Compared to high street retailers, online diamond retailers offer a much better price. Below we provide a detailed analysis of diamond prices covering the following topics:

1. Diamond pricing in general. How do we set prices?
2. The difference in price between online and offline stores, looking at exactly how much you can save online
3. Why seemingly identical diamonds may have very different prices if their grading reports differ – more on this here: Why We Recommend GIA certificates

Diamond Pricing

Diamond prices vary based on a diamond’s grade. The rarer and more beautiful a diamond, the higher the price will be.  Diamonds of a higher colour, clarity, carat weight and cut will fetch a higher price.

In addition, certain colours and clarities may have a seasonal demand and similarly, some types of diamonds may periodically be more abundant in supply or go through a period of scarce supply. At the moment, for example, diamonds that are of a colour G or H and have a clarity VS2 or SI1 are both in high demand and in scarce supply. These market forces have driven up their prices around the world.

Online vs. Offline prices

Traditional retailers often have very high mark-ups which help them cover their large overheads, such as rent, insurance and buying millions of dollars’ worth of stock. Online retailers are far more flexible in terms of where they locate and do not need to hold the same level of stock.

So how do prices really compare?. Upon a recent trip to Hatton Garden (London’s jewellery district), I did a little price hunting and have since compared the prices in many stores to our own. Below are the results of this comparison.

1.53ct pear shaped diamond in ring (unknown grading report)

Retail store – £9,995 ($15,200)

Diamonds In Africa offers near identical option which also include a GIA grading report. Our options for a similar diamond start from approximately £4000 ($6,000): £3,467 ($5,263) for the diamond + £500 ($750) for the ring.

YOU SAVING: £6,000 or 60%

A pear-shaped diamond engagement ring from a Hatton Garden store (London)

A similar pear-shaped, GIA-graded diamond from Diamonds In Africa

http://www.diamondsinafrica.com/index.php?route=product/product&product_id=269022029

0.32ct E VS1 round diamond in ring (far right on image)

Retail store – £1,550 ($2,351)

Diamonds In Africa has a matching diamond with a GIA certificate for £400 ($600). Set in a ring, this product would cost approximately £800 ($1,200).

YOU SAVE: £750 or 50%

Hatton Garden store

On the Diamonds In Africa site

http://www.diamondsinafrica.com/index.php?route=product/product&product_id=485422041

2.00ct D VS2 round diamond in a ring (top of image)

Retail store – £57,450 ($87,150)

Diamonds In Africa has a matching diamond with a GIA certificate for £22,015 ($33,400). With a ring this would cost approximately £23,000 ($35,000).

YOU SAVE: £34,450 or 60%

Hatton Garden store

On Diamonds In Africa

 http://www.diamondsinafrica.com/index.php?route=product/product&product_id=244871000

Terms and Conditions for Best Price Guarantee

1. We will match diamonds only if they have the same characteristics or very similar. This means the cut, colour and clarity must be identical. If the carat weight differs slightly, we will look at he price per carat when comparing. Symmetry, polish and fluorescence must be identical or within one grade of the comparison diamond. The diamond to which we are comparing must have no obvious problems.

2. We can only compare GIA diamonds with other GIA diamonds as some other labs may over-grade the diamond.

3. We reserve the right to not offer the additional discount in circumstances where we find competitor pricing is deliberately set to be below cost for the purpose of taking advantage of our guarantee.

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When you purchase a GIA graded diamond, whether it is loose or mounted in jewellery, you should always request the diamond’s original GIA grading report to accompany your purchase. The report describes the diamond’s characteristics. This is the safest way of making sure you are getting exactly what you paid for.

Your diamond’s report can arrive in different formats. The 2 most popular formats are the full sized GIA diamond grading report and the simplified version, called a GIA diamond dossier. If you would like to know the differences click here.

Today, while one of our customer’s orders was being processed, we had a GIA diamond dossier on hand for a beautiful D-coloured, IF-clarity diamond. So we thought it was a great opportunity to show you how a real dossier looks like so that you can recognize it when you see one.

The GIA diamond dossier is approximately about half the height of an A4 sheet and about the same length. It has a plastic feel that gives a reassuring sense of durability. It folds in the middle to be stored in a clear plastic wallet. Sometimes it may come with an attachment sheet with GIA diamond education information, this later sheet is not essential to keep.

