The world of diamonds can be a confusing, albeit dazzling, one. Whether you’re planning on popping the question or are already engaged, selecting the right cut, quality, and price of your diamond engagement ring is an important decision, the ramifications of which will last a lifetime. The more informed you are the better off you are.

Decide on Your Budget

It’s important to decide how much you can spend before you set foot in a jewelry store. While the diamond industry pushes the two to three months salary rule don’t feel bound to this. If you can find a great deal go for it. Remember, jewelry resellers in general charge twice what they pay for diamonds so don’t be afraid to negotiate. Think of diamond brokers like glorified car salesmen who expect you to make them an offer.

Find a Store

The most important thing to remember when selecting a jewelry store is to make sure it is a member of the American Gem Corporation (AGC.) This ensures that you will be buying a diamond from a reputable, certified dealer with some accountability. Still stymied? Try asking friends and relatives where they have had good buying experiences.

The four C’s

There are four things to pay attention to when purchasing a diamond: clarity, color, cut, and carat. Above all, make sure the diamond comes with a “cert” or certificate of appraisal noting these four aspects. This means that an independent appraiser has signed off on the diamond. Without a cert, you have no way of knowing whether the diamond reseller is telling the truth about the quality of the rock.

Clarity

A diamond's clarity is the main factor in determining its price. Clarity refers to the number of imperfections in a diamond and how easily you can see them. Imperfections are categorized as "blemishes" if they are on the surface of the diamond or "inclusions" if they are on the inside. The fewer flaws a diamond has the more light is reflected and the more sparkle a stone exhibits.

The Gemological Institute of America (GIA), which sets the worldwide standards for diamonds, set up the following scale for judging a diamond's clarity: flawless, internally flawless, VVS1, VVS2, VS1, VS2, SI1, SI2, I1, I2, I3. In a flawless diamond you can't see any imperfections under 10X magnification. An I3 diamond has obvious flaws that are visible to the naked eye. For most people, a VS or SI diamond is more than adequate. While technically imperfect, you cannot tell these diamonds are flawed unless you look at them under a microscope, and they are significantly less expensive than their counterparts higher on the scale. In fact, when set in a ring and viewed by the naked eye you probably won’t be able to tell the difference.

Color

Diamonds can range in color from colorless (clear) to a faint yellow. The more colorless the diamond, the more expensive it will be. The scale to judge color created by the GIA is a follows:

• DEF=colorless

• GHIJ=near colorless

• KLM=faint yellow

• NOPQR=very light yellow

• STUVWXYZ=light yellow

• Fancy light, fancy, fancy internal=yellow

Obviously, the closer you are to D the more expensive the rock will be. As with clarity, however, you probably won’t be able to tell the difference between a D and a J when they are set in rings, and a J is far less expensive.

Cut

The cut refers to the diamond’s shape. Diamonds come in many shapes, such as the round and oval cuts, the princess and emerald cuts, square cuts, pear cuts, and so on. While cut is largely a matter of taste it also contributes to a diamond’s value. The angles of a diamond’s cut are a large factor in determining how much it sparkles, and sparkle is what determines the price tag. When light enters a diamond, the angles of the diamond’s cut bounce that light around and cause it to sparkle. How can an average consumer tell whether a diamond is cut at the right angles? The easiest way is to look at a diamond’s ability to sparkle. The more sparkle, the better the cut.

Carat

Carat refers to how much a diamond weighs. Jewelers use "points" to refer to the size and weight of a diamond, with one point = 1/100th of a carat. This means that a one carat diamond will equal 100 points.

In general, if a diamond’s clarity, color, and cut are good you can expect to pay the following for a diamond:

• 0.5 carat, $1,500

• 1.0 carat, $5,000

• 1.5 carat, $8,700

• 2.0 carat, $13,000

• 3.0 carat, $22,000

Quality vs. Quantity

If, in your hunt for the perfect diamond, you find your self a little out of your price range try moving down in size. As you can see from the chart above price drops dramatically with the carat size without compromising quality. Most people prefer to have a smaller, higher quality stone than a larger, duller one.

Another important thing to remember when buying a diamond is to view the stones loose instead of set in a ring. A setting can hide a multitude of flaws, and you want to see the diamond in its pure state before making a purchase.

Selecting a Setting

Choosing a setting for your diamond is much easier than deciding on the diamond itself. Remember, a setting that holds the diamond low or flush with itself is far less likely to snag on clothes or scratch people, but it is less showy than a setting that holds the diamond high. It’s also a good idea to determine what type of jewelry the wearer of this ring typically chooses. Gold? Silver? Platinum? White gold? Try to match the ring setting with the other jewelry this person wears. Also, check the setting to make sure it will hold the diamond safely and securely for many years to come.

Don’t be intimidated by the dazzling array of diamonds in a fancy jewelry store. With a little knowledge and the willingness to ask the right questions you can be sure you’re getting the right diamond at the right price.