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A
word about Gem Labs, and how they relate to diamond buying.
When
it comes to high dollar diamonds, very slight differences in appearance
( grades) can create HUGE price differences.
For
an example, let's compare two hypothetical diamonds. Let's assume both
have been graded by GIA, and both are really well cut.
One
is a D Internally Flawless 2.00 Round Brilliant, at about $70K+
The
other is a E/VVS1 2.00 Round Brilliant- at around $46k+
The
imperfection which constitutes a VVS1 is microscopic- yet it can cost
the cutter $24,000 in this hypothetical example.
To
prove a D/IF is actually internally flawless, no dealer will accept
anything short of a GIA report.
What
would a dealer pay for the same D/Internally Flawless Diamond prior to
GIA grading it?
Hard
to say exactly, but surely the highest price a buyer might pay would be
the price of E color VVS1. For this reason, cutters need
to use GIA - there's a lot of money at stake.
Hypothetically speaking, a 2.00 round diamond that GIA graded
E/VVS1 might be sent to a lesser lab who might call it D Flawless. Now
what's it worth?
In my
mind, there's simply no reason to risk buying a "high grade"
diamond for market price, without a GIA report to back up the claims of
the seller regarding the grade.
When
I say "high grade" that means top dollar diamonds. If we are speaking of
colorless diamonds, I'm talking about I color and better- SI2 clarity
and better.
J-K
colors, and imperfect diamonds are more commonly offered without GIA (
or with lesser reports) But if we compare the prices of D and E above
with a typical $8k K-L SI3 2 carat, it's easy to see why the presence of
a GIA report means less.
Now
if it was a 1.00 at $8000- then it had BETTER have a GIA report.
Gem Labs and Fancy Colored Diamonds
We
deal in a lot of Fancy Color Diamonds.
The
cutter has a Fancy Intense Yellow which is one of the darkest I've ever
seen- he feels it's a vivid- and it asking 20% above the price of an
intense. I have not bought the diamond, but I understand why he feels
the way he does.
Since
the grading if diamonds is really more of an art than a science, there
are "borderline" diamonds which GIA might call- say VS1 one time- and
VVS2 another. For me, as a trader- I live with this as a fact of
life. Say we buy a diamond from our cutter before it has a GIA report,
and we think it's Fancy Intense Yellow -say it's would sell for $20k.
Say
we send the diamond off to GIA who grades it Fancy Yellow- which sells
for $15k- well, the diamond is now worth $15k.
What
if we sent it to JGL ( Joe's Gem lab) who gives it Fancy Vivid Yellow-
is it worth more? No, it's probably worth a lot less than the diamond
with a GIA grade of Fancy Yellow.
Bottom line again: On high dollar Fancy Colored Diamonds, accept nothing
less than GIA. Many lighter yellows, and browns are commonly traded
without GIA reports.
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