 Let’s take a closer look on the inside of a GIA diamond dossier.

LEFT PAGE (From top to bottom)

• TITLE: The first thing you see is the GIA logo and the title of the report which states that this is a GIA DIAMOND DOSSIER and not a full sized certificate (which would say “Diamond grading report”)
• DATE: This is the date when the diamond was graded by the GIA, this is not an indication of the age of a diamond.
• LASER INSCRIPTION REGISTRY: Absolutely all diamonds with GIA diamond dossiers will always have a microscopic inscription of the GIA number in the diamond’s girdle. This is a security feature that is optional in full sized grading reports, giving the dossier one advantage over the other format. The GIA number can also be found in the left hand side of the report, listed vertically.
• 4C’s ASSESSMENT: The values for carat weight, colour, clarity and cut are reported in this section.
• ADDITIONAL GRADING INFORMATION: This section starts with some comments that  describe some diamond characteristics that weren’t mentioned before, typically this refers to inclusions or any other observations that may affect the appearance of the diamond. It is followed with the assessment of polish, symmetry and fluorescence.

Unlike the GIA grading report, the diamond dossier does not have a clarity plot, which is a drawing of the diamond which shows all the inclusions that affect the clarity grade. For diamonds of a clarity SI1 or worse, you may want to know where and what the inclusions are before purchasing. This can be done by contacting us and asking us to check before you purchase.

RIGHT PAGE (From top to bottom)

• 4C’s GRADING SCALES: That are used to assess colour, clarity and cut. The GIA created these industry standards a long time ago and most gemological labs follow them today. You can read more about the 4C’s by clicking here.
• PROPORTIONS DIAGRAM: On the bottom of the page you will see a diagram that shows the diamond’s actual proportions in % of the diamond’s largest measure, i.e. the diameter around the girdle (for round diamonds).  In this example the table (the flat part in the top) is 57% of the total width/diameter and the depth (from table to the culet on the bottom) is 61.4% of the total diameter.
• BAR CODE & DISCLAIMER
• SECURITY HOLOGRAM: Similar to any authentic currency note, every GIA diamond dossier has security features that are very difficult to imitate. When looking at your GIA certificate  always make sure that it has the security hologram, further, see it with detail and move the report around, you will notice how some diamond shapes, lines and GIA letters  will appear.

 I hope this post helps to give you a bit of confidence when seeing a GIA diamond dossier, I’m sure you may some questions that I didn’t address here, please feel free to leave a comment and we’ll gladly respond.

The post What you should know about GIA diamond dossiers appeared first on Diamonds In Africa Blog.

GIA makes different reports depending on the type of diamond being assessed (natural diamonds, colored diamonds and synthetic diamonds). They all have a very similar feel and mostly describe the same vital information. They do however have some design differences which can be easily appreciated in the image above.

The GIA is the world’s leader in gemmological science studies. They were the first to introduce the international grading standards that the majority of labs in the world follow today. The GIA have a longstanding reputation for consistently delivering the most accurate diamond grading that are of high quality and with a very professional and clean design. As a non-profit organisation, the GIA is also widely trusted for being un-biased when it comes to grading the thousands of diamonds sent to them.

The two most popular GIA grading reports

In this post we focus on natural colourless diamonds as they are the most popular type GIA grading reports. In particular we will look at diamonds with a round brilliant shape. Let’s suppose that we are looking at a beautiful 1.50ct, F-colour, VS1-clariy diamond (with GIA report number: 5126375973) This diamond’s image is shown below and  on the Diamonds In Africa website it  would sell for $15,717 compared to $26,000 at a high street retailer.

For this kind of diamond, two types of GIA grading reports could be produced:

1. Diamond grading report: This is the full sized report that is most commonly found in online and retail stores. This report is produced for loose diamonds of any shape starting from 0.15 carats.

