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For most people, the only time they look for diamonds is when they want wedding or engagement rings. The smart way to go about this is to find loose diamonds first and have them set later. You can inspect them for imperfections better, and maybe even get a better deal. However, you need to be meticulous when buying. It's easy to make mistakes and pay too much, or get stuck with an inferior diamond.

When looking at loose diamonds, you must check on the diamond's value. You'll want to examine each one for the four C's; carat weight, cut, clarity and color. But keep in mind that each diamond is unique, and it's unlikely for a single diamond to get two separate assessments with identical results. Ultimately, the value of a diamond is subjective, so you shouldn't be too engrossed looking for it's exact value.

The pinnacle of all diamond cuts is the round brilliant cut. Thanks to the work of Marcel Tolkowsky, the proportions needed to get the most brilliance and fire out of a diamond were determined and popularized. Further innovations streamlined Tolkowsky's measurements to optimize diamond's potential for brilliance.

The round brilliant cut is also the established favorite cut. In contrast, the popularity of fancy cuts are dependent on prevailing trends. Nowadays, people look for sparkle, so the heart, oval, and pear cuts are popular. However, the quality and value of a diamond is dependent on other factors. You can easily get a high value diamond of any cut - or low value, if you buy recklessly.

So buy a diamond jewelry gift in the cut you really want. It may be a shape that captures your or your significant other's interest, or one that elicits special memories or feelings within you. If all you want is a big diamond, and you don't mind imperfections, it's easy to get one for cheap. But even if you are buying cheap, you have to be careful with your purchases to avoid getting gypped.

When it comes time to set your loose diamond, it's safest to have it done by the same people who sold it to you. If you bring it to another jeweler, they won't want to be held responsible for any damage the diamond may incur during setting. If the seller won't take responsibility for their own diamonds, leave them for a seller who will.