Date: Thu, 18 Dec 1997 03:20:33 GMT Server: WebSitePro/1.1h Accept-ranges: bytes Content-type: text/html Last-modified: Mon, 24 Nov 1997 12:15:36 GMT Content-length: 15418 Dallas Gold & Silver Exchange - Diamonds












Why Diamonds Are So Valuable
Diamonds - An International Gem
How a Diamond's Beauty is Revealed
Diamond Shapes or Cut
The 4C's

WHY DIAMONDS ARE SO VALUABLE

Anything extremely rare is also precious. Diamonds, formed billions of years ago, are rare in that only a few survived the hazardous journey from the depths of the earth to reach the earth's surface. Indeed, you may be suprised to learn that even though diamond production has increased in recent years, it is estimated that as little as 500 tons have ever been mined in recorded history to date. Of diamonds mined today, approximately 50% are judged to be of gem quality. Even fewer are large enough to be polished into diamonds that are much bigger than the head of a match.

To recover the relatively small amount of both gem quality and industrial diamonds is not easy, even with the increasing sophistication of today's technology. Approximately 250 tons of ore must be mined and processed from the average Kimberlite pipe in order to produce a one carat polished diamond of gem quality. Wherever possible, the considerable quantity of waste material produced is disposed of in such a way as to minimize the impact on the local environment.


THE MOST INTERNATIONAL OF ALL GEMS

Before a diamond reaches a woman's hand, it will probably touch at least four continents and the lives of hundreds of people. The expertise of many skilled and experienced craftsman is necessary for the complicated process of extracting and finishing a diamond.

Though diamonds were first mined in India over 2,800 years ago, the modern industry began with discoveries in South Africa in the late 19th century. Today,however, in volume, the top five diamond producing countries account for 90% of the world's rough cut diamond supply while in value, southern Africa accounts for just over half the world's rough diamond supply. The most important producer countries are as follows:

  • Australia
  • Zaire
  • Botswana
  • Russia
  • South Africa
  • Namibia

MAJOR CUTTING CENTRES

  • India
  • Israel
  • Antwerp
  • New York


    HOW A DIAMOND'S BEAUTY IS REVEALED

    A rough diamond so resembles a pebble that most people would pass it by without a glance. It is the skill of the craftsmen that unlocks the fiery beauty that lies within. The knowledge required for this incredibly demanding art has often been passed down over the centuries from generation to generation and it is an art for those involved simply cannot afford to make mistakes. At risk is not just the diamond itself, but anywhere from several hours to several months of work, for that is what is required in the cutting and polishing of each stone. During this time consuming process it is also interesting to learn that, on average, each stone will lose 50% of its original weight.

    The beauty of a diamond depends on the way it reflects and refracts light. The polisher must facet the stone so that it reflects light directly to the eye, while also allowing it to bounce around freely inside and emerge from the top. In this way, the maximum amount of light is reflected, and the diamond sparkles with fire, brilliance and scintillation.

    The places where diamonds are found and where these skilled craftsmen may work sometimes lie thousands of miles apart, for the diamond industry is truly international. Diamonds are polished in many places throughout the world, but the most significant centers are New York, Antwerp, Israel and India. Indeed, the diamond market is very important to these countries. For example, around three quarters of a million people work in the industry in India alone. In Israel, nearly 10,000 are employed in a business which generates around 25% of that country's total export earnings.


    THE SHAPE OR CUT OF A DIAMOND

    The precision and delicacy with which your diamond is cut will determine its brilliance, its fire and its ultimate beauty. The shape you select is a matter of individual taste and today your choice is only limited by the skill and imagination of the craftsman. The round brilliant is the most popular shape, but there is a wide variety of others that range from the more traditional marquise, pear, emerald, oval, baguette, square or heart to the more fanciful and creative.

  • The round brilliant is the most popular of all the polished diamond shapes.

  • The oval is an adaptation of the round brilliant and appears larger than a round stone of the same carat weight.

  • The marquise is the name given to the diamond shape that is long and pointed at both ends.

  • The heart shape is perhaps the most romantic of what are known as the fancy shapes.

  • The emerald cut diamond is rectangular, with oblong facets on each side and across the corners.

  • The pear shape is the English name for the French 'pendelogue' which is related to our word pendant.

  • The square cut also known as the Princess cut creates a bright and scintillating look.


  • THE 4C'S -- YOUR GUIDE TO DIAMOND QUALITY AND VALUE

    Quality is pivotal when determining a diamond's price. While a high-quality, 1 carat diamond costs about $6,000 to $10,000 these days, a flawed stone of the same size is worth one-third to one-quarter as much. For the average consumer, it's tough to know the difference - and that could mean paying thousands of dollars too much.