• It includes an assessment of the 4C’s (carat, color, clarity and cut), an illustration of a diamond’s measurements and additional grading information such as the diamond’s polish, symmetry and fluorescence.
• It indicates whether the diamond has a laser inscription in the girdle (which will contain the GIA number) The laser inscription is a great way of ensuring your diamond matches the GIA report. However in this type of report it is an optional feature with an additional cost.
• For diamonds ranging from 1.00ct and above, the report features what is known as  a “clarity plot” which illustrates the inclusions and blemishes that are visible under 10x magnification in the diamond. Even though the clarity plot provides a brief notion of the diamond’s appearance, it is always important to ask for an expert’s opinion as the plotted inclusions may have little or no effect over the appearance and beauty of the diamond to the naked eye.
• The printed version comes in a thick glossy coated paper that folds to be conveniently stored in a clear plastic wallet.
• Approximate report cost: $78 + optional laser inscription. This cost is already included in the price on Diamonds In Africa

2. Diamond dossier: This is a simplified version of the previous report. The dossier contains the same basic information (4C’s assessment, measurements and additional grading information). It differs from the previous report in that:

• It is smaller in size.
• This report is only available for diamonds up to 1.99 Carat.
• This report does not have a clarity plot (which is highly recommended for diamonds above 1.00ct).
• As an added security feature, all diamonds that are accompanied by this report will always have a microscopic laser inscription of the GIA number in the girdle of the diamond.

• Approximate report cost: $53 (includes the laser inscription). The cost of this report is already included in all diamonds on Diamonds In Africa.

At then end of the day both reports serve the same purpose and are equally valid when having your diamond valued. At Diamonds In Africa we always ship our diamonds with a full diamond grading report and many of our diamonds will have a laser inscription on the girdle.

If you have misplaced your diamond’s report or would prefer to choose a different one that the one that currently accompanies it, you may contact the GIA to do so.

Read more on why we choose to list only diamonds graded by the GIA here.

The post Why are there different types of GIA grading reports? appeared first on Diamonds In Africa Blog.

The cut of a diamond is of absolute importance. ‘Cut’ refers to a diamond’s proportions and finish. When a diamond’s precise angles and proportions are well cut, the majority of light that goes into the diamond will be reflected back up through the top, producing a brilliant radiant shine. Diamonds that are cut too deep will allow light to escape out the sides, while those cut too shallow will leak light out of the bottom as illustrated below.

For a real life example, below on the left is a diamond that has been cut well, with equivalent proportions throughout. This produces a stone that shines with radiance! On the right however we see a stone that has been cut too deep. Light escapes through the sides instead of being reflected back through the top, and as a result, we see blackness. It is nowhere near as shiny or brilliant as the diamond on the left.

A good cut makes a diamond sparkle radiantly(left) compared to a diamond that’s been cut too deep (right).

If you’re in the market for a diamond, you may be striving for the biggest diamond you can afford. However, big doesn’t necessarily mean that the diamond has been cut to its optimal proportions. Starting with a rough stone, the cutter can cut it to preserve the highest carat weight possible, or cut it well for ideal brilliance. Prioritising size over the best cut usually results in a less than perfectly cut diamond. These diamonds will result in a poorer or fairer cut rating. Diamonds are rated for cut on a scale ranging from Poor, Fair, Good, Very Good and Excellent. We recommend choosing a diamond that has a rating of Very Good to Excellent. Where to find this on your diamond’s GIA certificate is illustrated below.

A sample GIA certificate for a diamond with an Excellent cut grade.

When you’re looking for a sparkling diamond, the most important factor to look at will be to make sure it is well cut. A diamond with equivalent proportions, precise angles, and good finish will bring out the best shine in your investment. For additional basic information on how to choose a diamond, click here.  If you have any questions, shoot them our way at info@diamondsinafrica.com and we’ll be glad to help.

Happy shopping!

Elaine

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Any person that reads about how to shop for diamonds will very likely read something about the Kimberley Process as a mechanism that avoids conflict diamonds from reaching the market. However, many don’t usually understand how this process works and how was it created. We will explore this important topic in this post and many others to come.

In 1998, Global Witness launched a campaign to expose the role of diamonds in funding conflict in African countries where rough diamonds were used by rebel movements to finance wars against legitimate governments.

In response to growing international pressure, the major diamond trading and producing countries, representatives of the diamond industry and NGOs met in Kimberley, South Africa, to determine how to tackle this major “blood diamond” problem. The meeting, hosted by the South African government, was the start of a three-year negotiating process that culminated in the establishment of an international diamond certification scheme. The Kimberley Process was endorsed by the United Nations General Assembly (UNGA) and the United Nations Security Council (UNSC) and launched in January 2003.

