Here is an email I received recently.
I am in the market for an engagement ring and came across your site, I was just comparing, you have a round brilliant cut 1 carat, E, VS2, Super Ideal, GIA, CAD $8335.00
Blue Nile sight same diamond is listed at approx. $12,000.00
Cosco 1 carat, VS1 don’t know any other info but is selling for $6999.00
How do I know if I am truly paying Market Value? My Budget is $6000-$7000
Here is my reply,
Thank you for contacting me at purediamond.ca
Unfortunately, there is no real way to know exactly what the market price for the diamond is, per se. Diamonds, unlike many other commodities, are extremely difficult to compare. Some are better and some are a lot worse. The certificates for 3 different diamonds could be similar but in the end it always comes down to the diamond itself and what it looks like.
The price is important but the price might not accurately reflect the quality and the overall appearance of the diamond.
So the to break down the options you have sent in.
1) Blue Nile is a very competitive organisation, the price you have quoted $12,000 should get you a very high end 1.00 carat E VS2 GIA EX EX EX certified diamond with no fluorescence. It should look great and it would be worth every dollar. Based on price alone you should be receiving a high-end stone.
However, Blue Nile does not own the physical diamonds stock and they outsource both the ring production and the selection of the diamonds. To put it simply they don’t see the diamonds they sell. So yes the price of $12,000 should get you a great diamond but how will you know, if the diamond is not even seen by the party that sells it?
2) My diamond listed @purediamond.ca at the price of $8335 is the online special, it requires for you to submit the order on the diamond and the engagement ring over the email after which you will pick up or have me ship the completed jewellery piece. Same with Blue Nile, the diamond will not be seen by you before you purchase it.
If you want to see the diamond before you purchase it, I have to collect an additional $700 for the transportation and insurance costs. The price of your diamond will go up by $700.
The reason this particular diamond is cheaper is because it has a slightly hazy and milky appearance, it also has fluorescence. This is a very good but not an ideal diamond to have in engagement ring, and the price reflects it.
3) Costco does not sell diamonds certified by the GIA. Therefore all diamonds Costco sells can be anything. The VS can be SI, in real terms. The colour, on most diamonds when tested is usually quite low. As with the other 2 options the price reflects it.
You have a great budget, with $7,000 Canadian Dollars.
But it will not buy you a great 1.00 carat diamond engagement ring. The budget will only get you a very mediocre 1.00 carat ring.
I can offer Gemological services, where we can meet, I will put the options on the table and show you the difference in certified diamonds. The options in carat weight will range from 0.80 to 0.90 carats. The ring can be custom made around the particular size of the diamond you might select.
It’s a very easy, fun, informative and completely stress-free environment in my office, and I will help you see the difference in qualities of different diamonds.
One day you will think about buying a diamond engagement ring. Whether you wake up with an idea or it just generally strikes you, it is up to you. However, diamonds are not like any other commodity. You can not just expect to save on the diamond and get a really good quality in the process. It is basically impossible to get a great quality diamond on the cheap. Unlike injuries diamonds are expensive.