Ten Fatal Mistakes Men Make When Buying a Diamond

(What mama and the internet didn’t tell you)

 

By Jon Siegel

Jonathans Fine Jewelers, Inc.

A Houston Based diamond seller

 

 

Mistake number 1 - Buying from a family friend, a chain store or the internet. ÂFriends are good.ÂEveryone should have one or more.ÂIf it is important to you to buy from a friend, I suggest you prepare a budget of how much extra you are willing to pay to do so.ÂAll diamonds come out of the same earth.ÂYour price is determined by the seller’s cost and the profit margin he wishes to add. The best place to buy a diamond is from someone whose cost is low and who is willing to sell at a low profit margin.Â

The chain stores have high profit margins.ÂMost internet sellers don’t own their diamonds (they are consignees) and their cost is high because they are not a prime source.Â

 

Mistake number 2 - Buying an EGL (or IGI or HRD) certified diamond.ÂThe reason why some diamonds are not GIA certified is because the sellers of those diamonds can’t get the price they want by getting a GIA certificate.ÂThus, the price those sellers want is too high.ÂGIA certified diamonds are not more expensive than other diamonds, they are less expensive.ÂIf you don’t believe this, you simply don’t understand just how lenient the other labs are in their grading.ÂIsraeli and Belgium EGL’s are even worse than U.S. EGL’s.ÂIf you still don’t believe me, you will find out the hard way, if you ever try to resell your non-GIA certified diamond.ÂBuyers beware- a GIA appraisal is definitely not a GIA certificate.

 

Mistake number 3 - Insisting on a perfect cut.ÂThere is no question that if two diamonds are equal in every other respect, the better cut diamond is prettier.ÂIf two girls are equal in ever respect, marry the richer one.ÂThe problem is that no two diamonds (and no two girls) are equal in every respect.

The real issue isn’t what is the prettiest diamond.ÂThe real issue is what is the prettiest diamond for the money.ÂHere is my bias:

A.)ÂOne color grade generally supersedes a difference in cut unless a really poorly cut diamond is involved.

B.)ÂIn deviating from ideal proportions, a diamond that is 61.1 to 63 % depth is prettier than a diamond that is 55 to 59.9 %; i.e. a slightly deeper diamond is more brilliant to me than a slightly deeper diamond.ÂThe shallower diamond is also more susceptible to chipping.ÂThe downside is that the shallower diamond appears to be bigger.

C.)ÂPolish and symmetry have virtually no impact on the beauty of a diamond to the naked eye… if you doubt me; consult the GIA’s website on this point.

D.)ÂAvoid fair or poor symmetry or polish unless the diamond can be re-cut to at least good symmetry or polish.

 

Mistake number 4 - Buying a small, fine quality diamond instead of a big diamond.ÂAsk your girlfriend what she wants.Â90 % of women will tell you they prefer size over quality.ÂOf the remaining 10 %, at least half are lying to impress you.

Buyers beware.ÂWhen your wife of five years tells you that she has the smallest diamond of any kindergarten mom and wants to trade up, diamond price increases might well outpace your salary increases.

 

Mistake number 5 - Not investigating your jeweler’s return policy (and trade in policy).ÂIf you think you’re going to break up or get divorced within 90 days of purchase, buy from someone with a 90 day return policy.ÂIf not, buy from someone who will state in writing exactly what they will pay you for your diamond if you wish (or need) to sell it back more than 90 days from the date of purchase. Buyers beware.ÂAsk your jeweler how much of an upgrade is necessary in order for you to receive 100% of your purchase price back on a trade in.ÂIf a jeweler allows you to trade your diamond for 100 % of the purchase price regardless of whether the new diamond is more expensive, that would be a good deal.ÂIf you have to spend double in order to trade out of your old diamond, that would be a bad deal.

 

Mistake number 6 - Avoiding florescent diamonds.ÂDon’t believe the negative things you’ve read about florescence.ÂFlorescence is just one tiny little characteristic of a diamond that almost never has any significant impact on its appearance.ÂIt should have an impact on your diamond’s price (and resale ability), however.ÂMy bias- buy a D-G color diamond with strong blue florescence if it is more than 20% cheaper than a non-florescent diamond and does not appear hazy ( or darker when placed sideways on a white piece of paper).ÂMedium blue diamonds are a good deal if they are 15% cheaper.ÂFaint blue diamonds are worth as much as diamonds with no florescence and florescence is a positive trait in diamonds below J color because it makes them appear whiter.

 

Mistake number 7 - Buying a diamond on sale.ÂThere is no such thing.ÂDiamonds are a resalable hard asset with a finite liquidation value, just like an ounce of gold.ÂNobody will sell you an ounce of gold below the spot price, and no one will sell you a diamond below its liquidation value.

 

Mistake number 8 - Buying a small looking diamond.ÂDiameter matters.Â

      My bias:

A.)ÂBuy a 6.4 millimeter 1 carat diamond as if it really weighs .95 carats (it should be cheaper because it looks smaller).

B.)ÂBuy a 7.3 millimeter 1 ½ carat diamond as if it really weighs 1.40 carats.

C.)ÂBuy an 8 millimeter 2 carat diamond as if it weighs 1.90 carats.

 

Mistake number 9 - Not researching your diamond seller.ÂConsult the Better Business Bureau or an independent appraiser (someone who will not try to sell you a diamond) before buying.ÂThe fact that a jeweler advertises on T.V., or claims to make jewelry for the stars, or claims to be a diamond cutter does not make him honest or inexpensive. It just makes him feel good to brag (or perhaps lie).

 

MistakeÂnumber 10 - Buying a diamond solely on the basis of a certificate.ÂOnce in a while even a GIA certificate can be misleading.ÂDiamonds are graded on a continuum, and some SII’s are better than others.ÂSome I colors are better than others.ÂSome diamonds have a hint of brown color that makes them more or less desirable (depending on whether the diamond looks better or worse than other diamonds with the same grade).

My bias:

A.)ÂA white imperfection is better than a black one.

B.)ÂAn imperfection on the edge of a diamond is better than one in the middle.

C.)ÂLight graining or a cloud that is not hazy is better than a more pronounced imperfection such as a crystal or cleavage.

D.)ÂBig naturals and cavities are undesirable unless the diamond is priced cheaper.

 

Buyers beware.ÂIf your blind date is described as really nice, you could be in for trouble.ÂLikewise, a GIA certificate might only be half truth.ÂLet your eye (not the paper) be the ultimate judge.