E.S. Design

If we purchase a diamond that comes with a certification from gemological certificate companies, does this guarantee its market value? Is the price indicated on the certificate a guarantee to the buyer that the diamond’s market value will never go lower than what is stated?

Diamonds are commodities that are traded in a market. The price will definitely fluctuate, both upward and downward. When it comes to pricing and market value, a diamond certificate adds nothing of value to the gemstone.

Diamond certifying institutions like the Gemological Institute of America do NOT indicate a price on the diamond they appraise. The diamond is graded based solely on its main four attributes namely, Cut, Color, Clarity, and Carat Weight. Some certifying companies add a retail value in their gemstone reports. However, the price is not necessarily and indicator of the diamond’s real worth.

As precious gemstones are traded on a daily basis, diamond prices are not sealed in stone. It may be worth $2,000 one day and then drop to $1,850 the next day. Diamond prices follow the average price of diamonds throughout a region, which is done by the Rapaport company. They issue a monthly report called the Rapaport Diamond Report. Jewelers always refer to this report when you sell them a diamond.

In summary, a diamond certificate simply means that the gemstone has been appraised or graded by an independent certified diamond laboratory using the four C’s. It is not a report on the market value of the diamond itself. The certificate guarantees the quality of the diamond, not its price. Diamond certificates ensure you that what you are paying for is worth what you are getting. If anything, it simply offers the buyer confidence in his diamond purchases.