29 Factors You Should Know: What Affects Diamond Price? Part 3

May 2, 2018 | Alternative Investments

Welcome back to the third and final part of our 29 factors affecting diamond price series. If Part 3 is your first exposure to the series, no worries, you can check out Part 1 and Part 2 by clicking the links.

The goal of this series is to explore 29 additional factors that affect the final price of a precious stone (excluding, of course, the more apparent 4Cs.)

blue green diamond light.jpg 

Let’s complete this exercise by going down the “back 9.”

21. The Existence of Internal Graining

Internal graining is often described as lines that are naturally compressed in the diamond’s internal structure. The existence of such graining can directly affect the stone’s clarity and ability to refract light, leaving the gem with a “dull” look.

22. The Brilliance of the Diamond

While this is a bit more relevant for colorless diamonds, it can also apply to some colored gems. Brilliance is known as the light that gets refracted from the various facets of the stone, making it shine in a way that only diamonds can. Brilliance can be quantitatively measured by a GemEx Brilliance-Scope, though the trained eye is also able to qualitatively measure the brilliance of a diamond.

23. The Scintillation of the Diamond

Scintillation is a more “scientific” term for sparkle (or radiance.) It essentially refers to the way the light can change color when the stone is moved or when the source of light is altered. Again, the best way to quantitatively measure scintillation is by using a GemEx Brilliance-Scope, however, the human eye is also able to qualitatively measure the scintillation of a diamond.

24. The “Fire” of the Diamond

Fire is a term used to describe the way colored light is dispersed via the diamond. Once more, Fire can only be quantitatively measured by using a GemEx Brillance-Scope Analyzer. This essentially helps us determine the percentage of the total bright colored light returning from the diamond to the observer. While the human eye cannot quantitatively measure Fire, a trained professional can qualitatively measure this return.

25. Fluorescence

When a diamond is exposed to ultraviolet light and glows, it is known as fluorescence. This is caused by the existence of phosphorous in the stone’s internal structure. While this might not be the case for many diamond types (such as greens), it might lead to the diamond appearing “murky” under normal light, leading to price discounts.

26. The Existence of Fracture Fillings

Not all diamonds are perfect. Apart from inclusion and naturals, some might have fractures either originating from when the diamond was a rough, or having been created when the stone was being cut and processed. Oftentimes, if the fracture reaches the surface of the gem, a chemical compound can be injected to correct the imperfection. While this significantly enhances the diamond’s beauty, it is also considered an artificial enhancer of clarity, thus causing the stone’s overall value to drop.

27. The Existence of HPHT Color Enhancement

High Pressure and High Temperature (HPHT) Color Enhancement is when the diamond is subjected to extremely high temperatures and pressures to artificially modify the color of the stone. As you might have already figured out, this process, while potentially increasing the beauty of a gem significantly, also renders it much less valuable than a fancy colored or colorless diamond found naturally.

28. Undergoing Laser Drilling

Laser drilling is basically what it sounds like. Oftentimes, in order to artificially remove certain inclusions from a diamond, lasers are used to bore into the stone’s body and remove the imperfection with acid. This has a negative effect on the diamond’s beauty because, while removing an inclusion, it also leaves thin drill lines that can significantly detract from the gem’s overall value.

29. Man Made Diamonds

With technological advancements, we are now able to create diamonds by using carbon exposed to immense pressure and heat. Despite this, they are far less rare than those found naturally meaning they are sold at a massive price discount compared to their natural counterparts. While artificial stones can stand out like a sore thumb to experts, they look pretty realistic to the untrained eye, so always be cognizant when you are about to make a purchase, and always make sure the diamond in question has a certification from a trusted institution such as the GIA.

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This concludes our 3 part series. We hope you are now better equipped to understand how diamonds are valued, and more importantly better prepared for your next investment. Once again if you have any questions please feel free to ask us! And as always feel free to follow us on Twitter and LinkedIn.

For more interesting diamond and investment facts check out the links below:

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