Tag Archives: Low price

A Good Deal on a Ugly Diamond is not a Good Deal.

I have written several posts over time regarding the diamond purchase process and the Internet.

Those who do not know me may think my repeated postings on the subject are a case of sour grapes in that the internet has changed the diamond business.  Though the internet has changed the diamond business in a few significant ways, my posts are my way of dealing with my frustrations of seeing the detrimental effects that the internet has on the consumer/diamond buyer.

I did a diamond appraisal this week for a Millennial.  He was obviously proud of the wonderful deal he got after I can’t even imagine how many hours or days of research. When I asked him how he got to the internet vendor company (one that I never heard of and which must take many hours or days to get to!), he proudly told me that he found this company after much research and that this company had the best prices.

As requested I evaluated his diamond and assured him that he got a great deal on his diamond with regard to the underlying GIA specifications.  He smiled as if I confirmed to him that he “beat” the system.

It is my honest professional opinion that this Millennial has just spent in excess of $10,000.00 on something that is not beautiful at all – unless, of course, one considers that specifications as set out on a piece of paper (the GIA grading report) to be the underlying beauty of a diamond.

This is a photo of the diamond that he purchased  .  . 

Though it may be somewhat difficult to see in the photo, this diamond looks somewhat dull as it severely lacking the scintillation and fire that makes a diamond beautiful.  This is despite the fact that the G/VVS2 color/clarity grade on the GIA report denotes a diamond that is truly fine.

 

The photo on the right is a different diamond that I photographed under the exact same lighting conditions.

This diamond jumps out at you. It draws you in as you look at the faceting and it’s scintillation and brilliance.   This is what a beautiful Cushion Cut diamond is supposed to look like.

To be honest with the reader it is the rare Cushion Cut diamond that looks like the diamond on the right.  It is also true that the cut on this diamond commands a premium price in the wholesale market when compared to the majority of Cushion Cut diamonds.

The Millennial who purchased the above diamond (in the ring) could have purchased the more beautiful diamond for a similar price to the diamond he purchased.  The reason he did not purchase the nicer diamond is twofold:  Firstly, he was only shopping for the best “deal” in terms of low price.  Secondly, he never had the opportunity to see the diamonds with his eyes as he was simply comparing the paper specifications of diamonds on the internet as opposed to actually having the opportunity to evaluate the underlying beauty of a diamond.

Most importantly, what is important for the reader to understand is that both of these two diamonds will someday be an engagement ring that someone will wear for many years.  The differences in the two diamonds, though seen somewhat significantly in these photos, will be much more apparent when the ring is worn.

One of these diamonds will be dull and somewhat lifeless, despite the fact that the buyer has a beautiful GIA grading report.  The other diamond (which also has a nice GIA grading report) will be appreciated by the owner/wearer and many others for a lifetime!

With regard to this author, I have once again temporarily relieved my frustrations that are inherent with the new age diamond buying process. More importantly, perhaps I have given a potential diamond buyer some food for thought as he contemplates making the right choices in the diamond buying process.

 

Neil Reiff

 

 

 

 

 

 

 

 

My Recommended GIA Diamond Quality Grade Has Changed.

For as long as I can remember, my “go to diamond“ has always been a GIA graded “HI/SI” diamond. For those not overly familiar with the terminology of diamond grading, this refers to a GIA color grade of “H” to “I” color and a GIA clarity grade range of “SI1” to “SI2”.  In my professional opinion, with a lifetime career of analyzing diamonds with respect to their beauty and brilliance, the diamonds that were within this GIA grade range “offered” the best balance of beauty and price.

I use the past tense because my opinion and recommendation has changed. This is the result of a change in GIA grading standards.  When I was in school there was talk of “grade inflation” which referred to the fact that “A”s and “B”s had become more of the average as teachers pushed up their grading curve. Well, the same thing has happened over the past few years at the GIA. Whether the result of an intentional shift in standards or an occurrence resulting from multiple GIA laboratory locations where standards became more relaxed, today’s GIA reports are inflated when compared to the old GIA standard.

