Does certified guarantee price?
It’s a good question.
The short answer is: NO!
The long answer is: YES!
To begin with, we need to decipher what “guaranteed price” means.
To some, guaranteed price means that the diamond is worth the price on the price tag.
Others believe that the price of a certified diamond is what you’ll get for that diamond if you were to sell it.
Still others feel that if a diamond certificate has a price listed right on the report, that means the price is guaranteed to never lower in value. The diamond will always be worth the stated price.
None of these are true.
Diamonds have no guaranteed price.
Certified or not, diamond prices will always fluctuate with the diamond market.
That certificate means nothing when it comes to price.
Some certificate companies (like GIA – The Gemological Institute of America) never put a dollar amount on the diamond they grade. They grade a diamond based upon the cut, color, clarity and carat weight, but never by price.
Other certificate companies (like the EGL Gem ID Card shown below) will put a retail value on their report. Maybe this makes it appear more factual?
BUT… That price still means nothing.
A price listed on the diamond report does not mean that the diamond is really worth that value.
It just means, that is what they want to sell the diamond for.
Diamond prices go up and down daily. No price is sealed in stone. One day a diamond could be worth $1,000, and the next it could be worth $900. You never know.
Certificates should not reflect price.
Being certified should never have any bearing upon price.
Diamond prices are determined by the average price of diamonds across the country. This is usually done by a company called Rapaport who issues a monthly Rapaport Diamond Report.
Anytime you take a diamond in to sell, jewelers pull out this list to see what that diamond is actually worth.
What certified really means.
A certified diamond means that the diamond has been graded by an independent certified diamond laboratory. These labs verify the quality (The 4 C’s) of the diamond and show it on the report.
It’s their opinion about quality.
It doesn’t guarantee price.
So why do I say in the beginning that certified diamonds do guarantee price?
You know what the real quality is.
Once you verify what the true quality is of a diamond, then shopping around and comparing price becomes easy.
This means, if you’re comparing a certified VS1 clarity diamond, you will be paying for a VS1 clarity diamond. Not an exaggerated (grade bumped) quality that could be an SI1 clarity instead. So in fact, being certified does to some extent guarantee price.
It keeps you from spending more money than you should for a diamond. It keeps you from getting ripped off.
A certificate guarantees that the price you’re paying is for the exact quality you’re getting.
Nothing more. Nothing less.
The bottom line:
Always buy your diamonds certified. I recommend GIA, VS2 or better, D,E,F color, and excellent cuts, polish and symmetry.
Compare diamonds with like quality and certificates to find the best deal.
Compare a GIA certified, VVS2 clarity, F colored diamond to a GIA certified, VVS2 clarity, F color. Same certificate. Same quality.
Never buy a diamond based upon any dollar amount listed on a report.
Price is determined by the 4C’s. Everything is taken into consideration, cut, color, clarity and carat weight. Along with things like: fluorescence, symmetry, polish, proportions, percentages and enhancement.
So if you’re shopping for diamonds, always buy certified. Buy laser inscribed diamonds if you can (not all certified diamonds are laser inscribed). Doing so will give you great peace of mind.
And that is guaranteed.
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