Question for the experts on diamond pricing

[cflutist]

Was just looking at the price stats on PS and wanted to know from the
experts why color seems to influence prices more than clarity?

For example, 3ct F-SI1s were about $3K per carat more than K-IFs.
To me you would think the IF would be priced more since it is at
the top (well below FL) of the clarity grade whereas and F is two grades down from a "D".

Can someone explain the pricing structure to us?
Does color influence prices more than clarity? If so, why?

 

[Maxine]

I''m certainly no expert, but I just had two small pieces appraised for insurance purposes today, and she said that she thought color had a greater influence....that''s what you''re "paying for" in say an E VS stone .....Is it possible that the color will always be the color and that the clarity can be changed by some unfortunate mishap like a whack on an object or something????

 

[cflutist]

.

 

[Jennifer5973]

I am also no expert but I have heard many people say that the layman''s eye can detect color far more readily than clarity. In my experience, unless the stone is heavily included, it is almost impossible for the casual observer to see inclusions under normal viewing conditions. However, I have noticed tint in diamonds, especially big ones, from the side, even if well cut. This does not mean that "lower" color diamonds aren''t beautiful; they are just warmer. That''s why they ahve those grades... if it didn''t matter, every diamond would be a "D".

 

[Rhino]

Good question cflutist.

It is becuase it all boils down to that old formula of supply and demand. An F SI1 is in much higher demand than a K IF with a considerbly higher sales ratio. While an IF is waay more rare than an SI1, the value is ultimately determined by the combination of the 2 (along with cut and carat weight of course).

 

[RockDoc]

I think primarilly it is based on rarity, and secondly on consumer demand.

Take the D IF vs the E IF - big difference in sizes over 1 carat.

But then a fairly similar market price exists for the D IF vs the D VVS-1.

The person spending the amount of money it takes to get a D- IF wants the best... and usually isn''t willing to compromise that, which I believe keeps the prices in those grades so different.

Also what can be observed the price differences between VS-1 and VS-2 in some sizes isn''t too much, but the price differences between J and K color can be far greater. Why? some J color stones can actually face up quite better than they are, while K color stones, only one grade lower usually have that warmish color face up, and thus there is less demand and hence a lower price.

Price difference between different grades are sort of individual to their apparent characteristics, and perceived characteristics.

Some of it is of course clever and well thought out marketing. Just the past year or two look at the publicity surrounding fancy color diamonds.That publicity has caused a dramatic increase in certain fancy colors. Understanding the differences which result in pricing needs to be well understood. Unforuntunately, some of the demand is created by exaggeration in marketing, sometimes it is just consumer perception of a particular quality resulting in the thought that the difference between and H and I color should be equal to the price difference between I and J. Each grading has with it, it''s own little "compartment" of pricing and desireability.

Plus things change. Fashion has some affect too. 100 years ago the warmer color diamonds were more rare, and commanded prices more than colorless diamonds did. With the extensive diamond finds in S Africa or slightly tinted color the market reversed itself.

Just my 2 cents on this.....

Rockdoc

 

[JohnQuixote]

I may be echoing some of Rock's input, but here goes.

In diamonds of average cut and below color plays a more dramatic role than clarity: Visit your mall stores and note the color differences between D and J.

On Pricescope we are accustomed to great looking near-colorless rounds. Many G-Js on PS are touted as facing up like colorless diamonds. Alternately, in a world of average-poor cut quality, J appears yellowish.

I think it's safe to say that in our little corner of the world color considerations take something of a back seat to clarity (if the cut is great). Out in the rest of the world it's different, thus the premium.

 

[Dancing Fire]

i''m a G/H color person.i guess that''s the good news for being color blind. i can save some [$$)]

 

[diamondsbylauren]

Good points!
Here''s another thing that mkaes color more prized-
Rough is traded based primarily in lots graded by color. Icy whte being more rare than slightly tinted might be the actual fact, or an attempt by the cartel to convince us of that fact. IN eithe case, high white rough is simply a lot more expensive.
I do find it to be true in the market - especially larger stones- that D-E-F colors are harder to find than I-J colors.

 

[Richard Sherwood]

And as color is one of the characteristics which is most obvious to the naked eye, it tends to affect value more than clarity, the difference of which isn''t visible except with a loupe in SI grades or better.

The things you notice immediately with the naked eye are size, brilliance and color.