Assignment 1

Diamonds & DiamondGrading
1
Introduction:
Beyond the Essentials
Table of Contents
Subject Page
Understanding and Using Diamond Grades . . . . . . . . . . . . . . . . . . . . . . 4

Diamond Grading Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Wholesale Price Lists . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Beyond the Lab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Appraisals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Why Diamond Formation and Mining Matter . . . . . . . . . . . . . . . . . . . 12
Formation and Delivery to the Surface . . . . . . . . . . . . . . . . . . . . . . 13
How Mining and Processing Contribute to Value . . . . . . . . . . . . . . 15
What’s to Come . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Checking Your Progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
The Final Examination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Help Isn’t Far Away . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Key Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Key Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
©
©2002 The Gemological Institute of America
All rights reserved: Protected under the Berne Convention.
No part of this work may be copied, reproduced, transferred, or
transmitted in any form or by any means whatsoever without the
express written permission of GIA.
Printed in the United States.
Reprinted 2006, 2007
Cover photos: (clockwise from left) Joe Richard/University of Florida/AP Wide World Photos, Argyle Diamond Mines (Ply.), Ltd., Eric Welch/GIA, Tino Hammid/GIA
Back cover: Glodiam Israel Ltd.
Facing page: A piece of diamond rough, fresh from the mine, is admired before it makes its way into the dynamic diamond market.
Eric Miller/iAfrika Photos
INTRODUCTION:
BEYOND THE ESSENTIALS
This assignment begins the next stage of the journey you began in
Diamond Essentials. In that course, you gained a basic understanding of
diamond grades and how they relate to value, as well as how the diamond
market operates at the retail level. Diamonds & Diamond Grading builds
on that foundation. You’ll learn—in more detail—about diamond grades
and grading. You’ll also explore the diamond industry beyond its retail
level to gain an understanding of diamond value in other market segments.
One of the most remarkable things about the diamond trade is how
dynamic it is. The industry has changed significantly in recent years, and
the world supply of diamond rough has increased tremendously.
Abundant new sources were discovered in Australia and Canada. One
mine in particular—the Argyle mine in Australia—caused dramatic
growth in India’s diamond cutting industry, which processes large
numbers of inexpensive diamonds. This made diamonds available to a
wider consumer base.
©2002 GIA. All rights reserved. 1

DIAMONDS AND DIAMOND GRADING 1
Welcome to Diamonds and

Diamond Grading, where you’ll
build on the knowledge you
gained in Diamond Essentials.
When you’ve successfully
completed this course and the
Diamond Grading Lab Class:
• You’ll have a solid foundation

of diamond and jewelry
knowledge and skills.
• You’ll understand and be able

to apply the GIA Diamond
Grading System and the Four
Cs when buying or selling
diamonds.
• You’ll be able to use

specialized gemological
equipment to judge and grade
the color, clarity, and cut of
loose and mounted diamonds.
• You’ll understand the structure

of the diamond industry, from
mining through production
and marketing, up to final
retail sales.
• You’ll qualify for a variety of

industry positions such as
diamond grader, diamond
sales associate, assistant
buyer, and customer service
representative.
Christie’s Images Inc.
Diamonds sold at auction, like the fancy cuts in this suite, usually command
very high prices because of their exceptional quality. This course will help you
understand the factors that contribute to diamond value.
Even De Beers, which was a stabilizing force in diamond supply and

value for most of the twentieth century, has undergone astounding
changes in recent years. Those changes—which you’ll learn about in
this course—will reverberate throughout the industry for quite some
time.
There have also been many advances in diamond technology. Some
2
INTRODUCTION: BEYOND THE ESSENTIALS
Joel Beeson/GIA
Behind the scenes, the diamond This parcel of tiny diamonds is from the
industry bustles with activity at many Argyle mine in Australia. This source
levels. made diamonds affordable for a wider
range of consumers.
Joe Richard/University of Florida/AP Wide World Photos Shane McClure/GIA
Advances in diamond technology, like the use of high pressure, high temperature
equipment (left) to create marketable synthetic diamonds (right), have a far-reaching
impact on the diamond industry.
scientists developed new treatments for improving color and clarity. And
others have explored the way diamond interacts with light, inspiring
greater appreciation of the diamond cutter’s skills.
Diamonds are beautiful, desirable objects: They always have been
and always will be. This course will deepen your understanding of these
special gems.
3
Eric Welch/GIA
Windows in New York’s 47th Street diamond district feature dazzling displays of diamonds and diamond jewelry. Diamond grades
make it possible to accurately describe diamonds at all levels of the market.
UNDERSTANDING AND USING DIAMOND GRADES

