2.04 E/Internally Flawess- As graded By GIA
Gemological Labs, and how they relate to Diamond Buying
If you are shopping for a diamond, or own one and are curious about it's value, the diamond's grade is critical.
Two diamonds that might look similar can have vastly different values. When it comes to high dollar diamonds, even 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,worth in the range of $70K+
The other is a E/VVS1 2.00 Round Brilliant- weighs in 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.
How much would a dealer pay for the same D/Internally Flawless Diamond prior to GIA grading it?
Knowing the wholesale diamond market the way we do, dealers might try to buy it for the price of an F/VS2. Let's assume the highest price a dealer might pay would be the price of E color VVS1. At least 35% less. For this reason, cutters need to use GIA - there's a lot of money at stake. For the same reason, as a buyer, GIA is essential.
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 opinion a lot less than the diamond GIA graded E/VVS1.
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 in any particualr range.
For example: A 1.00ct diamond for $2500 versus as .50carat diamond for $2500. Thew 1.00 is an inexpensive stone, the 1/2 carat, "high grade"
If we are speaking of colorless diamonds, I'm talking about I color and better- SI2 clarity and better.
J-K-L-M colors, and imperfect diamonds are more feasible without GIA ( or with lesser reports).
Again, an $8000 two carat diamond is actually "cheap" Remember, a well cut H/SI1 2.00 Round diamond with GIA rpeort can cost $20k
Now, if it was a 1.00 at $8000- then it had BETTER have a GIA report.
When considering Natural Fancy Colored diamonds, like this Fancy Vivid Yellow, GIA is a MUST. Lack of GIA should be a deal-breaker
Our guide on buying Fancy Colored Diamonds
Other lab reports
The main danger is the representaion of a diamond with a lesser report as equal to a diamond of the same grade issued by GIA.
It's widely reputed that some of the non GIA labs are more lenient than GIA. Some sellers may suggest that grades issued by one of the main non GIA labs is simply "one off". Thier contention might be that an EGL G/VS2 is equivalent to a GIA H/SI1.
That assumption overlooks the facts. Dealers won't use any such formula. Dealers will ONLY pay top dollar for any given grade, if that grade was issued by GIA.
It seems that there is a problem with sellers that understand the difference between the labs purposely blurring the lines.
Take a hyperthtical diamond. It's legitimate grade is K/SI1. GIA gives it K/SI1.
Another lab gives it J/VS2 ( or I/VS2).
If both dealers were charging the same price, a buyer unfamiliar with the informaion in this article might reasonably assume the guy seling the I/VS2 was less expensive.
When the lesser reports are used in this manner, it smells like misrepresentaion. After all, if the seller knows all this stuff- and we must assume that, as a dealer, they do- why not tell the buyer?
If you go to sell any valuable diamond back to a dealer, their first question will be- "Is there a GIA?"
Bottom Line
The best diamonds are sent to GIA by cutters and dealers thoughout the world. Generally speaking, lesser diamonds are sent to lesser labs.
If you are buying a diamond of substantial value, accept no less than a GIA.
Photos of GIA Report
Understanding clarity in diamonds- what is a Feather
How much will a diamond appraise for?
Remember- GIA NEVER issues a report with monetary value.
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