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How to Buy a Diamond

By: Team Diamond


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T E A M D I A M O N D P R E S E N T S

How to Buy a Diamond

BY:

Brittney DillardObinna CarlJesse Vu

Leonard GirramitaTiffany Ondracek

TECM 2700.011FALL 2010


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TABLE OF CONTENTS

HOW TO USE THIS MANUAL VINTRODUCTION 1CHAPTER 1: HOW TO FIND A DEALER 2CHAPTER 2: HOW TO DECIDE ON SIZE 6CHAPTER 3: HOW TO PICK A COLOR 8CHAPTER 4: HOW TO PICK A LEVEL OF CLARITY 11CHAPTER 5: HOW TO PICK A CUT 14INDEX 17


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HOW TO USE THIS MANUAL

This guide provides a guideline to what is probably one of the most significant purchases

youve ever made. In order to get the most of the information here, read through each

chapter that follows and use it to really figure out what you are looking for out of a

diamond. There are many aspects of a diamond but in the end, it really all comes down

to taste and trade-offs. In general, a larger but less perfect stone can be purchased for the

same price as a smaller, more perfect one. To some people the size matters, to others it ismore about the perfection of the rock itself. Use this manual as a guide to figure out

what aspects of a diamond are most important to you. We encourage you to write all

over it, to mark things you dont quite understand, and most importantly, to take it with

you to help when you are shopping.

Good Luck!


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INTRODUCTION

Congratulations! Youre buying a diamond!

We cant offer you advice on how to pop the question, but we can help you select a

diamond. With the right diamond, youll be just a step closer to hearing her say yes.

While you may be anticipating what her answer will be, you should first concern yourself

with finding the right diamond. There are so many facets to buying the right diamond

that it can be stressful. With this instruction guide, buying a diamond will be crystal clear.

Some of the questions you might be asking are:

What do I look for in a reputable retailer? How much am I willing to spend? What are the characteristics of a good diamond? What is cut? What is color? What is carat? What is clarity?

This is one of the most important chapters of your life. We want to make it a little easier.

No diamond is the same; we can help show you the path to finding your perfect stone.


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CHAPTER 1: HOW TO FIND A DEALER

So youve chosen the girl. Now all you have to do is choose the ring. As any bride-to-be

will tell you, there are many places you can go to buy a diamond. There are jewelry stores,

pawn shops, and even online dealers. Though a receipt from Zales may mean more to her

than an invoice from Cash Star Pawn, the prestige of the location should not be as

important as the dealer who operates inside of it. The dealer is not only a salesperson. The

dealer is also a person you must trust to sell you a quality product that is worth your

money.

With diamonds becoming worth more every day, the integrity of your dealer should be of

the utmost importance. But you may be asking yourself, where do I find an honest dealer?

How do I know if I am being sold a product that is worth my money? What do I look for

in my chosen dealer?


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1. Ask the dealer if they carry a return policy.Even if your girl does say yes (which we hope), purchasing your diamond from adealer with a return policy is safe not only for you, but also for the integrity of thestone. A diamond is a large purchase, and like all large purchases, they require a lot ofthought. Think of it as purchasing the latest model of a television. You wouldnt feelas safe spending your money if the vender didnt give you some kind of guarantee thatyou can return it if it doesnt work.

The return policy also gives you an indication that you are dealing with a respectabledealer. If a dealer refuses to allow you to get your money back or exchange it after a

certain number of days, its natural to wonder why. Is there something wrong with theirproduct? Are they just picky? No matter what the reason, the lack of a return policy is asignal that a dealer should be avoided. Even if you end up missing out on a great deal, thesecurity of your purchase is worth spending a little more.

2.Ask the dealer how long they have been in the diamonddealing business.

The length of time a dealer has been doing business signals two important things:that they dont scam customers, and that they are good at what they do. A brandnew dealer is just as capable of selling you a beautiful diamond, but once again,its about security. Only the best can last.

3.Ask the dealer to see the Rapaport Diamond Report beforepurchasing a diamond.