■ Why are diamond grades important?
■ What does a diamond report tell you?
■ How do market factors affect diamond value?
Diamond grades make it possible for people to discuss diamonds simply

and concisely. Without a recognized and consistent system, you’d have to
describe the quality of a K-color diamond with VS1 clarity like this: “The
diamond is a very faint yellow: The color is so faint that you can barely
see it. And the diamond has two small, included crystals under the table.
They’re so small that you can barely see them under 10X, and then only
if you know what you’re looking for.”
It’s easy to see that calling the diamond a “K-VS1” is much simpler. But
the system only works if it’s widely understood. The grades developed by
GIA—the ones you started learning in Diamond Essentials—are used and
accepted around the world. They’re part of the international language of
diamond professionals.
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Diamond grades can help you compare one diamond with another. A Ke y C o n c e p t s
diamond with a grade of D-Flawless is very different from one with a grade Diamond grades provide a consistent,
of M-I1. But each has its place in the market. If you’re buying a diamond
standardized way of communicating
for resale, you have to understand the connection between grading and
value to know which is the best choice. and comparing diamond quality.
A diamond’s grade indicates its quality, but it’s only part of what
determines the diamond’s value. There are many variables to consider. Diamond grades are only part of the
For example, the value of a 1.01-ct., nicely proportioned, princess-cut determination of diamond market
diamond with H color and SI1 clarity depends on its place in the market. value.
Two retailers might assign radically different values if they’re located in
different countries. And diamond values are very different for retailers
than they are for wholesalers. Wholesalers don’t sell directly to consumers,
so their prices are somewhat lower than retail prices.
Diamond grades have many different uses. For gemological laboratories,
grades are simply statements of diamond quality. Some people use grades to
determine value and to decide whether or not to buy, or to match diamonds
for jewelry. A diamond grade might be part of an appraisal, as one step in
the evaluation of a finished piece of jewelry.
Diamond grades are constant: They don’t change because they’re used
in appraisals rather than sales presentations. The decisions people make
based on the grades do change, though. This is why a consistent and
repeatable system for diamond grading is an essential part of the modern
diamond market.
Wholesaler—Someone who sells

to retailers rather than directly to
consumers.
Appraisal—An estimation of the

value of an article, usually for
insurance purposes.
Joel Beeson/GIA
Wholesalers provide a valuable service to the industry by providing retailers with

access to diamonds of every quality level.
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Hands-on Training
In this course, you’ll learn how
and why diamonds are graded.
You’ll also learn about the factors
beyond the Four Cs that con-
tribute to diamond value. By the
time you finish this course, you’ll
have a comprehensive under-
standing of diamonds, diamond
grades, and how the diamond
market operates.
To get the hands-on, practical
experience of grading diamonds,
and to complete the requirements
for the Graduate Diamonds
diploma, you need to enroll in
the GIA Diamond Grading Lab.
In that lab session, you’ll
work with real diamonds and
trained, professional instructors
to learn the intricacies of the
Eric Welch/GIA
GIA Diamond Grading System.
In the GIA Diamond Grading Lab,
you get hands-on training from By the end of the five-day
patient, professional instructors. session, you should be able to
accurately and consistently
determine color, clarity, and cut grades. And you’ll be able to exam-
ine and describe the angles and proportions that determine how
well a diamond displays its unique optical qualities.
The Diamond Grading Lab is offered at our campuses in
Carlsbad, New York, and Los Angeles, and in other cities across
North America. It’s also offered at GIA’s international campuses and
in other locations worldwide.
DIAMOND GRADING REPORTS

Reputable gemological laboratories, like the GIA Laboratory, are the
most consistent and dependable sources of diamond grades. The grades
are recorded on diamond grading reports that list the quality factors
represented by the Four Cs: clarity, color, cut, and carat weight.
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Eric Welch/GIA
GIA diamond grading reports are internationally recognized statements of diamond

quality.
Diamond grading reports—some people call them certificates, or

certs—date back to the middle of the twentieth century. They’ve become
an enormously important part of the modern diamond trade.
Gemological laboratories grade hundreds of thousands of diamonds a
year. That much repetition makes the grades on the reports highly reliable
and consistent. Another factor that contributes to the accuracy of the
grades is that, at most labs, several graders examine each diamond.
Systems at most major gemological laboratories are adapted from the
GIA Diamond Grading System because other labs know that the GIA
system is universally accepted. Even if a grade is based on the GIA system,
however, the only source of an authentic GIA diamond grade is the GIA
Laboratory.
A quality report from a reputable lab allows a retailer or dealer to
choose a diamond without seeing it. Imagine that a Canadian retailer in
Calgary, Alberta, needs a center stone for a ring he’s designing. He
contacts dealers in Toronto, New York, and other large cities to see what
they have in stock.
7
A Toronto dealer has the diamond he’s looking for: a 1.53-ct. E-VS1
round brilliant with a cut grade of Excellent. The dealer faxes the jeweler
a copy of the diamond’s grading report. The retailer likes what he sees
in the report and orders the diamond sight-unseen. Transactions like this
happen every day, with diamonds being constantly bought and sold on
the strengths of their reports.
A report can also work the other way: You can check a diamond that’s
accompanied by a quality report to make sure it matches its description.
This protects you against switched stones.
WHOLESALE PRICE LISTS

