Diamond Color vs. Diamond Clarity – Choosing the Right Diamond for a Given Price

I’m often asked which parameter of the 4C’s is most important when searching for a diamond. The truth is that this question could be answered on so many levels that there is probably no one correct answer. That said, when searching for a diamond, for example in order to purchase an engagement ring, one would typically know more-or-less how much he is willing to spend for the diamond, thus what the diamond’s price restriction is. For a given budget, certain guidelines could be given to the first time “online diamond purchaser” in order to somewhat simplify the decision process.

The question that we’re trying to tackle here is “for a given price – am I better off compromising on the diamond’s clarity or on the diamond’s color”?

An assumption that we must take prior to answering this question is that the restriction on the diamond’s price is not too extreme, meaning that at all times we will be considering diamonds that are in the mid-range of the scale of both the color and the clarity parameters. For example, we wouldn’t want to end up purchasing a very clear diamond (e.g., VVS1) while then forced to compromise on the diamond’s color in such a way that we would end up with a very low diamond color grade (e.g., L, K, M and lower). This brings us to our first recommendation, which is to aim towards that mid-range in terms of diamond color. What would be the mid range in terms of diamond color? Probably diamond colors between (an including) G to J. This range is considered by many jewelers the ‘near-colorless’ diamond color range. Diamonds below that range would be considered of ‘noticeable color’, and diamonds above that range (of diamond color D-F) would be considered ‘colorless’.

In terms of diamond clarity, a similar set of rules applies. Here also, our recommendation would be to aim towards the mid-range in order to get the best “diamond to money ratio”. And what do we consider mid-range for diamond clarity? Probably any diamond between (an including) grades VS1 to SI2 (i.e.: VS1, VS2, SI1 and SI2). VS1 and VS2 diamond clarity grades would include diamonds with inclusions that are not typically visible to the unaided eye. SI1 and SI2 diamond clarity grades would include diamonds with inclusions that are certainly visible under a 10x magnification, and may also be visible to the unaided eye (but not necessarily).

Assuming that we agree on shooting towards the mid-range, both in diamond color and in diamond clarity, the question that remains is which of these parameters would be of more economical value among the two.

To answer this, I’d like to refer to the Rapaport Diamond Price List. A detailed review of the Rapaport Diamond Price List is beyond the scope of this article. Is short, the Rapaport Diamond Price List is the diamond price list used by wholesale dealers globally (B2B – Business-to-Business) to establish the base prices of diamonds according to the diamonds’ various characteristics. A more detailed explanation can be found here.

The diagram above is an example of a typical table form a Rapaport  List. Note that all figures are not actual figures but rather sample numbers of tutorial purposes only. That said, a quick observation at a typical table from a Rap List would reveal the point that we are trying to make, which is that a diamond's price usually decreases more steeply with clarity than with color. For example, in the table above we note that a three-step decrease in clarity (from IF to VS1) would incur a price decrease from 206 to 150, while a corresponding three-step decrease in color (from D to G) would incur a price decrease from 206 to  161.

Assuming that this is the case in most diamonds on the Rap List, we learn that color is slightly more expensive than clarity. In other words, for a given budget it would be "easier" (less expensive) for a diamond consumer to "enter the clarity mid-range" than the color mid-range. Once in the mid-range for both parameters, it would be less expensive to get a higher clarity-graded diamond than a higher color-graded diamond.

For more information, check out Zoara's learning pages on Diamond Clarity and their Diamond Color tool. Blue Nile also has a helpful education page on both diamond color and diamond clarity.