Find a Diamond :: Blog

The diamond industry does not exist in a bubble. This was proven when the famed jewelry store Tiffany in New York City lowered their diamond prices.

According to a New York Times report, even De Beers, which managed to maintain the high prices of diamond jewelry by restricting its supply, is feeling the economic crunch. Last year. The powerful diamond supply asked its workers in Botswana to have an extended Christmas vacation. This only means that there is more supply than demand, which would in turn cause the prices of diamonds to decrease.

The situation may look bad at this, looking at the dry facts. In the United States, the retail sales for diamond jewelry dropped to around 20 percent last year. The United States holds around half of the world's diamond demand.

This is definitely a complete turnabout from the previous stature of the diamond industry. The price of and the demand for diamonds did not experience any drastic downturn for more than 20 years. Experts say that the demand for diamonds in major countries in Asia have not yet experienced any significant decline, although this is predicted to change after the recession begins to take its claw out in the said region.

However, experts say that this can be a good time for buyers to take advantage of the situation. Buying diamond engagement rings or any type of diamond jewelry will be easier at this point, experts say, due to the decreased in the price. Owners of diamond pieces should not let go of their diamond pieces just yet, even with the fear of constant decrease in prices.

Experts say that once the economy stabilizes, the demand for diamonds may return to normal, hence changing the price of diamond pieces yet again. Meanwhile, those looking at diamonds as an investment should considering buying diamonds now, especially if they have the means and they do not plan to part of their pieces in the near future. The New York Times reports that while the industry is definitely suffering now, its long-term fundamentals are very good, which means consumers have no reason to worry.

Over the years, many methods, systems, and apparatus have sprouted in the market, all of them with one goal: to create a universal way of grading diamond cuts. There are generally three laboratories which experts respect in terms of grading diamonds: the America Gem Society (AGSL), European Gemological Laboratory (EGL) and the Gemological Institute of America (or GIA). These respected institution spent several years and a considerable amount of money to create credible systems to note the value of diamonds. The GIA, EGL and the AGSL use different strategies and criteria to classify the quality of these gems, but they nonetheless efficiently screen a gem's worth.

 

 

The GIA uses three criteria, and each one has particular categories. The cut grading criteria of GIA includes its craftsmanship (determined by symmetry and polish), design (determined by durability and weight ratio), and appearance (determined by fire, scintillation, and brightness). In 2006, GIA started giving the diamonds that they graded particular rations, with excellent being the highest and poor being the lowest (very good, food, and fair are in between). The AGSL use the same rating, although they use different criteria (light performance, finish, and proportion factors).

Of course, with such methods of grading diamonds, many have expressed their reservations and criticisms. Many concerned and skeptical individuals ask if these criteria and if these ratings are accurate? The GIA, however, has already answered these questions.

For starters, the Gemological Institute of America have already clarified that their testing and the consequent results are scientific, resting on the basis of research and analysis. And instead of relying on human perception, the organization uses computer ray-tracing, among others, to determine the quality of the diamond. Needless to say, a testing based on scientific methods is also comprehensive, since it leaves nothing unturned and untested.

Nonetheless, GIA also considered personal preference without being impractical. With this type of criteria and testing, diamonds with good quality are still upraised properly, while diamonds with bad quality are instantly detected. However, more than scientific quality, the GIA recognizes that people look for particular quality in diamonds-something that could not be defined by computers. This is why face-up appearance is one of the criteria used by the Gemological Institute of America.

Diamonds are known to be the hardest known mineral in the world. It is also a noted symbol of elegance, class, and beauty. This isn't exactly surprising, since diamonds were many things to many cultures several centuries ago. In different cultures and in different countries, diamonds meant many things-they were considered holy, divine, in possession of mystic powers. Just the same, diamonds represent something else today. Let's take a look at how diamonds were viewed before, and how they are considered now:

• Diamonds were previously connected with the divine and the unattainable. For example, the Greeks once believed that diamonds were actually tears from their gods while the Romans considered diamonds as parts of stars that have fallen from the earth. This may seem like merely an excuse to qualify the beauty of diamonds, but they reflect who these people view beauty.

• Today, diamonds are considered as a symbol of love and eternity. After all, they are the made materials used for engagement rings. Thanks to its strength (it isn't the hardest materials on earth for nothing) and its durability (it is known to survive for several years, even centuries), it represents eternity in a relationship or a marriage. Of course, using these diamond rings doesn't really help couples remain together forever, but diamonds surely make a great symbol of love.

• Because of its cost, diamonds also represent class and show one's status in society. These stones are not cheap, so anyone wearing them is considered to be of importance in society. This is why the press always takes note of the diamonds celebrities wear during formal and important functions and events, something particularly true in the entertainment industry. Celebrities always make sure that thy wear their best pieces in events such as the Oscars, the Grammys, and the Golden Globes.

There is no denying that diamonds symbolize many things to many people, and they figure prominently in each and everyone's lives, regardless how they are used. This only goes to show the diamonds will continue to be significant for years to come. Definitely, the song rings true: diamonds are forever