The Rapaport Diamond Report is a report that lists the wholesale price fordiamonds. It is updated monthly and used worldwide, which should give yousome idea of just how important it is. When pricing a diamond, a dealer issupposed to refer to this report and price his stones according to its guidelines.But it doesnt always work this way. Some dealers either use the guidelinesincorrectly or ignore them entirely, resulting in overpriced diamonds. This is a

I N

S E A R C H I N G

F O R A

D E A L E R ,

Y O U

S H O U L D

A S K T H E S E

F I V E

Q U E S T I O N S :


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common marketing scam that falls on those who have not done their research onproper diamond buying technique. By asking to see the report, you are protecting

yourself and your purchase. If a dealer does not have a copy of the RapaportDiamond Report or simply refuses to show it to you, this is a good indication thatthe dealer should be avoided. The most professional of dealers may even have acopy of the report on public display, allowing customers to evaluate the integrityof their prices without having to ask.

4. Ask the dealer if each stone comes with a gradingcertificate from a certified gem lab.GIA, AGS, and EGL are the worlds most certified gem labs. When evaluating a

grading certificate, it is a good idea to make sure it came from one of these threelabs. A smaller lab might work closely with the dealer and grade the diamonds ina way designed to make the dealer more money. Grading certificates areimportant because without one, you cannot be sure that the diamond you arepurchasing is of the same quality the dealer claims it to be. They will tell you allthe qualities about a diamond and what makes it a certain price. With a certificate

from one of the three dealers listed above, you can be sure you are making a safe,informed, worthy purchase.

5. Ask the dealer if they have reported all past businesscomplaints to the Better Business Bureau.

The Better Business Bureau is the easiest way to tell if you are dealing with arespectable business. Like any other company, a diamond dealer should report itscomplaints to the Better Business Bureau to prove their credibility. Buying a


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diamond from a dealer that has not taken this precaution can be a risky venture,because you want the vender to take as much pride in their business as you do in

the purchase. Remember, its all about security.

Though finding a worthy diamond can be an overwhelming process, selecting adealer doesnt have to be. Just keep in mind that a business is so much more thana name. Its the people inside that make it respectable. Selecting the proper dealercan seem like a lot, but its just one more step on the way to hearing her say yes


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CHAPTER 2: HOW TO DECIDE ON SIZE

Now that you have found a dealer you feel comfortable purchasing from, the next step is tochoose the carat of the stone.

1. First, lets learn what carat means.Carat is the unit of measure used to express the weight of a diamond, with onecarat equaling 200 milligrams of actual weight. The weight of smaller diamondsis expressed in points. There are one hundred points in a diamond. So a fiftypoint diamond would be .50 or half a carat. Knowing the points of a diamond willmake it easier to by a larger stone for a better price. See Figure 2-1 for anapproximation of sizes.

2. Now that we know what the unit of measure is, letsconsider your budget.

The carat of the diamond has the mostimpact on the price. For the sake ofpricing, we will assume that the othercharacteristics of the diamond (cut,clarity and color) are all in the averagerange. A twenty-five point diamond,quarter carat, will average $1000

dollars. If the weight of the diamondincreases to fifty points, the pricewould be around $1,250. If the unitprice per carat is $250 dollars, thatvalue will multiply at every quartercarat increment.

Figure 2-1


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Chapter

2When purchasing an engagement ring, the salary guideline suggests that youshould spend the equivalent of two months salary.

3. After we have determined the approximate size, andprice of the diamond, lets learn how to manipulate the

points of the stone for the best value.

Lets assume that you have chosen a diamond under 1 carat. The one hundredpoints within that carat make a big difference in price. When we were learningabout the price, the difference between a half carat and a three-quarter carat

diamond can be between five and six hundred dollars. To get the best value foryour stone, try to choose a diamond at the high end of a point unit. For example,the difference in size between a .68 carat and a .70 carat stone is only two points.It would be hard to tell the difference between the two diamonds with the nakedeye, but the .68 carat stone would fall into .50 to .69 carat price range. A diamond,which may only slightly smaller, could be $500 dollars less expensive.

4. There is a final aspect to consider when choosing andpricing the desired carat of diamond.

The carat of the stone does have the biggest impact on the price, but it is not theonly influence. You will also want to factor in the other 3 Cs. A three quartercarat diamond that has exceptional quality may be more expensive than a onecarat diamond with low qualities. You may want to consider this when choosinga custom stone that fits into your price range.


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Chapter

3CHAPTER 3: HOW TO PICK A COLOR

Now that you have found the right size for you, the next step is to choosethe size of the stone.

What is meant by color?

Color refers to a diamonds lack of color. A perfectly colored diamond is in fact colorless

due to its extraordinary ability to absorb all rays of light equally. But colorless diamond is

extremely rare and most diamonds contain slight traces of yellow, brown or gray.

