Welcome to (probably) my last revision to the Diamond Buying Guide.

I wrote the guide back in 2004 to

help guys that were about to get engaged in buying a diamond. This final format will hopefully be a little
easier to understand. I admit that I am no diamond expert, but the information I present will hopefully
be of some value to people seeking knowledge about buying a diamond.

Why am I writing this? Because I worked at a very well-respected jewelry store and I personally want to
help you. I’m not here to discuss how DeBeers is price fixing, blood diamonds, or the next topic that
makes a small subset of people’s panties twisted. If you’re a guy with a girl and she wants to get
married, you’ll most likely need to fork over some money to buy a diamond. With that in mind, I wanted
to create a buying guide to help men (or women) learn more about the sales aspect of buying a
diamond. The views expressed in this article are my opinion based on factual statements from GIA and
AGS Certified people.

I. Background
A. Store
I worked at Smyth Jewelers from 2003 to 2008. The company was ranked third in the
country for gross profit in a single store (2003-2008…no recent sales records to validate
after 2008), yet their margins are still the lowest in the country. Smyth has three stores in
the Baltimore area. It employs over 300 people. They have eight GIA certified gemologists
(six are graduate gemologists). I can easily access over 150 years of diamond grading
expertise. Smyth also runs a series of Pandora stores in Maryland and has expanded that
market quite a bit ever since I left. If you go to a Pandora store, it’s most likely a Smyth
store. I bought a diamond in January 2003 at Smyth, was hired by them in April 2003 to be
their network and systems administrator. I left to seek new opportunities in 2008.

II. GOLDEN RULE

When buying a diamond, there is no such thing as the best of both worlds. You cannot get a
high-quality diamond cheaply.

III. Diamond Technical specifications

You have heard of the four C's: Cut, Color, Clarity, and Carat Weight. These four C’s define the
unique characteristics of a Round Brilliant Diamond. Let’s dive deeper into each of these terms.
IV. Cut or Cut Grade
This is the most misunderstood term, so this will have the longest explanation.

A. Many people mistake the term "Cut" as the shape of the diamond (IE - round, pear,
marquise, etc). That's what some jewelry stores in the jewelry industry want you to believe.
“Cut” is part of a technical term given only to Round Brilliant Diamonds. This term is Cut
Grade. Cut Grade is used by both Gemological Institutes in the United States and Canada.
These institutes are the Gemological Institute of America (GIA) and the American Gem
Society (AGS). Each Institute has their own way of defining a Cut Grade.

Sidebar – there are other Gemological Institutes out there (IGI being one), but they are not recognized
as being legitimate Gemological Institutes according to the US Government. Only the GIA and AGS have
that classification. I’ll discuss about what to do if you are working with diamonds graded by someone
other than GIA or AGS farther down.

B. The current grading system put in place by the AGS is based on the Marcel Tolkowsky
Grading Scale. This defines an exact set of parameters for a diamond that will have the most
sparkle to the naked eye. Here is a picture of the Tolkowsky measurements:

The AGS created a Cut Grade grading scale based on the Tolkowsky Scale that goes from 0 to
10. A Round Brilliant diamond that is graded “0” is a nearly perfectly shaped RB diamond; a
“10” cut is a horribly cut RB diamond and is normally not a diamond sold in stores. The
worst Cut Grade I’ve seen at Smyth is a “5”. In 2005, the AGS released a new Round Brilliant
Cut Grade called “000” - this is a 100% perfectly cut RB diamond and will have exact
measurements as seen in the picture. The company Hearts On Fire is synonymous with
“000” cut diamonds. These are very precisely cut diamonds and very few diamonds are
capable of being cut to a “000” grade.

Interestingly enough, most people will not notice any major differences between a 2 cut and
a 000 cut when viewing a diamond with the naked eye. The only time you will notice the
difference is when you look under a microscope or have the diamond graded on a grading
machine such as a Sarine machine.

