a fair system. People have to realize that when getting a cheaper diamond, where it looks like a real bargain then most likely there will be something that has caused it’s price to be so much lower, but it doesn’t mean that you won’t fall in love with it, as explained in this story. But just don’t expect a perfect diamond when you have a limited budget.

Also see the How to Buy a Diamond section for some interesting information, explaining the grading process of diamonds and why some are more expensive despite showing a lower grade in the certificate. For more general information about diamonds check out our diamond education section

 

Copyright 2010. Author: M K