What is the color grading scale?

Diamonds are evaluated according to the Gemological Institute of America (GIA) letter

scale and graded D to F if they have no detectable color tone to the unaided eye.

Diamonds of these grades are highly prized because they allow a maximum quantity of

light to pass into the stone. Diamonds in the G to I range are nearly colorless to the eye,

but a trained gemologist can detect a slight yellow cast. In diamonds graded J to M, the


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FIGURE 3-1

untrained eye can detect a trace of color, but these shades of diamonds are still considered

desirable as affordable jewelry pieces. Diamonds with color ratings of N and below carry

a noticeable yellow tint, which some people prefer as a matter of personal taste. Figure

3.1 shows the various color grades.

What is the importance of color

in selecting a diamond?

The difference between the colorgrades is unfortunately not

proportional, in that the

difference between some colors

is very small, whereas the

difference between other colors

is a much larger jump.

There is not a significant

difference of color between D to

E to F color diamonds. The difference can be detected in a diamond laboratory or by a

highly skilled diamond expert, though for the common person, its not really possible tovisibly see the difference in color between D, E or F.

So the reason why you would choose a D or E color over an F color is because having

the best is important to you and you have a great sense of pride in having the absolute

best. The G color looks great, has white color and is well priced. Choosing an H color

Color GradePrice Comparison

1 Carat DiamondDescription

D $8,100

ColorlessFor the purist

E $7,500

F $7,200

G $6,700Near Colorless

For top quality jewelryH $6,100

I $5,300

J $4,700 Faint Yellow/Brown

Slight quality compromiseK $4,300

L $3,800 Light Yellow/Brown

For the value consciousM $3,100


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H O W T O P I C K A C O L O R

diamond is normally something that we recommend if a couples preference is towards

the size of the diamond rather than the color. By choosing an H color diamond, a

customer may be able to have a slightly larger size diamond for the comparable price of a

smaller diamond with a higher diamond color.

1. Determine your taste andbudget.First of all you should have a taste and budgetin mind. Most people find the colors D to L tobe the most attractive because of its clarity butthey are rare and therefore more expensive.Other people prefer the pronounced yellowtints so their chosen diamonds is lessexpensive.

2. From the color scale grading between D and SZ fromfigure 3.1 below, determine which color that will align

with your decision on Step 1 above.

3. From figure 3.1 above, choose starting from color scalegrade D to SZ with D being the most expensive and SZ

being the less expensive based on your taste and budget

as decided in Step 1 above.

F O L L O W

T H E S E

S T E P S T O

C H O O S E

T H E C O L O R

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Chapter

4CHAPTER 4: HOW TO PICK A LEVEL OF CLARITY

What is clarity?

Most people would say that clarity refers to the clearness of something. In diamonds,

clarity does refer to clearness, but not in the sense that the diamond can or cant be easily

looked through.

In the diamond world, clarity refers to imperfections. Because diamonds are stones and

originally extracted from the earth, almost all diamonds are afflicted with a number of tiny

imperfections inside the stone. Clarity is the measure of the number and size of all these

tiny imperfections, also called blemishes or inclusions. The clarity grade chart, pictured

below, illustrates the meaning of these inclusions. Diamonds with more inclusions (I-1, I-

2, and I-3 diamonds) are less valuable and in some instances are not even sold at

respected jewelry stores. Diamonds with very little or no visible inclusions (FL

throughVVS-2 diamonds) are considered the most valuable and are sold at a higher price.

You can reference Figure 4-1 for further information.


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Figure 4-1 The buyer must keep inmind that most of these

inclusions are not visible

with the naked eye. Only

in imperfect diamonds is it

possible to simply glance at

the stone and make out the

inclusions. Though clarity

is often considered the

easiest to determine of the

4 Cs, it can still be

somewhat confusing for

the person who doesnt

know what to look for.


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1. Determine how much you have to spend.The amount of money in your pocket has a big effect on the clarity of yourdiamond. If you want a flawless diamond, expect to pay a great deal morefor it. The value of a flawless diamond is on a strict scale and there are fewdealers willing to stray away from it.

2. Educate yourself.Dont walk in prepared to buy a diamond without knowing what to look for

in clarity. If a dealer claims it is a flawless diamond, make sure it is aflawless diamond. Look at the diamond carefully to monitor the amount ofinclusions. Request a magnifying glass or bring one with you. Some

inclusions are too small to be noticed with the naked eye.