C. We discussed the AGS grading scale, how about the GIA? Until 2006, the GIA technically had
no grading scale at all. Most Round Brilliant diamonds were “dual graded”, meaning the GIA
graded diamonds on their inclusions (we’ll talk about Clarity later) and the finish of the
diamonds surfaces (Polish Grade). It was up to the retail stores to grade the diamonds
based on the AGS Cut Grade. Most reputable stores did exactly that…any diamonds they
 received would be AGS graded in house (using a Sarine), or sent to a lab to be graded by
AGS, IGI, etc…

D. However, the GIA and AGS have both come to an agreement and starting in April 2006, they
will be grading diamonds on a loosely-based scale. What this means to the customer is that
if a store has ten diamonds graded at 0-cut with the new system, none of them will actually
be a true “0” grade. When you look at it through the darkfield illumination microscope
(more on this later), one diamond might be very bright in the center, while another might
have a darker center but have a brighter edge.

I've looked at the proposed grading system and it is confusing. It is made so the buyer can
make a decision based on their own perception of what is a beautiful diamond, not what a
gem lab says is ideal cut and what should be beautiful.

Smyth is 100% against this new grading scale mainly because a diamond that is graded as a
“0” Cut on the new scale might actually be a 0, 1, 2, or 3 cut on the AGS and Tolkowsky
Grading Scales. Furthermore, the prices for the diamond will be the same if not more than a
diamond graded on the old system.

The big question to you is: as a consumer, do you really want a diamond that is not cut to
perform within a grading scale that has been in place for over 80 years? Absolutely not.
Also, do you really want to PAY MORE for a diamond that is "subjectively beautiful" instead
of "perfectly cut"? I wouldn’t.

E. If you're buying a diamond, ask the sales staff to give you a diamond grade based on the
Tolkowsky Grading Scale. They should be more than receptive to this request and also
should be able to provide a grade - based on a grading system that had been in place for
over eight decades - for the diamond you are looking at.

Final Recommendation for CUT GRADE

You should always be concerned with the Cut Grade first. This directly impacts the visual
appearance of the diamond by the naked eye. Look for a 1 or 2 cut RB diamond if you want a
good looking diamond that will sparkle. If you get a 0 or 000 cut, you are just paying extra for a
very slight enhancement.
V. Color Grade
Even though the Cut Grade is the most important factor in the Round Brilliant Diamond you
decide to purchase, Color Grade is also very important. It’s the second most important factor in
your diamond search.

A. The Color Grading Scale goes from “D” to “Z”. “D” is a colorless diamond. “S” through “Z”
are known as fancy yellow.

B. Color Grade is very important if you plan on setting your diamond into a white gold or
platinum band. If you have a diamond that is worse than an “F” Grade and it is set in a
white gold or platinum band, then you will start to see the yellow in the diamond. If you
decide to set the diamond into a yellow gold band, then the color can be skimped on.
Granted, most heads on yellow gold bands are (and should be) made of white gold or
platinum. However, the prominent color in the band will be yellow gold, so the diamond
will be yellow when you look at it no matter what.

Recommendation:
• White gold or platinum band: F color is perfectly fine...you will not see any major difference
between an “F” and a “D” color diamond in either a white gold or platinum band.
• Yellow gold band: “I” color would be the most yellow I'd go. After that, then the diamond itself
will start to show its true yellow color, even in a pure yellow gold band.