Joel Beeson/GIA
Like diamond grading reports, published wholesale price lists are
Several companies publish guides that
list wholesale diamond prices based on
important tools for the diamond trade. They’re also relatively new—
the Four Cs. Prices on the lists often dating back to the 1970s. The wholesale prices on the lists are based on
vary, but they help buyers and sellers specific combinations of the Four Cs. The suggested prices depend very
determine reasonable price ranges. strongly on the market conditions that exist at a particular time.
Wholesale price lists have some limitations, which you’ll learn about
in Assignment 20, but a diamond professional can compare a diamond’s
quality report to its listed value, determine the diamond’s fair price, and
decide whether or not to buy or sell it.
Wholesalers usually sell goods in large quantities, and retailers or
jewelry manufacturers who buy very large quantities often get substantial
price discounts.
Ke y C o n c e p t s
The listed wholesale prices of diamonds
depend on the market conditions that
exist when the lists are published.
Eric Welch/GIA
Diamond traders usually deal in large quantities of diamonds. To keep the inventory
organized, they wrap each stone in a plain paper package marked with the diamond’s
identifying features.
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BEYOND THE LAB Ke y C o n c e p t s

Grading skills are useful—in some cases essential—if you work for a Large, high-quality diamonds are
dealer, jewelry manufacturer, or retailer. And you’ll probably deal with a graded much more thoroughly than
wider range of goods than graders in gem labs. You’ll see everything from small, low-quality ones.
large, fine stones to tiny ones.
Usually, the amount of attention a diamond gets depends on its
quality and value. Large, high-quality stones deserve a lot of attention,
especially if they haven’t yet been graded by a reputable lab. On the
other hand, it’s not worthwhile to spend a lot of time grading small,
low-quality stones. A quick examination under a loupe is usually all
they get.
The graders in gemological labs have an advantage over many others
in the industry: They don’t handle mounted diamonds. Mounted diamonds
make up the majority of the goods in many jewelry businesses, especially
retail stores. Some gem labs don’t grade mounted diamonds because the
mountings hide clarity and cut details, mask color, and make it
impossible to weigh the diamonds.
Small diamonds are often sorted rather than graded individually. A 10-ct.
parcel of small rounds, for example, might contain about 335 small
diamonds that weigh about 3 pts. (0.03 ct.) each. It wouldn’t be cost effec-
tive to grade each tiny diamond. So the dealer might put them through a
series of sieves and sort them by size, and then sort the various sizes into
smaller piles based on color. The dealer might not even look for clarity
Alex Mak/ORO Diamante Inc.
Diamond-grading skills are important in

jewelry stores, where you deal with
diamonds of all sizes. It’s also important
to be familiar with other gems as well as
with jewelry metals.
Joel Beeson/GIA
Very small diamonds are graded less strictly than larger ones. Most professionals
simply sort them by size and color.
9
Tino Hammid/GIA
No matter what their size, diamonds in fine-quality jewelry are professionally matched.
The Van Cleef & Arpels platinum watch case and band (above) are set with carefully
selected baguettes and tiny round brilliant diamonds. The diamonds in the three-
stone ring (left) match closely in color, clarity, proportions, and face-up appearance.
characteristics. Parcels of melee are usually sold by clarity range—if the

supplier is reputable, the dealer can trust that the diamonds in the parcel
will be within the requested clarity range.
Sorting and matching is useful for more than loose diamonds. When
manufacturers mount diamonds together in the same piece of jewelry,
they take care to ensure that each stone matches the others in terms of
size, cut, color, and clarity. If the diamonds are well matched, it’s a sign
that the manufacturer took care with the piece, and it’s likely that the same
attention to detail also applies to the jewelry article’s execution and finish.
It’s easier to sell a well-finished piece of jewelry containing precisely
matched diamonds—no matter what their clarity grade—because you can
justify its price to your customers.
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Jack Kelége
Most appraisals involve mounted

jewelry, like engagement rings and
other estate pieces. This makes grading
diamonds especially challenging, since
settings can hide many of the character-
istics that help set diamond value.
Eric Welch/GIA
Diamond grading skills are crucial to an appraiser’s success. It’s important to be

able to evaluate each component of a jewelry item—from the gems to the metal—
and estimate its overall value.
APPRAISALS
Appraisers face the same challenges as their colleagues in retail stores:
Most of the time they deal with mounted diamonds. They have to be able
to make accurate color and clarity grading calls despite this limitation.
Similarly, appraisers can’t weigh mounted diamonds, but they can estimate
weights by measuring dimensions and considering proportions. As you’ll
learn in Assignment 17, the grade and weight estimations of mounted
diamonds always include a statement that they’re as close as possible
within the limitations imposed by the mounting.
A piece of diamond jewelry can have different appraised values
because there are many different types of appraisals. The most common
type is an appraisal for insurance replacement. This contains a description
11
of the jewelry—everything from the Four Cs of the gems to the jewelry’s

design to the karat weight of the metal. An insurance company can use the
appraisal to replace the item if it’s lost or stolen.
Insurance replacement appraisals include a value for the jewelry item.
That value might be quite different from an appraisal done to determine
its liquidation value. Liquidation appraisals apply a value to the item for
immediate sale.
WHY DIAMOND FORMATION AND MINING

