Diamonds

When you walk into a jeweler, it's good to go in prepared. Understand what diamond prices are in the marketplace, but more importantly, have a good grasp on how they are priced and what determinants are used to arrive at that final price tag. Mainly, it's the four C's that dictate a diamond's value: color, clarity, cut and carat.

Color: Colors are graded on a letter scale, with D being the best. As one moves down the scale towards Z, the diamonds become more tinted and therefore less valuable.

Clarity: The clarity of a diamond describes its impurities. These can be anything from small cracks, cloudy white formations, and many other things. Flawless diamonds are rare, because they are devoid of internal or external flaws. There are also "Internal Flawless" diamonds, which means there are small imperfections that can be removed after a healthy polish. There are some groups that are referred to as "eye clean" because even though they contain imperfections, you won't really notice it.

Cut: The cut quality of a diamond describes the proportions (mostly how balanced it looks from the bottom out towards the crown), polish, and symmetry. Cut quality is rated on a scale between 0-10 with 0 cut being total perfection. This means that the cut falls into the American Gem Society's specifications, which gives maximum glow, or "brilliance."

Carat: Carat size describes the weight of a diamond.

Many jewelrs use the Rapaport Diamond Price sheet to price their diamonds. This weekly price list lists the current wholesale price of diamonds within the very famous and industry-leading Diamond District of New York City. However, it only accounts for the size and quality of the diamond, and assumes that the diamond shape is round. It doesn't factor in cut quality at all. Also, unusual shapes may also alter the pricing. Older style cuts, such as old European cuts and the rose cut may not be as desirable as the traditional brilliant round cut.