Like the diamonds themselves, there is an almost endless supply of informational websites teaching the consumer the best way to buy a diamond. The problem is, however, that if you look closely you will find that the vast majority of these informational pages are owned, either overtly or covertly, by the very same people looking to sell you a diamond. Most people know by now not to trust everything your car salesman says about the car he's trying to sell you, so should the person trying to sell you a diamond be looked at any differently?
The simple fact is that almost all advice given online about how to buy a diamond is grossly exaggerated to fit the particular type of diamond that each vendor specializes in. A vendor who specializes in "ideal cuts" is going to tell you that everything else but "ideal cuts" are junk and don't look nearly as nice as what they're selling. An online vendor who doesn't offer pictures will tell you that you need to buy a high clarity grade, or else you could wind up with an eye visible inclusion.
I would like to present to you, the diamond consumer, my take on the four Cs (Cut, Clarity, Color, Carat). What I'm going to explain to you now is the way every diamond dealer I know would approach buying a diamond for his wife or girlfriend. You'd be wise to do the same.
To preface my discussion of each "C" individually, it's important to discuss two important issues first. First of all, we need to address where to buy the diamond and the simple answer to that question is: online. While bricks and mortar stores provide the obvious benefit of being able to see the diamond ahead of time, that one benefit is not worth the much greater margin you're going to end up paying. Most online vendors markup their diamonds anywhere from 10 to 18 percent. Bricks and mortar stores will typically markup their diamonds around 50% -- and that's down significantly from where it was just about 10 years ago when it was closer to 100%.
The second issue that needs discussion is my general approach to balancing tradeoffs between the four Cs. Before you attempt to evaluate this balance, you need to define the goal for yourself. I typically advise one of two goals: Either trying to buy the largest diamond for your specific budget, or alternatively, keeping the size where you had originally planned it, but trying to buy the cheapest diamond (that obviously covers my minimum requirements) for that size. The analogy for balancing the four Cs that I like to use is that of a pie. Each "C" represents a slice of the pie. The larger (better) one slice, the smaller the other slices necessarily become. My diamond buying strategy can be summed up quite succinctly as the following: minimizing the slices that your eye doesn't notice (diamond color and clarity), and maximizing the slices that your eye does notice (carat and cut).
Monday, December 7, 2009
An Insight Into Diamond
The term ‘diamond’ is enough to arouse interest. It is precious, hardest and available for life. Diamonds are actually allotrope of carbon with solid hardness and high dispersion of light. Popularity of diamonds dates back to 19th century. Factors like availability, increased demand and supply, emergence of improved cutting techniques etc paved the way for diamonds towards the much appraised resource of the world. These are highly popular in fashion industry and useful for innovative industrial applications.
Diamonds can be of several sizes. The most popular diamonds are large diamonds, oval diamonds, investment diamonds, round diamond, Princess Diamonds, big diamonds etc. All these are distinctive and carry weight of their own. Large diamonds are highly popular for their shape. However, the trait ‘large’ is not the only responsible factor behind their popularity. Large diamonds are also known for their fine-edged cutting and shine. Excluding large diamonds, oval diamonds and round shaped diamonds are also worthwhile for their idiosyncratic shape and brilliant look. Round diamonds are different from fancy-shaped diamonds for the latter one is usually more difficult to cut.
Diamonds can be of several sizes. The most popular diamonds are large diamonds, oval diamonds, investment diamonds, round diamond, Princess Diamonds, big diamonds etc. All these are distinctive and carry weight of their own. Large diamonds are highly popular for their shape. However, the trait ‘large’ is not the only responsible factor behind their popularity. Large diamonds are also known for their fine-edged cutting and shine. Excluding large diamonds, oval diamonds and round shaped diamonds are also worthwhile for their idiosyncratic shape and brilliant look. Round diamonds are different from fancy-shaped diamonds for the latter one is usually more difficult to cut.
Origin of the Diamond Trade
Diamonds, because of their radiance, elegance, superb quality and equivalent high value are typically thought of as being owned and adorned only by Royalty, high ranking officials and the super wealthy people. This might have been true many, many years ago. But because of the success of the diamond trade and industry today, us mere consumers can now have our own piece of this precious stone, no matter how big or how small.
The diamond trade started off during the early 1900s. But before then, as mines and river deposits began producing diamonds in South Africa, Cecil Rhodes got his start by renting out water pumps to miners. Rhodes invested his profits by buying up claims of small mining companies as well as properties for diamond mining purposes. In 1888, Rhodes formed the De Beers Consolidated Mines, which eventually became the sole owner of diamond mining operations in South Africa.
