Gemological Laboratory Grading Reports

Why is it important to buy a diamond or gemstone with a grading report?

A diamond or gemstone grading report is an independent, expert analysis of your diamond or gemstone by a gemological laboratory. The stone’s characteristics will be analyzed with advanced gemological equipment and provided in a report that tells the size, shape, weight, color grade, presence of fluorescence, clarity grade, cut grade (in round brilliants), polish and symmetry of your gemstone, any treatments, possibly origin, if the diamond is natural or laboratory-grown, and any girdle inscriptions. Most importantly, a report from a highly respected gemological laboratory, like the Gemological Institute of American (GIA), assures you that your diamond or gemstone is what it is supposed to be (and not an imitation or diamond simulant!). The report will show the proportions of the stone and, depending on report type, may also include a plot diagram with inclusions. The report has an identifying number and QR code (based on date of issue) that provides online access to the report. Because the report is numbered, that number can be inscribed on the girdle of the diamond and the report will indicate its inscription, as referenced above. Because diamonds and gemstones are individually unique, having this detailed report, especially with the girdle inscription, will allow for ease in identifying your diamond or gemstone. By 2025, all GIA laboratory reports will be online and printed reports no longer issued.
There are many gemological labs in the world. Some are highly respected, and others are not. One of the most highly respected labs in the world is the Gemological Institute of America (GIA). Stones are submitted from all over the world to GIA for grading of diamonds and colored gemstones. Another reputable grading lab is AGSL (American Gem Society Laboratories). Lab reports from AGSL are also very highly respected. It was announced in the latter part of 2022 that the AGSL Laboratories will be closing and will be
bringing their expertise to GIA, which has always been their “sister” lab as they were both started by the same man, Robert M. Shipley. As of 2023, some elements of the AGSL report will be offered as an optional, additional report to accompany a GIA lab report. The American Gem Society will continue to carry on the work of its mission.

Why is it important to buy a diamond or gemstone with a laboratory grading report?

GIA Grading Process

  • GIA is an independent lab that analyzes the characteristics of diamonds and gemstones.
  • The lab issues a detailed report with a unique number describing the specific stone.
  • The number of the report and its information is maintained by GIA including additional data gathered that is not included in the report.
  • GIA offers a laser inscription, on the gemstone itself for the purpose of ease in identifying the gemstone.

Why do you need a grading report?

  • A grading report indicates if the stone is natural, lab-grown, treated, a simulation or imitation.
  • A grading report states the stone’s cut, clarity, color and carat weight.
  • A grading report indicates the stone’s clarity characteristics and maps them – like a unique figure print.
  • If laser inscribed, the grading report will state the inscription number.
  • Each grading report identifies a specific diamond or gemstone.
  • A grading report from a reputable gemological laboratory helps determine the gemstone’s value.

There are many diamonds and gemstones that do not have a laboratory grading report, or have a report from a lab that is not highly respected. Often (although there are always exceptions), the reason a diamond does not have an accompanying grading report from a respected laboratory is because it would not get a good report so a stone you are considering that does not have a report should get its due diligence. If, upon inspection of the stone it seems that it could possibly get a good report but was never sent in for whatever reason, it can be sent in for evaluation at any time. However, the stone does need to be a loose stone; it cannot be mounted. Sometimes a stone will have a report, but it is issued by a gemological laboratory that is not respected because the lab is known for grading stones not to the standard, so often the color, clarity, and other details of the stone will be graded higher than it actually is. Additionally, these labs are often for-profit labs so they are not impartial; they have a vested interest in producing reports with grading that is inaccurate and inflates the quality of the diamond. Jewelers will sell stones with these reports to unsuspecting customers who do not realize they are not respected reports with accurate, industry standard grading. Diamonds with accompanying reports issued by respected labs will command a higher price because they are more valuable stones, yet jewelers who try to pass off stones from “lesser” labs still charge the premium to the unsuspecting customer.

GIA standards

Established in 1931, GIA is the world’s foremost authority on diamonds, colored stones, and pearls. A public benefit, nonprofit institute, GIA is the leading source of knowledge, standards, and education in gems and jewelry. GIA is the world’s most trusted name in gemstone grading and identification. With objectivity and expertise as its hallmarks, GIA ensures the integrity and accuracy of every report it issues. GIA tests every material submitted to determine whether it is natural or not, and discloses any treatments discovered during examination.

