The 4C’s – Carat

Diamond in its original form, before it is polished and shaped is called rough diamond or just rough. About half of the world’s rough diamond comes from central or south Africa. In addition there are significant diamond deposits in Russia, Canada, Brazil, Australia and India. There are approximately 130 million carats of diamonds mined annually.

The carat is the unit of weight that is used to measure and quantify all diamond. All diamonds whether in the rough form before polish or after as a finished gem are sold “per carat”. The carat is one of the four criteria used to describe and value all diamonds. The others of course are color, clarity and cut. The De Beers Corporation created these 4C’s in 1939 as a ways to standardize the description and value of all gem quality diamonds.

Historically, the word “carat’ comes from the Greek “fruit of the carob”. The carob is a seed, which was used as the standard unit of measure on scales for thousands of years. The carob seed was used because of the belief that all carob seeds were uniform in weight. Today however, a carat is defined as the weight of two hundred milligram’s and is divided into one hundred points of 2 milligram’s each. It is for this reason that we say there are one hundred points in one carat of diamond. As such, .50 points would be a half a carat, .25 points a quarter carat, .75 points three quarters of a carat and so on.

In the mining of diamonds there are significantly more smaller rough diamond found than larger rough diamond and so and diamonds are bought and sold throughout the world, smaller diamonds cost less money “per carat” than larger diamonds. This difference in price, which can be substantial in the total cost of a stone, is due in part to the market conditions of supply and demand.

Thus, all diamonds are grouped according to size. Stones between 1 to 4 points have the same “per carat” price given that color, clarity and cut remain the same. The same stones between 5 and 7 points have a different “per carat” price. These price breaks continue, as the diamonds get bigger. Diamonds between 8 and 11 points are priced less than those between 12 and 14 points, diamonds between 14 to 18 points are priced less “pre carat” than those 18 to 22 and so on. These price breaks continue throughout the entire range of diamonds and continue more prominently as diamonds cross the full one-carat size.

These differences in the price per carat of a diamond solely related to its size or carat can have a dramatic effect on its price. If we use a quarter carat, half-carat and three quarter carat diamond as an example, we can illustrate this difference. A quarter carat diamond, H in color and SI1 clarity, a nice white stone with some imperfections in the stone, none of which would be visible to the naked eye could cost about $225.00 dollars. The same quality stone in a half-carat size about $900.00 dollars and a larger stone of .75 points about $1500 .00 dollars.

To further the example, that same stone as a one-carat diamond would be close to $4000.00 dollars but as a .90-carat, (just under a carat) it would cost just $3000.00 dollars. That’s a difference of about $1000.00 dollars for 10 points in size which will not be seen once that diamond is put into a ring. The same differences in prices would hold true regardless of what colors and clarities we chose. The only variable here was the carat weight or size of the diamond.

While decisions about the size and look of a diamond are always very personal and important, a real understanding of each of the 4C’s, carat, color, clarity and cut can give invaluable information to anyone interested in learning about or purchasing a diamond.

The 4C’s – Color

For more than six thousand years diamonds have had a place in man’s history. They have been sought after as mineral’s possessing mystical properties, as objects of beauty and as symbols of status and power. However, before De Beer’s creation of the 4c’s (color, cut, clarity, and carat), in 1939, there were no universally accepted standards used to categorize and describe the qualities of diamonds.

Color is an attribute of a diamond which is immediately visible to the naked eye and as such can immediately be compared to other diamonds which are seen as “whiter” or not as white. The color of a diamond is determined by its chemical makeup and impurities inside the stone. There are diamonds of many different colors, from white to black, brown, yellow, pink, orange, red, green, purple, blue and grey. While technically the color white is made through a combination of colors, it is easier in a discussion of diamond ‘whiteness” to think of white as the absence of color. As a diamond has less color in its crystals, it is colorless and appears whiter. When we say that a diamond is colorless or “D” in color, we are saying that this is the whitest a diamond can be. As with any color there are slight variations to that color. A diamond color is no exception and so there are varying color grades of white.