VI. Clarity Grade

Clarity is basically how many flaws are in the diamond. The scale is as follows:

F - Flawless
IF - Internally Flawless
VVS1 - Very Very Slight Inclusions, Grade 1
VVS2 - Very Very Slight Inclusions, Grade 2
VS1 - Very Slight Inclusions, Grade 1
VS2 - Very Slight Inclusions, Grade 2
SI1 - Slight Inclusions, Grade 1
SI2 - Slight Inclusions, Grade 2
SI3 - Slight Inclusions, Grade 3
I1 - Inclusions, Grade 1
I2 - Inclusions, Grade 2
I3 - Inclusions, Grade 3

A. Clarity is third in the list and for a good reason. All you need to do is ask yourself, "Am I
going to look at the diamond through a microscope ever again after it is set?" If the answer
is "no", then an “SI1” or “SI2” will be a great diamond. If it is “yes”, then there is NO NEED
 buy a diamond any higher than a “VS1”. Our diamond buyer only gets “VS1” – “I1”
diamonds. The VS diamonds are for people who believe that clarity is very important and/or
people who are very particular about inclusions. The “I1” diamonds are for people who do
not have a lot of money but still want to get a diamond from Smyth (and this is perfectly
fine).

B. One Clarity Grade many stores (including Smyth) do not recognize SI3. Reputable stores will
not buy SI3 diamonds because the Clarity Grade is very close to “I1” graded diamonds.
However, the difference between “SI2” and “I1” is astronomical; “SI2” still looks great and
“I1” looks like there's coal in it. You will notice the flaws in an “I1”, “I2”, or “I3” diamond
with the naked eye.

C. When you’re in the store, and you want know and verify the Clarity Grade of the diamond,
you can look at two things: one is the GIA grading report, which will map out the inclusions,
and also you should look at the diamond through a microscope. The particular microscope
used to look at diamonds is a darkfield illumination microscope. This type of microscope has
a shield to block the light from entering directly from under the diamond. It creates a soft
wash around the diamond which will allow you to see ALL the flaws in it. Loupe magnifying
glasses are used as well, but they are never good enough for inspecting diamonds with
scrutiny. The best thing to do is request to look at the diamond with a darkfield illumination
microscope. If the store does not have a darkfield illumination microscope, then please find
a different store to shop in.

Clarity Grade Recommendation

“SI1” or “SI2” clarity is all you need; I'll even venture to say that if you are really picky, then a
“VS2” will be fine. It is entirely up to you.

VII. Carat Weight

Pretty simple, it's how big the diamond is. This is entirely up to you.

VIII. At the Store

• Never buy a center diamond that is already set in a ring. If it is, request them to remove it so you
can look at it under a microscope. If they won't remove the diamond, then please do not buy
the ring. It’s not that they’re trying to scam you, but this is a big investment and you should
have the opportunity to inspect your purchase with as much detail as possible. Smyth sells
diamonds already set in rings, but they are willing to remove them so customers can view the
diamonds under a microscope to prove that they are buying a quality gemstone.
• If you have a diamond that has a grade from a non-standard Institute or is missing the AGS Cut
Grade, there is a machine that the jewelry store should have to grade the diamond in-house
known as a DiaMension or Brilliant Eye machine. Within one minute, this machine can give a full
AGS Cut Grade on the diamond and should be printed out and given to you for your inspection.
The only number you should worry about is the Cut Grade.
IX. Tips
• You should know how much you are willing to spend before you go into the store.
• Don't get pressured into buying something you're not sure of.
• Look at the certification BEFORE buying the diamond.
• ALWAYS, ALWAYS, ALWAYS look at the diamond under a darkfield illumination microscope!!!

X. An example. My diamond buying experience in 2003:

I went to the store knowing I wanted an F color (my GF wanted a white gold or platinum band)
and had $5,000 TOTAL to spend on the whole ring. I found a .74ct F SI2 1-cut diamond for
$3,600. I spent $700 for a white gold band and some extra decorative work. I was not pressured
in any way, I saw the diamond under a microscope, and I saw the certification and Brilliant Eye
Report before I made my decision. My wife and I are extremely happy with how everything
came out. When she shows it to other people with engagement rings, her diamond stands out
because of the intense sparkle it has...and she's comparing her diamond to diamonds almost
twice the size of hers!

I hope all this helps you make an educated decision.

-MacG467