What is really important in Diamond Value?

[Diamond Explorer]

How much weight can be justified to be polished away to achieve a much higher grade of cut? Would it Make sense to turn a average 2 carat into an top notch 1.85+ or what about a 1.70 or even a 1.5? I imagine improving the clarity with a recut would make it all the more desirable. I am curious if any pros recut average make diamonds to fit the rigorous standards of the ever more educated consumer.

 

[Garry H (Cut Nut)]

If you can take a 1.85ct diamond and make it 1.999ct you can make a lot of money.
That is what happens most rough most of the time - and why most diamonds are not really well cut.

You can destroy value by taking a badly cut polished 2.00ct diamond and making it look better, and even look bigger most of the time by recutting it to 1.85ct

 

[arjunajane]

I would say it really has to depend on individual stone basis - size, colour, clarity, dimensions etc.. I know thats not what you want to hear, but not every stone is even suited to a re cut.
Then whether it will add value or no is another kettle of fish..

 

[Garry H (Cut Nut)]

understand this chart and you will understand the problem
http://diamonds.pricescope.com/tutor/availability_carat_distribution_chart_2007.jpg

 

[oldminer]

The market value of each diamond is a property of the consumer demand side of things and not some inherent "value" in diamond itself. Value is provided primarily by market demand since supply on most diamonds is adequate or even excessive. Demand is driven by marketing and market forces such as fashion, lifestyle, keeping up tradition, etc.

There is more demand for average cut diamonds which weigh more and look "okay" than for finely cut diamonds, which must weigh less, but look "fantastic" to the limited number of people who have figured out that they want a beautiful stone and not just as big a stone as they can afford.

Right now, value resides in the "give me the big stone" camp. Maybe as the years progress, we will see more and more educated consumers drift toward a bit smaller with better cutting. Value is where demand peaks and excellent cut is on the fringes of the current demand.

 

[Diamond Explorer]

Thanks for the input. I guess it really can only be taken on a case by case basis. Turning a 2ct Good Cut H/SI1 into an Ideal 1.85 H/SI1 would make little sense in terms of value, but I would have to believe that If you could turn that same 2ct H/SI1 into a 1.85 G/VS1 Ideal it would make more sense. Most diamonds don''t have inclusions that are that easy to polish away I know, but some do, and wouldn''t they be golden opportunities for the savvy dealer?

 

[denverappraiser]

Date: 10/30/2008 9:59:11 PM
Author: Diamond Explorer
Thanks for the input. I guess it really can only be taken on a case by case basis. Turning a 2ct Good Cut H/SI1 into an Ideal 1.85 H/SI1 would make little sense in terms of value, but I would have to believe that If you could turn that same 2ct H/SI1 into a 1.85 G/VS1 Ideal it would make more sense. Most diamonds don't have inclusions that are that easy to polish away I know, but some do, and wouldn't they be golden opportunities for the savvy dealer?

Perhaps, but remember that every diamond at least passed through the hands of the cutter and his/her coworkers and they made a conscious decision to cut it the way they did. That doesn’t mean that they are always right but you’re now hopping for a savvy dealer paired with an idiot cutter and with no other dealers between the two. It's not completely out of the question but I sure wouldn't bet on it.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[arjunajane]

Date: 10/30/2008 10:09:09 PM
Author: denverappraiser

Date: 10/30/2008 9:59:11 PM
Author: Diamond Explorer
Thanks for the input. I guess it really can only be taken on a case by case basis. Turning a 2ct Good Cut H/SI1 into an Ideal 1.85 H/SI1 would make little sense in terms of value, but I would have to believe that If you could turn that same 2ct H/SI1 into a 1.85 G/VS1 Ideal it would make more sense. Most diamonds don''t have inclusions that are that easy to polish away I know, but some do, and wouldn''t they be golden opportunities for the savvy dealer?

Perhaps, but remember that every diamond at least passed through the hands of the cutter and his/her coworkers and they made a conscious decision to cut it the way they did. That doesn’t mean that they are always right but you’re now hopping for a savvy dealer paired with an idiot cutter and with no other dealers between the two. It''s not completely out of the question but I sure wouldn''t bet on it.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

Bwa Ha ha !

 

[Diamond Explorer]

The world is never short on idiots. So best not count out the possibility.

 

[Sharon101]

Does the `better` cut actually cost more to do, or is the cost really the extra weight lost in the process?

And....assuming that all diamond material is the same....is every average cut diamond mearly hiding a perfect cut inside????

eg inside every poor cut diamond is a perfect smaller one ????

 

[Garry H (Cut Nut)]

Date: 10/31/2008 7:53:30 AM
Author: Sharon101
Does the `better` cut actually cost more to do, or is the cost really the extra weight lost in the process?

And....assuming that all diamond material is the same....is every average cut diamond mearly hiding a perfect cut inside????

eg inside every poor cut diamond is a perfect smaller one ????

Have a play around here and you might scratch the surface of an answer to a very compelex ?

 

[Sharon101]

I know that the issue is complex. I guess to some extent I was wondering if more diamonds could be cut with better proportions, and whether the only thing stopping this is the fact that the buying consumer/ marketplace currently values size above cut.

Also, when we buy a top cut diamond, does the price include the carat weight that was cut away that could otherwise have been left on?

 

[arjunajane]

Date: 10/31/2008 7:53:30 AM
Author: Sharon101
Does the `better` cut actually cost more to do, or is the cost really the extra weight lost in the process?

And....assuming that all diamond material is the same....is every average cut diamond mearly hiding a perfect cut inside????

eg inside every poor cut diamond is a perfect smaller one ????

Yes, it costs more in labour as it can take many more hours of the cutters time to create a true ideal cut. With a skilled cutter, there sholdn't really be a significant loss in weight, plus the ideal label will make up for this when it comes to retail time..
As to your other questions, yes a short answer is too difficult. There is plenty of info around here on these topics.

 

[WinkHPD]

Date: 10/30/2008 12:46:55 AM
Author:Diamond Explorer
How much weight can be justified to be polished away to achieve a much higher grade of cut? Would it Make sense to turn a average 2 carat into an top notch 1.85+ or what about a 1.70 or even a 1.5? I imagine improving the clarity with a recut would make it all the more desirable. I am curious if any pros recut average make diamonds to fit the rigorous standards of the ever more educated consumer.

As stated above, it can depend a lot on the starting weight of the diamond and other factors.

But, sometimes a recut is the best answer. I recently recut a 1.39ct F-VS1 that I had here for over three years on consignment for a lady who needed to sell her diamond. While her diamond was attractive, it paled in comparrison with most of the diamonds that I sell.

I sent it to Paul Slegers of Infinity diamonds and had it cut to Crafted by Infinity standards and it returned as a 1.20ct F-VS1. Initial reaction, Ouch, big weight loss! However, even after the cost of recutting and the loss of weight, I was able to get her $500 MORE than I was going to be able to give her before recutting and the diamond was sold in less than two months from the receipt of the finished diamond. Even had the value been slightly less, it would have been worth it to her as by the time it sold she was really needing the money.

For those who deal or want only beauty, the financial consideration of cutting to the top cuts is often outweighed by the increased pleasure of the better physical attributes. Sort of like asking a young lady would she rather date a handsome rich quarterback, or a middle aged overweight bag boy at the super market. Sure there will be a few who tout the beauty of the inner bagboy, but most will prefer the high performance of the quarterback...

Wink