MATTER
■ Why are good-quality diamonds so valuable?
■ How did abundant new diamond supplies affect the market?
■ How does formation affect value?
Diamonds are more available and affordable today than at any other time
in history. At the same time, while diamonds are relatively abundant, dia-
monds with high clarity and good color are still quite rare.
Diamonds form under tremendous temperature and pressure. Then
they’re brought to the earth’s surface in cataclysmic eruptions at rare
times throughout the earth’s long history. The geologic process that brings
diamonds to the surface is so violent and explosive that it’s a miracle that
diamonds survive it. In fact, large crystals rarely survive intact.
Diamond formation and mining are covered in more detail later in this
The Argyle diamond mine in Australia course. This brief introduction will help you understand why these subjects
produces mainly small diamonds for are important to an appreciation of the many factors that affect diamonds
use in affordable, mass-market jewelry. and diamond value.
Tino Hammid/GIA
Considering their treacherous ride to the earth’s surface, these rough crystals
remained amazingly intact.
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Diamond’s specific formation condi-
tions are directly responsible for its
hardness and durability as a gem.
The unique physical properties of

gem-quality diamonds allow them to
survive environmental forces better
than any other gemstone.
Anthony Bannister/Gallo Images/Corbis
Once diamonds break free from their host rocks, they’re sometimes incorporated
into sedimentary rocks until they’re released again through erosion.
FORMATION AND DELIVERY TO THE SURFACE

As you learned in Diamond Essentials, diamonds owe their incredible
durability and beauty to their formation process. Formation under just
the right temperature and pressure conditions results in the crystal
structure that causes diamond’s supreme hardness and desirable optical
properties. If there’s a slight variation in temperature or pressure, or if
the diamonds take too long to reach the surface, the result is graphite,
not diamond.
Once gem-quality diamond crystals are delivered to the surface, they
often survive millions of years of battering in rivers, streams, and ocean
tides. Many are even incorporated into new sedimentary rocks, re-released
into the environment by weathering, and transported many hundreds or
thousands of miles without significant damage.
That’s the case with the diamonds of Namibia, on the western coast of
Africa. The diamonds arrived at the earth’s surface millions of years ago
in the African interior. Then the forces of erosion released the diamond
crystals from the rocks around them and the gems were gradually washed
westward in the Orange River to the Atlantic Ocean, creating what might
be the world’s largest deposit of gem-quality diamonds.
Estimates of the number of diamonds on and near the coastline run as
high as 1.5 billion carats. Experts also think that between 90 and 95
13
Eric Welch/GIA
Diamonds from Africa’s interior made their way to the country’s western coast (top
left), where workers carefully excavate them from manmade trenches (above). The
high cost of diamond mining contributes to the sale price of each individual stone
(bottom left).
percent of them are gem quality. The percentage is high because crystals
with large fractures and other structural defects don’t survive the journey
between the continental interior and the ocean. Only the strongest gems
make it.
Offshore diamond resources are some of modern diamond mining’s
newest frontiers. You’ll learn about the technology that makes undersea
diamond mining possible in Assignment 6.
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Diamond exploration requires a global perspective. Prospectors must consider how

marketable the mine’s diamonds are as well as how mining will impact the surrounding
ecosystem.
Environmentalists monitor the fish population surrounding Canada’s Ekati diamond

mine to help determine any potential damage.
HOW MINING AND PROCESSING CONTRIBUTE TO VALUE

While technology has made the job of locating diamond deposits easier
and more efficient, prospecting for diamonds is still a costly proposition.
And diamond exploration isn’t for the faint of heart. Because of the vast
capital outlay needed to find and develop a mine, mining companies
need huge financial resources. And they must think of time in terms of
decades.
15
Peter Johnson/Corbis
The quality of a diamond mine’s output is an important consideration for a prospective

mining company. The stones must be of a certain size, quality, and value to make mining
profitable.
16
© Royalty-Free/Corbis
Many people are surprised when they discover how much effort and expense it takes
to bring a beautiful diamond to a bride’s finger.
Finding the diamonds is only part of the process. Once prospectors Ke y C o n c e p t s

