The inside of one of the newer GIA Reports
GIA Lab Reports- The Gold
Standard in Diamond Grading
This Section deals with GIA Reports & lab reports in general as well as the phrase "GIA certified diamonds". If you are shopping for a diamond, or own one and are curious about it's value, the diamond's grade is critical and as a result, so is a GIA Report.Two diamonds that might look similar can have vastly different values. When it comes to high dollar diamonds, even slight differences in appearance (grades) can create HUGE price differences.
On newer GIA reports, the design of which
was introduced 1/1/06, depth and table
measurements are presented as a diagram
A GIA Report does not mean the diamond is a "GIA certified diamond"-- The GIA does not certify diamondsWe'll just make that clear right off the bat. If you see an "estimate" on a gem lab report, it's not a GIA Report. They do not appraise the value, the GIA grades the color, the weight, depth, table and so on.
The price difference between two diamonds that look similar to the naked eyeWe'll take two hypothetical diamonds and assume both have been graded by GIA. Both are really well cut. One is a D Internally Flawless 2.00ct Round Brilliant worth in the range of $70K+. The other is a E/VVS1 2.00ct Round Brilliant that weighs in around $46k+. The imperfection which constitutes a VVS1 is microscopic- yet it can cost the cutter $24,000 in this hypothetical example.
To prove a D/IF is actually Internally Flawless (IF), no dealer will accept anything short of a GIA report. How much would a dealer pay for the same D/Internally Flawless Diamond prior to GIA grading it?
See colorless diamond grading with photos, See yellow diamond grading with photos,
See pink diamond grading with photos, See orange diamond grading with photos
See D color to Fancy Vivid yellow diamond color grading chart
Based on our market experience, dealers might try to buy it for the price of an F/VS2.
If you go to sell any valuable
diamond back to a dealer, his/her
first question will be,
"Is there a GIA Report?"
Let's assume the highest price a dealer might pay would be the price of E color VVS1. At least 35% less- which can amount to well over $20k. For this reason, cutters need to use GIA - there's a lot of money at stake. For the same reason, as a buyer, GIA is essential.
Should you buy a diamond without a GIA Report?A GIA Report backs up the claims of the seller regarding the diamond grade. There's simply no reason to risk buying a "high grade" diamond without a GIA Report. When I say "high grade" that means top dollar diamonds in any particular range. For example: A 1.00ct diamond for $2500 versus as .50 carat diamond for $2500. The 1.00ct is an inexpensive stone, the 1/2 carat, "high grade". If we are speaking of colorless diamonds, I'm talking about I color and better- SI2 clarity and better.
Color grades of J-K-L-M, and imperfect diamonds are more feasible without GIA (or with lesser reports). Again, an $8000 two carat diamond is actually "cheap". Remember, a well cut H/SI1 2.00 Round diamond with GIA report can cost $20k. Now, if it was a 1.00ct at $8000- then it had BETTER have a GIA report. But if you are talking about a lower grade, many times the cost of the GIA Lab Report represents too high a percentage of the potential selling cost.
The outside unfolded copy of a genuine GIA Report -
It will say it's a GIA Report on the front
What about other reports?The main danger is the representation of a diamond with a lesser report as equal to a diamond of the same grade issued by GIA. It's widely reputed that some of the non GIA labs are more lenient than GIA. Some sellers may suggest that grades issued by one of the main non GIA labs is simply "one off". Their contention might be that an EGL G/VS2 is equivalent to a GIA H/SI1. That assumption overlooks the facts.
Ethical dealers won't use any such formula. Dealers will ONLY pay top dollar for any given grade, if that grade was issued by GIA. It seems that there is a problem with sellers that understand the difference between the labs purposely blurring the lines. Take a hypothetical diamond. It's legitimate grade is K/SI1. GIA gives it K/SI1. Another lab gives it J/VS2 (or I/VS2). If both dealers were charging the same price, a buyer unfamiliar with the information in this article might reasonably assume the guy selling the I/VS2 was less expensive.
When the lesser reports are used in this manner, it smells like misrepresentation. After all, if the seller knows all this stuff, and we must assume that- as a dealer they do, why not tell the buyer?