One reason for the change in GIA grading standards is the rise of diamond production in India and the fact that many diamonds are graded of the GIA laboratory in Mumbai, India.  This is often discussed among diamond dealers with regard to whether there is corruption within the GIA system in India or just weak oversight of GIA standards.  It should me noted that the majority of diamonds are now being produced (cut, polished and certified) in India even though many diamond sellers might misrepresent this fact.

it used to be true that a “SI” grade diamond was a “nice” diamond in the majority of cases. By definition, a “SI” clarity grade is defined as a diamond with “minor inclusions somewhat easily seen under 10x power magnification but not apparent to the naked eye”.  Within the SI grade there is a distinction between “SI1” and “SI2” grades. This referred to the size and nature and location of the inclusions.  A “SI1” clarity grade was almost always a nice diamond. The pricing differential between a “SI1” and “SI2” is significant.  It was possible to locate a beautiful diamond was graded “SI2”.  This latter category of beautiful “SI2”s were my mission.

The idea of a beautiful “SI2” has become a rarity.  Many diamonds with black carbon center inclusions that previously fell within the “I1” (Imperfect) grade are now being certified by GIA as “SI” clarity.  Additionally, many diamonds that contain multiple inclusions or  “more than minor inclusions” that would have been classified as “I1” are also falling within the “SI” grades today.  This is most definitely true of recently graded “SI2” graded diamonds and many “SI1” graded diamonds as well.

While it is still possible to find a pleasing and nice “SI2” graded diamond, this is a much more difficult task than it was just a few years ago.  I would guess that it is the rare one or two percent of “SI2” graded diamonds that I could recommend.

So where does that leave us today?

Firstly, with regard to my opinion of color, it is still my opinion that a GIA color grade of “H” or “I” is sufficient. This is particularly true with regard to round diamonds.  A fancy shape diamond may sometimes require stepping up the color.  A round diamond that falls within the “H” or “I” color grade will almost always face up as a beautiful white diamond. Honestly, in a round diamond with a GIA “Excellent” cut grade, I have seen many GIA “J” and “K” color diamonds that I would recommend.

With regard to my current clarity recommendations, I now advise staying away from “SI2” graded diamonds.  I advise purchasing a  GIA “VS2” and “SI1″ clarity diamond. This recommendation is made with a cautionary note that even a ‘VS2” graded diamond, as true with any diamond,  must be looked at on an individual basis as not all “VS2″s should be purchased simply based on the grading report.

With regard to current GIA grading standards,  a diamond that is graded as “SI1” is usually a much nicer diamond than that which is graded “SI2”.  Although one may think that the pricing differential is greater between a “VS” grade and a “SI” grade, the largest pricing differential between any two GIA clarity grades is actually that between “SI1” and “SI2”.  As market pricing is based on the beauty of a diamond as well as market demand, it is fair to say that the “SI1” grade is significantly nicer and is more desirable than a “SI2” clarity diamond and this is the reason for the pricing differential.

This does not mean that I would advise against buying a better quality diamond.  I certainly respect any one who has an appreciation of quality and is willing to purchase a very fine diamond.  After all, there are reasons why a more expensive diamond is more expensive! Conversely, this does not mean that a “SI2” clarity diamond is never a beautiful diamond. However, one must be aware that such a “SI2” diamond is rare and understand that a “top SI2” diamond comes with a “premium price” as compared to the others.

My offered opinion and recommendation is made with regard to a proper balance of quality and price – in an effort to help the buyer get what I view as “the best bang for the buck” without making a “wrong” choice and ending up with a diamond that fails to achieve the scintillation and sparkle and brilliance for which a diamond is valued.

No matter the price range or the size range, the buyer must never lose sight of the fact that it is the beauty of a diamond that makes it cherished and precious.

In many of my previous blog posts, I have discussed the “price” vs. “quality” issues of purchasing a diamond.  It is my strong opinion that any diamond buyer who purchases a diamond simply based on lowest price is cheating himself.  There are reasons why there are significant price differentials in diamonds of the same GIA grade. This is true whether you are considering “SI” graded diamonds or “VS” graded diamonds.

Although I offer you my advice as to my recommended GIA diamond grades, I urge you to use your eyes to see what the diamond truly looks like – to the naked eye and under magnification.  Every diamond is unique and should be examined and evaluated and should not be purchased just by referencing a diamond grading report.

And as I have stated many times before, I urge you to put your trust in a someone who understands diamonds more than you ever will and wants to help you to acquire a beautiful diamond.

 

 

Neil Reiff

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.

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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