Learn about Gem Pricing to Get Your Money’s Worth


 

From diamond cushion cut engagement rings. Gemstones are the more expensive component of any piece of Jewelry. Actually, it’s the Gemstone that identifies the Jewelry, like a “Gemstone ring”, an “emerald necklace” or a “ruby brooch”. 

How to Price Diamonds

Gemstones are generally expensive and are bought not only for decorative use but for investments too. Some very expensive pieces of Jewelry are bought mainly as an investment and they stay in the vault for safekeeping most of the time. How can a buyer or investor know that the Jewelry is worth its price tag? What or who determines Gemstone pricing? 

The following are factors that dictate or determine the price or value of Gemstones: 

1. Cost of the raw material to be cleaned, cut, and  polished to produce a valuable and attractive gem. The skill of the cutter is very important to keep waste to a minimum and therefore produce a better yield. 

2. Color, Clarity, Cut and Carat Weight 

The 4C’s are popularly associated with Gemstones but they are also applicable in assessing other gems. Here are tips in using the 4C’s
Color: The general rule is, the brighter and more vivid the color, the better. 
Clarity: In the case of Diamonds, a piece  without any visible flaws is the most valuable. The less inclusions, the better. However, there are exemptions, where inclusions give more value. In a cat’s eye, the reflection of inclusions puts the “eye”. Inclusions may also tell the origin of the Gemstone.
Cut: In Diamonds, the angles and depth of the cut are factors for its brilliance.  
Carat: The carat, which is one-fifth of a gram is the unit by which Diamonds are sold, not by its size. 

3. Rarity: As with other items, if it is rare or limited in quantity, the seller can demand a higher price. 

4. Buyer’s Taste: Yes, the Diamond should be worth its price but the buyer may choose one simply because it will look good on him or her. 

The above bases in pricing are subjective but there are organizations who can perform objective assessments based on scientific methods of testing. Certification is issued based on the test results. Some of the widely-recognized are the following: 

1. Gemological Institute of America (GIA)
2. American Gemological Society (AGS)
3. American Trade Laboratory of the American Gem Trade Association
4. American Gemological Laboratories (AGL)
5. European Gemological Laboratory (EGL)

For Gemstones, there are organizations of those involved in their trading that issue pricing guides regularly. 

 

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