locate a promising area, the mining company must spend additional time The huge financial costs involved in
and money to develop it. Canada’s Ekati mine took years of exploration
to locate, and more than $700 million to develop, but the potential profits locating, developing, and operating
are huge. Experts consider Ekati’s unmined diamond reserves to be in diamond mines are factors affecting
excess of $8 billion at current prices, and project a 25-year lifespan for diamond value.
the mine.
There are many places around the planet that might contain diamond
deposits, but not all of them do. And not every diamond deposit is valuable
enough to develop into a profitable diamond mine. Mining companies
must consider several factors when they decide whether or not to develop
a mine at a given site.
They have to consider how many tons of diamond-bearing rock a deposit
might contain, as well as the concentration of diamond rough within the
deposit and the size, quality, and value of the diamonds themselves. They
also consider the location and accessibility of the diamond deposit as well
as the host country’s political stability and legal requirements, like taxes
and environmental legislation.
Even the smallest diamond must be located and mined, which repre-
sents an enormous investment in time and money. As a result, the costs
of finding and mining diamonds are significant factors affecting overall
diamond value.
17
The GIA Diamonds & Diamond Grading course was designed to help you understand the complex and dynamic world of diamonds.
WHAT’S TO COME
■ What do the assignments in this course cover?
■ How can you get the most benefit from this course?
The information in this course is divided into sections. Assignments 2 and

3 contrast the diamond industry’s birth with the tumultuous changes of the
last few years. Assignments 4, 5, and 6 take you through the story of dia-
mond formation, prospecting, and mining. Assignments 7 and 8 explore the
unique physical and optical properties that make diamond an unparalleled
gem, while Assignment 9 documents the evolution of diamond cutting.
Assignments 10 through 16 take you through the quality factors—
clarity, color, and cut—that allow you to assess the quality of a finished
diamond. Assignment 17 introduces you to weight estimation for mounted
diamonds, and discusses repairing and recutting diamonds.
Assignments 18 and 19 introduce you to the newest diamond simulants
and treatments, including techniques that use high pressure and temperature
to improve diamond color. Assignment 20 will help you apply what you’ve
learned to practical trade situations.
Here’s what’s ahead in more detail by assignment:
Assignment 2—Birth of the Modern Diamond Industry: You’ll learn
how the diamond market—and De Beers—operated through its first
hundred years or so. You’ll learn about the birth of the organization that
still dominates the diamond business today.
Assignment 3—The Modern Diamond Market: This assignment
explains how the diamond market changed, with powerful new players
entering the diamond mining and trading arena, and how De Beers
modified its operation to compete.
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Using the DVD

The Diamonds & Diamond
Grading DVD complements the
written text with live-action and
animated information that will
add to your understanding of the
course. The DVD begins with a
short introduction, then has sec-
tions on formation, exploration,
and mining. Diamond’s crystal
structure and its interaction with
The Diamonds & Diamond Grading
light follow, with animations to DVD expands on the information in
enhance the information in the the course by showing live-action
printed text. demonstrations, like this traditional
diamond-cutting process.
You’ll tour both traditional
and automated diamond cutting
factories, and see diamonds
sawn by conventional methods
as well as by laser beams.
The grading sections will
show you how to use some of the
tools of your trade, the best ways
to locate and identify clarity
characteristics, and the consider-
Both by Pedro Padua/GIA
ations that go into assigning a
Watching demonstrations will help you
clarity grade. You’ll see how understand how to use different pieces
color grading is done and look of gemological equipment, beginning
at proportion grading methods with the loupe, one of the trade’s most
for rounds and fancy shapes. important tools.
You’ll see the differences

between diamond and its simulants, and look at some of the treatments
that can alter a diamond’s appearance. You’ll also meet some of the
industry’s leaders and hear how they feel about the exciting world of
diamonds.
The DVD contains approximately 150 minutes of information.
You’ll find it most helpful to watch it a section at a time, when you
read the corresponding assignment.
Assignment 4—How Diamonds Form: This is a look at formation and

how it’s directly related to diamond’s unique properties.
Assignment 5—Exploring for Diamonds: This assignment shows that,
with diamond demand greater than ever before, mining companies are
using much more sophisticated methods to locate diamond deposits.
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The assignment on diamond mining will deepen your understanding of how diamonds
make their way from the earth into our lives.
Assignment 6—Diamond Mining: This assignment shows you what it

takes to get a diamond mine operating. It also explains why very few com-
panies can do it.
Assignment 7—The Diamond Crystal: This assignment expands on the
formation assignment. It explains how the properties of a diamond crystal
affect the way it’s fashioned, and provides insight into how rough diamond
crystals are valued.
Assignment 8—Diamonds and Light: After an introduction to basic
light science, you’ll see how GIA researchers are changing the way the
trade views diamonds and diamond beauty.
Assignment 9—The Evolution of Diamond Cutting: You’ll get a survey
of diamond cutting, from early cutting styles to today’s technologically
advanced manufacturing techniques.
Assignment 10—Finding and Identifying Clarity Characteristics: You’ll
see how diamond graders identify the various types of diamond clarity
characteristics and determine which ones have the most impact on beauty,
durability, and value.
Assignment 11—Grading Clarity: You’ll learn how graders assess the
impact of clarity characteristics on diamond value and assign a GIA
clarity grade.
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Assignment 12—Diamonds and Color: This assignment explains how