To market his diamonds, Rhodes created a partnership with the London-based Diamond Syndicate in 1899. They agreed that Diamond Syndicate will buy a fixed quantity of diamonds at an agreed price. This strategy would regulate the diamond output thereby regulating and maintaining the value of the diamonds and their prices. De Beers soon controlled 85% of the world diamond production and was considered to be the greatest marketing campaign ever created.
The diamond trade started off during the early 1900s. But before then, as mines and river deposits began producing diamonds in South Africa, Cecil Rhodes got his start by renting out water pumps to miners. Rhodes invested his profits by buying up claims of small mining companies as well as properties for diamond mining purposes. In 1888, Rhodes formed the De Beers Consolidated Mines, which eventually became the sole owner of diamond mining operations in South Africa.
To market his diamonds, Rhodes created a partnership with the London-based Diamond Syndicate in 1899. They agreed that Diamond Syndicate will buy a fixed quantity of diamonds at an agreed price. This strategy would regulate the diamond output thereby regulating and maintaining the value of the diamonds and their prices. De Beers soon controlled 85% of the world diamond production and was considered to be the greatest marketing campaign ever created.
Governments With No Control Over Blood Diamond Trade
Created to stem the flow of illegal diamonds, The Kimberley Process is on the tip of collapse, as its leading designer, Ian Smillie, leaves angrily. He says governments and the industry have to act against gross violations.
Blood Diamonds finance conflict, civil wars and human right abuses. Top of the list is the nation of Zimbabwe, where between 10-20,000 illegal diamond workers were murdered last year by the army, as the government militarized a key mining region. Both illegal workers and the African Consolidate Resources were locked out of the region by the government.
Just a small number of conflict diamonds can create havoc in a nation. It is thought that up to 20% of diamonds globally, are from the illicit trade of Blood Diamonds. Set up by governments, the Kimberley Process was designed to stop the trade, but has failed dismally to achieve its goal, through lack of implementation. $23 million worth of stones enter into the legal trade from Sierra Leone alone.
Most of the African diamond-rich nations are extremely poor, with no assistance flowing down to the people from their countries mineral riches.
Blood Diamonds finance conflict, civil wars and human right abuses. Top of the list is the nation of Zimbabwe, where between 10-20,000 illegal diamond workers were murdered last year by the army, as the government militarized a key mining region. Both illegal workers and the African Consolidate Resources were locked out of the region by the government.
Just a small number of conflict diamonds can create havoc in a nation. It is thought that up to 20% of diamonds globally, are from the illicit trade of Blood Diamonds. Set up by governments, the Kimberley Process was designed to stop the trade, but has failed dismally to achieve its goal, through lack of implementation. $23 million worth of stones enter into the legal trade from Sierra Leone alone.
Most of the African diamond-rich nations are extremely poor, with no assistance flowing down to the people from their countries mineral riches.
The Straight Goods On Conflict Diamonds
When you buy something as significant and timeless as a diamond, for any occasion, it makes sense that you would like to know the history of that valuable memento.
In the late 1990's, the world became aware of the existence of "conflict diamonds," jewels that have been used to fund insurgent or invading army's war efforts.
Today, over 99% of the world's diamond supply has been verified to be completely conflict free, and reputable retailers and suppliers of diamonds the world over have embraced a policy never to support the countries involved in the diamond trade that still engage in these practices. Still, retailers such as Spence Diamonds see the value in educating their customers and staff on the issue of conflict diamonds, to better understand the importance and the process of diamonds that are procured through fair trade.
In 2000, a joint initiative supported by the United Nations General Assembly created the Kimberly Process, an international certification regimen that aims to put an end to illegally traded diamonds. Today, 69 countries are legally bound by the rules of this strict and thorough process.
In the late 1990's, the world became aware of the existence of "conflict diamonds," jewels that have been used to fund insurgent or invading army's war efforts.
Today, over 99% of the world's diamond supply has been verified to be completely conflict free, and reputable retailers and suppliers of diamonds the world over have embraced a policy never to support the countries involved in the diamond trade that still engage in these practices. Still, retailers such as Spence Diamonds see the value in educating their customers and staff on the issue of conflict diamonds, to better understand the importance and the process of diamonds that are procured through fair trade.
In 2000, a joint initiative supported by the United Nations General Assembly created the Kimberly Process, an international certification regimen that aims to put an end to illegally traded diamonds. Today, 69 countries are legally bound by the rules of this strict and thorough process.
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