Gem Pricing for colored gemstones and diamonds.
Colored Gemstones & Diamonds
Gem Pricing
Appraising gemstones have always been a challenging job. A person who wishes to price gemstones has to be an expert gemologist and a seasoned trader with awareness in current market trends. However, as a consumer, you must be aware of the factors affecting the prices to strike the right balance between gem-quality & budget.
Factor 1
Beauty
Gemstones are known for their beauty, which makes it the most essential aspect of pricing a gemstone. Though beauty is always in the eyes of the beholder, for comparison, we judge the beauty over a few practical parameters. A gemstone's color, transparency (clarity), symmetry & quality of cut, and size of the gemstone are mainly responsible for the beauty in a gemstone. Even a slight change in these parameters might greatly affect the prices.
Some gemstones display few special effects over the gemstone enhancing its beauty. Such gemstones are highly-priced for these special effects which are known as phenomena. Shining star effect in Rubies, a sharp reflecting ray of light in Chrysoberyl Cat's Eye, and Orient (Play-of-Color) in Pearls are a few phenomenons that enhance the beauty of these gemstones. Other factors which are judged while assessing a gemstone's beauty is its luster, fire & brilliance.
Factor 2
Rarity
"Gemstones are known as precious because they are rare"
However, gemstones which are rare or antiques or gemstones having a historic connection are priced high irrespective of other value factors. These gemstones are valued on the basis of their historic importance or rarity. Ex: A Diamond or Ruby which was studded in a great emperors crown would be priced unreasonably higher than a diamond of similar color & clarity.
All 4C's also indirectly depends on the rarity factor. A gem possessing all 4C's is priced high, just because finding a rich-colored, inclusion free, a perfectly cut large-sized gemstone is rare. Therefore rarity is one of the most important value factors.
Factor 3
Enhancements
In today's times, most of the Natural Gemstones & Diamonds are treated or enhanced to improve the 'Beauty' of a gemstone. Most of the natural gemstones obtained are of inferior quality lacking 4 C's or the beauty factor, therefore they enhanced by man to improve their appearance. But, the price of such enhanced gemstones falls considerably as compared to natural untreated gemstones. Prices also depend on the type of treatment performed.
Prices of untreated and treated are compared on the following basis:
1. Is the gemstone treated or not?
2. If treated, What type of enhancement is performed?
3. Quality of enhancement performed.
4. Durability & stability of the enhanced gemstone.
1. Is the gemstone treated or not?
2. If treated, What type of enhancement is performed?
3. Quality of enhancement performed.
4. Durability & stability of the enhanced gemstone.
Factor 4
Gemstone Origin
Gemstones from specific mines, which are known for producing high-quality crystals are priced substantially higher than gemstones of almost similar appearance from other sources. Ex: Rubies from Burma (Myanmar), Blue Sapphires from Kashmir (India), Yellow Sapphires and Hessonite Garnets from Ceylon (Sri Lanka) and Emeralds from Columbia & Pakistan.
On the other hand conflicted-origin gemstones and diamonds that are illegally mined in conflicted territories or war zones which either involves the exploitation of human resources at the mining locations or are sold to fund the war/fight substanitially looses thier market value.
Factor 5
Trends & Local Demand
Prices of gemstones might increase or decrease as the fashion and the current trends change. Example:
1. Prices of Tanzanite increased substantially when it came into fashion after the release of the movie Titanic.
2. Similarly the local demand for Turquoise in India increased to a great extent when Indian Actor Salman Khan wore a Turquoise bracelet in a Bollywood movie.
3. People of a few European countries value Citrine more than Yellow Sapphires.
1. Prices of Tanzanite increased substantially when it came into fashion after the release of the movie Titanic.
2. Similarly the local demand for Turquoise in India increased to a great extent when Indian Actor Salman Khan wore a Turquoise bracelet in a Bollywood movie.
3. People of a few European countries value Citrine more than Yellow Sapphires.
Local Demand of few gemstones in certain regions may also affect the gemstone prices. In India, most of the gemstones with astrological importance command a higher price compared to other gems. Such local demands might differ from one place to the other.
Explore Our
Guide to 4C's
Understanding the quality of diamonds and colored gemstones can often feel complex, because every stone is unique in its own way. The 4Cs — Color, Clarity, Cut, and Carat Weight — help simplify this by highlighting the main factors that influence a gemstone’s beauty, rarity, and value.
For diamonds, GIA has developed an international grading standard that is accepted worldwide. In colored gemstones, however, grading is more subjective, as beauty often depends on the richness of color, natural character, and personal preference.
For diamonds, GIA has developed an international grading standard that is accepted worldwide. In colored gemstones, however, grading is more subjective, as beauty often depends on the richness of color, natural character, and personal preference.
