Gemmology

Reviewed by Carla Tardi

Updated Sep 11, 2019

What Is Gemmology?

Gemmology is the science of studying, cutting, and valuing precious stones, but the essence
of gemmology is in identifying the gemstones. One who works in the field of gemmology is
called a gemmologist, and jewellers and goldsmiths also may be gemmologists.

Some collectors and investors may be interested only in gems' monetary value, but to
distinguish one gemstone from another, they will need to seek out a gemmologist.
Gemmologists examine gemstones—both discovered raw and synthesized in the laboratory—
using microscopes, computerized tools, and other grading instruments.

In financial services, there are no investment-grade gemstones... only investment-grade

bonds.

Understanding Gemmology

At its heart, gemmology is about identifying gems. Gemmologists identify a gemstone by its
specific characteristics and properties, such as cut, colour, quality, and clarity. Some rubies
and garnets, for example, are impossible to distinguish by their appearance, but their
underlying physical properties differ considerably. Many people are familiar with a group of
criteria that is used in gemmology to identify diamonds—the 4Cs of colour, clarity, cut, and
carat.

A Deeper Look at Gemmology and its Professionals

In addition to gemmologists, the field of gemmology contains numerous other professionals,

including appraisers, jewellers, lapidaries, metalworkers, and scientists.

Gemmologists may become certified as professional appraisers, whose expertise is useful in

many other industries, including jewellery sales and investing. Jeweller’s need to understand
gemmology to answer their customers’ questions and identify any gems brought to them.
Goldsmiths and other metalworkers need specific knowledge about the physical
characteristics of gems to create appropriate settings. For example, a setting that would be
ideal for a diamond could damage an opal, and the amount of pressure used to set the prongs
on a garnet could break a stone of tanzanite.

Lapidaries, or gem cutters, also need special knowledge, as appropriate cutting and polishing
techniques vary from gem to gem. What would work well for one gemstone would be a waste
of time or even disastrous for another gem. Scientists with degrees in geology, chemistry, and
even physics make up the smallest group of gemmologists, although they are very influential.
Scientists add to gemmology’s knowledge base by developing new testing techniques and
researching new gemstones.
Key Takeaways

 Gemmology is the science of identifying gemstones.

 The field of gemmology contains professionals like appraisers, goldsmiths, jewellers,
lapidaries, and scientists.
 Investing in gemstones may be risky, but the precious metals sector can be less
speculative for inexperienced investors.

Gemmology: Gemstones as Investments

When returns in the stock market decline, aggressive investors often seek out alternatives that
may hold more promise of increasing returns on invested capital (ROIC) than traditional
investment types. Or, some investors might want to consider tangible assets simply as a way
to diversify their holdings even during good market conditions. Investing in gemstones—in
particular, those that are rare or of exceptional quality—likely would at least retain, and
probably increase in value.

However, unlike other types of investments, gemstones may not be as easily liquidated if you
have an urgent need for cash. This drawback is especially founded for rare, precious stones
and jewellery that would appeal to elite buyers only. Gemstone investing can seem exciting
to those who want to make quick returns, but it is highly speculative and should only be
undertaken by experienced professionals. Investing in the precious metals sector, however, is
different because there are standards as well as specific investment vehicles for them in the
financial markets.

The term "investment-grade" is often tossed around by those who want to sell gems or try to
convince other people to invest in them. However, this practice is frowned upon in financial
services because there are no formal standards for what constitutes investment-grade
gemstones, as there are for investment-grade bonds, for example.

Careers in Gemmology

With advances in gemstone synthesis, gemmology has become an important field of study. A
credential in gemmology can offer numerous career paths:

 Appraiser. Evaluate gemstones, antique and contemporary jewellery, and fine

watches. Write detailed descriptions and determine valuation.
 Auction Specialist. Oversee buying and selling during the lively process of auctioning
privately owned one-of-a-kind jewellery.
 Bench Jeweller. Manufacture and repair fine jewellery using craftsmanship skills and
expert techniques.
 Buyer. Monitor industry and consumer trends and seek out gems and finished
jewellery pieces to sell profitably.
 Designer. Create unique jewellery designs using precious gemstones.
 Lab and Research Professional. Investigate new gem finds, treatment processes, and
detection methods in the field and laboratory.
 Retailer. A career in the fast-paced environment of retail jewellery sales can be
rewarding, exciting, and lucrative.
 Wholesaler. Import and sell diamonds, coloured stones, cultured pearls, finished
jewellery, and watches from locations around the world.
The Four Cs of Buying Diamonds—and the
Fifth C
Reviewed by Jennifer Cook
Updated May 21, 2019

What Are the Four Cs of Buying Diamonds?

