DIAMONDS ARE FOREVER
BUT THE CERTIFICATE IS NOT
When Shirley Bassey sang "Diamonds Are Forever" for the 1971 Bond Movie she probably wasn't thinking about what happens when it comes time to sell, or perhaps upgrade, a diamond. But the process is not always so simple because the certification that comes with it is almost as important as the diamond itself. And typically there are three key issues related to the certificates that can impact either pricing or the ability to sell the diamond.
There are (1) the nature of the accompanying certification, (2) the wear and tear on the diamond since it was last graded and (3) the effect of changes in grading standards over time. Each of these will have an influence on whether a new certificate is needed before the diamond can be sold.
For diamonds we would always recomend having a certificate from the Gemological Institute of America (GIA) prepared prior to commencing the sale process. GIA grading is what industry pricing is benchmarked against, especially with the industry standard Rapport guide. Other laboratory certificates will generally result in a further discount against Rapport pricing, or may make the sale harder to close.
WEAR AND TEAR
A natural diamond has generally taken a few million years to form as it has emerged through the crust of the earth so it is chemically stable by the time it reaches the laboratory for grading.
However, when the diamond journeys onto a hand is where the problems begin. Wear and tear is inevitable and whilst the colour is not affected the clarity of the diamond usually has been degraded. Despite their hardness diamonds will get scratched. Often this is caused by the way that they are stored or through contact with a myriad of everyday surfaces.
Unless the diamond has been permanently stored in a safe since purchase the likelihood is that the clarity given on the certificate will have been reduced by one or two grades. This can make a significant difference to the price, as an IF becomes a VVS2, for example.
Even if the diamond was supplied with a GIA certificate, the age of the certificate may require that a new one is issued. Grading standards have become stricter over time and the technology used to identify treatments, for example, have improved. This applies to both coloured and colourless diamonds. For example. recently we were shown a lovely 3.54ct G VS1 brilliant cut diamond. However, the GIA certificate was more than twenty years old and this presents a problem.
It is possible that this will now be re graded as an H or I colour now and possibly a VS2 as it has been lovingly worn over the past two decades. Of course this has a very material impact on pricing and the discount to Rapport will be much greater than a diamond that was graded in the last five years, for example.
sealing the deal
So whether it is time to upgrade the size of the a colourless diamond, or perhaps acquire a coloured diamond instead, your existing diamond will almost always require a re-grading by the GIA in order to make a sale.
Once this is done however, you will be ready to move on up the ladder of diamond ownership into bigger or more exotic examples. Just be careful how you store them !
For more information on sealing your own diamond deal contact us at gems@DamianByMischelle.com or via our Facebook page.