Monthly Archives: June 2015

Lowest price – GIA certified diamonds.

Lowest Price – GIA Diamonds.

Many internet shoppers are under the mistaken belief that buying a GIA certified diamond on the internet is similar to purchasing a flat screen TV. Simple,  You just find the model number that you want. Then you go to the internet and you buy it for less.

In the case of a diamond, one might figure out the size, the shape and the GIA parameters that they want.  Let’s say in this case, a 2.00 carat round diamond, GIA “H” color, “SI1” clarity.  Simple. We go to the internet and buy it at the lowest price.

Stop right there.

A diamond is not a flat screen TV.  The GIA diamond certification report is not the same as a model number.  The specifications of a TV are identical.  There are thousands if not millions of the same TV made to factory specifications.  Diamonds are different.  A diamond is a creation of nature.  Each one is unique.  A GIA grading report attempts to describe a diamond like I may attempt to describe a beautiful woman.  It is very hard to do without seeing the woman – or the diamond.

Pictured below are six diamonds listed for sale on a leading internet diamond site. Each of the six diamonds weighs approximately 2.00 carats (Actual weights range from 2.01 to 2.09 carats).  Each of the diamonds is graded by GIA as “H” color, “SI1” clarity.  The prices for these diamonds ranges from $13,247.00 to $26,131.00.  YES!  One diamond is 50% “cheaper” than another.  Inversely, one diamond is 100% more than the other!

And you are on the internet in search of the best price.   Or is it the lowest price?  Best price for what?  Lowest price for what?

As a diamond merchant with more than 40 years of experience  (and two generations before me!),  I understand what a diamond is.  It is about something beautiful.  Beauty is about the brilliance and sparkle and scintillation.  Low price is about a price point.

In recent years there has been a divergence within the diamond industry – sort of a “fork in the road”.  There are many diamond companies that are marketing diamonds specifically for the internet. The diamonds that they sell via the internet are inferior to those that are sold in the traditional manner – to be sold via retail jewelry stores.  It is the difference between the beautiful GIA H/SI1 diamond and that of the diamond that is marketed solely based on “price-point” for the internet buyer who believes he has figured out the world.

The difference is, in the “old” days, people looked at diamonds in a jewelry store with their eyes and a jewelers magnifying loupe.  They were truly buying a diamond and not just a diamond grading report!.

Take a look at the info for the six diamonds featured below.  These are just a random sample of different price ranges that I found.

                                                                                         .    .    .    .    continued below

Document (1)

 

Document (2)

Document (2A)

Document (3)

 

Document (4)

Document (5)

When looking at each of the diamonds described above,  one must recognize that the pictures are fake and are all identical.  These  photos are not representative of the diamond in any way and, in fact, give the illusion that the diamonds are gem quality which they are not!

With regard to the diamonds listed above I know for a fact that it is not possible to purchase a “nice” 2 carat round diamond with these GIA specifications on the wholesale market within the price of the first three listings.

If I was buying a diamond for my wholesale business it would most likely be one of the three more expensive diamonds.  I believe that a diamond is supposed to be something beautiful. These diamonds may be beautiful diamonds – although, even with the info provided on the GIA report, it is still necessary to SEE the diamond.  The listed specifications of these diamonds provides no information with regard to the nature and location of the inclusions and, in reality, provides little insight to the overall beauty of the diamond.

One thing that I do know is that there are reasons why the cheap diamonds are cheap.  It may be the make. It may be the type and location of the inclusion. Perhaps there is a color tinge.  Perhaps there is a “cloud”.  There are many factors that effects the overall sparkle and scintillation that makes a diamond special!

Low price is just that. It is low price.  It is not a factor of value.  Value, on the other hand, is a reasonable price for a Renoir – despite the fact that it may be tens of millions of dollars.

 

 

Neil Reiff

GIA Diamond Grading – SIMPLIFIED

GIA Diamond Grading – SIMPLIFIED.

As I have stated in my previous posts, it is my opinion that the GIA grading system is ridiculous. This opinion is based on the fact that there are nearly 200 possible grade combinations of color and clarity.  To the human eye, under “normal life” conditions, the differentiations within the GIA grading system are like trying to characterize a woman’s beauty into 200 categories.

