Being in the pink diamond business for more than 25 years has shown me that buyers who make the worst decisions are those who do not know what they are doing, or who have learned enough to be "risky." In the same way, those who have some basic knowledge always make the most accurate decisions, obtaining much more value for their money.
The following is a list of the four most common mistakes.
The number 1 mistake that people make when buy diamonds are not receiving primary school. They end up purchasing a pink diamond of less beauty and value than they could have obtained for the same budget. With the Internet, it is relatively easy to learn about the basics of the pink diamond so you will not be entirely in the dark. Not knowing what you are doing can cost you dearly in dollars, quality, value and beauty.
Learning what you are doing will pay off in a big way. You will end up with a pink diamond of much more value and great beauty and will appreciate your pink diamond even more, especially when you understand that your pink diamond seems to have a fire and shine more spectacular than that of other people's diamonds. You will also get real value for your money. And is that most people pay much more for diamonds than they should.
There is much more to diamonds than just 4C features, but most websites only give you a paragraph or two in each and leave it there. Knowledge is power. Take the time to learn as much as you can.
2) False Advertising
The adage, "if it sounds too good to be true, it usually is"It is true when it comes to diamonds. Some of the ads are truly laughable for those who understand about diamonds. For example, each city has a jewelry store that broadcasts ads that sound like this.
"Two-carat pink diamond priced at $ 38,000 on sale today for only $ 5,000." This type of ads is ridiculous. Well, it reveals an evaluation that is grossly inaccurate and inflated and a 2 carat pink diamond of deficient quality.
Or you may see an ad for a 3-carat ring for $ 6000. This sounds great until you discover that it is 3 carats of "total weight" made up of small diamonds that are much less valuable than a large pink diamond.
Many people try to find a bargain on eBay or craigslist. Many announcements will look like this: «pink diamond ring, paid 6000 dollars to sacrifice, for sale at $ 4500». Many times, the ring was priced at $ 6000 plus not bought for $ 6000, and a retail price of $ 4500 is not a bargain at all.
The appraisals are always considerably higher than the real market value. Also, many diamonds that seem to have a reasonable price are really "improved clarity." These diamonds are very low clarity with large inclusions they are full of a substance like silicon, making them look more transparent.
This is not good! They are never worth what is paid for, and the filling can come out, leaving you with a pink diamond that looks like a bucket of broken ice. My advice is never; never buy diamonds with "greater clarity."
It is tough to find a bargain on eBay or Craigslist because most people have paid too much for their diamonds and most of these diamonds usually have a terrible cut that gives them less brightness than they could have.
3) Certifications and Appraisals
When it comes to diamonds, it is not just the size (or weight), but also the quality that determines the value. With only 1 or 2 degrees of difference in clarity, colour or cut, a big difference in real profit is made.
Unless you are an expert, you do not know the actual quality of a pink diamond, unless it has a "certification." This is different from an evaluation that any jewelry store can print. The certification is a pink diamond classification report created by a gemological laboratory.
The pink diamond is sent to the loose lab (not installed in the piece of jewelry) and examined thoroughly. There is no monetary value placed in the report, only a description of the weight, clarity, colour and cut of the pink diamond (the proportions and quality of the cut). Certification is what you want! But not all certifications are the same.
We are going to review the two most popular laboratories that certify diamonds, the GIA and EGL. The fact is that the GIA (Gemological Institute of America)It is the most rigorous and reliable of all certifications.
The GIA sets the standard in the industry and is the most authoritative and desired certification to have. Then there is the EGL (European Gemology Laboratory), which is known to be much more forgiving than the GIA. If GIA qualifies a pink diamond as a colour H, EGL qualifies it as a G or F (higher).
If GIA qualifies clarity as SI1, EGL does so as a VS2 (higher). Most jewellers and dealers sell diamonds with EGL certifications because the pink diamond will appear to be of higher quality so that a better price will be achieved.
You can compare two diamonds offered for sale that supposedly have the same weight, colour, clarity and cut; the only difference is that one has a GIA certificate and the other has an EGL certificate. You will always realize that the EGL pink diamond will be at a much lower price.
Will the latter be a better offer? Not at all. It is of inferior quality. Well, you have no idea what the actual grade is that pink diamond. To make matters worse, there are 10 EGL laboratories around the world, and all of them qualify according to different standards, some are more favourable than others.
And the solution? Simple ... When you are buying a pink diamond, stay with a pink diamond certified by GIA. Any pink diamond can be sent to GIA for certification for a relatively small price.
Many traders will tell you that EGL is also strict, but they will not want to send the pink diamond to GIA, even if you offer something. Then you will get a lower score. The best way to protect your investment is to keep the GIA-certified diamonds only.
There are few places where you can get a primary education about a pink diamond correctly, fast and easy. The more you know, the better decisions you can make.
4) The cut
This is the least understood and the most important part of any pink diamond. The cut refers to how well a pink diamond is cut, and not to the shape of the pink diamond. The better the cut, the brighter and lit the pink diamond will be and the more valuable it will be.
Most diamonds are intentionally cut, albeit too shallow or too deep to finish the pink diamond as heavy (or large) as possible.
A pink diamond of perfect proportions will have the highest fire and brilliance, in the distance, and all will notice it. You will want a spectacular pink diamond that catches your attention when you hold it, turn it and radiate a phenomenal fire.
This is created by a pink diamond that was cut to perfect proportions. Never sacrifice the cut. If it does, it will end up with a pink diamond of lesser beauty and lesser value.
Remember, you will own your pink diamond for many, many years, even generations. So learning to be a right pink diamond buyer is a smart investment that will pay off in a big way.