As we know valuation of other commodities is quite easy. we call this valuation process simple because it needs to consider very few and mostly tangible pricing attributes like production costs, marketing costs and after adding these two costs we add our profit margin 20 -35% or more. Quite simple! But the case of Diamond Valuation is trickier when we compare it to this simple pricing system. There are many tangible and intangible attributes like color, cut and clarity are also needed to consider. This is why diamond pricing is highly professional subject.
Diamond Valuation Process
This pricing process starts with valuation of rough diamond. Then you need to add the costs associated with cutting this rough diamond. After adding these two costs the next thing is marketing costs associated with turning this rough diamond into marketable diamond. At this point an independent diamond valuation company is called to certify the diamond. This company certifies it on basis of color, cut, clarity and weight.
Diamond becomes more expensive with change of hand at this stage, finally it reach the retailer where the diamond price move up little more. So diamond journey starts from mine, to cutter and polisher and independent valuation company and finally primary market. After reaching primary market, wholesalers and diamond dealers purchase it. From wholesale market then retailers purchase it.
This is whole process of diamond valuation. So as you can see if you earlier purchase diamond in this process you would get it cheaper. But bear in mind this is cost of diamond and not the value. True value of diamond is determined by the retailer. So retailer is the place where you can see the exact value of a diamond.
If you want to determine the exact value for your diamond then you can do by yourself. But this self-appraisal might not be accurate and you need to consider the services of GIA. GIA (Gemological Institute of America) is diamond certify institute. This certificate provides correct information what is the true value of your diamond.
We have different types of diamond calculators. You can find them online. Many wholesalers use these calculators for pricing diamonds. But it is important to know that when you are valuing diamond without Diamond Grade Report (It is the report given by recognized gemological laboratory. In this report the quality, grade and characteristics of your diamond is clearly mentioned. It is not a free service and you need to fee its service charges. The report you get from this lab is called diamond certification) you must have adequate knowledge of valuation factors to consider. These factors are diamond color, clarity, cutting and weight. If you are aware how much of each of these factors enhances or curtail the value of diamond then you are a right person to value it. Otherwise you need to use Diamond Grade Report.
Finally it highly recommended that you get diamond grading report for your diamond. This is the more authentic and trustworthy valuation method. If you get this report for your diamond then you can easily sell it on any marketplace. If you are selling or purchasing a diamond it is important that you get this valuation certificate from registered and highly trustworthy institute in your country. It will cost you some money as service fee but it will save your from a great loss.
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