color happens in diamonds. You’ll learn which colors are the most valuable.
Assignment 13—Grading Color: You’ll learn about the color-grading
process for diamonds in the normal and fancy-color ranges.
Assignment 14—Grading Proportions—Table, Crown, and Girdle: This
assignment shows how diamond dealers and graders assess the propor-
tions of a diamond’s crown and calculate table size, crown angle, and girdle
thickness.
Assignment 15—Grading Proportions—Pavilion and Culet—and
Evaluating Finish: You’ll learn how to assess the diamond’s pavilion, Tino Hammid/GIA
culet size, and finish, and how to estimate its cut grade. Two assignments cover the fascinating
and complex topic of diamond color.
Assignment 16—Grading Fancy Cuts: Fancy cuts are now a major part The first explores how color occurs in
of the diamond market. You’ll see how to assess fancy-cut diamonds for diamonds, while the second explains
quality of cut, color, and clarity, and how they’re judged differently from how graders evaluate diamond color.
round brilliants.
Assignment 17—Estimating Weight, Recutting, and Repolishing: Here,
you’ll learn how to estimate the weight of mounted diamonds and see how
cutters repair damaged stones.
Assignment 18—Diamond Simulants: This assignment introduces you
to the most common and the most effective diamond simulants.
Robert Weldon/GIA
Assignments 14, 15, and 16 explain the fundamental facts about the proportions of
round and fancy-cut diamonds, and how graders assess them.
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Assignment 19—Synthetics and Treatments: You’ll learn how treatments

can reduce color or introduce color into diamonds as well as how synthetic
diamonds are made and how they differ from natural diamonds. You’ll also
learn about the most current ways to detect treatments and synthetics.
Assignment 20—Succeeding in the Marketplace: This assignment
discusses how to employ the skills and techniques you’ve gained throughout
the course. You’ll learn how to read a diamond price list and how to apply
some common techniques to assess diamonds in finished jewelry, matched
sets, or loose in parcels.
You’ll find that distance education is a wonderful way to learn. You can
set your own schedule and work in a comfortable environment. But with
this convenience comes the danger of relaxed study habits. To complete
Diamonds & Diamond Grading and any other GIA distance education
courses, you’ll need a dedicated study area and a study schedule.
You’ll find that your retention increases as your study habits become
consistent. Underline or highlight italicized words in the text and keep a
dictionary handy—all of the gemological terms are explained in the course,
but occasionally you might come across words that are unclear to you.
CHECKING YOUR PROGRESS

The short questionnaires you’ll complete in Diamonds & Diamond Grading
are great ways to determine what you’ve learned and what you might have
missed. The questionnaires also give GIA an idea of your progress.
Another terrific way to check your progress is to take another look at
the Key Terms and Key Concepts at the end of each assignment. If you
run across a term or concept that isn’t clear to you, you can easily turn
back to the part of the assignment where it’s discussed in detail. Just look
for its mention in the margin.
Now that you’ve finished Assignment 1, complete the first questionnaire.
It’s important to do the questionnaires as soon as you finish the assign-
ments—you might forget some of the information in the assignments if you
put the questionnaires aside to do later.
You can submit the completed questionnaires via the Internet, by FAX,
or by mail. You’ll find the Web address, the FAX number, and the mailing
address in separate inserts that came with your course materials.
The GIA Virtual Campus is a World Wide Web-based service available
through your normal Internet Service Provider (ISP). In your browser
window, type the Web address and follow any prompts to register and sign
in (it’s a free service for GIA students). This service instantly grades your
questionnaires and automatically records your scores. Be sure to explore
the other areas of the GIA Web site, too.
If you choose to submit your answers by mail, make sure you use only
a Number 2 pencil, and completely fill in the bubbles that correspond to
your answers. Also, be sure to fold the answer sheets in thirds lengthwise
(not in half) before putting them in the envelopes, and never staple or
paperclip anything to your answer sheets.
22
Remember to include your GIA student number on all correspondence

and on every questionnaire. This number helps instructors access your
education records instantly, and allows the grading machines to record
your questionnaire results automatically. Your student number will stay
the same no matter how many GIA courses you take.
THE FINAL EXAMINATION

There will be a proctored final exam at the end of the course. You must
complete each questionnaire with a minimum score of 75 percent in order
to take the final exam. (You can retake the questionnaires as many times as
you need to.) When you complete and pass all the questionnaires, you can
schedule your final exam. Then, to receive your Diamonds & Diamond
Grading certificate, you must score at least 75 percent on the final.
There are instructions for arranging to take the final exam in the binder The Diamonds & Diamond Grading
toward the end of the course. Make sure that you read them carefully. You certificate is a major milestone in your
don’t need to schedule the final until you’re nearly finished with the course. journey toward the prestigious
Graduate Gemologist diploma (G.G.).
HELP ISN’T FAR AWAY

