Have you ever questioned why there are so many cheap diamonds on the market? And how can you almost always find a ‘better’ bargain on the internet? What’s the catch?
Consider you see a diamond offered at an auction, or online, for a very affordable price – let’s dive into this.
Below are the certificates for a pair of diamonds; each diamond is 2 carats, with a colour F, and with a clarity of VS1. Everything looks perfect, and the seller has them online in an excellent cut, for only 50,000 EUR for the pair.
Do you think these diamonds are a good investment?
The answer is no.
First of all, they don’t have the same dimensions. The first diamond is 8.14 mm wide, and the other is 7.51 mm; that’s quite a considerable difference.
Secondly, let’s take a look at the cut grade;
GIA grades the cut grade in 3 different aspects:
● Cut grade
If you’re looking to buy the perfect diamond, then all aspects have be graded as Excellent. That’s not the case for either of these diamonds – as a result, the diamonds are not cut to perfection and will not shine as much as a diamond of an Excellent grade in all 3 aspects.
In the diamond-trade industry, we call diamonds graded Excellent in all 3 aspects a triple-excellent diamond, or just a triple-ex. These are exactly the diamonds we search for, and they make very good investments.
Lastly, one of the diamonds demonstrates fluorescence (graded as Strong Blue) which essentially means that the diamond lights up strongly in blue under UV light. When searching for investment diamonds, we avoid diamonds that show fluorescence.
This is just one example, next week I will show you some other scenarios.