The Four Cs are the four characteristics used to determine the quality and value of a diamond:
carat, cut, clarity, and colour. The characteristics of a diamond are graded and categorized by
the diamond industry to establish its retail value. Quality diamonds are graded by a qualified
expert and carry a certificate of authentication.

The Fifth C: Conflict-Free Diamonds

A fifth C—"Conflict-free" or "Blood-Free"—has become increasingly important to many

buyers in recent years. "Conflict" or "blood" diamonds refer to those that originate from a
conflict zone, and may have been used unethically to finance war against a government or
rival faction. Diamonds mined during civil wars in more than a half dozen African nations
have been labelled conflict diamonds.

"Conflict-free" diamonds are mined in stable countries with more ethical business and labour
practices, such as Australia or Canada, and are sold by reputable dealers or jewellery
retailers. They are rated by the Kimberly Process Certification Scheme (KPCS) and are
certified as conflict or blood free.

Key Takeaways

 The Four Cs are the carat, cut, clarity, and colour of a diamond and are used to
determine its value.
 Cut describes a stone's shape and facets, which make it sparkle; clarity measures its
purity; carats measure its mass.
 The most expensive of the "white diamonds" are perfectly colourless, while "fancy
diamonds," which have hues, are among the scarcest.
 The Fifth C refers to diamonds that are mined in stable countries, rated and certified
as conflict free, and sold by reputable retailers.

The Four Cs Explained

Here's a look at what how diamonds, an ever-popular choice for wedding engagement rings,
are valued. Before investing in one, it's important to learn how to be sure you are getting what
you pay for. It will also help you make trade-offs. For example, you may prefer a larger
stone, but be all right with slightly less clarity or slight flaws. Look at the choices with a
jeweller when you choose your stone.

Cut
A diamond’s cut, or its shape and facets—is what makes it sparkle. The more faceted the cut,
the greater the sparkle. The most famous shape and cut, according to the Cape Town
Diamond Museum, is the round brilliant, with 57 facets. Other popular cuts include the
rectangular emerald cut (44 facets), the square princess cut (50 or 58 facets), the oval cut (56
facets), the slender marquise cut (58 facets), and the hybrid pear cut (58 facets).

Clarity

Clarity measures the purity of the diamond and the presence (or absence) of tiny flaws. The
clearer or more flaw-free the diamond, the more brilliant and valuable it becomes. Internal
flaws are referred to as inclusions, while external ones are called blemishes. Jeweller’s and
gemmologists use a scale from FL (flawless) to VVS (very, very slightly included) to SI
(slightly included) to I (included), with number gradations for each category, to rate clarity.

Carat

A diamond’s mass, or weight, is measured in carats. A metric carat is 200 milligrams, and
each carat can be subdivided into 100 points. Diamonds that are more than one carat are
expressed in carats and decimals, as in a 1.25 carat diamond. The price per carat increases
according to its size since large diamonds are rarer.

Colour

Diamonds come in many colours and are categorized as either white—essentially

colourless—or fancy. Because distinctions of colour among stones are subtle, experience and
training are required to colour-grade a diamond. These variations make a major difference in
diamond quality and price. Depending on the hue and intensity, a stone’s colour can either
diminish or enhance its value.

The number of diamonds being mined has dropped off from a peak in 2005, allowing sellers
to raise prices.

The colour evaluation of white diamonds is based on the absence of colour. The
Gemmological Institute of America's (GIA) colour grading scale is the industry's most widely
accepted system. It categorizes diamonds on a scale of D to Z. All D-Z diamonds are
considered white, even though they contain varying degrees of yellow and brown.

 Perfectly colourless diamonds at the D end of the spectrum are considered the
highest quality and the most expensive. Colourless or clear white diamonds are more
desirable, as they allow the most refraction of light or sparkle.
 Brown- or yellow-hued diamonds at the Z end of the spectrum are deemed the
lowest quality. Brown diamonds with varying levels of intensity are the most common
and are in oversupply. They have been marketed as Cognac, Champagne, or chocolate
diamonds to increase their appeal.
 Fancy diamonds are stones that exhibit other colours, as well as stones with a yellow
intensity beyond Z. Those that come in tones of naturally saturated reds, pinks, blues,
and greens are the scarcest.

Celebrities, royals, and stars can also influence demand, causing a temporary spike in prices
for a particular colour. A diamond that is in fashion may lose value when trends change.