What is the difference between diamond certification and appraisal? Although they might seem similar, they serve different purposes.
Diamond certification is a scientific examination of a diamond that analyses the color, clarity, physical dimensions, weight, and other related parameters. The certificate doesn't state the price, just the characteristics of the stone.
In contrast, an appraisal reports mostly focus on the commercial aspect. An expert assesses the current market value of the diamond and documents it in an appraisal report. Usually, the appraisal report is required for insurance purposes. The value of the stone in an appraisal varies depending on whom, why, and where it's ordered.
On average, such papers overstate the characteristics of diamonds, resulting in prices that are 2–4 times higher than the market value.
It is recommended to value diamonds worth up to $1,000 with low M-Z/I1-I3 characteristics, as they are the safest to evaluate.
A certificate describes the origin and the details of the diamond, like its size, shape, additional smaller or melee diamonds featured in the piece, usually with a photo of the stone.
Also, it contains the diamond appraisal value.
The appraisal will include a dollar amount valuation that can be used to verify its value when applying for insurance coverage. We must note that the amount of money you will receive when selling the stone might differ from the one your diamond had been appraised for.
Basically, an appraisal is done for insurance purposes and is meant to estimate the cost of replacing your diamond or jewelry, it's not about the value of your diamond or what you paid for it.
An appraisal is conducted
- In-person by a private appraiser.
- By a local jeweler appraisal service.
- By an institution like IGL (International Gemological Laboratory), GIE (Gemological Institute of Europe), IDL (International Diamond Laboratory), EGS (European Gemological Services), GemScan, GLI (Gem Lab International) and other.
The process can be conducted offline or online, via a video meeting.
Lab grown diamonds get appraised the same way natural diamonds are.
We advise you to assess what tools and equipment the appraiser is using. While dealing with lab-grown diamonds, the appraiser should possess specialized knowledge, equipment, and stay updated on industry developments to accurately assess lab grown diamonds. For instance, some special tools like spectroscope and UVC lamps are needed for determining the origin of a diamond.
Unlike natural diamonds, which have an established market with historical pricing data, lab-grown diamonds may experience fluctuations in value as the market matures. Appraisers need to stay updated on market trends and industry developments to provide accurate valuations.
The appraiser needs to clearly communicate whether the diamond is natural or lab-grown, as this information significantly affects the value and buyer's expectations. Failure to disclose accurately could result in legal and ethical issues.
The speed of completing a diamond appraisal varies based on multiple factors such as the appraisal's complexity, appraiser availability, and specific requirements of the procedure. Generally, a basic appraisal can be concluded within a brief period, ranging from a few minutes to a couple of hours.