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Smart
spenders in the market to buy diamonds, perhaps for
Valentine’s Day, know all about the four C’s: cut,
color, clarity and carat. They are the factors that
affect a diamond’s price. But buyers should also be
aware of diamond-buying secrets that can reap better
value for the money you spend on diamond jewelry.
The first
thing to know is that most diamonds are commodities.
That means all stones with prescribed characteristics
are about the same. So, a pale blue box from Tiffany
& Co. might be prestigious, and you might get great
service at its stores, but its diamonds certified to be
a certain grade are the same quality as other jewelry
stores or online diamond sellers.
“The
diamond industry historically has been shrouded in
mystery and secrecy and romantic intrigue,” said Josh
Holland, a spokesman for online seller of diamonds
BlueNile.com. “Why? Because they like it that way.
That way they can sell rings and diamonds that may not
be the best quality — to guys who are understandably
confused — at 10-times markups.”
It’s
more important today to be smart about buying diamond
jewelry because not only have metal prices soared in
recent years, but diamond prices have surged recently.
In 2011, diamond prices rose more than 19 percent after
increasing more than 10 percent in 2010, according to
the RapNet Diamond Index. A 1-carat diamond with
middling cut, color and clarity can easily cost $8,000
to $10,000. When it comes to prices, ignore the industry
rule of thumb of spending two months of salary on a
diamond engagement ring. Instead, choose a price point
that you can be comfortable with.
Here are
a few tips to get better value if you’ll be buying a
diamond soon.
—Cut.
The four C’s all affect the price of a diamond, but
they aren’t all created equal in terms of getting the
most bang for your buck. “From an appearance
standpoint, the most important one is cut,” said
Russell Shor, senior industry analyst at the Gemological
Institute of America. “You can have a top-quality
stone, but if the workmanship and cut isn’t really
good, it will look kind of dull and lifeless.” More
sparkle from a superior cut might mean you can get away
with a smaller, less-expensive diamond. Shor and Holland
agree that color, how colorless or “white” a diamond
is, is probably the second most important factor, at
least for most Americans. GIA grades for cut are
“excellent,” “very good,” “good,” “fair”
and “poor.”
—Carat.
You might have a certain size of diamond in mind, maybe
1 carat. But diamonds are disproportionately more
expensive at the full carat and half-carat sizes. So if
you buy a diamond that is just shy of 1 carat, say 0.92
carats, you can potentially save hundreds of dollars.
“In a ring, visually you can’t tell the
difference,” Shor said.
—Clarity.
Clarity refers to the tiny imperfections, many invisible
to the human eye, that almost all diamonds have.
“Behind the counter at jewelry stores, they will make
a big deal about clarity, but many gemologists think it
has the least effect on a diamond’s overall beauty,”
Holland said. “If you buy a flawless diamond, at some
point you’re paying for something you can’t see.
It’s like paying someone to paint the bottom of your
house.”
—Shape.
The most common shape of a diamond stone is round,
making up about three-quarters of all diamonds, Shor
said. Simple supply-and-demand dictates less-popular
shapes cost less. “You can save up to 40 percent just
by not choosing a round diamond,” Holland said. And
with the typical “round brilliant” shape, the
majority of the diamond will sit below the setting,
allowing you to see only about one-third of the whole
stone, Shor said. Pear-shaped or marquise diamonds have
more of the stone showing, making them appear to be a
larger carat weight, he said. Still, a round-brilliant
shape is likely to offer the most sparkle.
—Shopping.
It could be worth going to a jewelry store if you need
hand-holding through the buying process, and price is
less of a factor. But if you’re looking to spend the
least money for the most diamond, consider
nontraditional retailers, including online stores or
warehouse clubs. Blue Nile, for example, claims its
prices are 20 to 40 percent less than a typical jewelry
store. And online shopping has come of age, especially
for younger people, Holland said. “People who are
getting engaged now have grown up with the Internet. So
making purchases on the Internet is less of a hurdle
than it used to be,” he said. Just make sure diamonds
from any retailer are certified, which perhaps should be
the fifth C, by an independent organization, such as the
Gemological Institute of America or American Gem
Society.
—Halo.
If a large center stone would break the bank, consider a
smaller stone ringed with tiny and far-cheaper diamonds,
called a halo design. It gives a big, sparkly look for
less money than a single large stone. “That has the
effect of making the center stone appear larger than it
actually is,” Holland said. “That way, you can buy a
smaller center stone, which is the most expensive part
of an engagement ring, but still get that really
brilliant (look).”
—Other
gemstones. You wouldn’t want to use a sapphire, for
example, in an engagement ring unless you’re sure the
recipient would like that. But other gemstones will be
less expensive than a diamond. In an engagement ring,
you can use a smaller center diamond and flank it with
two other gemstones, Holland said.
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