3. Request a clarity grade chart to refer to.The inclusions you see in a diamondwill mean nothing if you dont have a chartto refer to. If you dont think your dealer will have one, make sure to bring one

with you or study it beforehand.

.

F O L L O W

T H E S E S T E P S

T O

D E T E R M I N E

T H E I D E A L

C L E R I T Y F O R

Y O U R

D I A M O N D :


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Chapter

5

Figure 5-1

CHAPTER 5: HOW TO PICK A CUT

In this chapter, you will learn when selecting a diamond, it is very important to choose theright cut of diamond. You will also learn more about the diamond cut grading system.

Most importantly, the individual steps for determining the best cut with your diamondselection.

Diamond cut is a style or design guide used when shaping a diamond for polishing such

as the brilliant round cut. Cut does not

refer to shape, but the symmetry,

proportioning and polish of a diamond.

The cut of a diamond greatly impacts

diamond brilliance. If the diamond was a

poor cut it will have a less luminous effect

as is seen in Figure 5-1.

The most popular of diamond cuts is the

modern round brilliant, whose facet

arrangements and proportions have been

perfected by

both mathematical and empirical


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H O W T O P I C K A C U T

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Figure 5-2

Figure 5-3

analysis. Also popular are the fancy

cuts which come in a variety of

shapes many of which were derived

from the round brilliant. A popular

fancy cut is the princess cut

diamond with its unique square

symmetric cut. Figure 5-2 shows

the differences between these cuts.

Gemological Institute of America (GIA) diamond cut grading system consists of five tier

ranking of cuts at Excellent, Very Good, Good,

Fair, and Poor. When making a decision on the

right diamond, the cut should be on the top of

your priority with the 4 Cs. A higher grade of cut

would also result in a brighter brilliance from the

diamond. The distance from the bottom of the

girdle to the culet is the pavilion depth. A pavilion

depth that is too shallow or too deep will allow

light to escape through the sides or the bottom of

the stone. A well-cut diamond will direct more

light through the crown as Figure 5-3 illustrates.


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Figure 5-4

1. Select a diamond cut thatfits the preference of your

significant other. From

traditional, modern and fancy

cuts the selection of diamonds

are unlimited. Keep in mind the

different characteristics with the

actual cut could maximize or

minimize the brilliance and

luminous effect.

2. Select the best diamond available that ranks thehighest on the diamond grading scale (GIA Cut Scale)

that fits your budget.

3. Verify additional grading information on diamondcertificate (Polish & Symmetry)

4. Remember the cut could be the best out of the 4 Csdue to the brilliance and luminous from the actual cut.

The best cut will make the diamond sparkle!

F O L L O WT H E S E

S T E P S T O

D E T E R M I N

E T H E

P E R F E C T

C U T F O R

Y O U :


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INDEX

avoid, 5Better Business Bureau, 4, 5brilliance, 14, 15brilliant, 14Budget, 10certificate, 4, 5, 15clarity, 1, 6, 9, 11, 12Clarity, i, 10, 11clarity grade chart, 12

clearness, 11, 12Color, i, 8, 9, 10colorless, 8, 9, 10cut, 1, 6, 14, 15dealer, 2, 3, 4, 5, 12diamond, 1, 2, 3, 4, 5, 6, 8, 9, 11, 12, 14, 15Diamond, 0, 3, 5, 9, 10, 14, 15Expensive, 10Expert, 10

facet, 14fancy cut, 14flawless, 11, 12Gemological, 9, 10, 14Gemological Institute of America, 14

GIA, 4, 9, 14, 15, See Gemological Instituteof Americaglass, 12Grade, 9, 10imperfect, 11, 12inclusions, 11, 12Institute, 9, 10, 14key steps, 14luminous, 14, 15

magnifying, 12polish, 14princess cut, 14Rapaport Diamond Report, 3, 5respectable, 2, 4, 5return, 2, 5round cut, 14Scale, 10, 15security, 3, 4, 5

stores, 2, 5, 11symmetric, 14valuable, 11, 12visible, 11, 12


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PHOTO SOURCES

http://diamonds-jewelry.com.Figure 2-1.http://www.diamondarticles.com.Figure 3-1;3-2.http://www.justsharethis.com.Figure 5-3.www.butterflydiamonds.co.uk.bmp.Figure 5-4.www.dennishgroup.com.Figure 4-1.www.diamondimport.com.Figure 5-1; 5-2.

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