    How do you know whether a diamond is worth the price? Here's a guide to everything you ever wanted to know about buying a diamond - but didn't know to ask.

    A diamond is judged by four distinct factors that combine to arrive at its value: Cut, Color, Clarity and Carat Weight. While carat weight is easily determined by putting a diamond on a scale, the other factors are both subtle and subjective. However, consumers who are buying relatively large stones - near or more than 1 carat - should know that there are a handful of laboratories that issue reports on individual stones. If you are buying a large stone, the jeweler is likely to have such a report on any diamond you are considering - if it doesn't, it should be willing to get one.

    These reports are valuable on two counts. First, they give the lab analyst's seasoned opinion of the quality factors - the "four Cs" - that affect the diamond's price. They also provide a "fingerprint" of your diamond. A good jeweler should be able to trace that fingerprint for you - from report to stone - so you know you are getting precisely the diamond you are paying for. Moreover, if your diamond is ever lost or stolen, the report can prove pivotal in getting adequate reimbursement from your insurance company.

    These are called the 4C's.

    CARAT WEIGHT

    As with all precious stones, the weight of a diamond is expressed in carats. The word carat originated in a natural unit of weight: the seeds of the carob tree. Diamonds were originally weighed against these seeds until the system was standardized and one carat was fixed at 0.2 grams (one fifth of a gram).

    One carat is divided into 100 "points" so that a diamond of 25 points is described as a quarter of a carat or 0.25 carats. A diamond's weight is rarely misrepresented, but what few buyers realize is that they pay a premium when they go beyond certain threshold weights. For instance, jumping from 49 points to 50 points - an exact half-carat - can cost you about 20% more even though you probably couldn't tell the difference between the two stones without a scale.

    CLARITY

    • FL Loupe Clean (Flawless)
    • IF - Loupe Clean (Internally Flawless - minor surface blemishes)
    • VVS1-VVS2 (very, very small inclusions)
    • VS1-VS2 (very small inclusions)
    • Sl1-Sl2-SI3 (small inclusions)
    • I1-I2-I3 (inclusions visible to the naked eye)

    Almost all diamonds contain minute traces of non-crystallized carbon or small non-diamond crystals. Most are not discernible to the naked eye and require magnification to become visible. Called inclusions, they are nature's finger print and make every diamond unique. However, the fewer there are, the rarer the stone will be.

    Clarity, therefore, is the term that is used to indicate the extent to which the diamond you purchase is free of these natural phenomena.

    Diamonds are given "clarity" ratings that gauge the inclusions. An IF rating indicates a stone that is considered flawless, while the more common designations of VVS1 and VVS2, VS1 and VS2 indicate that the diamond has flaws or "inclusions," but small ones that require a trained eye - and often a jeweler's magnifying glass - to notice. Diamonds, rated SI1, SI2, or SI3, have flaws that can easily be spotted with the aid of a jewelers loupe. Diamonds rated I1 or I2 have inclusions that can be easily spotted by the naked eye. They are also vastly less valuable than more perfect diamonds.

    At present, a stone is termed flawless by the GIA if it is without surface characteristics or internal inclusions.

    COLOR

    It sometimes surprises people to learn that diamonds can cover the entire spectrum of colors. The majority, however, range from those with a barely perceptible yellow or brownish tint, to those that are very rare and are described as colorless.

    Rare stones of exceptional color - green, red, blue, pink or amber are known as fancies.

    A diamond's color is given a letter grade from D to Z, with D being the best and Z the worst. These color variations are subtle, to say the least. Grades ranging from D to F are all considered "colorless" - the most valuable - , grades G-J are considered near colorless, while letters further down the alphabet indicate the diamond is taking on a yellow hue. That can have a massive impact on the price.

    CUT

    Of all the 4C's, cut is the one most directly influenced by humans. The other three are dictated by nature. The cut or make of a diamond will dramatically influence its fire and sparkle, for it is the polisher's skill that releases its beauty.

    It is the cut that enables a diamond to make the best use of light. When a diamond is cut to good proportions, light is reflected from one facet to another and then dispersed through the crown or top of the stone. If the cut of the diamond is too deep, some light escapes through the opposite side of the pavillion or bottom. If the cut is too shallow, light escapes through the pavillion or bottom before it can be reflected.

    The cut of a diamond will provide a good portion of the"fire" or sparkle. When cut properly, light bounces off the facets at the bottom back up toward your eye. While diamond experts quibble over the exact dimensions that make a cut ideal, they agree that if a diamond is cut too deep or too shallow, light will escape, leaving the diamond less brilliant.

    Still, if you do cut a diamond too long or wide, it will weigh more. Because carat weight is one aspect of a diamond's value that most consumers do understand, the retailer may charge more for a less-valuable stone.


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