Through research, education, and unbiased gem grading and analysis, GIA strives to protect the gemstone and jewelry buying public by setting global quality standards.

Appraisals

WHY IS IT IMPORTANT TO APPRAISE YOUR FAMILY JEWELS?

Even though you may cherish your family gemstones and jewelry, you may wonder what your gemstone or jewelry’s value or resale value is. Even if you purchased your gemstone or jewelry yourself, and know how much you paid for it, the value of the of your gemstone or jewelry is not necessarily the same as it’s purchase price.

In order to determine how much your gemstones or jewelry are worth, you need to have them evaluated. It’s extremely important to go to a professional that is fully knowledgeable on gemstones and jewelry, who can give you an accurate appraisal. Ideally the appraisal is based on your gemstone’s GIA grading report.

How Does an Appraisal valuate my Gemstone's Value?

An appraisal is an assessment of a gemstone or jewelry’s value. However, an appraisal does not determine the absolute or true value. This is because an appraisal is determined with an inflation rate, and operates like insurance or tax. In addition, the value of a gemstone or jewelry determined with an appraisal can vary under certain contexts. It is important to note that the price at which your gemstone or jewelry is appraised may be neither the price you paid nor what you will be able to resell it for.

GIA Grading Reports vs. Diamond Appraisals

As mentioned above, appraisals are a monetary valuation is given to your gemstone or jewelry and are typically performed by a jeweler or gemologist. A grading report, on the other hand, is a thorough evaluation of a gemstone and its characteristics considering all its qualities. These characteristics include carat weight, cut, color and clarity.
Gemstone grading reports are completed by professional gemological labs, such as GIA (Gemological Institute of America), EGL (European Gemological Laboratory), IGI (International Gemological Institute) and AGS (American Gem Society).

One of the key differences between an appraisal and a grading report is that the grading certificate typically does not provide a monetary value, while an appraisal does. Appraisers do not examine gemstones or jewelry to the same depth as the gemologists behind gemstone grading reports and lab grading.

A final point to keep in mind: if you want to sell your gemstone or jewelry, an appraisal will tell you the value of the gemstone or jewelry, while a grading report will cover the characteristics of the gemstone alone.

Why should I get an appraisal?

Appraisals are necessary if you’d like to take out an insurance policy on your gemstone or jewelry from an insurance company. The appraisal is key to allowing you to receive financial compensation if the gemstone or jewelry is stolen, lost, or even damaged and will insure you will receive full replacement value. If the gemstone or jewelry is an inherited piece, you will have an understanding of its worth.

When should I get my diamond appraised?

When you buy a gemstone or piece of jewelry, you should get your it appraised as soon as you receive it, so that you can obtain insurance coverage immediately. Getting an appraisal quickly after purchasing or acquiring your gemstone or jewelry will give you peace of mind, knowing that it is covered in the event of loss, theft, or damage.

Another important occasion to get an appraisal is if you are considering selling, or similarly for tax purposes, for example if the gemstone or jewelry is included in an estate’s value.

It’s also important to note that you should get your gemstone or jewelry appraised about every five years. You always want to be sure that you have an accurate recorded value because the value of diamonds and other precious stones and metals increases over time.

The Diamond Appraisal Process:

Cleaning —The first step for a comprehensive appraisal process is to clean gemstone or jewelry, polishing off any superficial dirt to visually evaluate it precisely.

General Condition Overview — A appraiser will visibly inspect the piece to assess the general condition, as well as to make sure the gemstone and or metals in the case of jewelry are genuine before evaluating further.

The 4C’s — The most important step of the process, is to analyze the characteristics of the gemstone including carat weight, color, clarity, and cut. In the case of jewelry the metal(s) that are used will be determined and characterized.

Description — After the examination, the appraiser will write a report, including all his or her findings and an estimated market value will be included.

How Much Does a Diamond Appraisal Cost?

The cost of an appraisal varies greatly depending on the complexity of the jewelry, and the condition of the gemstone(s). All things considered, the cost of an appraisal is a small price to pay in order to determine the value of your family heirlooms.