The diamond valuation process begins by determining its quality level. It’s what will serve as the basis for determining its retail market price when sold as part of a set of new jewellery, and later on when it’s being offset as a preowned stone.
Establishing Diamond Quality
A diamond has four primary characteristics, which are known as the 4Cs, and are relied upon when trying to determine its value. When a diamond is accompanied by a certificate that explicitly states the grades and values of the four features, it becomes easier to evaluate its quality.
Therefore, the first step when attempting to calculate the value of a diamond ought to be to try to establish its current quality grades. For stones that have yet to be certified, you should consider having them certified by renowned labs. Currently, only two labs are trusted to do this:
I. GIA (Gemological Institute of America)
II. AGS (American Gem Society)
After inspecting the diamond, the lab you have chosen will provide you with a grading report that will capture all its diamonds. You have to pay a fee to receive the grading report.
In case you would like to sell the diamond jewellery fast, you can use the diamond value calculator at Pricescope. It’s a renowned and trusted source of information on diamonds and their resale value. Another option is to visit a diamond broker who will provide you with a quote for a fee.
Determining the Market Price of Your Diamond
One of the most straightforward methods used to determine the market value of a precious stone is to compare it to rocks having the same colour grades, cut, clarity, and carat weight. Consider doing some research online to assist you in calculating the average price.
From now on, the average price will now serve as the diamond’s estimated value. For instance, if the diamond present in your ring weighs 0.75 carats, has a Good cut, VS2 clarity, and a G colour, go online and try to look up loose stones having the same features.
Confirm all the characteristics match before checking their average retail prices. Using this technique will make it easier to find a reasonable estimate for the precious stone. Additionally, you can also check the prices of loose stones sold by reputable online sellers.
They should serve as a good basis for the prevailing rates for loose diamonds.
Establishing the Resale Value of a Diamond
It’s always worth remembering that the retail value of the diamond is not the same price you will get to sell it at in the future. Diamond buyers, e.g., dealers and jewellery stores, won’t be willing to pay its retail price, considering they can acquire it at a cheaper rate if they buy in wholesale.
Furthermore, you shouldn’t use the wholesale prices to calculate the resale value as dealers and jewellers will pay you less for it. There is no incentive to pay you a high price as you can’t provide them with a warranty or guarantee, which their suppliers offer.
As seen above, there’s a lot that goes into determining the value of a diamond. With sufficient information, you should be able to get a decent estimate on your own. However, if the process proves challenging, don’t shy away from consulting a diamond expert.