A house is an investment that builds equity. So is a diamond. Just as you would hire a home inspector to check for defects and quality of materials, you should hire a diamond appraiser to inspect for flaws, authenticity, and determine if the price is right.
Need for Appraising a Diamond
Purchasing a diamond is a significant investment for most buyers, so it’s crucial to approach the process with all five senses finely tuned. Jewelry suppliers may or may not provide accurate information, and buyers may face consequences later if they don’t take precautions. It’s also a wise business decision to get a second opinion before making such a purchase. Heaven forbid, if you ever need to resell the diamond for something like major surgery, you’d want peace of mind knowing you’ll get the best value. You want the diamond’s blue and fire to maintain the same characteristics decades later, just like a blue-chip stock.
How Does a Buyer Find an Appraiser?
So how does a buyer ensure that the diamond is exactly as represented? The first step is to hire an accredited and certified gemologist to appraise the diamond. This professional must have the proper training and equipment to perform a thorough and scientifically accurate analysis. Only with this expertise can a buyer be confident that the appraisal is accurate and based on verifiable facts.
Gemologists can serve as appraisers, provided they are properly accredited. They should hold a Graduate Gemologist Diploma from the GIA, with certificates in GIA Diamond Grading, GIA Colored Stones, and GIA Gem Identification. The American Gem Society also issues credentials like Registered Jewelers, Certified Gemologists, and Certified Gemologist Appraisers. If an appraiser holds any of these certifications, it indicates that they’ve received proper training in gemstone analysis and appraising. However, these credentials alone aren’t enough.
It’s also vital to ensure the appraiser is truly independent. If they have a partnership with or are employed by a jewelry dealer and stand to profit from a sale, their appraisals might not be entirely objective.
To guarantee full independence, appraisers should avoid buying or selling diamonds. They should only work for either the buyer or the seller, but not both. They should also refuse requests from jewelry dealers for grading services, as this could compromise their impartiality. If an appraiser rejects certain stones, it indicates that they are being objective and critical, which is a positive sign for the buyer. However, if an appraiser consistently issues positive reports on every diamond they examine, it’s likely that they’re biased and not independent.
The Process of Appraising a Diamond
The buyer should schedule an appointment to meet with the appraiser in person. During this meeting, the appraiser will explain what the appraisal covers, including the traditional 4 Cs: carat, cut, color, and clarity. Appraisal costs typically range from $75 to $100, with charges increasing by about $50 for every additional 15 minutes.
Even if the diamond has already been purchased, this appraisal process should still be followed. Under no circumstances should a buyer send their diamond through the mail, even if it’s insured. Since appraisers need to conduct various tests, the buyer should expect to leave the diamond with them for a few hours. This requirement alone emphasizes the importance of taking the stone to a licensed appraiser, not just anyone who happens to be a friend of a friend.
Appraisers will assess the diamond’s attractiveness based on terms like “table,” “depth percentage,” and symmetry. They will also examine the stone’s color, clarity, fluorescence, and any additional facets in the diamond’s cut. Inclusions will be identified, both those visible to the naked eye and those detectable with a jeweler’s loupe. The diamond will also be weighed. A carat, which is a fifth of a gram, serves as the standard weight unit for gemstones. One carat is divided into 100 smaller units, called points. Therefore, a 50-point diamond is also 0.5 carat. When describing size, diamonds are measured in millimeters.
Appraisers use specialized equipment (and sometimes a lab) to finalize their findings. It’s at the appraiser’s discretion whether to ask the buyer the price they paid. However, if they don’t ask, the buyer’s decision should not be influenced by the appraiser’s opinion.
What Else Do Appraisers Do?
Appraisers may provide an appraisal document that meets the standards of professional appraisal societies. This document should include letters of request and introductions between the buyer and the appraiser. It should also contain the appraiser’s resume, credentials, and the terms of the appraisal process. The grading system should be clearly explained, and the final appraisal should reflect the current market value. The document should also address any factors affecting insurance risk.
If the buyer decides to purchase the diamond after the appraisal, the appraiser can help with discussions about proper insurance coverage. They will issue a Certified Replacement Appraisal for Insurance Purposes, along with a certificate of authenticity.
Buyers should remember that appraisers work independently for the specific purpose of either buying or selling a diamond. When it comes time to resell the diamond, the appraiser’s expertise may be just as valuable in protecting the buyer’s investment.
Ultimately, the minimal cost of hiring a professional appraiser is well worth it compared to the potential consequences of not using one. What if flaws are discovered that the buyer wasn’t aware of? Accredited, professional appraisers can also answer questions that a buyer might hesitate to ask the jeweler or seller. After a thorough evaluation, the buyer can feel confident that buying the diamond was indeed the “purchase of a lifetime.”
Impress Your Appraiser
To avoid being taken advantage of, consider demonstrating the knowledge you’ve gained about diamonds when meeting with the appraiser. This will show that you’re not a novice.
Start by asking about the 4 Cs – you can get this basic information from books or online sources. Once you feel satisfied with the answers, you can move on to more interesting questions, such as inquiring about famous diamonds.
For example, you could ask if your stone resembles the Sancy diamond. If the appraiser suppresses a laugh and says no, you could follow up with, “What about the Cullinan?” Chances are, he’ll say no again, but you’ll have impressed him more than you know.
Finally, you could ask, “Well, I thought I invested in the best. So, does my diamond at least come close to the Dresden Green? I’d even settle for the Spoon Maker diamond.”