The Kimberley Process certifies the origin of rough diamonds to ensure that they do not come from producers that use the proceeds of their sales to fund rebel movements or illegitimate governments. It is estimated that since the inception of the Kimberley Process, conflict diamonds have come to represent less than one percent of the global diamond trade, down from 15% in the 1990′s.

Thus, in essence, this process has led to the reduction and halting of the illegal diamond trade and also the almost complete removal of conflict stones from the global market. Further results of the efforts brought about by the Kimberley Process include: peace, prosperity, economic growth and improved human rights in many previously unstable countries.

As of November 2012, the KImberley Process has 54 participants, representing 80 countries, with the European Union and its Member States counting as a single participant. Members account for approximately 99.8% of the global production of rough diamonds. In addition, the World Diamond Council, representing the international diamond industry, and civil society organisations, such as Partnership-Africa Canada, participate in the Kimberley Process and have played a major role since its outset.

At Diamonds In Africa we strongly support ethical trade of diamonds. We source polished diamonds only from trustworthy suppliers in countries that abide by the KP. To learn more about our ethical pledge click here

The post What is the Kimberley Process? appeared first on Diamonds In Africa Blog.

Major Grading labs

Fewer and fewer jeweller and diamond traders are inclined to accept a diamond without its correspondent certificate. The question no longer becomes  “if” a certificate is needed, but rather “which” certificate can be trusted to most accurately describe the diamond when making a purchase.

In this post I briefly explore some of the main grading laboratories in the world and focus on the 3 main ones to expose their strengths and main characteristics. We hope to give you a better understanding of diamond grading laboratories and their certificates so you can make the best decision.

The most significant difference between the different labs is that some are stricter than others during the certification process. For instance, one laboratory can be more lax than others in grading colour while another can be stricter on grading clarity. Knowing how each lab grades compared to others ensures you get the best value for money, regardless of which one you choose. (Source: Ira Weissman) 

The Gemmological institute of America (GIA) certificates are widely regarded as the most widely offered by dealers worldwide, but some dealers do prefer laboratories such as the International Gemmological Institute (IGI) and the European Gemmological laboratory (EGL), among others. These laboratories provide similar reports on variables such as colour, cut and clarity grades of the diamonds they grade. When choosing a specific laboratory, it’s not how “easy” the lab is on the grading parameters, it’s how consistent they are in providing the most accurate grading specs on your particular diamond. This means the market’s valuation of your diamond is most likely to be correct.

When one lab is more relaxed in how they grade, as for example EGL is known to be, their diamonds should be valued less in comparison to another GIA stone, even when the cut, colour and clarity may be the same the diamond graded by the GIA. This is because the GIA is likely to have given the EGL graded stones a lower colour, clarity, cut or a combination of these had the dealer chosen to grade the stone with them.

About these laboratories we can highlight:

• GIA: GIA is a non-profit organization and is the oldest on the industry. The GIA created the international grading system™, setting the standards for the industry. It is considered the most consistent lab and others benchmark against it when comparing reports.

• IGI: IGI are the creators of the diamond laser inscription which is now offered by most labs. They are considered as the largest lab in terms of number of grading facilities, with more than 17 labs around the globe. IGI is known as the lab of choice for several jewellery chains in North America due to its reputation of working fast and their certificates being slightly more affordable.

• EGL: Differentiating itself from the other labs, EGL is a for-profit organization. EGL is known to be really “flexible” in terms of grading parameters and offer a pre-certificate grading. This means that the customer only pays for a specific grading service such as a “clarity assessment”, and not necessarily for the whole certificate as the other labs do. (Source: Rapport Magazine Sep 2012)

There are many other labs around the world including AGS and HRD. However, we have chosen to recommend GIA certified diamonds only for the following reasons:

1. Peace of mind: As a consumer you will have clarity and confidence in knowing what characteristics the diamond you are buying actually has. As its characteristics determine its price, choosing GIA gives you the peace of mind that your diamond will be worth at least what you paid for it.

2. Comparability: By only offering GIA certified diamonds, you can compare the 75,000+ diamonds on the Diamonds In Africa site easily, knowing that you are comparing apples with apples. The GIA’s consistency means that they also apply the same grading standards.

