27 Feb

How to tell if an investment diamond is real

Table of Contents

A hand holding up a pink diamond in sealed, tamper-evident casing.

A pink diamond in sealed, tamper-evident casing.

There are many tests which may indicate whether a diamond is real, from checking to see if it sinks in water, to viewing the diamond under a UV light.

However, when it comes to investment-grade diamonds, particularly in the fancy coloured range, there are regulations in place to protect the buyer and seller from fakes.

Authenticity is the most important factor when considering the purchase of an investment diamond.  Without certification documents and serial numbers, resale becomes very difficult, and can drastically reduce the worth of the diamond.

Let’s explore the different types of investment-grade diamond certification, and how to spot a real diamond from a fake.

How does an investment diamond become certified?

One of the most crucial factors when investing in a rare fancy coloured diamond, such as a pink diamond, is certification. This confirms the diamond’s status as a natural stone and specifies its unique features for unambiguous identification, both of which are crucial at the point of resale.

For example, authentic Pink Diamonds that originated from the Argyle mine in Western Australia, carry an Argyle Gem Identification & Authenticity Document, listing the main characteristics of the diamond and verifying that it was cut and polished at the mine as well.

It is a report that has been provided directly by the mine, and Australian Diamond Portfolio sources pink diamonds with this certification.

When a GIA certificate accompanies a pink diamond, the buyer may be sure that the stone has undergone independent testing by the world’s most recognised gemological laboratory,  which adheres to the highest standards of ethics, knowledge, and professionalism.

Additionally, every diamond that weighs more than eight points (0.08 carats) has a specific  ID number permanently inscribed on the girdle for unambiguous identification.

What can you tell from a diamond’s serial number?

Laser inscription technology became widely available during the late 1990s and early 2000s and it’s around this time that diamonds began to use serial numbers.

A diamond’s serial number is a unique identification for that particular stone, similar to a fingerprint.

A diamond’s serial number will be noted in its GIA certificate (also known as a diamond grading report) and registered in the GIA database.

Serial numbers can be utilised to stop fraud and guarantee that a diamond is not marketed as natural when it’s actually synthetic or treated.

Although several different gemological laboratories worldwide provide diamond reports and certifications, Australian Diamond Portfolio only purchases diamonds with reports provided by the Gemological Institute of America (GIA) and Argyle Pink Diamonds, for investment reasons.

These two reports are the most well-known for coloured diamonds currently on the market.

Can you resell a diamond without a serial number and certificate?

Although reselling a diamond without a serial number and certificate is possible, it may be more challenging to find a buyer and the price may be lower.

If a diamond has been professionally inspected and certified, it will always be worth more at resale and it’s a critical factor to consider when purchasing a pink diamond, or another fancy-coloured diamond for investment purposes.

The certification document, grading report and serial numbers all contribute to the story and value of the diamond.

If you’re interested in finding out more about investing in certified, investment-grade pink diamonds, get a free Pink Diamond Investment Guide from Australian Diamond Portfolio.


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