Your GIA distance education instructor is just a quick e-mail message or
phone call away, Monday through Friday. GIA instructors are gemology
experts with years of trade experience. They’ll answer questions, clarify any
parts of the text that you’re unsure of, and help you with study hints. You’ll
also get feedback from your instructor in the form of comments that accom-
pany the answers. Save these comments to review for the final exam.
By using all the resources available to you as you progress through this
course and others you might take in the future, you’ll get the most out of
your GIA distance education.
Valerie Power/GIA
GIA’s distance education program helps you acquire the skills you need to
succeed in the jewelry industry while learning in a comfortable environment.
23
Diamond grades provide a consistent, standardized Diamond’s specific formation conditions are
way of communicating and comparing diamond directly responsible for its hardness and durability
quality. as a gem.
Diamond grades are only part of the determination The unique physical properties of gem-quality
of diamond market value. diamonds allow them to survive environmental
forces better than any other gemstone.
The listed wholesale prices of diamonds depend
on the market conditions that exist when the lists The huge financial costs involved in locating,
are published. developing, and operating diamond mines are
factors affecting diamond value.
Large, high-quality diamonds are graded much
more thoroughly than small, low-quality ones.
Key Terms
Appraisal—An estimation of the value of an Wholesaler—Someone who sells to
article, usually for insurance purposes. retailers rather than directly to consumers.
24
ASSIGNMENT 1
QUESTIONNAIRE
Each of the questions or incomplete statements below is followed by several possible answers. Choose
the ONE that BEST answers the question or completes the statement. Then place the letter (A, B, C, or D)
corresponding to your answer in the blank at the left of the question.
If you’re unsure about any question, go back, review the assignment, and find the correct answer. When
you’ve answered all the questions, transfer your answers to the answer sheet.
________1. A diamond grading system provides

A. exact diamond market value to a buyer.
B. a consistent way to communicate diamond quality.
C. assurance to customers that they’re getting the best prices.
D. diamond descriptions that can change from country to country.
________2. A wholesaler is someone who

A. sells to retailers.
B. repairs diamond jewelry.
C. grows synthetic diamonds.
D. sells directly to consumers.
________3. Diamond prices on wholesale price lists

A. are not negotiable.
B. reflect a worldwide consensus.
C. are available free on the Internet.
D. depend on the market conditions that exist when the lists are published.
________4. Large, high-quality diamonds are

A. sorted rather than graded.
B. usually graded in their mountings.
C. graded with a quick look under a loupe.
D. graded much more thoroughly than small, low-quality ones.
CONTINUED NEXT PAGE...
IF YOU NEED HELP: Contact your instructor through GIA online, or call 800-421-7250 toll-free in the US and Canada, or 760-603-4000;
after hours you can leave a message.
25
________5. Diamond’s supreme hardness and durability are

A. due to diamond’s rarity.
B. a result of the conditions under which it formed.
C. surpassed by laboratory-grown diamond substitutes.
D. a result of millions of years of battering by the forces of nature.
________6. Once diamond deposits are located, mining companies

A. begin extracting the diamonds.
B. recover the cost of exploration within the first year.
C. are exempt from taxes and environmental regulations.
D. must spend additional time and money to evaluate and develop them.
________7. An estimation of the value of an article is a(n)

A. grade.
B. appraisal.
C. price guide.
D. insurance policy.
________8. The most consistent and dependable sources of diamond grades are
A. appraisers.
B. wholesalers.
C. mining experts.
D. reputable gemological laboratories.
________9. Substantial price discounts are available to retailers and jewelry manufacturers who
A. travel to diamond mines.
B. can buy in large quantities.
C. buy small quantities every month.
D. always buy from the same supplier.
________10. A diamond’s clarity and color grades indicate its

A. quality.
B. popularity.
C. retail price.
D. wholesale price.
CONTINUED NEXT PAGE...
26
________11. Reputable gemological laboratories don’t grade mounted diamonds because

A. it takes too much time.
B. their insurance policies don’t permit it.
C. mountings hide details of clarity and cut.
D. the designs of the mountings might influence their decisions.
________12. Dealers often sort melee by size using

A. scales.
B. sieves.
C. templates.
D. millimeter gauges.
________13. The diamond industry has changed dramatically in recent years because
A. demand for finished diamonds has decreased.
B. the world’s supply of diamond rough has increased.
C. the world’s supply of diamond rough has significantly decreased.
D. environmental regulations have caused many mines to shut down.
________14. The Argyle mine in Australia contributed to

A. an economic slowdown in Australia.
B. the rise of the cutting industry in India.
C. the decline of production in South Africa.
D. the rise of the cutting industry in Australia.
________15. Wholesale price lists are usually organized according to