Most importantly, with regard to the GIA grading system one must recognize several things:

1)  Just because one diamond has a “higher” GIA grade combination than another does not mean that it is a more beautiful diamond.  

2) The difference between one or two grades is almost nothing at all in the overall beauty of a diamond.  Think of it this way . . .there are nearly 200 possible grade combinations; therefore the difference between F/VS1 to G/VS2 is just a slight incremental difference of two grades within a universe of 200!

3) Two diamonds may be of the same grade but one may be significantly more beautiful than the other- even within the same grade!

After more than 40 years in the diamond trade in which I have dealt with many thousands of diamonds and diamond grading reports, I have established my own diamond grading system which I believe makes more sense. This grading chart is seen below:

NDR DiamondGrading Chart REV2

As you can see, this grading chart contains FIVE grade parameters.  They are INVESTMENT, FINE, NICE, COMMERCIAL and GARBAGE.

Any diamond that falls within the top three grades is a diamond that will be very pleasing to look at in terms of a beautiful engagement ring.  It will not look yellow.  It should not look cloudy or imperfect.  It should have beautiful brilliance and scintillation.

It should be noted by the potential diamond buyer that, in most cases, a diamond should be evaluated on the chart above by looking at the average of the parameters.  For instance, a diamond that is graded F/SI2 should be considered at the upper end of the “nice” category.  Conversely, a diamond graded at F/VS2 but with a “Good” cut grade should be considered to fall within the “nice” category.

The Commercial and Garbage categories are a different story.  Diamonds that fall within these categories are not nearly as beautiful – and, in some cases, are UGLY!

Click here for detailed information with regard to the meanings of the above grading designations,

Is there a difference between a 1.50 carat D/Flawless round diamond that costs $45,000.00 and the 1.50 carat H/SI1 round diamond that costs $15,000.00?  Yes, there is,  But I can assure you that – as far as your eyes can tell when this diamond is set into a mounting, the $15,000.00 diamond should be nearly as beautiful as the $45,000.00 diamond.  On the other hand, the 1.50 carat L/I2 – (which in many cases is the mall store standard!) will not be beautiful when compared to the others !

My advice to a diamond buyer is simple.  Take a look at the chart above. Buy a diamond within the top three grades of the chart above.  Do not make yourself crazy distinguishing between ridiculous GIA grades.  It should not be that complicated.  You want a beautiful diamond. You don’t need a Rolls Royce.  Just avoid the junker!

Why pay more for the same diamond?

Why pay more for the same diamond?

If you have read any of my previous posts you will note a theme that runs through many of my blog posts. This recurring theme is that you should avoid the lowest price diamonds.  These diamonds are cheaper in price because they are usually worth less than the more expensive diamond. This is true despite the fact that – ON PAPER – they may seem to be the same GIA grade!

My wife and I recently purchased a new home. In the development in which the home is located there were six homes that we looked at. Each of the homes was built by the same builder at the same time. Each were similar in terms of their square footage.  Some had better lot locations than others.

The homes varied in the ‘sales price per square foot”.  The prices ranged from a bit less than $140.00 per square foot to a bit more than $180.00 per square foot.

Which home did we purchase?  The one for more than $180.00!!  And it was on one of the least valuable lots!

No. I am not wealthy enough that I do not care about the price.  I certainly do care.

Quite simply, despite the fact that each of the houses can be measured in “square footage”, the house we purchased was nicer.  It had a better feel. It had better finishes. It had a “special” character that the others did not have – for US!

So you ask – What is the point of this particular blog post?

As I have said repeatedly throughout my years in the diamond business, the specifications that are on paper tell only a part of the overall picture. The sure footage of a house  – on paper – is similar to the GIA designation of a color and a clarity. To some, it tells everything they think they need to know.  To others, they understand that things cannot be simplified down to numbers or letters – and the object, whether it be a house or a diamond or a beautiful woman or almost anything in life, must be seen with one’s eyes in order to determine what it truly looks like.

I could have bought the bargain house for 30% less money for the same square footage.  And, believe me, the difference in the overall amount of money is substantial.

But each time that I drive up to my house and each time that I walk into it – I will be home in the house that I truly will love and enjoy.

The bottom line is this.  If you go through life only concerning yourself with “lowest” price, you may be cheating yourself out of pleasure and enjoyment!