3. Brand reputation: GIA is worldwide trusted brand and its reputation as the most accurate grading lab will go along your diamond certificate. Should you one day wish to sell your diamond you will be able to do so in any market worldwide.

If you want to search through our list of stock, please Click Here.

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How can you know if you are buying a conflict diamond ?

The issue of conflict diamonds is something we have to deal with every day. For one thing we named our website Diamonds In Africa. We did this because our diamond adventure as a team began in South Africa and because we are passionate about the region and its people (see Bite Size Education for more on how we give back to the region).

To address the issue of conflict diamonds, I think it is best to divide the issue into two parts:

1. How serious is the issue at the moment – which nations are selling “conflict” diamonds?

2. What is being done and what you can do to avoid supporting those who benefit from conflict diamonds?

The definition of a conflict diamond is no longer what it once was. The term was widely used during the conflict in Sierra Leone and in fact the term “blood diamond” is used because the rebel leaders financed themselves and purchased weapons through the sale of diamonds.

Today Sierra Leone is far from being a paradise of prosperity, but it is a recovering, albeit fragile, African nation. See this BBC article which boldly claims “there are no more blood diamonds in Sierra Leone“.

The Kimberley Process, established 10 years ago to stop the sale of conflict diamonds sourced from Sierra Leone and other conflict regions, is partly to thank for this. The relative stability of Africa over the past few years is another reason why the number of conflict diamonds on the market has been declining. More on exactly what the Kimberley Process is and how it works here.

So are there still blood diamonds and if so where?

With any valuable resource, including metals like gold, when a politically troubled country suddenly finds they are resource rich, trouble is usually not far behind. The countries that are currently not 100% compliant as per the Kimberley Process include Zimbabwe and Venezuela (source: Global Witness on CNN)

Why they are not “compliant” varies from country to country. In Zimbabwe for example, when diamonds were discovered in the Marange region, illegal miners rushed to the region to try and make a fortune. Towards the end of the last decade the Zimbabwean government, in an attempt to regain control of the mines, killed between 83 and 144 people (source: LA Times). This bloodshed and continued human rights violations in Zimbabwe lead to many diamond dealers including Diamonds In Africa, boycotting Zimbabwean diamonds to ensure we continue delivering only conflict-free diamonds to our customers. As of 2010, Zimbabwe is once again Kimberley Process compliant although we continue to avoid purchasing diamonds from that region because we do not support Mugabe and his regime.

Most of the remaining dozen or so countries in Africa which contribute to the world’s diamonds supply, including Namibia, Botswana and South Africa, have seen diamonds bring prosperity and wealth which has helped them develop. See this quote from the World Press Organisation:

“Australia, Canada, Namibia, South Africa, Tanzania—these countries have been able to invest the revenue from diamonds into the development of infrastructure, schools and hospitals for the good of the communities where diamonds are found. Diamond-rich Botswana has used its mines, which are partially owned by the state, to fund infrastructure, education and health care, as well as set aside a rainy-day fund of nearly $7 billion. But Botswana has something essential that other African countries do not: a government known for being both functional and honest.”

How Can You Avoid the Few Remaining Conflict Diamonds

The exact number of conflict diamonds remaining on the market is uncertain. Some say it is 2-3%, others, less than 1% (source: diamondfacts.org). What is certain is that the number has declined drastically thanks to the Kimberley Process, pressure from governments and consumers and the relative stability of diamond rich countries.

To avoid the remaining conflict diamonds and thus refuse to support the oppressive governments where they come from, the first thing you need to do is ask your supplier or jeweller the right questions. If more people care and more people ask, then the global market for diamonds will respond and crack down even more on those who import conflict diamonds.

Just yesterday someone asked us this question on Facebook: “I know a lot about conflict diamonds as I did work on this at university in 2004. I would like to know how you as a company avoid them?” – http://www.facebook.com/diamondsafrica

My answer is this: All we can really do as a company is to make the decision to care or not. Since day 1 we decided to care, we always ask the right questions to our suppliers. We chose to work directly with the largest polishers in the world who polish and sell in countries such as India and Israel. These companies have reputations to uphold and they all import diamonds only from countries that are Kimberley Process compliant. So when we choose to buy only from these companies we are also choosing to NOT buy from the kind of suppliers who appear over night with a suitcase of diamonds at prices too good to be true.