A. recent auction prices.
B. traditional jewelry-buying seasons.
C. specific combinations of the Four Cs.
D. sales at major diamond-trading centers.
27
PHOTO COURTESIES
The Gemological Institute of America gratefully acknowledges the following people and organizations
for their assistance in gathering or producing some of the images used in this assignment:
Argyle Diamond Mines (Ply), Ltd., 12 (left)
Ashton Mining Ltd., 3 (top right), 12 (top)
BHP Diamonds Inc., 15 (top, bottom)
Diamond Promotion Service, 10 (top left)
The Diamond Registry Inc., 8 (bottom)
Diamond Trading Company, 14 (right), 20
K.R. Gems & Diamonds International, 3 (top left), 5, 9 (bottom)
Precious Gem Resources, Inc., 21 (bottom)
Suzanne Tennenbaum, 10 (right)
William Goldberg Corporation, 14 (bottom left)
K.R. Gems & Diamonds International provided the vast majority of the stones that were photographed by
John Koivula to depict inclusions. GIA thanks them for their generosity.
28
1. Introduction: Beyond the Essentials
2. Birth of the Modern Diamond Industry
3. The Modern Diamond Market
4. How Diamonds Form
5. Exploring for Diamonds
6. Diamond Mining
7. The Diamond Crystal
8. Diamonds and Light
9. The Evolution of Diamond Cutting
10. Finding and Identifying Clarity

Characteristics
11. Grading Clarity
12. Diamonds and Color
13. Grading Color
14. Grading Proportions—Table, Crown,

and Girdle
15. Grading Proportions—Pavilion and

Culet—and Evaluating Finish
16. Grading Fancy Cuts
17. Estimating Weight, Recutting, and

Repolishing
18. Diamond Simulants
19. Synthetics and Treatments
20. Succeeding in the Marketplace

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Diamonds & DiamondGrading

Understanding and Using Diamond Grades . . . . . . . . . . . . . . . . . . . . . . 4

©2002 GIA. All rights reserved. 1

Welcome to Diamonds and

• You’ll have a solid foundation

• You’ll understand and be able

• You’ll be able to use

• You’ll understand the structure

• You’ll qualify for a variety of

Even De Beers, which was a stabilizing force in diamond supply and

Joe Richard/University of Florida/AP Wide World Photos Shane McClure/GIA

UNDERSTANDING AND USING DIAMOND GRADES

Diamond grades make it possible for people to discuss diamonds simply

Wholesaler—Someone who sells

Appraisal—An estimation of the

Wholesalers provide a valuable service to the industry by providing retailers with

DIAMOND GRADING REPORTS

GIA diamond grading reports are internationally recognized statements of diamond

Diamond grading reports—some people call them certificates, or

WHOLESALE PRICE LISTS

BEYOND THE LAB Ke y C o n c e p t s

Alex Mak/ORO Diamante Inc.

Diamond-grading skills are important in

characteristics. Parcels of melee are usually sold by clarity range—if the

Most appraisals involve mounted

Diamond grading skills are crucial to an appraiser’s success. It’s important to be

of the jewelry—everything from the Four Cs of the gems to the jewelry’s

WHY DIAMOND FORMATION AND MINING

The unique physical properties of

Anthony Bannister/Gallo Images/Corbis

FORMATION AND DELIVERY TO THE SURFACE

Diamond exploration requires a global perspective. Prospectors must consider how

Environmentalists monitor the fish population surrounding Canada’s Ekati diamond

HOW MINING AND PROCESSING CONTRIBUTE TO VALUE

The quality of a diamond mine’s output is an important consideration for a prospective

Finding the diamonds is only part of the process. Once prospectors Ke y C o n c e p t s

The information in this course is divided into sections. Assignments 2 and

Using the DVD

You’ll see the differences

Assignment 4—How Diamonds Form: This is a look at formation and

Assignment 6—Diamond Mining: This assignment shows you what it

Assignment 12—Diamonds and Color: This assignment explains how

Assignment 19—Synthetics and Treatments: You’ll learn how treatments

CHECKING YOUR PROGRESS

Remember to include your GIA student number on all correspondence

THE FINAL EXAMINATION

HELP ISN’T FAR AWAY

________1. A diamond grading system provides

________2. A wholesaler is someone who

________3. Diamond prices on wholesale price lists

________4. Large, high-quality diamonds are

CONTINUED NEXT PAGE...

________5. Diamond’s supreme hardness and durability are

________6. Once diamond deposits are located, mining companies

________7. An estimation of the value of an article is a(n)

________10. A diamond’s clarity and color grades indicate its

CONTINUED NEXT PAGE...

________11. Reputable gemological laboratories don’t grade mounted diamonds because

________12. Dealers often sort melee by size using

________14. The Argyle mine in Australia contributed to

________15. Wholesale price lists are usually organized according to

2. Birth of the Modern Diamond Industry

3. The Modern Diamond Market