In the 1940’s, the Gemological Institute of America began assigning letters to describe the different levels of whiteness found in a diamond. This diamond color grading chart defines diamond color beginning with the letter “D” and continuing through the letter “ Z”. This is considered the normal color range of all diamonds. Diamonds not in this range due to increased or intense color are considered “fancy colored diamonds” and are graded using many of the standards and terminology used to grade colored stones like ruby, emerald and sapphire. Beginning, however, with the letter “D” and continuing with the letters “E, F, G, H, I and sometimes J, are generally considered white stones. The Gemological Institute of America has defined the level of white attributed to diamonds in each of these color grades. As more color is found in the crystal structure of each diamond, it appears less colorless and thus less white. The difference in these color grades of diamonds can only be seen by comparing the color of one diamond with another. Diamonds are generally graded loose, essentially upside down with the culet or point of the stone facing upwards. Yet, it is difficult to determine the “whiteness” of a diamond color in the abstract. Professional’s in the diamond business, grade diamond color by comparing each stone to a master set of color-coded synthetically created crystals.

In addition, diamond color may only be determined before the stone is placed in a piece of jewelry. Diamonds like prisms will reflect the color of the metal placed around it, and so a diamond will always appear whiter when surrounded by a white metal, like platinum or white gold. So much so that it can actually appear to be one full grade higher on a diamond color chart. As an example a G color stone will appear to be F in color in a platinum or white gold ring.

Ultimately, our perception of the whiteness of a diamond is influenced by the amount of light which passes through the diamond, and how that light is broken up or refracted in the stone and then reflected out of the stone. This refraction and then reflection of light in a diamond is what is responsible for the “fire” or sparkle of a diamond. This leads us to a discussion of another of the 4C’s, the “clarity” of a diamond.

Diamonds

Diamonds have been used as an adornment, a token of affection, or as a statement of social position or title for thousands of years. Historians tell us that they were first used as an adornment on religious icons in India more than three thousand years ago. The Greeks believed that diamonds were the ‘tears of God and splinters of the stars”, and that jewelry made with diamond “reflected the constant flame of love”. Kings adorned their armor in diamonds and they were believed to have mystical powers. From the thirteenth century, European royalty wore diamonds as jewelry and in 1477; Archduke Maximilian of Austria gave a diamond ring to Mary of Burgundy beginning the tradition of diamond engagement rings. It was not however, until the twentieth century that diamonds became wholly accessible and affordable to the general public. This is in large part due to the discovery of diamonds in South Africa in the late ninetieth century and the formation of the De Beers Mining Company in 1888.

No description of diamonds and the diamond business would be complete without an understanding of the role of the South African, De Beers Company, founded by Cecil Rhodes. By the end of the First World War this company controlled approximately 80% of the distribution of all the rough diamond in the world. They in turn, controlled both the supply and thus the price of diamonds. As new mines were discovered in different parts of the world De Beers worked to form alliances to continue this influence. In 1939, De Beers created the 4C’s, color, cut, clarity, and carat, as the criteria to judge all diamonds, and since that time has worked to create marketing strategies to educate and influence the buying habits of consumers. In 1949, De Beers began its “A Diamond is Forever” campaign, which has successfully marketed diamonds as the ultimate symbol of love and commitment. While business conditions have changed over the years and De Beers control of the worlds diamond supply has diminished to a little over 40%, De Beers continues to have a tremendous influence in the price, sale and marketing of diamonds around the world.

In defining the color, cut, clarity and carat of diamonds, De Beers clarified and in many ways simplified many technical aspects of diamond manufacture and polishing. These ‘4C’s”, however, do provide the consumer with a basic understanding of the characteristics of all diamonds. Over the years the purchase of a diamond has become more affordable and available. Through careful selection and grading there are diamonds and diamond jewelry in all price ranges and qualities. Diamond jewelry and especially all jewelry surrounding one’s engagement or wedding can be a significant purchase, second or third in line with the purchase of a house, apartment or car. For this reason it is important that the consumer thoroughly understand the diamond guidelines of color, cut, clarity and carat. For every budget and at every price an understanding of these diamond characteristics can give the consumer a realistic picture of what they should expect from the diamonds or diamond jewelry they purchase. The purchase of a diamond in whatever capacity, whether an engagement or wedding gift, a simple pendant or token can provide many years of warm memories. It becomes part of an event, a history, and a life, just as it has for thousands of years.