Valentine's Day: How and when to buy diamonds

If you are wondering whether diamonds are really a girl’s best friend this Valentine’s Day, go ahead and join the conversation between two friends, Priya and Meera, as they discuss how and when to buy a diamond.

Priya: Vivek Kaul has lost it. I completely disagree with what he wrote the other day.

Meera: He’s a fine journo. Why do you say that?

Priya: Did you read his lastest piece on Firstpost? He says don’t buy diamonds. Thank goodness, my darling did not read that piece. I am nagging him to buy me a diamond this ?-day. (winks with a cheeky smile)

Meera: Well, the thing is…

But before, Meera could complete her sentence, Priya yapping her way to glory, was hell bent on getting an expensive stone from the love of her life. She also mentioned how her sweetheart has not given her a diamond every since their big day, and how she has been recording all her missed opportunities. And, she wanted Meera, the money expert, to tell her the things they should keep in mind when they go diamond shopping.

Priya: You’ve worked in the diamond industry in the past. So, you are the right person to give me a few tips.

Meera: Sure. Since, you’ve already made up your mind about arm twisting your guy to buy you a diamond, you might as well, know a few things, to get the best bang for your buck.

Priya: So, go ahead. I heard there are a few “Cs” to keep in mind, like carat, isn’t it?

Meera: You are right. According to Gemological Institute of America, which is a multinational organisation and foremost authority in gemology, there are four “Cs” to look into while buying a diamond.

Priya: Ok, hurry and tell me. So, that I can show off in front of to my sweetheart, about all the research I’ve done on diamonds. Good homework, always gets you a gift!

Meera: They are cut, clarity, colour and carat weight. And the price of the diamond will depend on these four parameters.

Priya: Oh, that’s easy.

Meera: Not really. You can make out the colour. I mean lesser the colour, higher is the value of the diamond. The more it’s colourless, the more you pay. You can judge the colour yourself, but other parameters aren’t that easy to guess.

Priya: Like what, carat? That’s the weight of the diamond, isn’t it?

Meera: True, and clarity means, the absence of inclusions and blemishes in the diamond. So, more the clarity, more the value of the diamond.

Priya: So, are there grades of clarity?

Meeera: Sure, a flawless diamond (expensive one) comes with FL grade. The one with a few internal flaws come with IF grade. And those which have a few impurities are graded as Very Very Slight or VVS inclusion. And, the slightly economical ones come with a Very Slight inclusion or VS.

Priya: And the cut?

Meera: Let’s not complicate things. Just keep in mind that rounder the diamond the more expensive it is. Though there are various types of cuts, broadly there are two: deep cut diamonds and shallow cut diamonds.

Priya: Hmm….

Meera: Look, it’s simply not possible for you to become an expert in identifying the quality of the diamond, just by listening to what I say. I guess, you should buy the diamond from a reputable jeweller or a branded diamond. I suggest you buy only a certified diamond.

Priya: Like certified hallmark gold.

Meera: True … diamonds that come with certificate from international labs, like the GIA that I mentioned previously. Other reputable labs are International Gemological Institute. Then there are diamonds certified by AGS Laboratories, HRD Antwerp and the like. And if you want to resell the diamond later on, certified ones work slightly better. But, keep in mind, diamonds don’t really have a great resale value. And most stores will give you a value in return for a diamond only if you’re buying another diamond from them. So, from a personal finance point of view, a diamond is hardly an investment.

Priya: OK, sounds cool.

Meera: But, if the jeweller is offering only his certificate, you might want to shop around as well.

Priya: Great. Am all set to pester him, now for my shiny stone. Anything else I should know?

Meera: Sure. I think, Vivek Kaul is right, when he wrote in his blogpost that diamonds are not a girl’s best friend. But, if you are looking for a diamond as a sign of love this V day, so be it.

Priya: Yes, I am. It’s a perfect gift for perfect love.

Meera: The big book of love says, “Love is patient, love is kind. It does not envy, it does not boast, it is not proud. It does not disrespect, it is not self-seeking, it is not easily angered, it keeps no record of wrongs. Love does not delight in evil but rejoices with the truth. It always protects, always trusts, always hopes, always perseveres.”

Priya: Wow, so true.

Meera: So, may be instead of looking at ways to test the quality of the diamond, this V day, you should test your love against these parameters. And, if you pass the test, go ahead and buy the diamond. But, if not, maybe you should work on these parameters for a year, and may be next year, you won’t really have to pester him for that diamond. He will buy it for you on his own.

Priya: I think, I will give the diamond a rain check after all.