In all honesty we can still not be sure 100%, all of the time, that a diamond we buy is not from a conflict region. No jeweller or diamond dealer can. What we can do is minimize the risk by:

1. Asking our suppliers the right questions and making them accountable for what they sell us.

2. Choosing only large and reputable diamond suppliers who have strict controls in place to avoid conflict diamonds.

3. Being transparent with our customers about our conflict-free policy and operations.

4. Avoiding suspicious suppliers who we do not know and appear with diamonds at prices that suggest they may be from a conflict region.

Finally, as mentioned at the start of this post, we invest a part of our profits into a social enterprise we started – Bite Size Education which aims to use mobile technologies to improve access and the quality of education in Africa. This is our attempt to give back to the region where 65% of all diamonds come from and as we grow as a company, our contribution will do so too.

If you have any questions about our policy towards conflict diamonds, please contact me at info@diamondsinafrica.com

The post What you can do to avoid buying conflict diamonds appeared first on Diamonds In Africa Blog.

With Christmas having just passed, men around the world spent a lot more than their Christmas bonus on a diamond ring, kneeling down on one knee and asking that famous question. I suppose for some men it may be too late to ask, but others who will soon follow in their footsteps may want to know “Why does my diamond ring cost so much?” and even more importantly, “CAN I GET IT FOR LESS?“ This infographic looks at the journey a diamond makes from just a rough stone to a polished gem and where value is added as the diamond moves through the supply chain.

If you cut the middleman OUT and find your diamond online you can pay between 30% and 40% less for the exact same product.

Where is value added as a diamond moves through the gem supply chain.

The main messages behind this infographic are as follows:

1. Finding, extracting and polishing diamonds is a timely, risky and expensive process which is partly why a diamond costs so much
2. The larger the diamond, the more rare it is and it is for this reason that a diamond’s price increases at a rate which is more than proportional to its increase in size.
3. Jewellers make the most significant mark-up (72%) in the entire value-added chain in a diamond ring’s life cycle. However, they do not add any real value apart from setting the diamond in the ring and putting it in a box. Most of this mark-up goes towards covering their high costs, which are not shared by online retailers. It is thus possible to buy a diamond ring for far less than if purchased from a high street retailer, just by choosing to shop online.

We look forward to reading your feedback or questions on our first diamond infographic.

The post Why Does My Diamond Ring Cost So Much? Our first diamond infographic appeared first on Diamonds In Africa Blog.

India plays a major role in the history of diamonds, being the only source for many years before the huge diamond discovery in Africa. India is also a huge consumer of jewelry, thanks to their diverse and multi-cultural ethnicity. For thousands of years it has been a tradition for Indian women to wear ethnic and elaborate jewelry as part of defining their elegance and to celebrate the human body.

India’s diamond polishers are also refereed to as artisans as they are skilled in processing both large diamonds as well as small-sized stones. This craftsmanship in fine and precise polishing has created a revolution in the consumer and trade sectors. According to statistics released by the Gems and Jewelery Export Promotion Council (GJEPC), at present India exports 95 percent of the world’s diamonds from which an estimated 92 percent are cut and polished in Surat, an industrial city in western India that lies at the heart of the world’s polishing industry.

The post Why is India so important in the diamond industry? appeared first on Diamonds In Africa Blog.

Buying diamonds is a far more complicated shopping experience than almost any other product you usually purchase.

There are so many variables to consider and as most people will only buy one or two stones in their entire lives, some may think it is not worth investing hours of their time into becoming gems experts before deciding what to buy.

Luckily, people now have the option to ask the industry experts for their opinion on websites such as Quora.

On Quora the community decides which answers are the best, making it an unbiased source of information.

Here are some of the more popular diamond related questions that I have answered on Quora over the past few months:

Why are round diamonds the most brilliant?

Are diamonds cheaper in South Africa?

Are diamonds with ‘Strong Blue Fluorescence’ looked down on?

What’s it like to order an engagement ring online?

Will synthetic diamonds overtake real (natural) ones any time soon?

What proportion of diamonds sold are blood diamonds?

If you have any diamond related questions you can post them on Quora where a specialist from Diamonds In Africa and a wide variety of other companies will be able to answer them.

You can also follow the board I have created on Quora for “Diamond and Jewellery Questions” as all future answers will be posted there http://www.quora.com/diamondsinafrica/

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