Certified Diamond – Better Than the Rest?

Buying a certified diamond entitles you to a few things that you wouldn’t otherwise get with a diamond. Piece of mind being the first one that comes to mind.

• Diamond certificates make it less likely that you will overpay for a diamond. However, don’t think that just because it states a value amount on the certificate that you will have to pay that much to buy the diamond. Often times, the purchase price will be less than the appraised value. You will know exactly what you are getting. An independent company with no affiliation to the seller has deemed the diamond of a certain quality in terms of color, cut, clarity, and carat. This should prevent unscrupulous sellers from inflating the grades of their diamonds to justify an increased price.

• Certified diamonds do tend to cost a little more, because the seller had to pay the independent grading laboratory a fee to evaluate the diamond. Knowing exactly what you are getting should more than make up this cost that the dealer passes onto you.

• A diamond certificate can be presented to your home owner’s insurance company for proof of value and agreeing on an insured amount Most home owner’s policies will require a special jewelry rider addition to your policy to insure jewelry over a certain value. Most companies have a threshold of $2500. Anything over that amount in jewelry losses will not be covered without the jewelry rider. The cost of the rider is directly proportional to the value of the ring, but it is usually something like $5 per $1000 of value per year. This is a paltry amount considering the cost to replace a nice wedding ring or a larger pair of diamond stud earrings.

• It is easier to determine the price range of a certified diamond with certain values for the 4 C’s (cut, clarity, color, and carat). The dealer should have less ability to inflate the price if you come in with an idea already in mind of what ranges you are looking for in the 4 C’s.

If anyone tries to dissuade you from purchasing a certified diamond, I might question their motive. It is a good source of reference for you as the buyer to know what you have on your hands.

A certified diamond isn't for everyone, but I would want one if I were buying the diamond.  It gives a good unbiased view into the quality of the stone, and it gives a good basis for the value of the stone.  This means that I should be able to get a known quality at a known price.  Don't let people fool you about the importance of a diamond certificate.