How to Value Diamonds When Selling in Maryland

Color, Cut, Clarity & Carat

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The 4 C’s of Diamond Value

The four C's color clarity cut and carat weight. There are essentially for determinations of the diamonds value. In order of importance they are color clarity cut and carat weight.  

All things being equal a larger stone will naturally be more valuable. That is too stones of the same traits of color and clarity intercut with the same proportions and one weighs two carats for the other weights 1 carat the two carats stone will be worth more. How much more? One might suspect that in this instance the two carat stone’s value beatable that one carat stone. Not so. In practice the value of a stone’s value goes up exponentially to as a 2 carat stone might be worth three times as much instead of two times as much this is true of all weights. One carat which equals 1/142nd of an ounce contains 100 points. Each point of weight is a tremendous importance in determining value. And just as there is a big difference in per ^ value between one carat and a 2 carat stone so is there a big difference in value between a 1 carat stone in less than an carat stones. So for instance 250 point stones would not equal the value of a single ^ stone even though the total weight to do the same. Significantly according to industry standards fraction of the point in wait around it down not up. With us a 99.7 point diamond would be considered a 99 point diamond and not a one carat diamond.

In the past investors concentrated on one carat diamonds however as the larger stones have become rarer and more expensive diamonds of half ^ in the above coming to demand for investment purposes but for smaller investors And for larger investors who desire to diversify their portfolios to include some smaller stones. There's a critical element involve being weight that should be understood by investors it's called diamond breakpoints. Diamonds are sold on it Price per care basis. For example if a certain 1.08 ^ ^ time and cost $20,000 per ^ the stoning question would cost $20,000 dollars times 1.08 $1600 not all cutters of the same price breakpoints but the categories listed below can be considered generally followed by the tree. Stones of exactly the same quality will sell at a different price for Karen is moving to a different range. Within any given range to get a stones price simply multiply the price by the per carat weight.

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Diamond Markup from Cutting to Retail

And from level to level there are tremendous changes in price as the diamond winds its way from my to the mistress as the old saying goes. As the diamond passes from the central market to dealers to cutters through the marketplace again to cut stone brokers to jewelry manufactures to wholesale jewelers retail jewelers and finally to the customer Price is at apt to increase anywhere from 275 to to 300% and sometimes more.

The person who is interested in buying diamonds for investment obviously does not want to pay retail prices such as he faces from his local jeweler. But where does he get into the picture? Unless he is making a very large purchase and I'm talking about high six figures he cannot hope to buy directly from cutter. Unless you're a member of the family cutter simply refused to deal with customers. They're geared to deal in millions of dollars and usually do not wish to be bothered with transactions of 50 or even a hundred thousand dollars. Equally they are extremely worried about security and will not deal with an individual unknown to them. That is why relatively new factories entertainment industry in recent years investment diamond dealer. The best of the investment diamond dealers are enabled by stone stretch from a major cutter for the site holding or at least on one of the marketplaces thus bypassing all of the price escalating beneath the cutting stage. Shortly we'll look into some of the dues and don't of buying diamonds from this new breed but first let's look at diamonds are graded and priced.

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Learning How to Cut Diamonds

When all the haggling is over the deal is concluded with the handshake in the Yiddish words mazel und broche which means luck blessing. Mutual trust and credit are the bywords. However it is simply understood that by 10 AM the following day Price of purchase must've been made usually in cash unless other terms of payment are created. The diamonds are then sealed in small envelopes. Occasionally dispute arise and one of them functions of the marketplace is to provide arbitration. Usually the members in disagreement over particular transaction will meet in the presence of two elected officials of the marketplace we'll try to reconcile differences. If they are unsuccessful a three-man arbitration council is established to hear the case that decision is rendered once appeal is allowed to yet another five-man arbitration. It is well known that anyone who commits deliberate fraud or other unseemly at times section or who refuses to abide by the arbitrator's decision will be ostracized from the tree. Not only will hinder his membership in a particular marketplace that you will find himself unable to deal in the diamond industry anywhere in the world. This self policing has been remarkably successful in keeping the closeness Diamond industry clean.

The diamond industry justifiably seems mystifying to many people. From large-scale mining companies to the jewelers on 47th St. in the heart of New York Diamond district there are many different levels and functions of expertise. There are very strict lines between cutting brokering wholesaling and retailing for this state disciplines. People who are cutters are not in the retail trade. And people who are retailers in spite of what they say or not in the cutting trade.

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From Diamond Wholesale to Cutter

Traditionally however the primary source of diamonds has been the diamond exchanges. There are total of 16 located in 10 different countries as listed here: new York Belgium Paris Vienna Johannesburg Milan Germany Tel Aviv London and Amsterdam. Many diamond deals are made at a dealers offices or even in the street in the major time districts but the bources play a pivotal role especially in establishing prices. From New York to Tel Aviv manufacturers and others come to the central locations to haggle with an assortment of tires someone is marketed here as well by brokers of access to the original markets two smaller cutters were not able to participate bigger markets.

Primarily it is a Cutstone marketplace. The public is totally excluded from the bourse. Membership in the exchanges is exclusive primarily of diamond brokers and cutters of long-standing in industry. The exchanges are governed by a long tradition of trust and integrity and by the strict rules of the diamond association. Wherever they are found the bourses are fairly unimpressive looking places. They are a little more than large input list rooms filled with long tables. Across these tables buyer and seller consent in barking and barking and barking. The stones are examined with a a loop a ton times magnifying monocle that can be held in the eye socket. The bourse provides a scale for weighing.

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Process of Cutting Diamonds

Next at the stones whitest point the stone is rounded to form as nearly circular circumference as possible. This is done by rapidly rotating the stone and granting its edges at the chosen diameter point against another diamond. Remember only a diamond can cut and another diamond. After around girdle has been achieved the stone is faceted for block. Both above and below the girdle the stone is given its first for facets yielding eight equals facets top and bottom or are perfect octahedrite. Some rough stones come in that shaped to begin with. The stone may then be sought again to knock off the top point of the octahedron and create a flat table. The facets are created by grinding the stone against the rotating table. The table is covered with a mixture of oil and diamond dust which tends to penetrate into the seal of the disc. After the stone is given its first he fastest those facet of ground to create a total of 16 facets. This is called Square. This process which grows ever more money as facets of subdivided continues until there are final 58 facet including the table and culet which is the bottom of the diamond.

This is this so-called round brilliant cut. It was given to modern-day idea of mathematical perfection team 19 by Marcel talk Kowski who wrote a book on how to cut diamonds for maximum scintillation. Today is the toll cast has been somewhat updated by market forces but much of its theory remains excepted as the model for diamonds. Regardless of your own aesthetics it makes sense to have the type of stone that is in greatest demand and is therefore easier to liquidate it when the time comes.